Recent Quotes View Full List My Watchlist Create Watchlist Indicators DJI Nasdaq Composite SPX Gold Crude Oil Hydroworld Market Index Markets Stocks ETFs Tools Overview News Currencies International Treasuries Electronic Arts Reports Q4 and FY23 Results By: Electronic Arts Inc. via Business Wire May 09, 2023 at 16:05 PM EDT Record Q4 net bookings driven by all-time high EA SPORTS FIFA franchise performance; Company carries strong momentum into brand launch of EA SPORTS FC Electronic Arts Inc. (NASDAQ: EA) today announced preliminary financial results for its fourth quarter and fiscal year ended March 31, 2023. “EA delivered a strong Q4 with record net bookings, up 11 percent year-over-year, demonstrating the strength of our business. Our teams continue to create high quality entertainment, fueled by amazing games and deeply engaging live services,” said Andrew Wilson, CEO of Electronic Arts. “We're excited to continue our momentum, including the highly anticipated launch of EA SPORTS FC later this year.” "Record live services performance and increased engagement, particularly from our EA SPORTS FIFA franchise, drove better-than-expected Q4 net bookings, capping a strong finish to the fiscal year," said Chris Suh, CFO. "Looking ahead, our teams remain disciplined in prioritizing the player experience as we continue to focus our investments on long-term growth." Selected Operating Highlights and Metrics1 Net bookings2 for Q4 was $1.946 billion, up 11% year-over-year (up 15% in constant currency). Live services and other net bookings for Q4 was $1.622 billion, a record for the quarter, up 9% year-over-year (up 13% in constant currency) and represented 83% of total net bookings. The EA SPORTS FIFA franchise Q4 net bookings grew 31% year-over-year (up 37% in constant currency). In the six months since launch, EA SPORTS FIFA 23 has surpassed life-time sales of EA SPORTS FIFA 22, becoming the most successful launch in franchise history. Apex Legends delivered net bookings growth in Q4 year-over-year at constant currency, driven by a successful Season 16 with peak weekly active users up over 20% from the previous season. Life-to-date, The Sims 4 player network has grown to more than 70 million worldwide. Selected Financial Highlights and Metrics Net revenue was $1.874 billion for the quarter and $7.426 billion for the fiscal year. Net cash provided by operating activities was $617 million for the quarter and $1.550 billion for the fiscal year. EA repurchased 2.7 million shares for $325 million during the quarter, bringing the total for the fiscal year to 10.4 million shares for $1.295 billion. Dividend EA has declared a quarterly cash dividend of $0.19 per share of the Company’s common stock. The dividend is payable on June 21, 2023 to shareholders of record as of the close of business on May 31, 2023. Quarterly Financial Highlights Three Months Ended March 31, 2023 2022 (in $ millions, except per share amounts) Full game 372 438 Live services and other 1,502 1,387 Total net revenue 1,874 1,825 Net income (loss) (12 ) 225 Diluted earnings (loss) per share (0.04 ) 0.80 Operating cash flow 617 444 Value of shares repurchased 325 325 Number of shares repurchased 2.7 2.5 Cash dividend paid 52 48 The following GAAP-based financial data3,4 and tax rate of 19% was used internally by company management to adjust its GAAP results in order to assess EA’s operating results: Three Months Ended March 31, 2023 GAAP-Based Financial Data (in $ millions) Statement ofOperations Acquisition-relatedexpenses Change indeferrednet revenue(online-enabledgames) Restructuringand relatedcharges Stock-basedcompensation Total net revenue 1,874 - 72 - - Cost of revenue 448 (25 ) - - (2 ) Gross profit 1,426 25 72 - 2 Total operating expenses 1,251 (26 ) - (155 ) (140 ) Operating income 175 51 72 155 142 Interest and other income (expense), net 6 - - - - Income before provision for income taxes 181 51 72 155 142 Number of shares used in computation: Diluted 274 Fiscal Year Financial Highlights Twelve Months Ended March 31, 2023 2022 (in $ millions) Full game 1,937 1,993 Live services and other 5,489 4,998 Total net revenue 7,426 6,991 Net income 802 789 Diluted earnings per share 2.88 2.76 Operating cash flow 1,550 1,899 Value of shares repurchased 1,295 1,300 Number of shares repurchased 10.4 9.5 Cash dividend paid 210 193 The following GAAP-based financial data3,4 and a tax rate of 19% was used internally by company management to adjust its GAAP results in order to assess EA’s operating results. Twelve Months Ended March 31, 2023 GAAP-Based Financial Data (in $ millions) Statement ofOperations Acquisition-relatedexpenses Change indeferred netrevenue(online-enabledgames) Restructuringand relatedcharges Stock-basedcompensation Total net revenue 7,426 - (85 ) - - Cost of revenue 1,792 (120 ) - - (7 ) Gross profit 5,634 120 (85 ) - 7 Total operating expenses 4,302 (158 ) - (155 ) (541 ) Operating income 1,332 278 (85 ) 155 548 Interest and other income (expense), net (6 ) - - - - Income before provision for income taxes 1,326 278 (85 ) 155 548 Number of shares used in computation: Diluted 278 Operating Metric The following is a calculation of our total net bookings2 for the periods presented: Three Months Ended Twelve Months Ended March 31, March 31, 2023 2022 2023 2022 (in $ millions) Total net revenue 1,874 1,825 7,426 6,991 Change in deferred net revenue (online-enabled games) 72 (74 ) (85 ) 524 Total net bookings 1,946 1,751 7,341 7,515 Business Outlook as of May 9, 2023 Fiscal Year 2024 Expectations – Ending March 31, 2024 Financial metrics: Net revenue is expected to be approximately $7.300 billion to $7.700 billion. No change in deferred net revenue (online-enabled games) is expected. Net income is expected to be approximately $915 million to $1.055 billion. Diluted earnings per share is expected to be approximately $3.30 to $3.81. Operating cash flow is expected to be approximately $1.700 billion to $1.850 billion. The Company estimates a share count of 277 million for purposes of calculating fiscal year 2024 diluted earnings per share. Operational metric: Net bookings2 is expected to be approximately $7.300 billion to $7.700 billion. In addition, the following outlook for GAAP-based financial data3,4 and long-term tax rate of 19% are used internally by EA to adjust GAAP expectations to assess EA’s operating results and plan for future periods: Twelve Months Ending March 31, 2024 GAAP-Based Financial Data* GAAPGuidanceRange Acquisition-relatedexpenses Change indeferred netrevenue (online-enabled games) Restructuringand relatedcharges Stock-basedcompensation (in $ millions) Total net revenue 7,300 to 7,700 - - - - Cost of revenue 1,670 to 1,750 (65 ) - - (5 ) Operating expense 4,295 to 4,415 (95 ) - (25 ) (635 ) Income before provision for income taxes 1,346 to 1,551 160 - 25 640 Net income 915 to 1,055 Number of shares used in computation: Diluted shares 277 * The mid-point of the range has been used for purposes of presenting the reconciling items. First Quarter Fiscal Year 2024 Expectations – Ending June 30, 2023 Financial metrics: Net revenue is expected to be approximately $1.825 billion to $1.925 billion. Change in deferred net revenue (online-enabled games) is expected to be approximately ($325) million. Net income is expected to be approximately $271 million to $316 million. Diluted earnings per share is expected to be approximately $0.98 to $1.14. The Company estimates a share count of 277 million for purposes of calculating first quarter fiscal 2024 diluted earnings per share. Operational metric: Net bookings2 is expected to be approximately $1.500 billion to $1.600 billion. In addition, the following outlook for GAAP-based financial data3,4 and long-term tax rate of 19% are used internally by EA to adjust GAAP expectations to assess EA’s operating results and plan for future periods: Three Months Ending June 30, 2023 GAAP-Based Financial Data* GAAPGuidanceRange Acquisition-relatedexpenses Change indeferred netrevenue (online-enabled games) Restructuringand relatedcharges Stock-basedcompensation (in $ millions) Total net revenue 1,825 to 1,925 - (325 ) - - Cost of revenue 350 to 370 (20 ) - - - Operating expense 1,065 to 1,085 (25 ) - (20 ) (140 ) Income before provision for income taxes 410 to 479 45 (325 ) 20 140 Net income 271 to 316 Number of shares used in computation: Diluted shares 277 * The mid-point of the range has been used for purposes of presenting the reconciling items. Conference Call and Supporting Documents Electronic Arts will host a conference call on May 9, 2023 at 2:00 pm PT (5:00 pm ET) to review its results for the fourth fiscal quarter and fiscal year ended March 31, 2023 and its outlook for the future. During the course of the call, Electronic Arts may disclose material developments affecting its business and/or financial performance. Listeners may access the conference call live through the following dial-in number (888) 330-2446 (domestic) or (240) 789-2732 (international), using the conference code 5939891 or via webcast at EA’s IR Website at http://ir.ea.com. EA has posted a slide presentation with a financial model of EA’s historical results and guidance on EA’s IR Website. EA will also post the prepared remarks and a transcript from the conference call on EA’s IR Website. A dial-in replay of the conference call will be available until May 24, 2023 at (800) 770-2030 (domestic) or (647) 362-9199 (international) using pin code 5939891. An audio webcast replay of the conference call will