0000712515false00007125152024-10-282024-10-28

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) October 28, 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.
☐


Item 2.02    Result of Operations and Financial Condition.

On October 29, 2024, Electronic Arts Inc. ("Electronic Arts" or “EA”) issued a press release announcing its financial results for the second fiscal quarter ended September 30, 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 October 28, 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 December 18, 2024 to stockholders of record as of the close of business on November 27, 2024.


Item 9.01    Financial Statements and Exhibits.

(d) Exhibits.
Exhibit No.Description
99.1
Press release dated October 29, 2024, relating to Electronic Arts Inc.’s financial results for its second fiscal quarter ended September 30, 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:October 29, 2024By:/s/ Stuart Canfield
Stuart Canfield
Chief Financial Officer


Exhibit 99.1

Electronic Arts Reports Strong Q2 FY25 Results


ealogo050520a.jpg
Record Q2 net bookings driven by performance across EA SPORTS™ portfolio resulting in a
raised full-year outlook

REDWOOD CITY, CA – October 29, 2024 – (NASDAQ: EA) today announced preliminary financial results for its second quarter ended September 30, 2024.

“EA delivered another strong quarter with record Q2 net bookings, driven by our incredible teams, broad portfolio and technology leadership,” said Andrew Wilson, CEO of EA. “The momentum in our business reinforces our strategic vision to deliver innovative experiences and interactive entertainment that deepens and expands engagement across our global communities.”

“Q2 was another successful quarter for EA, exceeding the high end of our guidance range. As a result, we are also raising our FY25 outlook,” said Stuart Canfield, CFO of EA. “We remain confident in our ability to drive long-term value creation through increased scale, driving top-line growth, improved margins, and greater cash flow as shared at our Investor Day.”


Selected Operating Highlights and Metrics

•Net bookings1 for the quarter totaled $2.079 billion, setting a Q2 record and exceeding the high end of guidance range of $2.050 billion.
•American Football is on track to exceed $1 billion in net bookings for FY25, with total hours played in Q2 up over 140% year over year, and we also saw new players in the community more than double year over year.
•Through September, College Football 25 was the best-selling HD title in North America and gives EA three of the top ten HD bestsellers in North America.
•Global Football saw live service growth across all platforms in Q2, and total franchise net bookings in FY25 are on track to grow over a record FY24.
•The Sims™ 4 continues to expand, with more than 15 million players joining the game over the past year. Increased engagement led to higher-than-expected net bookings for the franchise in Q2.

Selected Financial Highlights and Metrics

•Net revenue was $2.025 billion for the quarter.
•Net cash provided by operating activities was $234 million for the quarter and $2.198 billion for the trailing twelve months.
•EA repurchased 2.6 million shares for $375 million during the quarter under the stock repurchase program, bringing the total for the trailing twelve months to 10.2 million shares for $1.400 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 December 18, 2024 to stockholders of record as of the close of business on November 27, 2024.



Quarterly Financial Highlights
Three Months Ended
September 30,
(in $ millions, except per share amounts)20242023
Full game716 621 
Live services and other1,309 1,293 
  Total net revenue2,025 1,914 
Net income294 399
Diluted earnings per share1.11 1.47*
Operating cash flow234 112 
Value of shares repurchased375 325 
Number of shares repurchased2.6 2.6 
Cash dividend paid51 51 
* Diluted earnings per share includes $0.34 from a one-time non-cash tax benefit in second quarter ended September 30, 2023.


Trailing Twelve Months Financial Highlights
Twelve Months Ended
September 30,
(in $ millions)20242023
Full game1,917 2,058 
Live services and other5,492 5,535 
  Total net revenue7,409 7,593 
Net income1,046 993 
Operating cash flow2,198 2,211 
Value of shares repurchased1,400 1,300 
Number of shares repurchased10.2 10.5 



Operating Metric

The following is a calculation of our total net bookings1 for the periods presented:

Three Months Ended
September 30,		Twelve Months Ended
September 30,
(in $ millions)2024202320242023
Total net revenue2,025 1,914 7,409 7,593 
Change in deferred net revenue (online-enabled games)54 (94)(36)93 
  Total net bookings2,079 1,820 7,373 7,686 






Business Outlook as of October 29, 2024

Fiscal Year 2025 Expectations – Ending March 31, 2025

Financial outlook metrics:
•Net revenue is expected to be approximately $7.400 billion to $7.700 billion.
◦Change in deferred net revenue (online-enabled games) is expected to be approximately $100 million.
•Net income is expected to be approximately $1.019 billion to $1.156 billion.
•Diluted earnings per share is expected to be approximately $3.82 to $4.33.
•Operating cash flow is expected to be approximately $2.075 billion to $2.275 billion.
•The Company estimates a share count of 267 million for purposes of calculating diluted earnings per share.


