Electronic Arts Inc. · NASDAQ:EA
Electronic Arts — Q2 2023 Earnings Presentation
17 slides from Electronic Arts's earnings presentation, Nov 1, 2022
Slide 1: Electronic Arts Inc. Q2 FY 2023 Results
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 2023 guidance information and ttle slate contain forward-looking statements that are subject to change. Statements inclu
Slide 3: Trailing twelve months highlights
● ● ● ● trailing twelve months ● 3
Slide 4: F1 released in Q1 this fiscal year vs. Q2 FY22
(F1 released in Q1 this fiscal year vs. Q2 FY22) 4
Slide 5: Q2 FY21 Q2 FY22 Q2 FY23
Q2 FY21 Q2 FY22 Q2 FY23 Q2 FY21 Q2 FY22 Q2 FY23 5
Slide 6: Q2 FY21 Q2 FY22 Q2 FY23
Q2 FY21 Q2 FY22 Q2 FY23 Q2 FY21 Q2 FY22 Q2 FY23 6
Slide 7: Cash Flow Selected Data
Cash Flow Selected Data Actuals Cash Flow Data (in$ millions) Q2 2023 Q2 2022 Q2TTM 2023 Q2TTM 2022 Investing Cash Flow (54) (911) (201) — (3,166) Financing Cash Flow (348) (348) (1,617) (730) Operating Cash Flow A (112) 64 1,788 1,416 Capital Expenditures B 53 43 213 148 Free Cash Flow A-B (165) 21
Slide 8: Expanding, Diversified Portfolio of Live Services
Expanding, Diversified Portfolio of Live Services Active Console/PC @FIFA23: ¢SiMS4. FIFRONLINES = pogo Electronic Arts MADDEN®23 BATTLEFIELD 2042 Sie Was eee OLD REPUBLIC @ PlayPro Refer to appendix for additional disclosures. Q@QNHL223 APEX — LEGENDS — 7 @ Play
Slide 9: Mobile: Profitably Leveraging Our IP, Growing Our Portfolio
Mobile: Profitably Leveraging Our IP, Growing Our Portfolio Sports | Racing Shooter RPG Casual | Lifestyle Electronic Arts Refer to appendix for additional disclosures 9
Slide 10: FY23 Title Slate
FY23 Title Slate Ql Q2 F122 FIFA 23 Madden NFL 23 Q3 Q4 Need for Speed Unbound Dead Space NHL 23 PGA TOUR Super Mega Baseball Wild Hearts Major IP * Titles are reflectedin alphabetical order. * Given the current mobile market conditions, we have decided to giveLord of the Rings: Heroes of Middle Ear
Slide 11: Environment, Social and Governance Highlights and Commitments
Environment, Social and Governance Highlights and Commitments 46% Increase in under- representedtalentin executive (VP+) roles over the last two years Progress in Company-wide representation among women and underrepresented talent Electronic Arts 4k $9.5M Non-profits In total giving supported throug
Slide 12: FY23 Guidance Notes
FY23 Guidance Notes (S inmillions, except EPS) FY23E Commentary Net revenue 7,580 to 7,750 Cost of revenue 1,845 to 1,890 Below our prior range, reflecting the gross margin benefit from revenue mix shift, driven by the relative strength of our console andPC franchises. GAAP EPS $3.11 to $3.34 Guidan
Slide 13: Fiscal Year Guidance
Fiscal Year Guidance The following table provides guidance for EA’s Fiscal 2023 financial performance. These preliminary estimates and expectations are based on current information as of November 1, 2022 andare subject to business and economic risks and uncertainties that could cause actual events o
Slide 14: Q3 FY23 Guidance Notes
Q3 FY23 Guidance Notes ($ in millions, except EPS) Q2E Commentary Net revenue 1,825 to 1,925 Cost of revenue 560 to 580 GAAP EPS $0.43 to $0.59 Our EPS guidance calculation does not factor in future share repurchases. Net bookings 2,425 to 2,525 Electronic Arts Refer to appendix for additional discl
Slide 15: Quarterly Guidance
Quarterly Guidance The following table provides guidance for EA’s Q3 FY23 financial performance. These preliminary estimates and expectations are based on currentinformation as of November 1, 2022 andare subject to business and economic risks and uncertainties that could cause actual events or actua
Slide 16: Currency Assumptions
Currency Assumptions Current FX assumptions!.2 USD/ FY22 Q2A FY23 Q2A FY23 Q3-Q4E . EUR 1.18 1.02 0.96 Net Bookings GBP 1.38 1.20 1.06 CAD 1.25 1.29 1.37 Operating Expenses SEK 8.63 10.39 11.38 Rule of thumb If the U.S. dollar strengthens 10% against the Euro and British If the U.S. dollar strengthe
Slide 17: Appendix
Appendix Net revenue, gross profit and operating cash flow are presented ona 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 the ch