be available for one year on EA’s IR Website. Forward-Looking Statements Some statements set forth in this release, including the information relating to EA’s expectations under the heading “Business Outlook as of May 9, 2023” and other information regarding EA's expectations contain forward-looking statements that are subject to change. Statements including words such as “anticipate,” “believe,” “expect,” “intend,” “estimate,” “plan,” “predict,” “seek,” “goal,” “will,” “may,” “likely,” “should,” “could” (and the negative of any of these terms), “future” and similar expressions also identify forward-looking statements. These forward-looking statements are not guarantees of future performance and reflect management’s current expectations. Our actual results could differ materially from those discussed in the forward-looking statements. Some of the factors which could cause the Company’s results to differ materially from its expectations include the following: sales of the Company’s products and services; the Company’s ability to develop and support digital products and services, including managing online security and privacy; outages of our products, services and technological infrastructure; the Company’s ability to manage expenses; the competition in the interactive entertainment industry; governmental regulations; the effectiveness of the Company’s sales and marketing programs; timely development and release of the Company’s products and services; the Company’s ability to realize the anticipated benefits of, and integrate, acquisitions; the consumer demand for, and the availability of an adequate supply of console hardware units; the Company’s ability to predict consumer preferences among competing platforms; the Company’s ability to develop and implement new technology; foreign currency exchange rate fluctuations; economic and geopolitical conditions; changes in our tax rates or tax laws; and other factors described in Part II, Item 1A of Electronic Arts’ latest Quarterly Report on Form 10-Q under the heading “Risk Factors”, as well as in other documents we have filed with the Securities and Exchange Commission, including our Annual Report on Form 10-K for the fiscal year ended March 31, 2022. These forward-looking statements are current as of May 9, 2023. Electronic Arts assumes no obligation to revise or update any forward-looking statement for any reason, except as required by law. In addition, the preliminary financial results set forth in this release are estimates based on information currently available to Electronic Arts. While Electronic Arts believes these estimates are meaningful, they could differ from the actual amounts that Electronic Arts ultimately reports in its Annual Report on Form 10-K for the fiscal year ended March 31, 2023. Electronic Arts assumes no obligation and does not intend to update these estimates prior to filing its Form 10-K for the fiscal year ended March 31, 2023. About Electronic Arts Electronic Arts (NASDAQ: EA) is a global leader in digital interactive entertainment. The Company develops and delivers games, content and online services for Internet-connected consoles, mobile devices and personal computers. In fiscal year 2023, EA posted GAAP net revenue of approximately $7.4 billion. Headquartered in Redwood City, California, EA is recognized for a portfolio of critically acclaimed, high-quality brands such as EA SPORTS™ FC, Battlefield™, Apex Legends™, The Sims™, Madden NFL, Need for Speed™, Titanfall™, Plants vs. Zombies™ and F1®. More information about EA is available at www.ea.com/news. EA SPORTS, Battlefield, Need for Speed, Apex Legends, The Sims, Titanfall and Plants vs. Zombies are trademarks of Electronic Arts Inc. STAR WARS © & TM 2015 Lucasfilm Ltd. All rights reserved. John Madden, NFL, FIFA and F1 are the property of their respective owners and used with permission. 1 For more information on constant currency, please refer to the earnings slides available on EA’s IR Website. 2 Net bookings is defined 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 the change in deferred net revenue for online-enabled games. 3 For more information about the nature of the GAAP-based financial data, please refer to EA’s Form 10-K for the fiscal year ended March 31, 2022. 4 On March 29, 2023, EA announced a restructuring plan focused on prioritizing investments aligned with the Company's growth opportunities and optimizing its real estate portfolio. ELECTRONIC ARTS INC. AND SUBSIDIARIES Unaudited Condensed Consolidated Statements of Operations (in $ millions, except per share data) Three Months Ended March 31, Twelve Months Ended March 31, 2023 2022 2023 2022 Net revenue 1,874 1,825 7,426 6,991 Cost of revenue 448 419 1,792 1,859 Gross profit 1,426 1,406 5,634 5,132 Operating expenses: Research and development 635 579 2,328 2,186 Marketing and sales 255 245 978 961 General and administrative 224 165 727 673 Amortization and impairment of intangibles 26 52 158 183 Restructuring 111 — 111 — Total operating expenses 1,251 1,041 4,302 4,003 Operating income 175 365 1,332 1,129 Interest and other income (expense), net 6 (9 ) (6 ) (48 ) Income before provision for income taxes 181 356 1,326 1,081 Provision for income taxes 193 131 524 292 Net income (loss) (12 ) 225 802 789 Earnings (loss) per share Basic (0.04 ) 0.80 2.90 2.78 Diluted (0.04 ) 0.80 2.88 2.76 Number of shares used in computation Basic 274 281 277 284 Diluted 274 283 278 286 Results (in $ millions, except per share data) The following table reports the variance of the actuals versus our guidance provided on January 31, 2023 for the three months ended March 31, 2023 plus a comparison to the actuals for the three months ended March 31, 2022. Three Months Ended March 31, 2023 Guidance (Mid-Point) 2023 Actuals 2022 Actuals Variance Net revenue Net revenue 1,750 124 1,874 1,825 GAAP-based financial data Change in deferred net revenue (online-enabled games)1 (25 ) 97 72 (74 ) Cost of revenue Cost of revenue 405 43 448 419 GAAP-based financial data Acquisition-related expenses (25 ) — (25 ) (45 ) Stock-based compensation — (2 ) (2 ) (2 ) Operating expenses Operating expenses 1,080 171 1,251 1,041 GAAP-based financial data Acquisition-related expenses (35 ) 9 (26 ) (52 ) Restructuring and related charges — (155 ) (155 ) — Stock-based compensation (140 ) — (140 ) (123 ) Income before tax Income before tax 270 (89 ) 181 356 GAAP-based financial data Acquisition-related expenses 60 (9 ) 51 97 Change in deferred net revenue (online-enabled games)1 (25 ) 97 72 (74 ) Restructuring and related charges — 155 155 — Stock-based compensation 140 2 142 125 Tax rate used for management reporting 19 % 19 % 18 % Earnings (loss) per share Basic 0.13 (0.17 ) (0.04 ) 0.80 Diluted 0.13 (0.17 ) (0.04 ) 0.80 Number of shares used in computation Basic 275 (1 ) 274 281 Diluted 277 (3 ) 274 283 Anti-dilutive shares excluded for loss position2 — 1 1 — 1The change in deferred net revenue (online-enabled games) in the unaudited condensed consolidated statements of cash flows does not necessarily equal the change in deferred net revenue (online-enabled games) in the unaudited condensed consolidated statements of operations primarily due to the impact of unrecognized gains/losses on cash flow hedges. 2 Diluted earnings per share reflects the potential dilution from common shares (calculated using the treasury stock method), issuable through stock-based compensation plans. When the company incurs a loss, shares issuable though stock-based compensation plans are excluded from the diluted loss per share calculation as inclusion would be anti-dilutive. ELECTRONIC ARTS INC. AND SUBSIDIARIES Unaudited Condensed Consolidated Balance Sheets (in $ millions) March 31, 2023 March 31, 20223 ASSETS Current assets: Cash and cash equivalents 2,424 2,732 Short-term investments 343 330 Receivables, net 684 650 Other current assets 518 439 Total current assets 3,969 4,151 Property and equipment, net 549 550 Goodwill 5,380 5,387 Acquisition-related intangibles, net 618 962 Deferred income taxes, net 2,462 2,243 Other assets 481 507 TOTAL ASSETS 13,459 13,800 LIABILITIES AND STOCKHOLDERS’ EQUITY Current liabilities: Accounts payable 99 101 Accrued and other current liabilities 1,285 1,388 Deferred net revenue (online-enabled games) 1,901 2,024 Total current liabilities 3,285 3,513 Senior notes, net 1,880 1,878 Income tax obligations 607 386 Deferred income taxes, net 1 1 Other liabilities 393 397 Total liabilities 6,166 6,175 Stockholders’ equity: Common stock 3 3 Retained earnings 7,357 7,607 Accumulated other comprehensive income (loss) (67 ) 15 Total stockholders’ equity 7,293 7,625 TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY 13,459 13,800 3Derived from audited consolidated financial statements. ELECTRONIC ARTS INC. AND SUBSIDIARIES Unaudited Condensed Consolidated Statements of Cash Flows (in $ millions) Three Months Ended March 31, Twelve Months Ended March 31, 2023 2022 2023 2022 OPERATING ACTIVITIES Net income (loss) (12 ) 225 802 789 Adjustments to reconcile net income (loss) to net cash provided by operating activities: Depreciation, amortization, accretion and impairment 173 141 536 486 Stock-based compensation 142 125 548 528 Change in assets and liabilities Receivables, net 152 313 (34 ) (77 ) Other assets (50 ) (82 ) (103 ) (157 ) Accounts payable 31 2 10 (7 ) Accrued and other liabilities 106 (14 ) 134 169 Deferred income taxes, net (18 ) (189 ) (221 ) (329 ) Deferred net revenue (online-enabled games) 93 (77 ) (122 ) 497 