HINWEIS: DIES IST EINE PRESSEMITTEILUNG, KEINE REDAKTIONELLE NEWS
REDWOOD CITY, Calif.--(BUSINESS WIRE)--Electronic Arts Inc. (NASDAQ: EA) today announced preliminary financial results for its first fiscal quarter ended June 30, 2020.
“This was an extraordinary quarter, and we’re deeply proud of everything our teams at Electronic Arts are doing for our players and communities,” said CEO Andrew Wilson. “We launched new games, deeply engaged players in our live services, and welcomed tens of millions of new players to our network. It was an unprecedented first quarter of growth in our business, and we will continue building on that strength with more innovative experiences, more groundbreaking content, and more ways to connect with friends and play great games throughout the year.”
“Player engagement through the first quarter was exceptionally high, and well above our forecast,” said COO and CFO Blake Jorgensen. “Our Stay Home, Play Together initiatives have been a strong tailwind for the business, as players look for safe and social entertainment in these difficult times. We are focused on delivering high quality titles for our players, combined with our incredible ongoing live services and increasing reach across platforms and geographies which should continue to expand our business over time.”
News and ongoing updates regarding EA and its games are available on EA’s blog at www.ea.com/news.
Selected Operating Highlights and Metrics
* 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.
Selected Financial Highlights and Metrics
Quarterly Financial Highlights
2020
2019
359
262
1,100
947
1,459
1,209
365
1.25
378
158
78
305
0.7
3.2
The following GAAP-based financial data and tax rate of 18% was used internally by company management to adjust its GAAP results in order to assess EA’s operating results:
1,459
-
(69
)
-
288
-
-
(1
)
1,171
-
(69
)
1
700
(5
)
-
(101
)
471
5
(69
)
102
(3
)
-
-
-
468
5
(69
)
102
292
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, 2020.
Financial Highlights for the Trailing Twelve Months
Twelve Months Ended
June 30,
2020
2019
1,984
1,784
3,803
3,238
5,787
5,022
2,017
1,585
980
1,197
9.8
11.9
The following GAAP-based financial data and tax rate of 18% was used internally by company management to adjust its GAAP results in order to assess EA’s operating results:
5,787
-
193
-
1,470
(10
)
-
(4
)
4,317
10
193
4
2,816
(26
)
-
(372
)
1,501
36
193
376
39
-
-
-
1,540
36
193
376
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, 2020.
Operating Metric
The following is a calculation of our total net bookings for the periods presented:
Three Months Ended
Twelve Months Ended
June 30,
June 30,
2020
2019*
2020*
2019*
1,459
1,209
5,787
5,022
(69
)
(427
)
193
94
1,390
782
5,980
5,116
Business Outlook as of July 30, 2020
The following forward-looking statements reflect expectations as of July 30, 2020. Electronic Arts assumes no obligation to update these statements. Results may be materially different and are affected by many factors detailed in this release and in EA’s annual and quarterly SEC filings.
Fiscal Year 2021 Expectations – Ending March 31, 2021
Financial metrics:
Operational metric:
In addition, the following outlook for GAAP-based financial data and a long-term tax rate of 18% are used internally by EA to adjust our GAAP expectations to assess EA’s operating results and plan for future periods:
5,625
-
325
-
1,483
-
-
(1
)
3,024
(20
)
-
(444
)
1,086
20
325
445
869
293
Second Quarter Fiscal Year 2021 Expectations – Ending September 30, 2020
Financial metrics:
Operational metric:
As previously announced, Madden NFL 21 will launch on August 28, 2020 and FIFA 21 will launch on October 9, 2020, moving FIFA 21 out of the second fiscal quarter and into the beginning of the third fiscal quarter. These launch dates affect the original estimated phasing of net revenue and net bookings as well as the year-over-year quarterly comparison. Refer to the slide presentation on EA’s IR website for additional details.
In addition, the following outlook for GAAP-based financial data and a long-term tax rate of 18% are used internally by EA to adjust our GAAP expectations to assess EA’s operating results and plan for future periods:
1,125
-
(250
)
-
280
-
-
-
755
(5
)
-
(110
)
83
5
(250
)
110
61
293
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, 2020.