Operational outlook metric:
•Net bookings1 is expected to be approximately $7.500 billion to $7.800 billion.



Third Quarter Fiscal Year 2025 Expectations – Ending December 31, 2024

Financial outlook metrics:
•Net revenue is expected to be approximately $1.875 billion to $2.025 billion.
◦Change in deferred net revenue (online-enabled games) is expected to be approximately $525 million.
•Net income is expected to be approximately $226 million to $270 million.
•Diluted earnings per share is expected to be approximately $0.85 to $1.02.
•The Company estimates a share count of 266 million for purposes of calculating diluted earnings per share.


Operational outlook metric:
•Net bookings1 is expected to be approximately $2.400 billion to $2.550 billion.



Conference Call and Supporting Documents
Electronic Arts will host a conference call on October 29, 2024 at 2:00 pm PT (5:00 pm ET) to review its results for the second fiscal quarter ended September 30, 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 November 5, 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 October 29, 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, 2024.

These forward-looking statements are current as of October 29, 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 Quarterly Report on Form 10-Q for the fiscal quarter ended September 30, 2024. 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 September 30, 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, EA SPORTS™ College Football, Need for Speed™, Dragon Age™, 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, Dragon Age, 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 UerkwitzJustin Higgs
Vice President, Investor RelationsVice President, Corporate Communications
650-674-7191925-502-9253
auerkwitz@ea.comjhiggs@ea.com

1 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.







    

ELECTRONIC ARTS INC. AND SUBSIDIARIES
Unaudited Condensed Consolidated Statements of Operations
(in $ millions, except per share data)
Three Months Ended
September 30,		Six Months Ended September 30,
2024202320242023
Net revenue2,025 1,914 3,685 3,838 
Cost of revenue456 456 719 824 
Gross profit1,569 1,458 2,966 3,014 
Operating expenses:
Research and development648 602 1,277 1,198 
Marketing and sales272 280 477 509 
General and administrative197 173 377 336 
Amortization of intangibles17 24 34 49 
Restructuring51 2 53 3 
Total operating expenses1,185 1,081 2,218 2,095 
Operating income384 377 748 919 
Interest and other income (expense), net15 14 45 28 
Income before provision for (benefit from) income taxes399 391 793 947 
Provision for (benefit from) income taxes105 (8)219 146 
Net income294 399 574 801 
Earnings per share
Basic1.11 1.472.172.94 
Diluted1.11 1.472.152.93 
Number of shares used in computation
Basic264 271 265 272 
Diluted266 272 267 273 

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

Three Months Ended September 30,
2024 Guidance (Mid-Point)2024 Actuals2023 Actuals
Variance
Net revenue
Net revenue1,950 75 2,025 1,914 
GAAP-based financial data
Change in deferred net revenue (online-enabled games)1
50 4 54 (94)
Cost of revenue
Cost of revenue435 21 456 456 
GAAP-based financial data
Acquisition-related expenses(10)— (10)(15)
Stock-based compensation(5)1 (4)(2)
Operating expenses
Operating expenses1,195 (10)1,185 1,081 
GAAP-based financial data
Acquisition-related expenses(20)3 (17)(24)
Restructuring and related charges(65)13 (52)— 
Stock-based compensation(160)(10)(170)(153)
Income before tax
Income before tax333 66 399 391 
GAAP-based financial data
Acquisition-related expenses30 (3)27 39 
Change in deferred net revenue (online-enabled games)1
50 4 54 (94)
Restructuring and related charges65 (13)52 — 
Stock-based compensation165 9 174 155 
Tax rate used for management reporting19 %19 %19 %
Earnings per share
Basic 0.86 0.25 1.11 1.47 
Diluted0.85 0.26 1.11 1.47 
Number of shares used in computation
Basic 265 (1)264 271 
Diluted267 (1)266 272 