Net cash provided by operating activities 617 444 1,550 1,899 INVESTING ACTIVITIES Capital expenditures (47 ) (53 ) (207 ) (188 ) Proceeds from maturities and sales of short-term investments 152 136 395 1,329 Purchase of short-term investments (142 ) (116 ) (405 ) (554 ) Acquisitions, net of cash acquired — — — (3,391 ) Net cash used in investing activities (37 ) (33 ) (217 ) (2,804 ) FINANCING ACTIVITIES Proceeds from issuance of common stock 33 33 80 77 Cash dividends paid (52 ) (48 ) (210 ) (193 ) Cash paid to taxing authorities for shares withheld from employees (14 ) (11 ) (175 ) (204 ) Repurchase and retirement of common stock (325 ) (325 ) (1,295 ) (1,300 ) Net cash used in financing activities (358 ) (351 ) (1,600 ) (1,620 ) Effect of foreign exchange on cash and cash equivalents — 2 (41 ) (3 ) Change in cash and cash equivalents 222 62 (308 ) (2,528 ) Beginning cash and cash equivalents 2,202 2,670 2,732 5,260 Ending cash and cash equivalents 2,424 2,732 2,424 2,732 ELECTRONIC ARTS INC. AND SUBSIDIARIES Unaudited Supplemental Financial Information and Business Metrics (in $ millions, except per share data) Q4 Q1 Q2 Q3 Q4 YOY % FY22 FY23 FY23 FY23 FY23 Change Net revenue Net revenue 1,825 1,767 1,904 1,881 1,874 3 % GAAP-based financial data Change in deferred net revenue (online-enabled games)1 (74 ) (468 ) (150 ) 461 72 Gross profit Gross profit 1,406 1,453 1,442 1,313 1,426 1 % Gross profit (as a % of net revenue) 77 % 82 % 76 % 70 % 76 % GAAP-based financial data Acquisition-related expenses 45 30 39 26 25 Change in deferred net revenue (online-enabled games)1 (74 ) (468 ) (150 ) 461 72 Stock-based compensation 2 2 1 2 2 Operating income Operating income 365 441 427 289 175 (52 %) Operating income (as a % of net revenue) 20 % 25 % 22 % 15 % 9 % GAAP-based financial data Acquisition-related expenses 97 69 82 76 51 Change in deferred net revenue (online-enabled games)1 (74 ) (468 ) (150 ) 461 72 Restructuring and related charges — — — — 155 Stock-based compensation 125 125 140 141 142 Net income (loss) Net income (loss) 225 311 299 204 (12 ) (105 %) Net income (loss) (as a % of net revenue) 12 % 18 % 16 % 11 % (1 %) GAAP-based financial data Acquisition-related expenses 97 69 82 76 51 Change in deferred net revenue (online-enabled games)1 (74 ) (468 ) (150 ) 461 72 Restructuring and related charges — — — — 155 Stock-based compensation 125 125 140 141 142 Tax rate used for management reporting 18 % 19 % 19 % 19 % 19 % Diluted earnings (loss) per share 0.80 1.11 1.07 0.73 (0.04 ) (105 %) Number of shares used in computation Basic 281 279 278 276 274 Diluted 283 281 279 278 274 Anti-dilutive shares excluded for loss position2 — — — — 1 1The change in deferred net revenue (online-enabled games) in the unaudited condensed consolidated statements of cash flows does not necessarily equal the change in deferred net revenue (online-enabled games) in the unaudited condensed consolidated statements of operations primarily due to the impact of unrecognized gains/losses on cash flow hedges. 2 Diluted earnings per share reflects the potential dilution from common shares (calculated using the treasury stock method), issuable through stock-based compensation plans. When the company incurs a loss, shares issuable though stock-based compensation plans are excluded from the diluted loss per share calculation as inclusion would be anti-dilutive. ELECTRONIC ARTS INC. AND SUBSIDIARIES Unaudited Supplemental Financial Information and Business Metrics (in $ millions) Q4 Q1 Q2 Q3 Q4 YOY % FY22 FY23 FY23 FY23 FY23 Change QUARTERLY NET REVENUE PRESENTATIONS Net revenue by composition Full game downloads 312 237 328 423 274 (12 %) Packaged goods 126 104 274 199 98 (22 %) Full game 438 341 602 622 372 (15 %) Live services and other 1,387 1,426 1,302 1,259 1,502 8 % Total net revenue 1,825 1,767 1,904 1,881 1,874 3 % Full game 24 % 19 % 32 % 33 % 20 % Live services and other 76 % 81 % 68 % 67 % 80 % Total net revenue % 100 % 100 % 100 % 100 % 100 % GAAP-based financial data Full game downloads (103 ) (111 ) 17 45 (24 ) Packaged goods (68 ) (65 ) 16 20 (24 ) Full game (171 ) (176 ) 33 65 (48 ) Live services and other 97 (292 ) (183 ) 396 120 Total change in deferred net revenue (online-enabled games) by composition1 (74 ) (468 ) (150 ) 461 72 Net revenue by platform Console 1,092 1,042 1,161 1,152 1,088 — PC & Other 420 402 423 435 469 12 % Mobile 313 323 320 294 317 1 % Total net revenue 1,825 1,767 1,904 1,881 1,874 3 % GAAP-based financial data Console (86 ) (405 ) (134 ) 423 11 PC & Other 3 (54 ) 8 29 47 Mobile 9 (9 ) (24 ) 9 14 Total change in deferred net revenue (online-enabled games) by platform1 (74 ) (468 ) (150 ) 461 72 1The change in deferred net revenue (online-enabled games) in the unaudited condensed consolidated statements of cash flows does not necessarily equal the change in deferred net revenue (online-enabled games) in the unaudited condensed consolidated statements of operations primarily due to the impact of unrecognized gains/losses on cash flow hedges. ELECTRONIC ARTS INC. AND SUBSIDIARIES Unaudited Supplemental Financial Information and Business Metrics (in $ millions) Q4 Q1 Q2 Q3 Q4 YOY % FY22 FY23 FY23 FY23 FY23 Change CASH FLOW DATA Operating cash flow 444 (78 ) (112 ) 1,123 617 39 % Operating cash flow - TTM 1,899 1,964 1,788 1,377 1,550 (18 %) Capital expenditures 53 59 53 48 47 (11 %) Capital expenditures - TTM 188 203 213 213 207 10 % Repurchase and retirement of common stock 325 320 325 325 325 — Cash dividends paid 48 53 53 52 52 8 % DEPRECIATION Depreciation expense 42 44 45 46 58 38 % BALANCE SHEET DATA Cash and cash equivalents 2,732 2,082 1,539 2,202 2,424 Short-term investments 330 334 335 351 343 Cash and cash equivalents, and short-term investments 3,062 2,416 1,874 2,553 2,767 (10 %) Receivables, net 650 579 919 836 684 5 % STOCK-BASED COMPENSATION Cost of revenue 2 2 1 2 2 Research and development 84 81 95 95 96 Marketing and sales 13 13 16 15 15 General and administrative 26 29 28 29 29 Total stock-based compensation 125 125 140 141 142 RESTRUCTURING AND RELATED CHARGES Restructuring — — — — 111 Office space reductions — — — — 44 Total restructuring and related charges — — — — 155 Category: Company News View source version on businesswire.com: https://www.businesswire.com/news/home/20230509005975/en/Contacts Stuart Canfield SVP, Finance & Investor Relations 650-628-7750 scanfield@ea.com Erin Rheaume Director, Financial Communications 650-628-7978 erheaume@ea.com Data & News supplied by www.cloudquote.io Stock quotes supplied by Barchart Quotes delayed at least 20 minutes. 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Electronic Arts Reports Q4 and FY23 Results By: Electronic Arts Inc. via Business Wire May 09, 2023 at 16:05 PM EDT Record Q4 net bookings driven by all-time high EA SPORTS FIFA franchise performance; Company carries strong momentum into brand launch of EA SPORTS FC Electronic Arts Inc. (NASDAQ: EA) today announced preliminary financial results for its fourth quarter and fiscal year ended March 31, 2023. “EA delivered a strong Q4 with record net bookings, up 11 percent year-over-year, demonstrating the strength of our business. Our teams continue to create high quality entertainment, fueled by amazing games and deeply engaging live services,” said Andrew Wilson, CEO of Electronic Arts. “We're excited to continue our momentum, including the highly anticipated launch of EA SPORTS FC later this year.” "Record live services performance and increased engagement, particularly from our EA SPORTS FIFA franchise, drove better-than-expected Q4 net bookings, capping a strong finish to the fiscal year," said Chris Suh, CFO. "Looking ahead, our teams remain disciplined in prioritizing the player experience as we continue to focus our investments on long-term growth." Selected Operating Highlights and Metrics1 Net bookings2 for Q4 was $1.946 billion, up 11% year-over-year (up 15% in constant currency). Live services and other net bookings for Q4 was $1.622 billion, a record for the quarter, up 9% year-over-year (up 13% in constant currency) and represented 83% of total net bookings. The EA SPORTS FIFA franchise Q4 net bookings grew 31% year-over-year (up 37% in constant currency). In the six months since launch, EA SPORTS FIFA 23 has surpassed life-time sales of EA SPORTS FIFA 22, becoming the most successful launch in franchise history. Apex Legends delivered net bookings growth in Q4 year-over-year at constant currency, driven by a successful Season 16 with peak weekly active users up over 20% from the previous season. Life-to-date, The Sims 4 player network has grown to more than 70 million worldwide. Selected Financial Highlights and Metrics Net revenue was $1.874 billion for the quarter and $7.426 billion for the fiscal year. Net cash provided by operating activities was $617 million for the quarter and $1.550 billion for the fiscal year. EA repurchased 2.7 million shares for $325 million during the quarter, bringing the total for the fiscal year to 10.4 million shares for $1.295 billion. Dividend EA has declared a quarterly cash dividend of $0.19 per share of the Company’s common stock. The dividend is payable on June 21, 2023 to shareholders of record as of the close of business on May 31, 2023. Quarterly Financial Highlights Three Months Ended March 31, 2023 2022 (in $ millions, except per share amounts) Full game 372 438 Live services and other 1,502 1,387 Total net revenue 1,874 1,825 Net income (loss) (12 ) 225 Diluted earnings (loss) per share (0.04 ) 0.80 Operating cash flow 617 444 Value of shares repurchased 325 325 Number of shares repurchased 2.7 2.5 Cash dividend paid 52 48 The following GAAP-based financial data3,4 and tax rate of 19% was used internally by company management to adjust its GAAP results in order to assess EA’s operating results: Three Months Ended March 31, 2023 GAAP-Based Financial Data (in $ millions) Statement ofOperations Acquisition-relatedexpenses Change indeferrednet revenue(online-enabledgames) Restructuringand relatedcharges Stock-basedcompensation Total net revenue 1,874 - 72 - - Cost of revenue 448 (25 ) - - (2 ) Gross profit 1,426 25 72 - 2 Total operating expenses 1,251 (26 ) - (155 ) (140 ) Operating income 175 51 72 155 142 Interest and other income (expense), net 6 - - - - Income before provision for income taxes 181 51 72 155 142 Number of shares used in computation: Diluted 274 Fiscal Year Financial Highlights Twelve Months Ended March 31, 2023 2022 (in $ millions) Full game 1,937 1,993 Live services and other 5,489 4,998 Total net revenue 7,426 6,991 Net income 802 789 Diluted earnings per share 2.88 2.76 Operating cash flow 1,550 1,899 Value of shares repurchased 1,295 1,300 Number of shares repurchased 10.4 9.5 Cash dividend paid 210 193 The following GAAP-based financial data3,4 and a tax rate of 19% was used internally by company management to adjust its GAAP results in order to assess EA’s operating results. Twelve Months Ended March 31, 2023 GAAP-Based Financial Data (in $ millions) Statement ofOperations Acquisition-relatedexpenses Change indeferred netrevenue(online-enabledgames) Restructuringand relatedcharges Stock-basedcompensation Total net revenue 7,426 - (85 ) - - Cost of revenue 1,792 (120 ) - - (7 ) Gross profit 5,634 120 (85 ) - 7 Total operating expenses 4,302 (158 ) - (155 ) (541 ) Operating income 1,332 278 (85 ) 155 548 Interest and other income (expense), net (6 ) - - - - Income before provision for income taxes 1,326 278 (85 ) 155 548 Number of shares used in computation: Diluted 278 Operating Metric The following is a calculation of our total net bookings2 for the periods presented: Three Months Ended Twelve Months Ended March 31, March 31, 2023 2022 2023 2022 (in $ millions) Total net revenue 1,874 1,825 7,426 6,991 Change in deferred net revenue (online-enabled games) 72 (74 ) (85 ) 524 Total net bookings 1,946 1,751 7,341 7,515 Business Outlook as of May 9, 2023 Fiscal Year 2024 Expectations – Ending March 31, 2024 Financial metrics: Net revenue is expected to be approximately $7.300 billion to $7.700 billion. No change in deferred net revenue (online-enabled games) is expected. Net income is expected to be approximately $915 million to $1.055 billion. Diluted earnings per share is expected to be approximately $3.30 to $3.81. Operating cash flow is expected to be approximately $1.700 billion to $1.850 billion. The Company estimates a share count of 277 million for purposes of calculating fiscal year 2024 diluted earnings per share. Operational metric: Net bookings2 is expected to be approximately $7.300 billion to $7.700 billion. In addition, the following outlook for GAAP-based financial data3,4 and long-term tax rate of 19% are used internally by EA to adjust GAAP expectations to assess EA’s operating results and plan for future periods: Twelve Months Ending March 31, 2024 GAAP-Based Financial Data* GAAPGuidanceRange Acquisition-relatedexpenses Change indeferred netrevenue (online-enabled games) Restructuringand relatedcharges Stock-basedcompensation (in $ millions) Total net revenue 7,300 to 7,700 - - - - Cost of revenue 1,670 to 1,750 (65 ) - - (5 ) Operating expense 4,295 to 4,415 (95 ) - (25 ) (635 ) Income before provision for income taxes 1,346 to 1,551 160 - 25 640 Net income 915 to 1,055 Number of shares used in computation: Diluted shares 277 * The mid-point of the range has been used for purposes of presenting the reconciling items. First Quarter Fiscal Year 2024 Expectations – Ending June 30, 2023 Financial metrics: Net revenue is expected to be approximately $1.825 billion to $1.925 billion. Change in deferred net revenue (online-enabled games) is expected to be approximately ($325) million. Net income is expected to be approximately $271 million to $316 million. Diluted earnings per share is expected to be approximately $0.98 to $1.14. The Company estimates a share count of 277 million for purposes of calculating first quarter fiscal 2024 diluted earnings per share. Operational metric: Net bookings2 is expected to be approximately $1.500 billion to $1.600 billion. In addition, the following outlook for GAAP-based financial data3,4 and long-term tax rate of 19% are used internally by EA to adjust GAAP expectations to assess EA’s operating results and plan for future periods: Three Months Ending June 30, 2023 GAAP-Based Financial Data* GAAPGuidanceRange Acquisition-relatedexpenses Change indeferred netrevenue (online-enabled games) Restructuringand relatedcharges Stock-basedcompensation (in $ millions) Total net revenue 1,825 to 1,925 - (325 ) - - Cost of revenue 350 to 370 (20 ) - - - Operating expense 1,065 to 1,085 (25 ) - (20 ) (140 ) Income before provision for income taxes 410 to 479 45 (325 ) 20 140 Net income 271 to 316 Number of shares used in computation: Diluted shares 277 * The mid-point of the range has been used for purposes of presenting the reconciling items. Conference Call and Supporting Documents Electronic Arts will host a conference call on May 9, 2023 at 2:00 pm PT (5:00 pm ET) to review its results for the fourth fiscal quarter and fiscal year ended March 31, 2023 and its outlook for the future. During the course of the call, Electronic Arts may disclose material developments affecting its business and/or financial performance. Listeners may access the conference call live through the following dial-in number (888) 330-2446 (domestic) or (240) 789-2732 (international), using the conference code 5939891 or via webcast at EA’s IR Website at http://ir.ea.com. EA has posted a slide presentation with a financial model of EA’s historical results and guidance on EA’s IR Website. EA will also post the prepared remarks and a transcript from the conference call on EA’s IR Website. A dial-in replay of the conference call will be available until May 24, 2023 at (800) 770-2030 (domestic) or (647) 362-9199 (international) using pin code 5939891. An audio webcast replay of the conference call will be available for one year on EA’s IR Website. Forward-Looking Statements Some statements set forth in this release, including the information relating to EA’s expectations under the heading “Business Outlook as of May 9, 2023” and other information regarding EA's expectations contain forward-looking statements that are subject to change. Statements including words such as “anticipate,” “believe,” “expect,” “intend,” “estimate,” “plan,” “predict,” “seek,” “goal,” “will,” “may,” “likely,” “should,” “could” (and the negative of any of these terms), “future” and similar expressions also identify forward-looking statements. These forward-looking statements are not guarantees of future performance and reflect management’s current expectations. Our actual results could differ materially from those discussed in the forward-looking statements. Some of the factors which could cause the Company’s results to differ materially from its expectations include the following: sales of the Company’s products and services; the Company’s ability to develop and support digital products and services, including managing online security and privacy; outages of our products, services and technological infrastructure; the Company’s ability to manage expenses; the competition in the interactive entertainment industry; governmental regulations; the effectiveness of the Company’s sales and marketing programs; timely development and release of the Company’s products and services; the Company’s ability to realize the anticipated benefits of, and integrate, acquisitions; the consumer demand for, and the availability of an adequate supply of console hardware units; the Company’s ability to predict consumer preferences among competing platforms; the Company’s ability to develop and implement new technology; foreign currency exchange rate fluctuations; economic and geopolitical conditions; changes in our tax rates or tax laws; and other factors described in Part II, Item 1A of Electronic Arts’ latest Quarterly Report on Form 10-Q under the heading “Risk Factors”, as well as in other documents we have filed with the Securities and Exchange Commission, including our Annual Report on Form 10-K for the fiscal year ended March 31, 2022. These forward-looking statements are current as of May 9, 2023. Electronic Arts assumes no obligation to revise or update any forward-looking statement for any reason, except as required by law. In addition, the preliminary financial results set forth in this release are estimates based on information currently available to Electronic Arts. While Electronic Arts believes these estimates are meaningful, they could differ from the actual amounts that Electronic Arts ultimately reports in its Annual Report on Form 10-K for the fiscal year ended March 31, 2023. Electronic Arts assumes no obligation and does not intend to update these estimates prior to filing its Form 10-K for the fiscal year ended March 31, 2023. About Electronic Arts Electronic Arts (NASDAQ: EA) is a global leader in digital interactive entertainment. The Company develops and delivers games, content and online services for Internet-connected consoles, mobile devices and personal computers. In fiscal year 2023, EA posted GAAP net revenue of approximately $7.4 billion. Headquartered in Redwood City, California, EA is recognized for a portfolio of critically acclaimed, high-quality brands such as EA SPORTS™ FC, Battlefield™, Apex Legends™, The Sims™, Madden NFL, Need for Speed™, Titanfall™, Plants vs. Zombies™ and F1®. More information about EA is available at www.ea.com/news. EA SPORTS, Battlefield, Need for Speed, Apex Legends, The Sims, Titanfall and Plants vs. Zombies are trademarks of Electronic Arts Inc. STAR WARS © & TM 2015 Lucasfilm Ltd. All rights reserved. John Madden, NFL, FIFA and F1 are the property of their respective owners and used with permission. 