Conference Call and Supporting Documents
Electronic Arts will host a conference call on July 30, 2020 at 2:00 pm PT (5:00 pm ET) to review its results for the first fiscal quarter ended June 30, 2020 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 (866) 324-3683 (domestic) or (509) 844-0959 (international), using the conference code 5955287 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 August 13, 2020 at 855-859-2056 (domestic) or 404-537-3406 (international) using pin code 5955287. 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 fiscal 2021 expectations under the heading “Business Outlook as of July 30, 2020,” and other information regarding EA's fiscal 2021 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: the impact of the COVID-19 pandemic, 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 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; general economic conditions; changes in our tax rates or tax laws; and other factors described in Part I, Item 1A of Electronic Arts’ latest Annual Report on Form 10-K under the heading “Risk Factors”, as well as in other documents we have filed with the Securities and Exchange Commission.
These forward-looking statements are current as of July 30, 2020. 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 Quarterly Report on Form 10-Q for the fiscal quarter ended June 30, 2020. Electronic Arts assumes no obligation and does not intend to update these estimates prior to filing its Form 10-Q for the fiscal quarter ended June 30, 2020.
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 2020, EA posted GAAP net revenue of $5.5 billion. Headquartered in Redwood City, California, EA is recognized for a portfolio of critically acclaimed, high-quality brands such as EA SPORTS™ FIFA, Battlefield™, Apex Legends™, The Sims™, Madden NFL, Need for Speed™, Titanfall™ and Plants vs. Zombies™. More information about EA is available at www.ea.com/news.
EA SPORTS, Command & Conquer, Burnout Paradise, Battlefield, Need for Speed, Apex Legends, The Sims and Plants vs. Zombies are trademarks of Electronic Arts Inc. John Madden, NFL and FIFA are the property of their respective owners and used with permission.
ELECTRONIC ARTS INC. AND SUBSIDIARIES
Unaudited Condensed Consolidated Statements of Operations
(in $ millions, except per share data)
Three Months Ended
June 30,
2020
2019
Net revenue
1,459
1,209
Cost of revenue
288
187
Gross profit
1,171
1,022
Operating expenses:
Research and development
438
381
Marketing and sales
121
110
General and administrative
136
110
Acquisition-related contingent consideration
—
1
Amortization of intangibles
5
5
Total operating expenses
700
607
Operating income
471
415
Interest and other income (expense), net
(3
)
21
Income before provision for (benefit from) income taxes
468
436
Provision for (benefit from) income taxes
103
(985
)
Net income
365
1,421
Earnings per share
Basic
1.27
4.78
Diluted
1.25
4.75
Number of shares used in computation
Basic
288
297
Diluted
292
299
Results (in $ millions, except per share data)
The following table reports the variance of the actuals versus our guidance provided on May 5, 2020 for the three months ended June 30, 2020 plus a comparison to the actuals for the three months ended June 30, 2019.
Three Months Ended June 30,
2020
2020
2019
Guidance
Variance
Actuals
Actuals
Net revenue
Net revenue
1,220
239
1,459
1,209
GAAP-based financial data
Change in deferred net revenue (online-enabled games)1
(220
)
151
(69
)
(427
)
Cost of revenue
Cost of revenue
210
78
288
187
GAAP-based financial data
Acquisition-related expenses
—
—
—
(2
)
Stock-based compensation
—
(1
)
(1
)
(1
)
Operating expenses
Operating expenses
635
65
700
607
GAAP-based financial data
Acquisition-related expenses
(5
)
—
(5
)
(6
)
Stock-based compensation
(90
)
(11
)
(101
)
(72
)
Income before tax
Income before tax
374
94
468
436
GAAP-based financial data
Acquisition-related expenses
5
—
5
8
Change in deferred net revenue (online-enabled games)1
(220
)
151
(69
)
(427
)
Stock-based compensation
90
12
102
73
Tax rate used for management reporting
18
%
18
%
18
%
Earnings per share
Basic
0.93
0.34
1.27
4.78
Diluted
0.93
0.32
1.25
4.75
Number of shares
Basic
289
(1
)
288
297
Diluted
291
1
292
299
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.
In fiscal 2021, EA changed the way in which it reports net revenue. Periods prior to the first quarter of fiscal 2021 have been recast for comparability to align with these changes. For more information please see the Financial Reporting FAQ on our Investor Relations Website.
