Electronic Arts Inc. · NASDAQ:EA
Electronic Arts — Q1 2023 Earnings Presentation
16 slides from Electronic Arts's earnings presentation, Aug 2, 2022
Slide 1: Electronic Arts Inc. Q1 FY 2023 Results
Slide 2: Safe Harbor Statement
Safe Harbor Statement Please review our risk factors on Form 10-K filed with the SEC. Some statements set forth in this document, including the information relating to EA's fiscal 2023 guidance information and title slate contain forward-looking statements that are subject to change. Statements incl
Slide 3: Trailing twelve months
● ● ● ● trailing twelve months 3
Slide 4: Key Business Drivers - Net Bookings
Key Business Drivers —- Net Bookings (in $ millions) Q1 FY23 Total net bookings 1,299 Live services grew 8% YoY, equivalent to 10% at constant currency . . The whole EA SPORTS FIFA franchise was strong during the Live services & other 1,134 quarter. FIFA Online delivered engagement records, FIFA Mob
Slide 5: Q1 FY21 Q1 FY22 Q1 FY23
Q1 FY21 Q1 FY22 Q1 FY23 Q1 FY21 Q1 FY22 Q1 FY23 5
Slide 6: Q1 FY21 Q1 FY22 Q1 FY23
Q1 FY21 Q1 FY22 Q1 FY23 Q1 FY21 Q1 FY22 Q1 FY23 6
Slide 7: Cash Flow Selected Data
Cash Flow Selected Data Actuals Cash Flow Data (in $ millions) Ql 2023 Ql 2022 QLTTM 2023 QL TTM 2022 Investing Cash Flow (65) (1,811) (1,058) (2,308) Financing Cash Flow (476) (479) (1,617) (350) Operating Cash Flow A (78) (143) 1,964 1,413 Capital Expenditures B 59 44 203 130 Free Cash Flow A-B (1
Slide 8: Expanding, Diversified Portfolio of Live Services
Expanding, Diversified Portfolio of Live Services Active Q1 FY23 Console/PC @)FIFA227 MADDEN‘22 APEX — LEGENDS — ¢SIMS4. BATTLEFIELD i @)FIFRONLINE4 = ont Zw pogo @ PlayPro @ Play Electronic Arts Refer to appendix for additional disclosures
Slide 9: Mobile: Profitably Leveraging Our IP, Growing Our Portfolio
Mobile: Profitably Leveraging Our IP, Growing Our Portfolio Sports | Racing Shooter RPG Casual | Lifestyle | y MD EE Electronic Arts Refer to appendix for additional disclosures. 9
Slide 10: FY23 Title Slate
FY23 Title Slate al Q2 F122 FIFA 23 Madden NFL 23 Q3 Q4 Need for Speed Dead Space NHL PGA Tour Super Mega Baseball **Major IP **Partner Title **We have two titles launching in Q4:FY23 that have not yet been publicly disclosed. In addition, The Lord of the Rings: Heroes of Middle-earth Mobile is also
Slide 11: Investment in user acquisition for mobile launches; higher tax rate
investment in user acquisition for our mobile launches . higher tax rate 11
Slide 12: Twelve Months Ending March 31, 2023 GAAP-Based Financial Data
Twelve Months Ending March 31, 2023 GAAP-Based Financial Data* Change in GAAP Acquisition- deferred net Guidance related revenue (online- Stock-based Range expenses enabled games) compensation (in $ millions) Total net revenue 7,600 to 7,800 - 300 - Cost of revenue 2,020 to 2,065 (110) - (5) Operati
Slide 13: Q2 FY23 Guidance Notes
Q2 FY23 Guidance Notes (Sin millions, except EPS) Q2E Commentary, Net revenue 1,850 to 1,900 Cost of revenue 467 to 480 GAAP EPS $0.78 to $0.86 Our EPS guidance calculation does not factor in future share repurchases. Net bookings 1,725 to 1,775 Electronic Arts Refer to appendix for additional discl
Slide 14: Three Months Ending September 30, 2022 GAAP-Based Financial Data
Three Months Ending September 30, 2022 GAAP-Based Financial Data* GAAP Acquisition- Change in deferred Guidance related net revenue (online- Stock-based Range expenses enabled games) compensation (in $ millions) Total net revenue 1,850 to 1,900 - (125) - Cost of revenue 467 to 480 (30) - (2) Operati
Slide 15: Currency Assumptions
Currency Assumptions Current FX assumptions?” USD/ FY22 Q1A FY23 QLA FY23 Q2-Q4E ; EUR 1.20 1.08 1.02 Net Bookings GBP 1.40 1.28 1.20 CAD 1.23 1.27 1.29 Operating Expenses SEK 8.46 9.67 10.22 Rule of thumb If the U.S. dollar strengthens 10% against the Euro and British If the U.S. dollar strengthens
Slide 16: 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 t