1 For more information on constant currency, please refer to the earnings slides available on EA’s IR Website. 2 Net bookings is defined 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 the change in deferred net revenue for online-enabled games. 3 For more information about the nature of the GAAP-based financial data, please refer to EA’s Form 10-K for the fiscal year ended March 31, 2022. 4 On March 29, 2023, EA announced a restructuring plan focused on prioritizing investments aligned with the Company's growth opportunities and optimizing its real estate portfolio. ELECTRONIC ARTS INC. AND SUBSIDIARIES Unaudited Condensed Consolidated Statements of Operations (in $ millions, except per share data) Three Months Ended March 31, Twelve Months Ended March 31, 2023 2022 2023 2022 Net revenue 1,874 1,825 7,426 6,991 Cost of revenue 448 419 1,792 1,859 Gross profit 1,426 1,406 5,634 5,132 Operating expenses: Research and development 635 579 2,328 2,186 Marketing and sales 255 245 978 961 General and administrative 224 165 727 673 Amortization and impairment of intangibles 26 52 158 183 Restructuring 111 — 111 — Total operating expenses 1,251 1,041 4,302 4,003 Operating income 175 365 1,332 1,129 Interest and other income (expense), net 6 (9 ) (6 ) (48 ) Income before provision for income taxes 181 356 1,326 1,081 Provision for income taxes 193 131 524 292 Net income (loss) (12 ) 225 802 789 Earnings (loss) per share Basic (0.04 ) 0.80 2.90 2.78 Diluted (0.04 ) 0.80 2.88 2.76 Number of shares used in computation Basic 274 281 277 284 Diluted 274 283 278 286 Results (in $ millions, except per share data) The following table reports the variance of the actuals versus our guidance provided on January 31, 2023 for the three months ended March 31, 2023 plus a comparison to the actuals for the three months ended March 31, 2022. Three Months Ended March 31, 2023 Guidance (Mid-Point) 2023 Actuals 2022 Actuals Variance Net revenue Net revenue 1,750 124 1,874 1,825 GAAP-based financial data Change in deferred net revenue (online-enabled games)1 (25 ) 97 72 (74 ) Cost of revenue Cost of revenue 405 43 448 419 GAAP-based financial data Acquisition-related expenses (25 ) — (25 ) (45 ) Stock-based compensation — (2 ) (2 ) (2 ) Operating expenses Operating expenses 1,080 171 1,251 1,041 GAAP-based financial data Acquisition-related expenses (35 ) 9 (26 ) (52 ) Restructuring and related charges — (155 ) (155 ) — Stock-based compensation (140 ) — (140 ) (123 ) Income before tax Income before tax 270 (89 ) 181 356 GAAP-based financial data Acquisition-related expenses 60 (9 ) 51 97 Change in deferred net revenue (online-enabled games)1 (25 ) 97 72 (74 ) Restructuring and related charges — 155 155 — Stock-based compensation 140 2 142 125 Tax rate used for management reporting 19 % 19 % 18 % Earnings (loss) per share Basic 0.13 (0.17 ) (0.04 ) 0.80 Diluted 0.13 (0.17 ) (0.04 ) 0.80 Number of shares used in computation Basic 275 (1 ) 274 281 Diluted 277 (3 ) 274 283 Anti-dilutive shares excluded for loss position2 — 1 1 — 1The change in deferred net revenue (online-enabled games) in the unaudited condensed consolidated statements of cash flows does not necessarily equal the change in deferred net revenue (online-enabled games) in the unaudited condensed consolidated statements of operations primarily due to the impact of unrecognized gains/losses on cash flow hedges. 2 Diluted earnings per share reflects the potential dilution from common shares (calculated using the treasury stock method), issuable through stock-based compensation plans. When the company incurs a loss, shares issuable though stock-based compensation plans are excluded from the diluted loss per share calculation as inclusion would be anti-dilutive. ELECTRONIC ARTS INC. AND SUBSIDIARIES Unaudited Condensed Consolidated Balance Sheets (in $ millions) March 31, 2023 March 31, 20223 ASSETS Current assets: Cash and cash equivalents 2,424 2,732 Short-term investments 343 330 Receivables, net 684 650 Other current assets 518 439 Total current assets 3,969 4,151 Property and equipment, net 549 550 Goodwill 5,380 5,387 Acquisition-related intangibles, net 618 962 Deferred income taxes, net 2,462 2,243 Other assets 481 507 TOTAL ASSETS 13,459 13,800 LIABILITIES AND STOCKHOLDERS’ EQUITY Current liabilities: Accounts payable 99 101 Accrued and other current liabilities 1,285 1,388 Deferred net revenue (online-enabled games) 1,901 2,024 Total current liabilities 3,285 3,513 Senior notes, net 1,880 1,878 Income tax obligations 607 386 Deferred income taxes, net 1 1 Other liabilities 393 397 Total liabilities 6,166 6,175 Stockholders’ equity: Common stock 3 3 Retained earnings 7,357 7,607 Accumulated other comprehensive income (loss) (67 ) 15 Total stockholders’ equity 7,293 7,625 TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY 13,459 13,800 3Derived from audited consolidated financial statements. ELECTRONIC ARTS INC. AND SUBSIDIARIES Unaudited Condensed Consolidated Statements of Cash Flows (in $ millions) Three Months Ended March 31, Twelve Months Ended March 31, 2023 2022 2023 2022 OPERATING ACTIVITIES Net income (loss) (12 ) 225 802 789 Adjustments to reconcile net income (loss) to net cash provided by operating activities: Depreciation, amortization, accretion and impairment 173 141 536 486 Stock-based compensation 142 125 548 528 Change in assets and liabilities Receivables, net 152 313 (34 ) (77 ) Other assets (50 ) (82 ) (103 ) (157 ) Accounts payable 31 2 10 (7 ) Accrued and other liabilities 106 (14 ) 134 169 Deferred income taxes, net (18 ) (189 ) (221 ) (329 ) Deferred net revenue (online-enabled games) 93 (77 ) (122 ) 497 Net cash provided by operating activities 617 444 1,550 1,899 INVESTING ACTIVITIES Capital expenditures (47 ) (53 ) (207 ) (188 ) Proceeds from maturities and sales of short-term investments 152 136 395 1,329 Purchase of short-term investments (142 ) (116 ) (405 ) (554 ) Acquisitions, net of cash acquired — — — (3,391 ) Net cash used in investing activities (37 ) (33 ) (217 ) (2,804 ) FINANCING ACTIVITIES Proceeds from issuance of common stock 33 33 80 77 Cash dividends paid (52 ) (48 ) (210 ) (193 ) Cash paid to taxing authorities for shares withheld from employees (14 ) (11 ) (175 ) (204 ) Repurchase and retirement of common stock (325 ) (325 ) (1,295 ) (1,300 ) Net cash used in financing activities (358 ) (351 ) (1,600 ) (1,620 ) Effect of foreign exchange on cash and cash equivalents — 2 (41 ) (3 ) Change in cash and cash equivalents 222 62 (308 ) (2,528 ) Beginning cash and cash equivalents 2,202 2,670 2,732 5,260 Ending cash and cash equivalents 2,424 2,732 2,424 2,732 ELECTRONIC ARTS INC. AND SUBSIDIARIES Unaudited Supplemental Financial Information and Business Metrics (in $ millions, except per share data) Q4 Q1 Q2 Q3 Q4 YOY % FY22 FY23 FY23 FY23 FY23 Change Net revenue Net revenue 1,825 1,767 1,904 1,881 1,874 3 % GAAP-based financial data Change in deferred net revenue (online-enabled games)1 (74 ) (468 ) (150 ) 461 72 Gross profit Gross profit 1,406 1,453 1,442 1,313 1,426 1 % Gross profit (as a % of net revenue) 77 % 82 % 76 % 70 % 76 % GAAP-based financial data Acquisition-related expenses 45 30 39 26 25 Change in deferred net revenue (online-enabled games)1 (74 ) (468 ) (150 ) 461 72 Stock-based compensation 2 2 1 2 2 Operating income Operating income 365 441 427 289 175 (52 %) Operating income (as a % of net revenue) 20 % 25 % 22 % 15 % 9 % GAAP-based financial data Acquisition-related expenses 97 69 82 76 51 Change in deferred net revenue (online-enabled games)1 (74 ) (468 ) (150 ) 461 72 Restructuring and related charges — — — — 155 Stock-based compensation 125 125 140 141 142 Net income (loss) Net income (loss) 225 311 299 204 (12 ) (105 %) Net income (loss) (as a % of net revenue) 12 % 18 % 16 % 11 % (1 %) GAAP-based financial data Acquisition-related expenses 97 69 82 76 51 Change in deferred net revenue (online-enabled games)1 (74 ) (468 ) (150 ) 461 72 Restructuring and related charges — — — — 155 Stock-based compensation 125 125 140 141 142 Tax rate used for management reporting 18 % 19 % 19 % 19 % 19 % Diluted earnings (loss) per share 0.80 1.11 1.07 0.73 (0.04 ) (105 %) Number of shares used in computation Basic 281 279 278 276 274 Diluted 283 281 279 278 274 Anti-dilutive shares excluded for loss position2 — — — — 1 1The change in deferred net revenue (online-enabled games) in the unaudited condensed consolidated statements of cash flows does not necessarily equal the change in deferred net revenue (online-enabled games) in the unaudited condensed consolidated statements of operations primarily due to the impact of unrecognized gains/losses on cash flow hedges. 