ELECTRONIC ARTS INC. AND SUBSIDIARIES
Unaudited Condensed Consolidated Balance Sheets
(in $ millions)
June 30, 2020
March 31, 20202
ASSETS
Current assets:
Cash and cash equivalents
4,013
3,768
Short-term investments
1,947
1,967
Receivables, net
507
461
Other current assets
223
321
Total current assets
6,690
6,517
Property and equipment, net
450
449
Goodwill
1,889
1,885
Acquisition-related intangibles, net
48
53
Deferred income taxes, net
1,894
1,903
Other assets
313
305
TOTAL ASSETS
11,284
11,112
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable
51
68
Accrued and other current liabilities
1,040
1,052
Deferred net revenue (online-enabled games)
878
945
Senior notes, current, net
599
599
Total current liabilities
2,568
2,664
Senior notes, net
397
397
Income tax obligations
312
373
Deferred income taxes, net
1
1
Other liabilities
224
216
Total liabilities
3,502
3,651
Stockholders’ equity:
Common stock
3
3
Retained earnings
7,831
7,508
Accumulated other comprehensive loss
(52
)
(50
)
Total stockholders’ equity
7,782
7,461
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY
11,284
11,112
2Derived from audited consolidated financial statements.
ELECTRONIC ARTS INC. AND SUBSIDIARIES
Unaudited Condensed Consolidated Statements of Cash Flows
(in $ millions)
Three Months Ended June 30,
2020
2019
OPERATING ACTIVITIES
Net income
365
1,421
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation, amortization and accretion
37
37
Stock-based compensation
102
73
Change in assets and liabilities
Receivables, net
(44
)
294
Other assets
44
24
Accounts payable
(3
)
(40
)
Accrued and other liabilities
(66
)
(56
)
Deferred income taxes, net
10
(1,174
)
Deferred net revenue (online-enabled games)
(67
)
(421
)
Net cash provided by operating activities
378
158
INVESTING ACTIVITIES
Capital expenditures
(38
)
(45
)
Proceeds from maturities and sales of short-term investments
694
358
Purchase of short-term investments
(664
)
(1,263
)
Net cash used in investing activities
(8
)
(950
)
FINANCING ACTIVITIES
Proceeds from issuance of common stock
3
3
Cash paid to taxing authorities for shares withheld from employees
(69
)
(51
)
Repurchase and retirement of common stock
(78
)
(305
)
Payment of contingent consideration
—
(32
)
Net cash used in financing activities
(144
)
(385
)
Effect of foreign exchange on cash and cash equivalents
19
2
Change in cash and cash equivalents
245
(1,175
)
Beginning cash and cash equivalents
3,768
4,708
Ending cash and cash equivalents
4,013
3,533
ELECTRONIC ARTS INC. AND SUBSIDIARIES
Unaudited Supplemental Financial Information and Business Metrics
(in $ millions, except per share data)
Q1
Q2
Q3
Q4
Q1
YOY %
FY20
FY20
FY20
FY20
FY21
Change
Net revenue
Net revenue
1,209
1,348
1,593
1,387
1,459
21
%
GAAP-based financial data
Change in deferred net revenue (online-enabled games)1
(427
)
(35
)
428
(131
)
(69
)
Gross profit
Gross profit
1,022
943
1,085
1,118
1,171
15
%
Gross profit (as a % of net revenue)
85
%
70
%
68
%
81
%
80
%
GAAP-based financial data
Acquisition-related expenses
2
2
5
3
—
Change in deferred net revenue (online-enabled games)1
(427
)
(35
)
428
(131
)
(69
)
Stock-based compensation
1
1
1
1
1
Operating income
Operating income
415
268
361
401
471
13
%
Operating income (as a % of net revenue)
34
%
20
%
23
%
29
%
32
%
GAAP-based financial data
Acquisition-related expenses
8
10
12
9
5
Change in deferred net revenue (online-enabled games)1
(427
)
(35
)
428
(131
)
(69
)
Stock-based compensation
73
92
91
91
102
Net income
Net income
1,421
854
346
418
365
(74
%)
Net income (as a % of net revenue)
118
%
63
%
22
%
30
%
25
%
GAAP-based financial data
Acquisition-related expenses
8
10
12
9
5
Change in deferred net revenue (online-enabled games)1
(427
)
(35
)
428
(131
)
(69
)
Stock-based compensation
73
92
91
91
102
Tax rate used for management reporting
18
%
18
%
18
%
18
%
18
%
Diluted earnings per share
4.75
2.89
1.18
1.43
1.25
(74
%)
Number of diluted shares used in computation
Basic
297
295
292
290
288
Diluted
299
296
294
292
292
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.
