Electronic Arts Inc. · NASDAQ:EA
Electronic Arts — Q4 2024 Earnings Presentation
19 slides from Electronic Arts's earnings presentation, May 7, 2024
Slide 1: Electronic Arts Inc. Q4 and FY24 Results
Electronic Arts Inc. Q4 and FY24 Results May 7, 2024
Slide 2: Table of Contents
Safe Harbor Statement Select FY24 Highlights Table of Net Bookings Results Core Business and FY25 Title Slate Contents FY24 Actuals & Guidance GAAP to Non-GAAP Reconciliation Appendix 2
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 2025 guidance information and title slate contain forward-looking statements that are subject to change. Statements inclu
Slide 4: Select FY24 Highlights
Select FY24 Highlights Our global football franchise grew net bookings by $5.4B Apex Legends $3.4B in lifetime net bookings high-teens percent in FY24 Live Services Net Bookings in FY24 73% of total net bookings $7.4B New stock repurchase program of $5B over 3 years $2.3B Total net bookings Record F
Slide 5: Net Bookings by Composition
Net Bookings by Composition (in $ millions) Quarterly Fiscal Year YoY YoY CC YoY YoY CC 7,515 7,341 7,430 +1% +3% 1,946 1,751 2,145 1,811 2,005 +11% +12% 324 1,666 (14%) (14%) 267 259 (20%) (21%) 1,622 5,530 5,425 (2%) (1%) 1,484 1,407 5,370 (13%) (12%) Q4 FY22 Q4 FY23 Q4 FY24 FY22 FY23 FY24 Full ga
Slide 6: Net Bookings by Platform
Net Bookings by Platform (in $ millions) Quarterly Fiscal Year YoY YoY CC YoY YoY CC 7,515 7,341 7,430 +1% +3% 1,946 1,751 1,666 (14%) (14%) 4,615 4,338 4,614 +6% +8% 1,099 1,006 955 (13%) (13%) 516 1,707 1,759 1,629 (7%) (6%) 423 413 (20%) (19%) 322 331 298 (10%) (9%) 1,193 1,244 1,187 (5%) (4%) Q4
Slide 7: Core Business and FY25 Title Slate
Core Business and FY25 Title Slate Ecosystems New Releases in FY25* Tales of Kenzera : ZAU (Apr 23) EA SPORTS College Football 25 EA SPORTS F1 24© (May 31) EA SPORTS Madden NFL 25 EA SPORTS FC 25 EA SPORTS NHL 25 Partner title * We have two unannounced titles in FY25: one partner title expected in Q
Slide 8: FY24 Actuals, Q1 & FY25 Guidance
FY24 Actuals, Q1 & FY25 Guidance (in $ millions, except EPS) FY24A FY25E Q1 FY25E Net Revenue 7,562 7,100 to 7,500 1,575 to 1,675 Cost of Revenue 1,710 1,480 to 1,520 240 to 250 GAAP EPS $4.68 $3.34 to $4.00 $0.73 to $0.90 Operating Cash Flow 2,315 2,050 to 2,250 -- GAAP Operating Margin 20.1% 18.0%
Slide 9: GAAP to Non-GAAP Reconciliation: FY24 Actuals
GAAP to Non-GAAP Reconciliation: FY24 Actuals Twelve Months Ended March 31, 2024 A B C D =A+B+C+D GAAP1 Acquisition- Restructuring and Stock-based Non-GAAP Change in deferred net related related charges1 compensation1 revenue (online-enabled expenses1 games)1 (in $ millions) Net revenue 7,562 - - -
Slide 10: GAAP to Non-GAAP Reconciliation: FY25 Guidance
GAAP to Non-GAAP Reconciliation: FY25 Guidance Twelve Months Ending March 31, 2025 A B C D =A+B+C+D GAAP Guidance Acquisition- Restructuring Stock-based Non-GAAP Change in deferred net Range1 related and related compensation1 Guidance revenue (online-enabled expenses1 charges1 Range games)1 (in $ mi
Slide 11: Q1 FY25 Guidance
Q1 FY25 Guidance Three Months Ending June 30, 2024 GAAP Guidance Acquisition- Change in deferred net Restructuring and Stock-based Range1 related revenue (online-enabled related charges1 compensation1 expenses1 games)1 (in $ millions) Net revenue 1,575 to 1,675 - (425) - - Cost of revenue 240 to 250
Slide 12: Appendix
Cash Flow Selected Data Currency Assumptions Appendix Constant Currency Reconciliation Additional Disclosures Non-GAAP Financial Measures 12
Slide 13: Cash Flow Selected Data
Cash Flow Selected Data (in $ millions) Actuals Q4 2024 Q4 2023 TTM Q4 2024 TTM Q4 2023 Operating Cash Flow 580 617 2,315 1,550 Capital Expenditures 51 47 199 207 Free Cash Flow 529 570 2,116 1,343 Investing Cash Flow (49) (37) (207) (217) Financing Cash Flow (360) (358) (1,624) (1,600) 13 Free cash
Slide 14: Currency Assumptions
Currency Assumptions Current FX assumptions 1,2 USD/ Q4 2023 Q4 2024 FY 2025E EUR 1.07 1.09 1.08 Net Bookings GBP 1.22 1.27 1.26 CAD 1.35 1.34 1.36 Operating Expenses SEK 10.33 10.26 10.61 Rule of thumb If the U.S. dollar strengthens 10% against the Euro and British pound sterling: If the U.S. dolla
Slide 15: Constant Currency Reconciliation – Net Bookings Guidance
Constant Currency Reconciliation – Net Bookings Guidance (in $ millions) Percentage 2025 2024 Percentage Currency Impact Change YoY As Guidance As Reported Change YoY Constant Currency Low 7,300 7,430 (2%) (8) (2%) High 7,700 7,430 +4% (8) +4% Percentage Q1 2025 Q1 2024 Percentage Currency Impact Ch
Slide 16: Constant Currency Reconciliation – Net Bookings (FY)
Constant Currency Reconciliation – Net Bookings (FY) (in $ millions) Percentage 2024 2023 Percentage 2024 Change YoY As Reported As Reported Change YoY Currency Impact Constant Currency Console 4,614 4,338 +6% 48 +8% PC & other 1,629 1,759 (7%) 35 (6%) Mobile 1,187 1,244 (5%) 11 (4%) Net Bookings 7,
Slide 17: Constant Currency Reconciliation – Net Bookings (Q4)
Constant Currency Reconciliation – Net Bookings (Q4) (in $ millions) Percentage Q4 2024 Q4 2023 Percentage Q4 2024 Change YoY As Reported As Reported Change YoY Currency Impact Constant Currency Console 955 1,099 (13%) 4 (13%) PC & other 413 516 (20%) 7 (19%) Mobile 298 331 (10%) 3 (9%) Net Bookings
Slide 18: 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
Slide 19: Non-GAAP Financial Measures
Non-GAAP Financial Measures As a supplement to the Company’s financial measures presented in accordance with U.S. Generally Accepted Accounting Principles (“GAAP”), the Company presents certain non-GAAP measures of financial performance, including non-GAAP operating income, non-GAAP operating margin