Slide 1: Electronic Arts Inc. Q2 FY24 Results
Electronic Arts Inc. Q2 FY24 Results November 1, 2023
Slide 2: Table of Contents
Safe Harbor Statement Select Q2 FY24 Highlights Table of Net Bookings Results Existing Live Services and FY24 Title Slate Contents Guidance 2023 Impact Report Highlights Appendix
Slide 3: 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 t itle slate contain forward-looking statements that are subject to change. Statements incl
Slide 4: Select Q2 FY24 Highlights
Select Q2 FY24 Highlights +4% Total Net Bookings $5.6B +6% Live Services TTM EA SPORTS Madden NFL Growth YoY Net Bookings Net Bookings YoY $7.7B 73% Live Services Percent $2.2B Total TTM Net Bookings TTM Operating Cash Flow of TTM Net Bookings Refer to Appendix for additional disclosures
Slide 5: Net Bookings by Composition
Net Bookings by Composition (in $ millions) Quarterly Trailing 12 Months YoY YoY CC YoY 1,851 1,820 +4% +5% 7,381 7,686 +4% 1,754 7,077 1,967 2,103 +7% 696 691 +9% +10% 2,023 635 5,414 5,583 +3% 1,155 1,119 1,129 +1% +2% 5,054 Q2 FY22 Q2 FY23 Q2 FY24 Q2 FY22 Q2 FY23 Q2 FY24 Full game Live services a
Slide 6: Net Bookings by Platform
Net Bookings by Platform (in $ millions) Quarterly Trailing 12 Months YoY YoY CC YoY 1,851 1,820 7,686 +4% 1,754 +4% +5% 7,381 7,077 1,169 1,027 1,152 +12% +14% 4,416 4,727 +7% 4,623 403 431 389 (10%) (9%) 1,713 1,743 +2% 1,518 279 296 279 (6%) (5%) 936 1,252 1,216 (3%) Q2 FY22 Q2 FY23 Q2 FY24 Q2 FY
Slide 7: Existing Live Services and FY24 Title Slate
Existing Live Services and FY24 Title Slate FY24: Announced Titles EA SPORTS PGA Tour (launched Apr 7) Star Wars Jedi: Survivor (launched Apr 28) Massive Online The Lord of the Rings: Heroes of Middle Earth (launched May 10) Communities EA SPORTS Super Mega Baseball 4 (launched Jun 2) EA SPORTS F1 2
Slide 8: Q3 and FY24 Guidance
Q3 and FY24 Guidance (in $ millions, except EPS) Q3 FY24E FY24E Net Revenue 1,825 to 2,025 7,300 to 7,700 Cost of Revenue 495 to 535 1,670 to 1,750 GAAP EPS $0.75 to $1.01 $4.10 to $4.66 Operating Cash Flow n/a 1,950 to 2,100 Net Bookings 2,250 to 2,450 7,300 to 7,700 Note: Our EPS guidance calculat
Slide 9: Environmental, Social, & Governance Highlights and Commitments
Environmental, Social, & Governance Highlights and Commitments 2023 Impact Report 3 years of $6.8M and 11,700 Set our ambition to be consistent growth volunteer hours investing in communities carbon neutral by in underrepresented talent in 2027 through social impact executive (VP+) roles programs Co
Slide 10: Appendix
Guidance Details Cash Flow Selected Data Appendix Currency Assumptions Constant Currency Reconciliation Additional Disclosures
Slide 11: Guidance Details: FY24
Guidance Details: FY24 The following provides guidance for EA's Fiscal 2024 financial perform ance as of November 1, 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 an
Slide 12: Guidance Details: Q3 FY24
Guidance Details: Q3 FY24 The following provides guidance for EA's Q3 Fiscal 2024 financial performance as of November 1, 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 resul
Slide 13: Cash Flow Selected Data
Cash Flow Selected Data (in $ millions) Actuals Q2 2024 Q2 2023 TTM Q2 2024 TTM Q2 2023 Operating Cash Flow 112 (112) 2,211 1,788 Capital Expenditures 51 53 191 213 Free Cash Flow 61 (165) 2,020 1,575 Investing Cash Flow (63) (54) (205) (201) Financing Cash Flow (351) (348) (1,609) (1,617)
Slide 14: Currency Assumptions
Currency Assumptions Current FX assumptions 1,2 USD/ Q2 2023 Q2 2024 Q3-Q4E 2024 EUR 1.02 1.09 1.05 Net Bookings GBP 1.20 1.27 1.21 CAD 1.29 1.33 1.35 Operating Expenses SEK 10.39 10.72 11.02 Rule of thumb If the U.S. dollar strengthens 10% against the Euro and British pound sterling: If the U.S. do
Slide 15: Constant Currency Reconciliation – Net Bookings Guidance
Constant Currency Reconciliation – Net Bookings Guidance (in $ millions) Percentage Q3 2024 Q3 2023 Percentage Currency Impact Change YoY As Guidance As Reported Change YoY Constant Currency Low 2,250 2,342 (4%) 38 (2%) High 2,450 2,342 +5% 38 +6% Percentage 2024 2023 Percentage Currency Impact Chan
Slide 16: Constant Currency Reconciliation – Net Bookings
Constant Currency Reconciliation – Net Bookings (in $ millions) Percentage Q2 2024 Q2 2023 Percentage Q2 2024 Change YoY As Reported As Reported Change YoY Currency Impact Constant Currency Console 1,152 1,027 +12% 8 +14% PC & other 389 431 (10%) 8 (9%) Mobile 279 296 (6%) 2 (5%) Net Bookings 1,820
Slide 17: Additional Disclosures
Additional Disclosures 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 re