0000712515false00007125152025-01-312025-01-31

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) January 31, 2025    

 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 February 4, 2025, Electronic Arts Inc. ("Electronic Arts" or “EA”) issued a press release announcing its financial results for the third fiscal quarter ended December 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 January 31, 2025, 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 March 19, 2025 to stockholders of record as of the close of business on February 26, 2025.


Item 9.01    Financial Statements and Exhibits.

(d) Exhibits.
Exhibit No.Description
99.1
Press release dated February 4, 2025, relating to Electronic Arts Inc.’s financial results for its third fiscal quarter ended December 31, 2024.
104Cover Page Interactive Data File (embedded within the Inline XBRL document).


INDEX TO EXHIBITS
Exhibit No.Description
104Cover Page Interactive Data File (embedded within the Inline XBRL document).


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:February 4, 2025By:/s/ Stuart Canfield
Stuart Canfield
Chief Financial Officer


Exhibit 99.1

Electronic Arts Reports Q3 FY25 Results


ealogo050520.jpg
EA plans $1 billion accelerated stock repurchase further demonstrating conviction in long-term
growth of the business

REDWOOD CITY, CA – February 4, 2025 – Electronic Arts Inc. (NASDAQ: EA) today announced preliminary financial results for its third quarter ended December 31, 2024.

“The record success of our EA SPORTS FC 25 Team of the Year event demonstrates our creative teams’ ability to adapt, innovate, and execute at scale,” said Andrew Wilson, CEO of Electronic Arts. “As we build on this momentum across EA, we are confident in a return to growth in FY26 and beyond as we bring our next wave of iconic entertainment to players and fans worldwide.”

“Today, we announced plans for a $1 billion accelerated share repurchase, which is expected to bring total stock repurchases to $2.5 billion within the first year of our $5 billion authorization,” said Stuart Canfield, CFO of Electronic Arts. “This reflects both our confidence in EA’s long-term strategy and our ability to balance investment in growth with capital returns.”


Selected Operating Highlights and Metrics

•Net bookings1 for the quarter totaled $2.215 billion.
•Our Global Football franchise net bookings have grown more than 70% over the last five fiscal years, making it one of the biggest sports entertainment properties in the world.
•Our gameplay update for EA SPORTS FCTM 25, released on January 16th, drove engagement levels above our expectations, with over two million Ultimate Team players re-activated from earlier in the launch cycle.
•EA SPORTS FC Mobile saw a double-digit increase in new players and engagement year-over-year.
•American Football saw double-digit growth in weekly active users year-over-year in the third quarter, and remains on pace to surpass $1 billion in net bookings for fiscal year 2025.
•EA unveiled BattlefieldTM Labs, a new initiative allowing player-driven testing and innovation ahead of the franchise’s expected fiscal year 2026 release.

Selected Financial Highlights and Metrics

•Net revenue was $1.883 billion.
•Net cash provided by operating activities was $1.176 billion for the quarter and $2.110 billion for the trailing twelve months.
•EA repurchased 2.4 million shares for $375 million during the quarter under the stock repurchase program, bringing the total for the trailing twelve months to 10.1 million shares for $1.450 billion.
•EA plans for an accelerated stock repurchase program of $1 billion, which is expected to bring the total stockholder return to $2.5 billion within the first year of our $5 billion authorization.

Dividend

EA has declared a quarterly cash dividend of $0.19 per share of the Company’s common stock. The dividend is payable on March 19, 2025 to stockholders of record as of the close of business on February 26, 2025.



Quarterly Financial Highlights
Three Months Ended
December 31,
(in $ millions, except per share amounts)20242023
Full game599 618 
Live services and other1,284 1,327 
  Total net revenue1,883 1,945 
Net income293 290
Diluted earnings per share1.11 1.07
Operating cash flow1,176 1,264 
Value of shares repurchased375 325 
Number of shares repurchased2.4 2.5 
Cash dividend paid50 51 



Trailing Twelve Months Financial Highlights
Twelve Months Ended
December 31,
(in $ millions)20242023
Full game1,898 2,054 
Live services and other5,449 5,603 
  Total net revenue7,347 7,657 
Net income1,049 1,079 
Operating cash flow2,110 2,352 
Value of shares repurchased1,450 1,300 
Number of shares repurchased10.1 10.4 



Operating Metric

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

Three Months Ended
December 31,		Twelve Months Ended
December 31,
(in $ millions)2024202320242023
Total net revenue1,883 1,945 7,347 7,657 
Change in deferred net revenue (online-enabled games)332 421 (125)53 
  Total net bookings2,215 2,366 7,222 7,710 






Business Outlook as of February 4, 2025

Fiscal Year 2025 Expectations – Ending March 31, 2025

Financial outlook metrics:
•Net revenue is expected to be approximately $7.250 billion to $7.400 billion.
◦Change in deferred net revenue (online-enabled games) is expected to be approximately ($250) million.
•Net income is expected to be approximately $1.038 billion to $1.130 billion.
•Diluted earnings per share is expected to be approximately $3.90 to $4.25.
•Operating cash flow is expected to be approximately $1.800 billion to $1.900 billion.
•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 $7.000 billion to $7.150 billion.


Fourth Quarter Fiscal Year 2025 Expectations – Ending March 31, 2025

Financial outlook metrics:
•Net revenue is expected to be approximately $1.682 billion to $1.832 billion.
◦Change in deferred net revenue (online-enabled games) is expected to be approximately ($238) million.
•Net income is expected to be approximately $171 million to $263 million.
•Diluted earnings per share is expected to be approximately $0.65 to $1.00.
•The Company estimates a share count of 264 million for purposes of calculating diluted earnings per share.


