0000712515false00007125152024-05-032024-05-03

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
 
 FORM 8-K

CURRENT REPORT
Pursuant to Section 13 or 15(d) of The Securities Exchange Act of 1934

Date of report (Date of earliest event reported) May 3, 2024    

 ELECTRONIC ARTS INC.
(Exact Name of Registrant as Specified in Its Charter)
Delaware0-1794894-2838567
(State or Other Jurisdiction of Incorporation)(Commission File Number)(IRS Employer Identification No.)
209 Redwood Shores Parkway,Redwood City,California94065-1175
(Address of Principal Executive Offices)(Zip Code)
(650)628-1500
(Registrant’s Telephone Number, Including Area Code)
(Former Name or Former Address, if Changed Since Last Report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
☐
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Securities registered pursuant to Section 12(b) of the Act:
Title of Each ClassTrading SymbolName of Each Exchange on Which Registered
Common Stock, $0.01 par valueEANASDAQ Global Select Market

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933(17 CFR §230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR §240.12b-2).
                                                                                                                         Emerging growth company
☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.
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Item 2.02    Result of Operations and Financial Condition.

On May 7, 2024, Electronic Arts Inc. ("Electronic Arts" or “EA”) issued a press release announcing its financial results for the fourth fiscal quarter and fiscal year ended March 31, 2024. A copy of the press release is attached hereto as Exhibit 99.1.

Neither the information in this Form 8-K nor the information in the press release attached hereto as Exhibit 99.1 shall be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing.

Item 8.01    Other Events.

On May 3, 2024, the Audit Committee of EA, upon delegation from EA's full Board of Directors, authorized a new program to repurchase up to $5.0 billion of EA's common stock. Repurchases under this new stock repurchase program will begin on May 9, 2024 and the program will expire on May 9, 2027. This new stock repurchase program supersedes and replaces the stock repurchase authorization approved by EA’s Board of Directors on August 11, 2022, which will terminate effective as of May 8, 2024.

Under this program, EA may purchase stock in the open market or through privately-negotiated transactions in accordance with applicable securities laws, including pursuant to pre-arranged stock trading plans. The timing and actual amount of the stock repurchases will depend on several factors including price, capital availability, regulatory requirements, alternative investment opportunities and other market conditions. EA is not obligated to repurchase any specific number of shares of common stock under this program and it may be modified, suspended or discontinued at any time.

On May 3, 2024, the Audit Committee of EA, on behalf of EA’s full Board of Directors declared a cash dividend of $0.19 per share of EA's common stock. The dividend is payable on June 19, 2024 to stockholders of record as of the close of business on May 29, 2024.


Item 9.01    Financial Statements and Exhibits.

(d) Exhibits.
Exhibit No.Description
99.1
Press release dated May 7, 2024, relating to Electronic Arts Inc.’s financial results for its fourth fiscal quarter and fiscal year ended March 31, 2024.
104Cover Page Interactive Data File (embedded within the Inline XBRL document).


INDEX TO EXHIBITS


SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

            
ELECTRONIC ARTS INC.
Dated:May 7, 2024By:/s/ Stuart Canfield
Stuart Canfield
Chief Financial Officer


Exhibit 99.1

Electronic Arts Reports Q4 and FY24 Results


ealogo050520a.jpg
EA SPORTSTM Momentum Continued in FY24, Company Delivers Record Fiscal Year Cash Flow

REDWOOD CITY, CA – May 7, 2024 – (NASDAQ: EA) today announced preliminary financial results for its fourth quarter and fiscal year ended March 31, 2024.

“This year, EA delivered bigger, bolder world class entertainment that engaged and connected hundreds of millions of players and fans,” said Andrew Wilson, CEO of EA. “We will continue to build on this strong momentum through an incredible pipeline of new experiences, starting with College Football in FY25, positioning us for accelerated growth in FY26 and beyond.”

“EA’s FY24 was highlighted by record cash flow and strong earnings growth driven by EA SPORTS FCTM and Madden NFL,” said Stuart Canfield, CFO of EA. “With strong conviction in our future, we are announcing an expanded stock repurchase program. We look forward to sharing more about our long-term strategy and financial framework at our Investor Day this fall.”


Selected Operating Highlights and Metrics1

•Net bookings2 for FY24 was $7.430 billion, up 1% year-over-year (up 3% in constant currency).
•Delivered 11 titles and over 600 content updates in the year, including four non-annual sports titles and the successful rebrand of EA SPORTS FC.
•Our global football franchise grew net bookings by high-teens percent in FY24.
•During FY24, our EA SPORTSTM Madden NFL franchise delivered record net bookings, up 6% year-over-year and double-digit growth in weekly average users for both Madden NFL 24 and Madden Mobile.