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 Condensed Consolidated Balance Sheets
(in $ millions)
September 30, 2024
March 31, 20242
ASSETS
Current assets:
Cash and cash equivalents2,197 2,900 
Short-term investments366 362 
Receivables, net 1,012 565 
Other current assets397 420 
Total current assets3,972 4,247 
Property and equipment, net578 578 
Goodwill5,381 5,379 
Acquisition-related intangibles, net346 400 
Deferred income taxes, net2,431 2,380 
Other assets428 436 
TOTAL ASSETS13,136 13,420 
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable, accrued, and other current liabilities1,312 1,276 
Deferred net revenue (online-enabled games)1,475 1,814 
Total current liabilities2,787 3,090 
Senior notes, net1,883 1,882 
Income tax obligations552 497 
Other liabilities506 438 
Total liabilities5,728 5,907 
Stockholders’ equity:
Common stock3 3 
Retained earnings7,520 7,582 
Accumulated other comprehensive loss(115)(72)
Total stockholders’ equity7,408 7,513 
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY13,136 13,420 



2Derived from audited consolidated financial statements.






ELECTRONIC ARTS INC. AND SUBSIDIARIES
Unaudited Condensed Consolidated Statements of Cash Flows
(in $ millions)
Three Months Ended September 30,Six Months Ended September 30,
2024202320242023
OPERATING ACTIVITIES
Net income294 399 574 801 
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation, amortization, accretion and impairment122 85 202 173 
Stock-based compensation174 155 317 285 
Change in assets and liabilities
Receivables, net(579)(534)(447)(367)
Other assets(78)(22)(20)74 
Accounts payable, accrued, and other liabilities275 (90)117 (200)
Deferred income taxes, net(37)201 (50)108 
Deferred net revenue (online-enabled games)63 (82)(339)(403)
Net cash provided by operating activities234 112 354 471 
INVESTING ACTIVITIES
Capital expenditures(50)(51)(117)(96)
Proceeds from maturities and sales of short-term investments111 151 239 302 
Purchase of short-term investments(107)(163)(237)(313)
Net cash used in investing activities(46)(63)(115)(107)
FINANCING ACTIVITIES
Proceeds from issuance of common stock42 40 42 40 
Cash dividends paid(51)(51)(101)(103)
Cash paid to taxing authorities for shares withheld from employees(18)(15)(139)(120)
Common stock repurchases(375)(325)(750)(650)
Net cash used in financing activities(402)(351)(948)(833)
Effect of foreign exchange on cash and cash equivalents11 (11)6 (9)
Change in cash and cash equivalents(203)(313)(703)(478)
Beginning cash and cash equivalents2,400 2,259 2,900 2,424 
Ending cash and cash equivalents2,197 1,946 2,197 1,946 















ELECTRONIC ARTS INC. AND SUBSIDIARIES
Unaudited Supplemental Financial Information and Business Metrics
(in $ millions, except per share data)
Q2Q3Q4Q1Q2YOY %
FY24FY24FY24FY25FY25Change
Net revenue
 Net revenue1,914 1,945 1,779 1,660 2,025 6 %
GAAP-based financial data
Change in deferred net revenue (online-enabled games)1
(94)421 (113)(398)54 
Gross profit
Gross profit1,458 1,416 1,422 1,397 1,569 8 %
Gross profit (as a % of net revenue)76 %73 %80 %84 %78 %
GAAP-based financial data
Acquisition-related expenses15 16 29 10 10 
Change in deferred net revenue (online-enabled games)1
(94)421 (113)(398)54 
Stock-based compensation2 2 2 4 4 
Operating income
Operating income377 365 234 364 384 2 %
Operating income (as a % of net revenue)20 %19 %13 %22 %19 %
GAAP-based financial data
Acquisition-related expenses39 37 101 27 27 
Change in deferred net revenue (online-enabled games)1
(94)421 (113)(398)54 
Restructuring and related charges— — 61 6 52 
Stock-based compensation155 151 148 143 174 
Net income
Net income399 290 182 280 294 (26 %)
Net income (as a % of net revenue)21 %15 %10 %17 %15 %
GAAP-based financial data
Acquisition-related expenses39 37 101 27 27 
Change in deferred net revenue (online-enabled games)1
(94)421 (113)(398)54 
Restructuring and related charges— — 61 6 52 
Stock-based compensation155 151 148 143 174 
Tax rate used for management reporting19 %19 %19 %19 %19 %
Diluted earnings per share1.47 1.07 0.67 1.04 1.11 (24 %)
Number of shares used in computation
Basic271 269 267 266 264 
Diluted272 271 270 268 266 


