Electronic Arts Inc. · NASDAQ:EA
Electronic Arts — Q1 2024 Earnings Presentation
17 slides from Electronic Arts's earnings presentation, Aug 1, 2023
Slide 1: Electronic Arts Inc. Q1 FY24 Results
Electronic Arts Inc. Q1 FY24 Results August 1, 2023
Slide 2: Table of Contents
Safe Harbor Statement Select Q1 FY24 Highlights Table of Net Bookings Results Existing Live Services and FY24 Title Slate Contents Introducing EA SPORTS FC Guidance Appendix
Slide 3: 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 2024 guidance information and title slate contain forward-looking statements that are subject to change. Statements inclu
Slide 4: Select Q1 FY24 Highlights
Select Q1 FY24 Highlights $5.6B EA reported record FIFA Ultimate Team net bookings for Q1 daily average users with growth of 21% increased 15% year Live Services TTM year over year Net Bookings over year in Q1 $7.6B Live Services represented 75% of total net bookings $2.0B Total TTM Net Bookings TTM
Slide 5: Net Bookings by Composition
Net Bookings by Composition (in $ millions) Quarterly Trailing 12 Months YoY YoY CC YoY 1,578 +21% +25% +2% 7,478 7,620 1,336 1,299 401 +143% +152% 6,136 2,028 2,047 +1% 282 165 1,593 1,134 1,177 +4% +7% 1,054 5,450 5,573 +2% 4,543 Q1 FY22 Q1 FY23 Q1 FY24 Q1 FY22 Q1 FY23 Q1 FY24 • Record Q1 FY24 net
Slide 6: Net Bookings by Platform
Net Bookings by Platform (in $ millions) Quarterly Trailing 12 Months YoY YoY CC YoY 1,578 +21% +25% 7,478 7,620 +2% 1,336 1,299 6,136 901 +41% +46% 4,558 4,602 +1% 694 637 3,967 370 348 374 +7% +11% 1,685 1,785 +6% 1,340 272 314 303 (4%) (2%) 1,235 1,233 0% 829 Q1 FY22 Q1 FY23 Q1 FY24 Q1 FY22 Q1 FY
Slide 7: Existing Live Services and FY24 Title Slate
Existing Live Services and FY24 Title Slate FY24: Announced Titles* PGA Tour (launched 4/7) Star Wars: Jedi Survivor (launched 4/28) Massive Online Lord of the Rings: Heroes of Middle-Earth Communities (launched 5/10) Super Mega Baseball 4 (launched 6/2) F1 23 (launched 6/16) Blockbusters & Madden N
Slide 8: Introducing EA SPORTS FC
Introducing EA SPORTS FC Delivering a breakthrough experience in FC24 with authenticity and innovation at its core Building a connected ecosystem with Unrivaled authenticity Gameplay Trinity of Technology 19,000+ players 700+ teams HyperMotionV* 300+ license partners Frostbite™ Engine 30+ leagues Pl
Slide 9: Q2 and FY24 Guidance
Q2 and FY24 Guidance (in $ millions, except EPS) Q2 FY24E FY24E Net Revenue 1,825 to 1,925 7,300 to 7,700 Cost of Revenue 430 to 450 1,670 to 1,750 GAAP EPS $0.72 to $0.89 $3.42 to $3.92 Operating Cash Flow n/a 1,700 to 1,850 Net Bookings 1,700 to 1,800 7,300 to 7,700 Note: Our EPS guidance calculat
Slide 10: Appendix
Guidance Details Cash Flow Selected Data Appendix Currency Assumptions Constant Currency Reconciliation Additional Disclosures
Slide 11: Guidance Details: Q2 FY24
Guidance Details: Q2 FY24 The following provides guidance for EA's Fiscal 2024 financial performance as of August 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: FY24
Guidance Details: FY24 The following provides guidance for EA's Fiscal 2024 financial performance as of August 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 and p
Slide 13: Cash Flow Selected Data
Cash Flow Selected Data (in $ millions) Actuals Q1 2024 Q1 2023 TTM Q1 2024 TTM Q1 2023 Operating Cash Flow 359 (78) 1,987 1,964 Capital Expenditures 45 59 193 203 Free Cash Flow 314 (137) 1,794 1,761 Investing Cash Flow (44) (65) (196) (1,058) Financing Cash Flow (482) (476) (1,606) (1,617)
Slide 14: Currency Assumptions
Currency Assumptions Current FX assumptions 1,2 USD/ Q1 2023 Q1 2024 Q2-Q4E 2024 EUR 1.08 1.09 1.09 Net Bookings GBP 1.28 1.24 1.26 CAD 1.27 1.36 1.33 Operating Expenses SEK 9.67 10.47 10.79 Rule of thumb If the U.S. dollar strengthens 10% against the Euro and British pound sterling: If the U.S. dol
Slide 15: Constant Currency Reconciliation – Net Bookings
Constant Currency Reconciliation – Net Bookings (in $ millions) Percentage Q1 2024 Q1 2023 Percentage Q1 2024 Change YoY As Reported As Reported Change YoY Currency Impact Constant Currency Console 901 637 +41% 22 +46% PC & other 374 348 +7% 12 +11% Mobile 303 314 (4%) 6 (2%) Net Bookings 1,578 1,29
Slide 16: Constant Currency Reconciliation – Net Bookings Guidance
Constant Currency Reconciliation – Net Bookings Guidance (in $ millions) Percentage Q2 2024 Q2 2023 Percentage Currency Impact Change YoY As Guidance As Reported Change YoY Constant Currency Low 1,700 1,754 (3%) 27 (2%) High 1,800 1,754 +3% 27 +4% Percentage 2024 2023 Percentage Currency Impact Chan
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