Selected Financial Highlights and Metrics

•Net revenue for FY24 was $7.562 billion, up 2% year-over-year.
•For FY24, net cash provided by operating activities was a fiscal year record $2.315 billion, up 49% year-over-year.
•During FY24, EA returned $1.505 billion to stockholders through stock repurchases and dividends.
•The board has authorized a new stock repurchase program of $5 billion over three years.

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 19, 2024 to stockholders of record as of the close of business on May 29, 2024.



Quarterly Financial Highlights
Three Months Ended
March 31,
(in $ millions, except per share amounts)20242023
Full game333 372 
Live services and other1,446 1,502 
  Total net revenue1,779 1,874 
Net income (loss)182 (12)
Diluted earnings (loss) per share0.67 (0.04)
Operating cash flow580 617 
Value of shares repurchased325 325 
Number of shares repurchased2.3 2.7 
Cash dividend paid51 52 



The following GAAP-based financial data3 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, 2024
GAAP-Based Financial Data
(in $ millions)Statement of OperationsAcquisition-related expensesChange in deferred net revenue (online-enabled games)Restructuring and related chargesStock-based compensation
Total net revenue1,779 — (113)— — 
  Cost of revenue357 (29)— — (2)
Gross profit1,422 29 (113)— 2 
  Total operating expenses1,188 (72)— (61)(146)
Operating income234 101 (113)61 148 
  Interest and other income (expense), net26 — — — — 
  Income before provision for income taxes260 101 (113)61 148 
Number of shares used in computation:
  Diluted270 



Fiscal Year Financial Highlights
Twelve Months Ended
March 31,
(in $ millions, except per share amounts)20242023
Full game2,015 1,937 
Live services and other5,547 5,489 
  Total net revenue7,562 7,426 
Net income1,273 802 
Diluted earnings per share4.682.88
Operating cash flow2,315 1,550 
Value of shares repurchased1,300 1,295 
Number of shares repurchased10.0 10.4 
Cash dividend paid205 210 

The following GAAP-based financial data3 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, 2024
GAAP-Based Financial Data
(in $ millions)Statement of OperationsAcquisition-related expensesChange in deferred net revenue (online-enabled games)Restructuring and related chargesStock-based compensation
Total net revenue7,562 —(132)——
  Cost of revenue1,710 (76)——(8)
Gross profit5,852 76 (132)—8 
  Total operating expenses4,334 (142)—(64)(576)
Operating income1,518 218 (132)64 584 
  Interest and other income (expense), net71 ————
  Income before provision for income taxes1,589 218 (132)64 584 
Number of shares used in computation:
   Diluted272 

Operating Metric

The following is a calculation of our total net bookings2 for the periods presented:

Three Months Ended
March 31,		Twelve Months Ended
March 31,
(in $ millions)2024202320242023
Total net revenue1,779 1,874 7,562 7,426 
Change in deferred net revenue (online-enabled games)(113)72 (132)(85)
  Total net bookings1,666 1,946 7,430 7,341 





Business Outlook as of May 7, 2024

Fiscal Year 2025 Expectations – Ending March 31, 2025

Financial outlook metrics:
•Net revenue is expected to be approximately $7.100 billion to $7.500 billion.
◦Change in deferred net revenue (online-enabled games) is expected to be approximately $200 million.
•Net income is expected to be approximately $904 million to $1.085 billion.
•Diluted earnings per share is expected to be approximately $3.34 to $4.00.
•Operating cash flow is expected to be approximately $2.050 billion to $2.250 billion.
•The Company estimates a share count of 271 million for purposes of calculating diluted earnings per share.


Operational outlook 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 and a 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, 2025
GAAP-Based Financial Data*
(in $ millions)GAAP Guidance RangeAcquisition-related expensesChange in deferred net revenue (online-enabled games)Restructuring and related chargesStock-based compensation
Total net revenue7,100 to 7,500— 200 — — 
Cost of revenue1,480 to 1,520(40)— — (10)
Operating expense4,345 to 4,435(70)— (95)(615)
Income before provision for income taxes1,329 to 1,596110 200 95 625 
Net income904 to 1,085
Number of shares used in computation:
Diluted shares271 
*The mid-point of the range has been used for purposes of presenting the reconciling items.