2 Diluted earnings per share reflects the potential dilution from common shares (calculated using the treasury stock method), issuable through stock-based compensation plans. When the company incurs a loss, shares issuable though stock-based compensation plans are excluded from the diluted loss per share calculation as inclusion would be anti-dilutive. ELECTRONIC ARTS INC. AND SUBSIDIARIES Unaudited Supplemental Financial Information and Business Metrics (in $ millions) Q4 Q1 Q2 Q3 Q4 YOY % FY22 FY23 FY23 FY23 FY23 Change QUARTERLY NET REVENUE PRESENTATIONS Net revenue by composition Full game downloads 312 237 328 423 274 (12 %) Packaged goods 126 104 274 199 98 (22 %) Full game 438 341 602 622 372 (15 %) Live services and other 1,387 1,426 1,302 1,259 1,502 8 % Total net revenue 1,825 1,767 1,904 1,881 1,874 3 % Full game 24 % 19 % 32 % 33 % 20 % Live services and other 76 % 81 % 68 % 67 % 80 % Total net revenue % 100 % 100 % 100 % 100 % 100 % GAAP-based financial data Full game downloads (103 ) (111 ) 17 45 (24 ) Packaged goods (68 ) (65 ) 16 20 (24 ) Full game (171 ) (176 ) 33 65 (48 ) Live services and other 97 (292 ) (183 ) 396 120 Total change in deferred net revenue (online-enabled games) by composition1 (74 ) (468 ) (150 ) 461 72 Net revenue by platform Console 1,092 1,042 1,161 1,152 1,088 — PC & Other 420 402 423 435 469 12 % Mobile 313 323 320 294 317 1 % Total net revenue 1,825 1,767 1,904 1,881 1,874 3 % GAAP-based financial data Console (86 ) (405 ) (134 ) 423 11 PC & Other 3 (54 ) 8 29 47 Mobile 9 (9 ) (24 ) 9 14 Total change in deferred net revenue (online-enabled games) by platform1 (74 ) (468 ) (150 ) 461 72 1The change in deferred net revenue (online-enabled games) in the unaudited condensed consolidated statements of cash flows does not necessarily equal the change in deferred net revenue (online-enabled games) in the unaudited condensed consolidated statements of operations primarily due to the impact of unrecognized gains/losses on cash flow hedges. ELECTRONIC ARTS INC. AND SUBSIDIARIES Unaudited Supplemental Financial Information and Business Metrics (in $ millions) Q4 Q1 Q2 Q3 Q4 YOY % FY22 FY23 FY23 FY23 FY23 Change CASH FLOW DATA Operating cash flow 444 (78 ) (112 ) 1,123 617 39 % Operating cash flow - TTM 1,899 1,964 1,788 1,377 1,550 (18 %) Capital expenditures 53 59 53 48 47 (11 %) Capital expenditures - TTM 188 203 213 213 207 10 % Repurchase and retirement of common stock 325 320 325 325 325 — Cash dividends paid 48 53 53 52 52 8 % DEPRECIATION Depreciation expense 42 44 45 46 58 38 % BALANCE SHEET DATA Cash and cash equivalents 2,732 2,082 1,539 2,202 2,424 Short-term investments 330 334 335 351 343 Cash and cash equivalents, and short-term investments 3,062 2,416 1,874 2,553 2,767 (10 %) Receivables, net 650 579 919 836 684 5 % STOCK-BASED COMPENSATION Cost of revenue 2 2 1 2 2 Research and development 84 81 95 95 96 Marketing and sales 13 13 16 15 15 General and administrative 26 29 28 29 29 Total stock-based compensation 125 125 140 141 142 RESTRUCTURING AND RELATED CHARGES Restructuring — — — — 111 Office space reductions — — — — 44 Total restructuring and related charges — — — — 155 Category: Company News View source version on businesswire.com: https://www.businesswire.com/news/home/20230509005975/en/Contacts Stuart Canfield SVP, Finance & Investor Relations 650-628-7750 scanfield@ea.com Erin Rheaume Director, Financial Communications 650-628-7978 erheaume@ea.com
Record Q4 net bookings driven by all-time high EA SPORTS FIFA franchise performance; Company carries strong momentum into brand launch of EA SPORTS FC
Electronic Arts Inc. (NASDAQ: EA) today announced preliminary financial results for its fourth quarter and fiscal year ended March 31, 2023. “EA delivered a strong Q4 with record net bookings, up 11 percent year-over-year, demonstrating the strength of our business. Our teams continue to create high quality entertainment, fueled by amazing games and deeply engaging live services,” said Andrew Wilson, CEO of Electronic Arts. “We're excited to continue our momentum, including the highly anticipated launch of EA SPORTS FC later this year.” "Record live services performance and increased engagement, particularly from our EA SPORTS FIFA franchise, drove better-than-expected Q4 net bookings, capping a strong finish to the fiscal year," said Chris Suh, CFO. "Looking ahead, our teams remain disciplined in prioritizing the player experience as we continue to focus our investments on long-term growth." Selected Operating Highlights and Metrics1 Net bookings2 for Q4 was $1.946 billion, up 11% year-over-year (up 15% in constant currency). Live services and other net bookings for Q4 was $1.622 billion, a record for the quarter, up 9% year-over-year (up 13% in constant currency) and represented 83% of total net bookings. The EA SPORTS FIFA franchise Q4 net bookings grew 31% year-over-year (up 37% in constant currency). In the six months since launch, EA SPORTS FIFA 23 has surpassed life-time sales of EA SPORTS FIFA 22, becoming the most successful launch in franchise history. Apex Legends delivered net bookings growth in Q4 year-over-year at constant currency, driven by a successful Season 16 with peak weekly active users up over 20% from the previous season. Life-to-date, The Sims 4 player network has grown to more than 70 million worldwide. Selected Financial Highlights and Metrics Net revenue was $1.874 billion for the quarter and $7.426 billion for the fiscal year. Net cash provided by operating activities was $617 million for the quarter and $1.550 billion for the fiscal year. EA repurchased 2.7 million shares for $325 million during the quarter, bringing the total for the fiscal year to 10.4 million shares for $1.295 billion. Dividend EA has declared a quarterly cash dividend of $0.19 per share of the Company’s common stock. The dividend is payable on June 21, 2023 to shareholders of record as of the close of business on May 31, 2023. Quarterly Financial Highlights Three Months Ended March 31, 2023 2022 (in $ millions, except per share amounts) Full game 372 438 Live services and other 1,502 1,387 Total net revenue 1,874 1,825 Net income (loss) (12 ) 225 Diluted earnings (loss) per share (0.04 ) 0.80 Operating cash flow 617 444 Value of shares repurchased 325 325 Number of shares repurchased 2.7 2.5 Cash dividend paid 52 48 The following GAAP-based financial data3,4 and tax rate of 19% was used internally by company management to adjust its GAAP results in order to assess EA’s operating results: Three Months Ended March 31, 2023 GAAP-Based Financial Data (in $ millions) Statement ofOperations Acquisition-relatedexpenses Change indeferrednet revenue(online-enabledgames) Restructuringand relatedcharges Stock-basedcompensation Total net revenue 1,874 - 72 - - Cost of revenue 448 (25 ) - - (2 ) Gross profit 1,426 25 72 - 2 Total operating expenses 1,251 (26 ) - (155 ) (140 ) Operating income 175 51 72 155 142 Interest and other income (expense), net 6 - - - - Income before provision for income taxes 181 51 72 155 142 Number of shares used in computation: Diluted 274 Fiscal Year Financial Highlights Twelve Months Ended March 31, 2023 2022 (in $ millions) Full game 1,937 1,993 Live services and other 5,489 4,998 Total net revenue 7,426 6,991 Net income 802 789 Diluted earnings per share 2.88 2.76 Operating cash flow 1,550 1,899 Value of shares repurchased 1,295 1,300 Number of shares repurchased 10.4 9.5 Cash dividend paid 210 193 The following GAAP-based financial data3,4 and a tax rate of 19% was used internally by company management to adjust its GAAP results in order to assess EA’s operating results. Twelve Months Ended March 31, 2023 GAAP-Based Financial Data (in $ millions) Statement ofOperations Acquisition-relatedexpenses Change indeferred netrevenue(online-enabledgames) Restructuringand relatedcharges Stock-basedcompensation Total net revenue 7,426 - (85 ) - - Cost of revenue 1,792 (120 ) - - (7 ) Gross profit 5,634 120 (85 ) - 7 Total operating expenses 4,302 (158 ) - (155 ) (541 ) Operating income 1,332 278 (85 ) 155 548 Interest and other income (expense), net (6 ) - - - - Income before provision for income taxes 1,326 278 (85 ) 155 548 Number of shares used in computation: Diluted 278 Operating Metric The following is a calculation of our total net bookings2 for the periods presented: Three Months Ended Twelve Months Ended March 31, March 31, 2023 2022 2023 2022 (in $ millions) Total net revenue 1,874 1,825 7,426 6,991 Change in deferred net revenue (online-enabled games) 72 (74 ) (85 ) 524 Total net bookings 1,946 1,751 7,341 7,515 Business Outlook as of May 9, 2023 Fiscal Year 2024 Expectations – Ending March 31, 2024 Financial metrics: Net revenue is expected to be approximately $7.300 billion to $7.700 billion. No change in deferred net revenue (online-enabled games) is expected. Net income is expected to be approximately $915 million to $1.055 billion. Diluted earnings per share is expected to be approximately $3.30 to $3.81. Operating cash flow is expected to be approximately $1.700 billion to $1.850 billion. The Company estimates a share count of 277 million for purposes of calculating fiscal year 2024 diluted earnings per share. Operational metric: Net bookings2 is expected to be approximately $7.300 billion to $7.700 billion. In addition, the following outlook for GAAP-based financial data3,4 and long-term tax rate of 19% are used internally by EA to adjust GAAP expectations to assess EA’s operating results and plan for future periods: Twelve Months Ending March 31, 2024 GAAP-Based Financial