In fiscal 2021, EA changed the way in which it reports net revenue. Periods prior to the first quarter of fiscal 2021 have been recast for comparability to align with these changes. For more information please see the Financial Reporting FAQ on our Investor Relations Website.
ELECTRONIC ARTS INC. AND SUBSIDIARIES
Unaudited Supplemental Financial Information and Business Metrics
(in $ millions)
Q1
Q2
Q3
Q4
Q1
YOY %
FY20
FY20
FY20
FY20
FY21
Change
QUARTERLY NET REVENUE PRESENTATIONS
Net revenue by composition
Full game downloads
133
181
286
211
223
68
%
Packaged goods
129
399
403
145
136
5
%
Full game
262
580
689
356
359
37
%
Live services and other
947
768
904
1,031
1,100
16
%
Total net revenue
1,209
1,348
1,593
1,387
1,459
21
%
Full game
22
%
43
%
43
%
26
%
25
%
Live services and other
78
%
57
%
57
%
74
%
75
%
Total net revenue %
100
%
100
%
100
%
100
%
100
%
GAAP-based financial data
Full game downloads
(57
)
(5
)
31
(21
)
(5
)
Packaged goods
(110
)
62
60
(67
)
(67
)
Full game
(167
)
57
91
(88
)
(72
)
Live services and other
(260
)
(92
)
337
(43
)
3
Total change in deferred net revenue (online-enabled games) by composition1
(427
)
(35
)
428
(131
)
(69
)
Net revenue by platform
Console
760
923
1,163
928
932
23
%
PC & Other
253
248
261
274
325
28
%
Mobile
196
177
169
185
202
3
%
Total net revenue
1,209
1,348
1,593
1,387
1,459
21
%
GAAP-based financial data
Console
(344
)
8
388
(143
)
(108
)
PC & Other
(58
)
(32
)
24
7
15
Mobile
(25
)
(11
)
16
5
24
Total change in deferred net revenue (online-enabled games) by platform1
(427
)
(35
)
428
(131
)
(69
)
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.
In fiscal 2021, EA changed the way in which it reports net revenue. Periods prior to the first quarter of fiscal 2021 have been recast for comparability to align with these changes. For more information please see the Financial Reporting FAQ on our Investor Relations Website.
ELECTRONIC ARTS INC. AND SUBSIDIARIES
Unaudited Supplemental Financial Information and Business Metrics
(in $ millions)
Q1
Q2
Q3
Q4
Q1
YOY %
FY20
FY20
FY20
FY20
FY21
Change
CASH FLOW DATA
Operating cash flow
158
37
1,104
498
378
139
%
Operating cash flow - TTM
1,585
1,748
1,898
1,797
2,017
27
%
Capital expenditures
45
27
28
40
38
(16
%)
Capital expenditures - TTM
132
128
135
140
133
1
%
Repurchase and retirement of common stock
305
306
305
291
78
(74
%)
DEPRECIATION
Depreciation expense
30
30
29
31
31
3
%
BALANCE SHEET DATA
Cash and cash equivalents
3,533
2,940
3,603
3,768
4,013
Short-term investments
1,654
1,943
1,999
1,967
1,947
Cash and cash equivalents, and short-term investments
5,187
4,883
5,602
5,735
5,960
15
%
Receivables, net
329
856
798
461
507
54
%
STOCK-BASED COMPENSATION
Cost of revenue
1
1
1
1
1
Research and development
49
61
60
59
66
Marketing and sales
7
10
10
10
11
General and administrative
16
20
20
21
24
Total stock-based compensation
73
92
91
91
102
For additional information, please contact:
Chris Evenden
Vice President, Investor Relations
650-628-0255
cevenden@ea.com
John Reseburg
Vice President, Corporate Communications
650-628-3601
jreseburg@ea.com
4 Kudos
Unabhängig. Meinungsstark.