First Quarter Fiscal Year 2025 Expectations – Ending June 30, 2024

Financial outlook metrics:
•Net revenue is expected to be approximately $1.575 billion to $1.675 billion.
◦Change in deferred net revenue (online-enabled games) is expected to be approximately ($425) million.
•Net income is expected to be approximately $197 million to $243 million.
•Diluted earnings per share is expected to be approximately $0.73 to $0.90.
•The Company estimates a share count of 270 million for purposes of calculating diluted earnings per share.


Operational outlook metric:
•Net bookings2 is expected to be approximately $1.150 billion to $1.250 billion.

In addition, the following outlook for GAAP-based financial data3 and a 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, 2024
GAAP-Based Financial Data*
(in $ millions)GAAP Guidance RangeAcquisition-related expensesChange in deferred net revenue (online-enabled games)Restructuring and related chargesStock-based compensation
Total net revenue1,575 to 1,675— (425)— — 
Cost of revenue240 to 250(10)— — (5)
Operating expense1,065 to 1,085(20)— (65)(135)
Income before provision for income taxes290 to 35730 (425)65 140 
Net income197 to 243
Number of shares used in computation:
Diluted shares270 
*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 7, 2024 at 2:00 pm PT (5:00 pm ET) to review its results for the fourth fiscal quarter and fiscal year ended March 31, 2024 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 22, 2024 at (800) 770-2030 (domestic) or (647) 362-9199 (international) using conference 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 7, 2024” 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 and trends; 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, 2023.

These forward-looking statements are current as of May 7, 2024. 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, 2024. 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, 2024.

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 2024, EA posted GAAP net revenue of approximately $7.6 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™, EA SPORTS™ Madden NFL, Need for Speed™, Titanfall™, Plants vs. Zombies™ and EA SPORTS F1®. More information about EA is available at www.ea.com/news.

EA, EA SPORTS, EA SPORTS FC, Battlefield, Need for Speed, Apex Legends, The Sims, Titanfall, and Plants vs. Zombies are trademarks of Electronic Arts Inc. John Madden, NFL, FIFA and F1 are the property of their respective owners and used with permission.





For additional information, please contact:
Andrew UerkwitzErin Rheaume
Vice President, Investor RelationsDirector, Financial Communications
650-674-7191650-628-7978
auerkwitz@ea.comerheaume@ea.com

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, 2023.






    

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,
2024202320242023
Net revenue1,779 1,874 7,562 7,426 
Cost of revenue357 448 1,710 1,792 
Gross profit1,422 1,426 5,852 5,634 
Operating expenses:
Research and development638 635 2,420 2,328 
Marketing and sales234 255 1,019 978 
General and administrative185 224 691 727 
Amortization and impairment of intangibles72 26 142 158 
Restructuring59 111 62 111 
Total operating expenses1,188 1,251 4,334 4,302 
Operating income234 175 1,518 1,332 
Interest and other income (expense), net26 6 71 (6)
Income before provision for income taxes260 181 1,589 1,326 
Provision for income taxes78 193 316 524 
Net income (loss)182 (12)1,273 802 
Earnings (loss) per share
Basic0.68 (0.04)4.712.90 
Diluted0.67 (0.04)4.682.88 
Number of shares used in computation
Basic267 274 270 277 
Diluted270 274 272 278 

Results (in $ millions, except per share data)
The following table reports the variance of the actuals versus our guidance provided on January 30, 2024 for the three months ended March 31, 2024 plus a comparison to the actuals for the three months ended March 31, 2023.

