Electronic Arts Inc. · NASDAQ:EA
Electronic Arts — Q3 2024 Earnings Presentation
17 slides from Electronic Arts's earnings presentation, Jan 30, 2024
Slide 1: Electronic Arts Inc. Q3 FY24 Results
Electronic Arts Inc. Q3 FY24 Results January 30, 2024
Slide 2: Table of Contents
Safe Harbor Statement Select Q3 FY24 Highlights Table of Net Bookings Results Existing Live Services and FY24 Title Slate Contents Guidance 2023: Year in Gaming 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 title slate contain forward-looking statements that are subject to change. Statements inclu
Slide 4: Select Q3 FY24 Highlights
Select Q3 FY24 Highlights EA SPORTS FC grew Net Bookings +7% TM $1.7B EA SPORTS Madden NFL TM grew Net Bookings +5% year over year in Q3 Record Live Services year over year in Q3 Net Bookings in Q3 $7.7B Live Services represented 73% of total TTM Net Bookings $2.2B Total TTM Net Bookings Record TTM
Slide 5: Net Bookings by Composition
Net Bookings by Composition (in $ millions) Quarterly Trailing 12 Months YoY YoY CC YoY 7,710 +8% 2,577 7,254 2,366 +1% +2% 7,146 2,342 2,070 +18% 900 2,065 1,754 687 654 (5%) (4%) 5,392 5,640 +5% 1,677 1,655 1,712 +3% +5% 5,189 Q3 FY22 Q3 FY23 Q3 FY24 Q3 FY22 Q3 FY23 Q3 FY24 Full game Live services
Slide 6: Net Bookings by Platform
Net Bookings by Platform (in $ millions) Quarterly Trailing 12 Months YoY YoY CC YoY 7,710 +8% 2,577 7,254 7,146 2,342 2,366 +1% +2% 4,758 +12% 4,559 4,245 1,746 1,575 1,606 +2% +3% 1,666 1,732 +4% 1,630 511 464 453 (2%) 0% 320 303 307 +1% +2% 1,065 1,235 1,220 (1%) Q3 FY22 Q3 FY23 Q3 FY24 Q3 FY22 Q
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: Q4 and FY24 Guidance
Q4 and FY24 Guidance (in $ millions, except EPS) Q4 FY24E FY24E Net Revenue 1,625 to 1,925 7,408 to 7,708 Cost of Revenue 360 to 410 1,713 to 1,763 GAAP EPS* $0.20 to $0.68 $4.21 to $4.68 Operating Cash Flow n/a 1,950 to 2,100 Net Bookings 1,625 to 1,925 7,389 to 7,689 Note: Our EPS guidance calcula
Slide 9: 2023: Year in Gaming
2023: Year in Gaming Reflecting on the games that engaged and inspired our global player communities this year. Engagement Highlights 1.7 billion total cross-play matches 1.8 billion hours played EA SPORTS FC Sims 4 47.9 million hours watched of ALGS* 6.4 million Super Bowls won Apex Legends EA SPOR
Slide 10: Appendix
Guidance Details Cash Flow Selected Data Appendix Currency Assumptions Constant Currency Reconciliation Additional Disclosures
Slide 11: Guidance Details: Q4 FY24
Guidance Details: Q4 FY24 The following provides guidance for EA's Q4 Fiscal 2024 financial performance as of January 30, 2024. 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 12: Guidance Details: FY24
Guidance Details: FY24 The following provides guidance for EA's Fiscal 2024 financial performance as of January 30, 2024. 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
Slide 13: Cash Flow Selected Data
Cash Flow Selected Data (in $ millions) Actuals Q3 2024 Q3 2023 TTM Q3 2024 TTM Q3 2023 Operating Cash Flow 1,264 1,123 2,352 1,377 Capital Expenditures 52 48 195 213 Free Cash Flow 1,212 1,075 2,157 1,164 Investing Cash Flow (51) (61) (195) (213) Financing Cash Flow (431) (418) (1,622) (1,593) Free
Slide 14: Currency Assumptions
Currency Assumptions Current FX assumptions 1,2 USD/ Q3 2023 Q3 2024 Q4E 2024 EUR 1.00 1.07 1.11 Net Bookings GBP 1.14 1.23 1.28 CAD 1.36 1.37 1.32 Operating Expenses SEK 10.94 10.89 10.00 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 Q4 2024 Q4 2023 Percentage Currency Impact Change YoY As Guidance As Reported Change YoY Constant Currency Low 1,625 1,946 (16%) +11 (16%) High 1,925 1,946 (1%) +11 (1%) Percentage 2024 2023 Percentage Currency Impac
Slide 16: Constant Currency Reconciliation – Net Bookings
Constant Currency Reconciliation – Net Bookings (in $ millions) Percentage Q3 2024 Q3 2023 Percentage Q3 2024 Change YoY As Reported As Reported Change YoY Currency Impact Constant Currency Console 1,606 1,575 +2% 14 +3% PC & other 453 464 (2%) 7 0% Mobile 307 303 +1% 1 +2% Net Bookings 2,366 2,342
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