Data* GAAPGuidanceRange Acquisition-relatedexpenses Change indeferred netrevenue (online-enabled games) Restructuringand relatedcharges Stock-basedcompensation (in $ millions) Total net revenue 7,300 to 7,700 - - - - Cost of revenue 1,670 to 1,750 (65 ) - - (5 ) Operating expense 4,295 to 4,415 (95 ) - (25 ) (635 ) Income before provision for income taxes 1,346 to 1,551 160 - 25 640 Net income 915 to 1,055 Number of shares used in computation: Diluted shares 277 * The mid-point of the range has been used for purposes of presenting the reconciling items. First Quarter Fiscal Year 2024 Expectations – Ending June 30, 2023 Financial metrics: Net revenue is expected to be approximately $1.825 billion to $1.925 billion. Change in deferred net revenue (online-enabled games) is expected to be approximately ($325) million. Net income is expected to be approximately $271 million to $316 million. Diluted earnings per share is expected to be approximately $0.98 to $1.14. The Company estimates a share count of 277 million for purposes of calculating first quarter fiscal 2024 diluted earnings per share. Operational metric: Net bookings2 is expected to be approximately $1.500 billion to $1.600 billion. In addition, the following outlook for GAAP-based financial data3,4 and long-term tax rate of 19% are used internally by EA to adjust GAAP expectations to assess EA’s operating results and plan for future periods: Three Months Ending June 30, 2023 GAAP-Based Financial Data* GAAPGuidanceRange Acquisition-relatedexpenses Change indeferred netrevenue (online-enabled games) Restructuringand relatedcharges Stock-basedcompensation (in $ millions) Total net revenue 1,825 to 1,925 - (325 ) - - Cost of revenue 350 to 370 (20 ) - - - Operating expense 1,065 to 1,085 (25 ) - (20 ) (140 ) Income before provision for income taxes 410 to 479 45 (325 ) 20 140 Net income 271 to 316 Number of shares used in computation: Diluted shares 277 * The mid-point of the range has been used for purposes of presenting the reconciling items. Conference Call and Supporting Documents Electronic Arts will host a conference call on May 9, 2023 at 2:00 pm PT (5:00 pm ET) to review its results for the fourth fiscal quarter and fiscal year ended March 31, 2023 and its outlook for the future. During the course of the call, Electronic Arts may disclose material developments affecting its business and/or financial performance. Listeners may access the conference call live through the following dial-in number (888) 330-2446 (domestic) or (240) 789-2732 (international), using the conference code 5939891 or via webcast at EA’s IR Website at http://ir.ea.com. EA has posted a slide presentation with a financial model of EA’s historical results and guidance on EA’s IR Website. EA will also post the prepared remarks and a transcript from the conference call on EA’s IR Website. A dial-in replay of the conference call will be available until May 24, 2023 at (800) 770-2030 (domestic) or (647) 362-9199 (international) using pin code 5939891. An audio webcast replay of the conference call will be available for one year on EA’s IR Website. Forward-Looking Statements Some statements set forth in this release, including the information relating to EA’s expectations under the heading “Business Outlook as of May 9, 2023” and other information regarding EA's expectations contain forward-looking statements that are subject to change. Statements including words such as “anticipate,” “believe,” “expect,” “intend,” “estimate,” “plan,” “predict,” “seek,” “goal,” “will,” “may,” “likely,” “should,” “could” (and the negative of any of these terms), “future” and similar expressions also identify forward-looking statements. These forward-looking statements are not guarantees of future performance and reflect management’s current expectations. Our actual results could differ materially from those discussed in the forward-looking statements. Some of the factors which could cause the Company’s results to differ materially from its expectations include the following: sales of the Company’s products and services; the Company’s ability to develop and support digital products and services, including managing online security and privacy; outages of our products, services and technological infrastructure; the Company’s ability to manage expenses; the competition in the interactive entertainment industry; governmental regulations; the effectiveness of the Company’s sales and marketing programs; timely development and release of the Company’s products and services; the Company’s ability to realize the anticipated benefits of, and integrate, acquisitions; the consumer demand for, and the availability of an adequate supply of console hardware units; the Company’s ability to predict consumer preferences among competing platforms; the Company’s ability to develop and implement new technology; foreign currency exchange rate fluctuations; economic and geopolitical conditions; changes in our tax rates or tax laws; and other factors described in Part II, Item 1A of Electronic Arts’ latest Quarterly Report on Form 10-Q under the heading “Risk Factors”, as well as in other documents we have filed with the Securities and Exchange Commission, including our Annual Report on Form 10-K for the fiscal year ended March 31, 2022. These forward-looking statements are current as of May 9, 2023. Electronic Arts assumes no obligation to revise or update any forward-looking statement for any reason, except as required by law. In addition, the preliminary financial results set forth in this release are estimates based on information currently available to Electronic Arts. While Electronic Arts believes these estimates are meaningful, they could differ from the actual amounts that Electronic Arts ultimately reports in its Annual Report on Form 10-K for the fiscal year ended March 31, 2023. Electronic Arts assumes no obligation and does not intend to update these estimates prior to filing its Form 10-K for the fiscal year ended March 31, 2023. About Electronic Arts Electronic Arts (NASDAQ: EA) is a global leader in digital interactive entertainment. The Company develops and delivers games, content and online services for Internet-connected consoles, mobile devices and personal computers. In fiscal year 2023, EA posted GAAP net revenue of approximately $7.4 billion. Headquartered in Redwood City, California, EA is recognized for a portfolio of critically acclaimed, high-quality brands such as EA SPORTS™ FC, Battlefield™, Apex Legends™, The Sims™, Madden NFL, Need for Speed™, Titanfall™, Plants vs. Zombies™ and F1®. More information about EA is available at www.ea.com/news. EA SPORTS, Battlefield, Need for Speed, Apex Legends, The Sims, Titanfall and Plants vs. Zombies are trademarks of Electronic Arts Inc. STAR WARS © & TM 2015 Lucasfilm Ltd. All rights reserved. John Madden, NFL, FIFA and F1 are the property of their respective owners and used with permission. 1 For more information on constant currency, please refer to the earnings slides available on EA’s IR Website. 2 Net bookings is defined 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 the change in deferred net revenue for online-enabled games. 3 For more information about the nature of the GAAP-based financial data, please refer to EA’s Form 10-K for the fiscal year ended March 31, 2022. 4 On March 29, 2023, EA announced a restructuring plan focused on prioritizing investments aligned with the Company's growth opportunities and optimizing its real estate portfolio. ELECTRONIC ARTS INC. AND SUBSIDIARIES Unaudited Condensed Consolidated Statements of Operations (in $ millions, except per share data) Three Months Ended March 31, Twelve Months Ended March 31, 2023 2022 2023 2022 Net revenue 1,874 1,825 7,426 6,991 Cost of revenue 448 419 1,792 1,859 Gross profit 1,426 1,406 5,634 5,132 Operating expenses: Research and development 635 579 2,328 2,186 Marketing and sales 255 245 978 961 General and administrative 224 165 727 673 Amortization and impairment of intangibles 26 52 158 183 Restructuring 111 — 111 — Total operating expenses 1,251 1,041 4,302 4,003 Operating income 175 365 1,332 1,129 Interest and other income (expense), net 6 (9 ) (6 ) (48 ) Income before provision for income taxes 181 356 1,326 1,081 Provision for income taxes 193 131 524 292 Net income (loss) (12 ) 225 802 789 Earnings (loss) per share Basic (0.04 ) 0.80 2.90 2.78 Diluted (0.04 ) 0.80 2.88 2.76 Number of shares used in computation Basic 274 281 277 284 Diluted 274 283 278 286 Results (in $ millions, except per share data) The following table reports the variance of the actuals versus our guidance provided on January 31, 2023 for the three months ended March 31, 2023 plus a comparison to the actuals for the three months ended March 31, 2022. Three Months Ended March 31, 2023 Guidance (Mid-Point) 2023 Actuals 2022 Actuals Variance Net revenue Net revenue 1,750 124 1,874 1,825 GAAP-based financial data Change in deferred net revenue (online-enabled games)1 (25 ) 97 72 (74 ) Cost of revenue Cost of revenue 405 43 448 419 GAAP-based financial data Acquisition-related expenses (25 ) — (25 ) (45 ) Stock-based compensation — (2 ) (2 ) (2 ) Operating expenses Operating expenses 1,080 171 1,251 1,041 GAAP-based financial data Acquisition-related expenses (35 ) 9 (26 ) (52 ) Restructuring and related charges — (155 ) (155 ) — Stock-based compensation (140 ) — (140 ) (123 ) Income before tax Income before tax 270 (89 ) 181 356 GAAP-based financial data Acquisition-related expenses 60 (9 ) 51 97 Change in deferred net revenue (online-enabled games)1 (25 ) 97 72 (74 ) Restructuring and related charges — 155 155 — Stock-based compensation 140 2 142 125 Tax rate used for management reporting 19 % 19 % 18 % Earnings (loss) per share Basic 0.13 (0.17 ) (0.04 ) 0.80 Diluted 0.13 (0.17 ) (0.04 ) 0.80 Number of shares used in computation Basic 275 (1 ) 274 281 Diluted 277 (3 ) 274 283 Anti-dilutive shares excluded for loss position2 — 1 1 — 1The change in deferred net revenue (online-enabled games) in the unaudited condensed consolidated statements of cash flows does not necessarily equal the change in deferred net revenue (online-enabled games) in the unaudited condensed consolidated statements of operations primarily due to the impact of unrecognized gains/losses on cash flow hedges. 