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)
Q2Q3Q4Q1Q2YOY %
FY24FY24FY24FY25FY25Change
QUARTERLY NET REVENUE PRESENTATIONS
Net revenue by composition
Full game downloads346 431 265 190 475 37 %
Packaged goods275 187 68 60 241 (12 %)
Full game621 618 333 250 716 15 %
Live services and other1,293 1,327 1,446 1,410 1,309 1 %
Total net revenue1,914 1,945 1,779 1,660 2,025 6 %
Full game32 %32 %19 %15 %35 %
Live services and other68 %68 %81 %85 %65 %
Total net revenue %100 %100 %100 %100 %100 %
GAAP-based financial data
Full game downloads24 32 (37)(47)70 
Packaged goods46 4 (37)(35)46 
Full game70 36 (74)(82)116 
Live services and other(164)385 (39)(316)(62)
Total change in deferred net revenue (online-enabled games) by composition1
(94)421 (113)(398)54 
Net revenue by platform
Console1,187 1,229 1,049 1,005 1,374 16 %
PC & Other423 420 423 365 364 (14 %)
Mobile304 296 307 290 287 (6 %)
Total net revenue1,914 1,945 1,779 1,660 2,025 6 %
GAAP-based financial data
Console (35)377 (94)(328)108 
PC & Other(34)33 (10)(70)(37)
Mobile(25)11 (9)— (17)
Total change in deferred net revenue (online-enabled games) by platform1
(94)421 (113)(398)54 

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)
Q2Q3Q4Q1Q2YOY %
FY24FY24FY24FY25FY25Change
CASH FLOW DATA
Investing cash flow(63)(51)(49)(69)(46)
Investing cash flow - TTM(205)(195)(207)(232)(215)(5 %)
Financing cash flow(351)(431)(360)(546)(402)
Financing cash flow - TTM(1,609)(1,622)(1,624)(1,688)(1,739)(8 %)
Operating cash flow112 1,264 580 120 234 
Operating cash flow - TTM2,211 2,352 2,315 2,076 2,198 (1 %)
Capital expenditures51 52 51 67 50 
Capital expenditures - TTM19119519922122015 %
Free cash flow3
61 1,212 529 53 184 
Free cash flow3 - TTM
2,020 2,157 2,116 1,855 1,978 (2 %)
Common stock repurchases325 325 325 375 375 15 %
Cash dividends paid5151515051— 
DEPRECIATION
Depreciation expense49485051514 %
BALANCE SHEET DATA
Cash and cash equivalents1,9462,7422,9002,4002,197
Short-term investments359362362366366
Cash and cash equivalents, and short-term investments2,305 3,104 3,262 2,766 2,563 11 %
Receivables, net1,0478675654331,012(3 %)
STOCK-BASED COMPENSATION
Cost of revenue2 2 2 4 4 
Research and development113108104101122
Marketing and sales1314141216
General and administrative2727282632
Total stock-based compensation155 151 148 143 174 
RESTRUCTURING AND RELATED CHARGES
Restructuring2 — 59 2 51 
Office space reductions(2)— 2 4 1 
Total restructuring and related charges— — 61 6 52 


3Free cash flow is defined as Operating cash flow less Capital expenditures.