Three Months Ended March 31,
2024 Guidance (Mid-Point)2024 Actuals2023 Actuals
Variance
Net revenue
Net revenue1,775 4 1,779 1,874 
GAAP-based financial data
Change in deferred net revenue (online-enabled games)1
— (113)(113)72 
Cost of revenue
Cost of revenue385 (28)357 448 
GAAP-based financial data
Acquisition-related expenses(30)1 (29)(25)
Stock-based compensation(5)3 (2)(2)
Operating expenses
Operating expenses1,165 23 1,188 1,251 
GAAP-based financial data
Acquisition-related expenses(75)3 (72)(26)
Restructuring and related charges— (61)(61)(155)
Stock-based compensation(150)4 (146)(140)
Income before tax
Income before tax242 18 260 181 
GAAP-based financial data
Acquisition-related expenses105 (4)101 51 
Change in deferred net revenue (online-enabled games)1
— (113)(113)72 
Restructuring and related charges— 61 61 155 
Stock-based compensation155 (7)148 142 
Tax rate used for management reporting19 %19 %19 %
Earnings (loss) per share
Basic 0.44 0.24 0.68 (0.04)
Diluted0.44 0.23 0.67 (0.04)
Number of shares used in computation
Basic 269 (2)267 274 
Diluted271 (1)270 274 
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 Condensed Consolidated Balance Sheets
(in $ millions)
March 31, 2024
March 31, 20233
ASSETS
Current assets:
Cash and cash equivalents2,900 2,424 
Short-term investments362 343 
Receivables, net 565 684 
Other current assets420 518 
Total current assets4,247 3,969 
Property and equipment, net578 549 
Goodwill5,379 5,380 
Acquisition-related intangibles, net400 618 
Deferred income taxes, net2,380 2,462 
Other assets436 481 
TOTAL ASSETS13,420 13,459 
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable110 99 
Accrued and other current liabilities1,166 1,285 
Deferred net revenue (online-enabled games)1,814 1,901 
Total current liabilities3,090 3,285 
Senior notes, net1,882 1,880 
Income tax obligations497 607 
Deferred income taxes, net1 1 
Other liabilities437 393 
Total liabilities5,907 6,166 
Stockholders’ equity:
Common stock3 3 
Retained earnings7,582 7,357 
Accumulated other comprehensive loss(72)(67)
Total stockholders’ equity7,513 7,293 
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY13,420 13,459 



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,
2024202320242023
OPERATING ACTIVITIES
Net income (loss)182 (12)1,273 802 
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation, amortization, accretion and impairment 149 173 404 536 
Stock-based compensation148 142 584 548 
Change in assets and liabilities
Receivables, net303 152 119 (34)
Other assets(38)(50)148 (103)
Accounts payable30 31 (6)10 
Accrued and other liabilities(83)106 (202)134 
Deferred income taxes, net(6)(18)82 (221)
Deferred net revenue (online-enabled games)(105)93 (87)(122)
Net cash provided by operating activities580 617 2,315 1,550 
INVESTING ACTIVITIES
Capital expenditures(51)(47)(199)(207)
Proceeds from maturities and sales of short-term investments182 152 632 395 
Purchase of short-term investments(180)(142)(640)(405)
Net cash used in investing activities(49)(37)(207)(217)
FINANCING ACTIVITIES
Proceeds from issuance of common stock34 33 77 80 
Cash dividends paid(51)(52)(205)(210)
Cash paid to taxing authorities for shares withheld from employees(18)(14)(196)(175)
Common stock repurchases(325)(325)(1,300)(1,295)
Net cash used in financing activities(360)(358)(1,624)(1,600)
Effect of foreign exchange on cash and cash equivalents(13)— (8)(41)
Change in cash and cash equivalents158 222 476 (308)
Beginning cash and cash equivalents2,742 2,202 2,424 2,732 
Ending cash and cash equivalents2,900 2,424 2,900 2,424 















ELECTRONIC ARTS INC. AND SUBSIDIARIES
Unaudited Supplemental Financial Information and Business Metrics
(in $ millions, except per share data)
Q4Q1Q2Q3Q4YOY %
FY23FY24FY24FY24FY24Change
Net revenue
 Net revenue1,874 1,924 1,914 1,945 1,779 (5 %)
GAAP-based financial data
Change in deferred net revenue (online-enabled games)1
72 (346)(94)421 (113)
Gross profit
Gross profit1,426 1,556 1,458 1,416 1,422 — 
Gross profit (as a % of net revenue)76 %81 %76 %73 %80 %
GAAP-based financial data
Acquisition-related expenses25 16 15 16 29 
Change in deferred net revenue (online-enabled games)1
72 (346)(94)421 (113)
Stock-based compensation2 2 2 2 2 
Operating income
Operating income175 542 377 365 234 34 %
Operating income (as a % of net revenue)9 %28 %20 %19 %13 %
GAAP-based financial data
Acquisition-related expenses51 41 39 37 101 
Change in deferred net revenue (online-enabled games)1
72 (346)(94)421 (113)
Restructuring and related charges155 3 — — 61 
Stock-based compensation142 130 155 151 148 
Net income (loss)
Net income (loss)(12)402 399 290 182 1,617 %
Net income (loss) (as a % of net revenue)(1 %)21 %21 %15 %10 %
GAAP-based financial data
Acquisition-related expenses51 41 39 37 101 
Change in deferred net revenue (online-enabled games)1
72 (346)(94)421 (113)
Restructuring and related charges155 3 — — 61 
Stock-based compensation142 130 155 151 148 
Tax rate used for management reporting19 %19 %19 %19 %19 %
Diluted earnings (loss) per share(0.04)1.47 1.47 1.07 0.67 1,775 %
Number of shares used in computation
Basic274 272 271 269 267 
Diluted274 274 272 271 270 
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.


