Slide 1: Electronic Arts Inc. Q4 and FY23 Results
Electronic Arts Inc. Q4 and FY23 Results May 9, 2023
Slide 2: Safe Harbor Statement
Safe Harbor Statement Please review our risk factors on Form 10-Q filed with the SEC. Some statements set forth in this document, including the information relating to EA’s fiscal 2024 guidance information and title slate contain forward- looking statements that are subject to change. Statements inc
Slide 3: Select Operating Highlights and Metrics
Select Operating Highlights and Metrics EA SPORTS FIFA 23 most Live services sets Life-to-date, Sims 4 player successful franchise launch new all-time record network has grown to more in history, surpassing life- net bookings for Q4 than 70 million worldwide time sales of EA SPORTS and FY23 FIFA 22.
Slide 4: Net Bookings Results: Q4 FY23 Key Business Drivers
Net Bookings Results: Q4 FY23 Key Business Drivers (in $ millions) Up 11% year-over-year, 15% in constant currency, driven by record Total net bookings 1,946 live services quarter and strength in full game. Up 9% year-over-year, 13% in constant currency, as EA SPORTS Live services & other 1,622 FIFA
Slide 5: Net Bookings Results: Net Bookings by Composition
Net Bookings Results: Net Bookings by Composition (in $ millions) Q4 FY21 Q4 FY22 Q4 FY23 Q4 FY21 Q4 FY22 Q4 FY23 Refer to appendix for additional disclosures. 6
Slide 6: Net Bookings Results: Net Bookings by Platform
Net Bookings Results: Net Bookings by Platform (in $ millions) Q4 FY21 Q4 FY22 Q4 FY23 Q4 FY21 Q4 FY22 Q4 FY23 Refer to appendix for additional disclosures. 7
Slide 7: Cash Flow Selected Data
Cash Flow Selected Data (in $ millions) Actuals Q4 2023 Q4 2022 Q4 TTM 2023 Q4 TTM 2022 Investing cash flow (37) (33) (217) (2,804) Financing cash flow (358) (351) (1,600) (1,620) Operating cash flow A 617 444 1,550 1,899 Capital expenditures B 47 53 207 188 Free cash flow A–B 570 391 1,343 1,711 8
Slide 8: Existing Live Services and FY24 Title Slate
Existing Live Services and FY24 Title Slate Denotes new title releasing in FY24 Massive Online Communities Denotes annual full game release FY24 Slate – Announced Titles • PGA Tour (Launched April 7th, 2023) • Star Wars Jedi: Survivor (Launched April 28th, 2023) • Lord of the Rings: Heroes of Middle
Slide 9: Introducing EA Sports FC
Introducing EA Sports FC The next chapter of the world's game EA SPORTS fans will experience unrivaled authenticity with access to more than: 19,000 700 Fully licensed Teams players 30 300+ Leagues Global football partners Read more about our new EA SPORTS FC brand in our press release here. Refer t
Slide 10: Guidance: FY24 Guidance Notes
Guidance: FY24 Guidance Notes ($ in millions, except EPS) FY24E Net revenue 7,300 to 7,700 Reflecting anticipated gross margin expansion driven by mix of revenue across Cost of revenue 1,670 to 1,750 royalty-bearing licenses, platform and digital. GAAP EPS $3.30 to $3.81 Our EPS guidance calculation
Slide 11: Guidance: Fiscal Year 2024
Guidance: Fiscal Year 2024 The following provides guidance for EA's Fiscal 2024 financial performance as of May 9, 2023. The following outlook for GAAP-based financial data and a long-term tax rate of 19% are used internally by EA to adjust our GAAP expectations to assess EA’s operating results and
Slide 12: Guidance: Q1 FY24 Guidance Notes
Guidance: Q1 FY24 Guidance Notes ($ in millions, except EPS) Q1E Commentary Net revenue 1,825 to 1,925 Cost of revenue 350 to 370 GAAP EPS $0.98 to $1.14 Our EPS guidance calculation does not factor in future share repurchases. Net bookings 1,500 to 1,600 Up 15% to 23%, or up 19% to 27% in constant
Slide 13: Guidance: First Quarter 2024
Guidance: First Quarter 2024 The following table provides guidance for EA’s Q1 FY24 financial performance as of May 9, 2023. The following outlook for GAAP-based financial data and a long-term tax rate of 19% are used internally by EA to adjust our GAAP expectations to assess EA’s operating results
Slide 14: Currency Assumptions
Currency Assumptions Current FX assumptions1,2 USD/ FY22 Q4A FY23 Q4A FY24E EUR 1.13 1.07 1.07 Net bookings GBP 1.35 1.22 1.21 CAD 1.27 1.35 1.35 Operating expenses SEK 9.21 10.33 10.34 Rule of thumb If the U.S. dollar strengthens 10% against the Euro and British If the U.S. dollar strengthens 10% a
Slide 15: Constant Currency: Three Months Ended March 31, 2023
Constant Currency (in $ millions) Three Months Ended March 31, 2023 Q4 2023 Q4 2022 Percentage Q4 2023 Percentage Change YoY As Reported As Reported Change YoY Currency Impact Constant Currency Console 1,099 1,006 +9% 41 +13% PC & other 516 423 +22% 22 +27% Mobile 331 322 +3% 8 +5% Net bookings 1,94
Slide 16: Constant Currency: Twelve and Three Months Ended March 31, 2023
Constant Currency (in $ millions) Twelve Months Ended March 31, 2023 2023 2022 Percentage 2023 Percentage Change YoY As Reported As Reported Change YoY Currency Impact Constant Currency Full game 1,811 2,145 (16%) 56 (13%) Live services & other 5,530 5,370 +3% 188 +6% Net bookings 7,341 7,515 (2%) 2
Slide 17: Constant Currency – Net bookings guidance
Constant Currency – Net bookings guidance (in $ millions) Twelve Months Ending March 31, 2024 2024 2023 Percentage Percentage Change YoY Currency Impact As Guidance As Reported Change YoY Constant Currency Low 7,300 7,341 (1%) 136 +1% High 7,700 7,341 +5% 136 +7% Three Months Ending June 30, 2023 Q1
Slide 18: Appendix
Appendix • Net revenue, gross profit and operating cash flow are presented on a GAAP basis. • Net bookings is an operating metric that EA defines as the net amount of products and services sold digitally or sold -in physically in the period. Net bookings is calculated by adding total net revenue to