ELECTRONIC ARTS INC. AND SUBSIDIARIES
Unaudited Reconciliation of GAAP to Non-GAAP Financial Measures
(in $ millions)
The following table provides a reconciliation of non-GAAP operating income and margin to their most directly comparable GAAP financial measure for the three months ended September 30, 2024 plus a comparison to the actuals for the three months ended September 30, 2023.
Three Months Ended
September 30,
20242023YOY % Change
Net revenue2,0251,9146%
GAAP operating income3843772%
Acquisition-related expenses2739
Restructuring and related charges52—
Stock-based compensation174155
Non-GAAP operating income63757112%
GAAP operating margin19.0%19.7%
Non-GAAP operating margin31.5%29.8%
Impact from change in deferred net revenue (online-enabled games)170 bps(360) bps










ELECTRONIC ARTS INC. AND SUBSIDIARIES
GAAP Guidance to Non-GAAP Guidance
(in $ millions)
The following table provides GAAP to Non-GAAP reconciliation of the Company’s FY25 guidance.
Twelve Months Ending March 31, 2025
GAAP-Based Financial DataGAAP-Based Financial Data
ABCD
GAAP Guidance Range
Acquisition-related expenses5
Restructuring and related charges5
Stock-based compensation5
Non-GAAP Guidance Range = A + B +C + D
Change in deferred net revenue (online-enabled games)5
Net revenue7,400to7,700———7,400to7,700100
Cost of revenue1,530to1,560(40)—(15)1,475to1,505—
Operating expense4,445to4,515(70)(80)(640)3,655to3,725—
Operating margin19.3%to21.1%150 bps110 bps870 bps30.7%to32.1%90 bps to 80 bps
Income before provision for income taxes1,477to1,676110806552,322to2,521100
Net income4
1,019to1,156
Number of shares used in computation:
Diluted267


4 The Company uses a tax rate of 19% internally to evaluate its operating performance and to forecast, plan and analyze future periods.
5 The mid-point of the range has been used for purposes of presenting reconciling items to operating margin.





ELECTRONIC ARTS INC. AND SUBSIDIARIES
GAAP-Based Financial Data for Guidance
(in $ millions)
The following table provides supplemental information to the Company’s Q3 FY25 guidance.
Three Months Ending December 31, 2024
GAAP-Based Financial Data
GAAP Guidance RangeAcquisition-related expensesRestructuring and related chargesStock-based compensationChange in deferred net revenue (online-enabled games)
Net revenue1,875to2,025———525
Cost of revenue450to480(10)—(5)—
Operating expense1,100to1,150(20)(5)(165)—
Income before provision for income taxes338to403305170525
Net income4
226to270
Number of shares used in computation:
Diluted 266


4 The Company uses a tax rate of 19% internally to evaluate its operating performance and to forecast, plan and analyze future periods.














































Non-GAAP Financial Measures
As a supplement to the Company’s financial measures presented in accordance with U.S. Generally Accepted Accounting Principles (“GAAP”), the Company presents certain non-GAAP measures of financial performance, including non-GAAP operating margin and free cash flow. These non-GAAP financial measures should not be considered as a substitute for, or superior to, measures of financial performance prepared in accordance with GAAP. In addition, these non-GAAP measures have limitations in that they do not reflect all of the items associated with the Company’s results of operations as determined in accordance with GAAP. These non-GAAP financial measures do not reflect a comprehensive system of accounting and differ from GAAP measures with the same names and may differ from non-GAAP financial measures with the same or similar names that are used by other companies.
The non-GAAP financial measures exclude acquisition-related expenses, stock-based compensation, restructuring and related charges, and capital expenditures, as applicable in any given reporting period and our outlook. The Company may consider whether other significant items that arise in the future should be excluded from our non-GAAP financial measures. Management believes that these non-GAAP financial measures provide investors with additional useful information to better understand and evaluate the Company’s operating results and future prospects because they exclude certain items that may not be indicative of the Company’s core business, operating results, or future outlook. These non-GAAP financial measures, with further adjustments are used by management to understand ongoing financial and business performance.

The Company uses a tax rate of 19% internally to evaluate its operating performance and to forecast, plan, and analyze future periods. Accordingly, the Company applies the same tax rate to its management reporting financial results.

Investors are encouraged to review the related GAAP financial measures and the reconciliation of non-GAAP financial measures to their most directly comparable GAAP financial measure.





v3.24.3
Cover Page
Oct. 28, 2024
Cover [Abstract]  
Document Type 8-K
Document Period End Date Oct. 28, 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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