2Diluted 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)
Q4Q1Q2Q3Q4YOY %
FY23FY24FY24FY24FY24Change
QUARTERLY NET REVENUE PRESENTATIONS
Net revenue by composition
Full game downloads274 301 346 431 265 (3 %)
Packaged goods98 142 275 187 68 (31 %)
Full game372 443 621 618 333 (10 %)
Live services and other1,502 1,481 1,293 1,327 1,446 (4 %)
Total net revenue1,874 1,924 1,914 1,945 1,779 (5 %)
Full game20 %23 %32 %32 %19 %
Live services and other80 %77 %68 %68 %81 %
Total net revenue %100 %100 %100 %100 %100 %
GAAP-based financial data
Full game downloads(24)(21)24 32 (37)
Packaged goods(24)(21)46 4 (37)
Full game(48)(42)70 36 (74)
Live services and other120 (304)(164)385 (39)
Total change in deferred net revenue (online-enabled games) by composition1
72 (346)(94)421 (113)
Net revenue by platform
Console1,088 1,167 1,187 1,229 1,049 (4 %)
PC & Other469 451 423 420 423 (10 %)
Mobile317 306 304 296 307 (3 %)
Total net revenue1,874 1,924 1,914 1,945 1,779 (5 %)
GAAP-based financial data
Console 11 (266)(35)377 (94)
PC & Other47 (77)(34)33 (10)
Mobile14 (3)(25)11 (9)
Total change in deferred net revenue (online-enabled games) by platform1
72 (346)(94)421 (113)

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)
Q4Q1Q2Q3Q4YOY %
FY23FY24FY24FY24FY24Change
CASH FLOW DATA
Investing cash flow(37)(44)(63)(51)(49)
Investing cash flow - TTM(217)(196)(205)(195)(207)5 %
Financing cash flow(358)(482)(351)(431)(360)
Financing cash flow - TTM(1,600)(1,606)(1,609)(1,622)(1,624)(2 %)
Operating cash flow617 359 112 1,264 580 
Operating cash flow - TTM1,550 1,987 2,211 2,352 2,315 49 %
Capital expenditures47 45 51 52 51 
Capital expenditures - TTM207193191195199(4 %)
Free cash flow4
570 314 61 1,212 529 
Free cash flow4 - TTM
1,343 1,794 2,020 2,157 2,116 58 %
Common stock repurchases325 325 325 325 325 — 
Cash dividends paid5252515151(2 %)
DEPRECIATION
Depreciation expense5849494850(14 %)
BALANCE SHEET DATA
Cash and cash equivalents2,4242,2591,9462,7422,900
Short-term investments343343359362362
Cash and cash equivalents, and short-term investments2,767 2,602 2,305 3,104 3,262 18 %
Receivables, net6845171,047867565(17 %)
STOCK-BASED COMPENSATION
Cost of revenue2 2 2 2 2 
Research and development9693113108104
Marketing and sales1511131414
General and administrative2924272728
Total stock-based compensation142 130 155 151 148 
RESTRUCTURING AND RELATED CHARGES
Restructuring111 1 2 — 59 
Office space reductions44 2 (2)— 2 
Total restructuring and related charges155 3 — — 61 


4 Free cash flow is defined as Operating cash flow less Capital expenditures.










v3.24.1.u1
Cover Page
May 03, 2024
Cover [Abstract]  
Document Type 8-K
Document Period End Date May 03, 2024
Entity Registrant Name ELECTRONIC ARTS INC.
Entity Incorporation, State or Country Code DE
Entity File Number 0-17948
Entity Tax Identification Number 94-2838567
Entity Address, Address Line One 209 Redwood Shores Parkway,
Entity Address, City or Town Redwood City,
Entity Address, State or Province CA
Entity Address, Postal Zip Code 94065-1175
City Area Code (650)
Local Phone Number 628-1500
Written Communications false
Soliciting Material false
Pre-commencement Tender Offer false
Pre-commencement Issuer Tender Offer false
Entity Emerging Growth Company false
Title of 12(b) Security Common Stock, $0.01 par value
Trading Symbol EA
Security Exchange Name NASDAQ
Entity Central Index Key 0000712515
Amendment Flag false
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