2 Diluted earnings per share reflects the potential dilution from common shares (calculated using the treasury stock method), issuable through stock-based compensation plans. When the company incurs a loss, shares issuable though stock-based compensation plans are excluded from the diluted loss per share calculation as inclusion would be anti-dilutive. ELECTRONIC ARTS INC. AND SUBSIDIARIES Unaudited Condensed Consolidated Balance Sheets (in $ millions) March 31, 2023 March 31, 20223 ASSETS Current assets: Cash and cash equivalents 2,424 2,732 Short-term investments 343 330 Receivables, net 684 650 Other current assets 518 439 Total current assets 3,969 4,151 Property and equipment, net 549 550 Goodwill 5,380 5,387 Acquisition-related intangibles, net 618 962 Deferred income taxes, net 2,462 2,243 Other assets 481 507 TOTAL ASSETS 13,459 13,800 LIABILITIES AND STOCKHOLDERS’ EQUITY Current liabilities: Accounts payable 99 101 Accrued and other current liabilities 1,285 1,388 Deferred net revenue (online-enabled games) 1,901 2,024 Total current liabilities 3,285 3,513 Senior notes, net 1,880 1,878 Income tax obligations 607 386 Deferred income taxes, net 1 1 Other liabilities 393 397 Total liabilities 6,166 6,175 Stockholders’ equity: Common stock 3 3 Retained earnings 7,357 7,607 Accumulated other comprehensive income (loss) (67 ) 15 Total stockholders’ equity 7,293 7,625 TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY 13,459 13,800 3Derived from audited consolidated financial statements. ELECTRONIC ARTS INC. AND SUBSIDIARIES Unaudited Condensed Consolidated Statements of Cash Flows (in $ millions) Three Months Ended March 31, Twelve Months Ended March 31, 2023 2022 2023 2022 OPERATING ACTIVITIES Net income (loss) (12 ) 225 802 789 Adjustments to reconcile net income (loss) to net cash provided by operating activities: Depreciation, amortization, accretion and impairment 173 141 536 486 Stock-based compensation 142 125 548 528 Change in assets and liabilities Receivables, net 152 313 (34 ) (77 ) Other assets (50 ) (82 ) (103 ) (157 ) Accounts payable 31 2 10 (7 ) Accrued and other liabilities 106 (14 ) 134 169 Deferred income taxes, net (18 ) (189 ) (221 ) (329 ) Deferred net revenue (online-enabled games) 93 (77 ) (122 ) 497 Net cash provided by operating activities 617 444 1,550 1,899 INVESTING ACTIVITIES Capital expenditures (47 ) (53 ) (207 ) (188 ) Proceeds from maturities and sales of short-term investments 152 136 395 1,329 Purchase of short-term investments (142 ) (116 ) (405 ) (554 ) Acquisitions, net of cash acquired — — — (3,391 ) Net cash used in investing activities (37 ) (33 ) (217 ) (2,804 ) FINANCING ACTIVITIES Proceeds from issuance of common stock 33 33 80 77 Cash dividends paid (52 ) (48 ) (210 ) (193 ) Cash paid to taxing authorities for shares withheld from employees (14 ) (11 ) (175 ) (204 ) Repurchase and retirement of common stock (325 ) (325 ) (1,295 ) (1,300 ) Net cash used in financing activities (358 ) (351 ) (1,600 ) (1,620 ) Effect of foreign exchange on cash and cash equivalents — 2 (41 ) (3 ) Change in cash and cash equivalents 222 62 (308 ) (2,528 ) Beginning cash and cash equivalents 2,202 2,670 2,732 5,260 Ending cash and cash equivalents 2,424 2,732 2,424 2,732 ELECTRONIC ARTS INC. AND SUBSIDIARIES Unaudited Supplemental Financial Information and Business Metrics (in $ millions, except per share data) Q4 Q1 Q2 Q3 Q4 YOY % FY22 FY23 FY23 FY23 FY23 Change Net revenue Net revenue 1,825 1,767 1,904 1,881 1,874 3 % GAAP-based financial data Change in deferred net revenue (online-enabled games)1 (74 ) (468 ) (150 ) 461 72 Gross profit Gross profit 1,406 1,453 1,442 1,313 1,426 1 % Gross profit (as a % of net revenue) 77 % 82 % 76 % 70 % 76 % GAAP-based financial data Acquisition-related expenses 45 30 39 26 25 Change in deferred net revenue (online-enabled games)1 (74 ) (468 ) (150 ) 461 72 Stock-based compensation 2 2 1 2 2 Operating income Operating income 365 441 427 289 175 (52 %) Operating income (as a % of net revenue) 20 % 25 % 22 % 15 % 9 % GAAP-based financial data Acquisition-related expenses 97 69 82 76 51 Change in deferred net revenue (online-enabled games)1 (74 ) (468 ) (150 ) 461 72 Restructuring and related charges — — — — 155 Stock-based compensation 125 125 140 141 142 Net income (loss) Net income (loss) 225 311 299 204 (12 ) (105 %) Net income (loss) (as a % of net revenue) 12 % 18 % 16 % 11 % (1 %) GAAP-based financial data Acquisition-related expenses 97 69 82 76 51 Change in deferred net revenue (online-enabled games)1 (74 ) (468 ) (150 ) 461 72 Restructuring and related charges — — — — 155 Stock-based compensation 125 125 140 141 142 Tax rate used for management reporting 18 % 19 % 19 % 19 % 19 % Diluted earnings (loss) per share 0.80 1.11 1.07 0.73 (0.04 ) (105 %) Number of shares used in computation Basic 281 279 278 276 274 Diluted 283 281 279 278 274 Anti-dilutive shares excluded for loss position2 — — — — 1 1The change in deferred net revenue (online-enabled games) in the unaudited condensed consolidated statements of cash flows does not necessarily equal the change in deferred net revenue (online-enabled games) in the unaudited condensed consolidated statements of operations primarily due to the impact of unrecognized gains/losses on cash flow hedges. 2 Diluted earnings per share reflects the potential dilution from common shares (calculated using the treasury stock method), issuable through stock-based compensation plans. When the company incurs a loss, shares issuable though stock-based compensation plans are excluded from the diluted loss per share calculation as inclusion would be anti-dilutive. ELECTRONIC ARTS INC. AND SUBSIDIARIES Unaudited Supplemental Financial Information and Business Metrics (in $ millions) Q4 Q1 Q2 Q3 Q4 YOY % FY22 FY23 FY23 FY23 FY23 Change QUARTERLY NET REVENUE PRESENTATIONS Net revenue by composition Full game downloads 312 237 328 423 274 (12 %) Packaged goods 126 104 274 199 98 (22 %) Full game 438 341 602 622 372 (15 %) Live services and other 1,387 1,426 1,302 1,259 1,502 8 % Total net revenue 1,825 1,767 1,904 1,881 1,874 3 % Full game 24 % 19 % 32 % 33 % 20 % Live services and other 76 % 81 % 68 % 67 % 80 % Total net revenue % 100 % 100 % 100 % 100 % 100 % GAAP-based financial data Full game downloads (103 ) (111 ) 17 45 (24 ) Packaged goods (68 ) (65 ) 16 20 (24 ) Full game (171 ) (176 ) 33 65 (48 ) Live services and other 97 (292 ) (183 ) 396 120 Total change in deferred net revenue (online-enabled games) by composition1 (74 ) (468 ) (150 ) 461 72 Net revenue by platform Console 1,092 1,042 1,161 1,152 1,088 — PC & Other 420 402 423 435 469 12 % Mobile 313 323 320 294 317 1 % Total net revenue 1,825 1,767 1,904 1,881 1,874 3 % GAAP-based financial data Console (86 ) (405 ) (134 ) 423 11 PC & Other 3 (54 ) 8 29 47 Mobile 9 (9 ) (24 ) 9 14 Total change in deferred net revenue (online-enabled games) by platform1 (74 ) (468 ) (150 ) 461 72 1The change in deferred net revenue (online-enabled games) in the unaudited condensed consolidated statements of cash flows does not necessarily equal the change in deferred net revenue (online-enabled games) in the unaudited condensed consolidated statements of operations primarily due to the impact of unrecognized gains/losses on cash flow hedges. ELECTRONIC ARTS INC. AND SUBSIDIARIES Unaudited Supplemental Financial Information and Business Metrics (in $ millions) Q4 Q1 Q2 Q3 Q4 YOY % FY22 FY23 FY23 FY23 FY23 Change CASH FLOW DATA Operating cash flow 444 (78 ) (112 ) 1,123 617 39 % Operating cash flow - TTM 1,899 1,964 1,788 1,377 1,550 (18 %) Capital expenditures 53 59 53 48 47 (11 %) Capital expenditures - TTM 188 203 213 213 207 10 % Repurchase and retirement of common stock 325 320 325 325 325 — Cash dividends paid 48 53 53 52 52 8 % DEPRECIATION Depreciation expense 42 44 45 46 58 38 % BALANCE SHEET DATA Cash and cash equivalents 2,732 2,082 1,539 2,202 2,424 Short-term investments 330 334 335 351 343 Cash and cash equivalents, and short-term investments 3,062 2,416 1,874 2,553 2,767 (10 %) Receivables, net 650 579 919 836 684 5 % STOCK-BASED COMPENSATION Cost of revenue 2 2 1 2 2 Research and development 84 81 95 95 96 Marketing and sales 13 13 16 15 15 General and administrative 26 29 28 29 29 Total stock-based compensation 125 125 140 141 142 RESTRUCTURING AND RELATED CHARGES Restructuring — — — — 111 Office space reductions — — — — 44 Total restructuring and related charges — — — — 155 Category: Company News View source version on businesswire.com: https://www.businesswire.com/news/home/20230509005975/en/
Stuart Canfield SVP, Finance & Investor Relations 650-628-7750 scanfield@ea.com Erin Rheaume Director, Financial Communications 650-628-7978 erheaume@ea.com