Operational outlook metric:
•Net bookings1 is expected to be approximately $1.444 billion to $1.594 billion.




Conference Call and Supporting Documents
Electronic Arts will host a conference call on February 4, 2025 at 2:00 pm PT (5:00 pm ET) to review its results for the third fiscal quarter ended December 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 (855) 761-5600 (domestic) or (646) 307-1097 (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 February 11, 2025 at (800) 770-2030 (domestic) or (609) 800-9099 (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 February 4, 2025” 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 February 4, 2025. Electronic Arts assumes no obligation to revise or update any forward-looking statement, 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 December 31, 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 December 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, 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
December 31,		Nine Months Ended December 31,
2024202320242023
Net revenue1,883 1,945 5,568 5,783 
Cost of revenue456 529 1,175 1,353 
Gross profit1,427 1,416 4,393 4,430 
Operating expenses:
Research and development606 584 1,883 1,782 
Marketing and sales251 276 728 785 
General and administrative176 170 553 506 
Amortization of intangibles16 21 50 70 
Restructuring1 — 54 3 
Total operating expenses1,050 1,051 3,268 3,146 
Operating income377 365 1,125 1,284 
Interest and other income (expense), net28 17 73 45 
Income before provision for income taxes405 382 1,198 1,329 
Provision for income taxes112 92 331 238 
Net income293 290 867 1,091 
Earnings per share
Basic1.12 1.083.284.03 
Diluted1.11 1.073.264.01 
Number of shares used in computation
Basic262 269 264 271 
Diluted265 271 266 272 

Results (in $ millions, except per share data)
The following table reports the variance of the actuals versus our guidance provided on October 29, 2024 for the three months ended December 31, 2024 plus a comparison to the actuals for the three months ended December 31, 2023.

Three Months Ended December 31,
2024 Guidance (Mid-Point)2024 Actuals2023 Actuals
Variance
Net revenue
Net revenue1,950 (67)1,883 1,945 
GAAP-based financial data
Change in deferred net revenue (online-enabled games)1
525 (193)332 421 
Cost of revenue
Cost of revenue465 (9)456 529 
GAAP-based financial data
Acquisition-related expenses(10)— (10)(16)
Stock-based compensation(5)2 (3)(2)
Operating expenses
Operating expenses1,125 (75)1,050 1,051 
GAAP-based financial data
Acquisition-related expenses(20)4 (16)(21)
Restructuring and related charges(5)5 — — 
Stock-based compensation(165)5 (160)(149)
Income before tax
Income before tax371 34 405 382 
GAAP-based financial data
Acquisition-related expenses30 (4)26 37 
Change in deferred net revenue (online-enabled games)1
525 (193)332 421 
Restructuring and related charges5 (5)— — 
Stock-based compensation170 (7)163 151 
Tax rate used for management reporting19 %19 %19 %
Earnings per share
Basic 0.94 0.18 1.12 1.08 
Diluted0.94 0.17 1.11 1.07 
Number of shares used in computation
Basic 264 (2)262 269 
Diluted266 (1)265 271 


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)
December 31, 2024
March 31, 20242
ASSETS
Current assets:
Cash and cash equivalents2,776 2,900 
Short-term investments379 362 
Receivables, net 742 565 
Other current assets375 420 
Total current assets4,272 4,247 
Property and equipment, net566 578 
Goodwill5,376 5,379 
Acquisition-related intangibles, net320 400 
Deferred income taxes, net2,467 2,380 
Other assets450 436 
TOTAL ASSETS13,451 13,420 
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable, accrued, and other current liabilities1,298 1,276 
Deferred net revenue (online-enabled games)1,806 1,814 
Total current liabilities3,104 3,090 
Senior notes, net1,883 1,882 
Income tax obligations573 497 
Other liabilities479 438 
Total liabilities6,039 5,907 
Stockholders’ equity:
Common stock3 3 
Retained earnings7,472 7,582 
Accumulated other comprehensive loss(63)(72)
Total stockholders’ equity7,412 7,513 
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY13,451 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 December 31,Nine Months Ended December 31,
2024202320242023
OPERATING ACTIVITIES
Net income293 290 867 1,091 
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation, amortization, accretion and impairment75 82 277 255 
Stock-based compensation163 151 480 436 
Change in assets and liabilities
Receivables, net268 183 (179)(184)
Other assets41 112 21 186 
Accounts payable, accrued, and other liabilities44 45 161 (155)
Deferred income taxes, net(39)(20)(89)88 
Deferred net revenue (online-enabled games)331 421 (8)18 
Net cash provided by operating activities1,176 1,264 1,530 1,735 
INVESTING ACTIVITIES
Capital expenditures(50)(52)(167)(148)
Proceeds from maturities and sales of short-term investments127 148 366 450 
Purchase of short-term investments(139)(147)(376)(460)
Net cash used in investing activities(62)(51)(177)(158)
FINANCING ACTIVITIES
Proceeds from issuance of common stock1 3 43 43 
Cash dividends paid(50)(51)(151)(154)
Cash paid to taxing authorities for shares withheld from employees(72)(58)(211)(178)
Common stock repurchases and excise taxes paid(383)(325)(1,133)(975)
Net cash used in financing activities(504)(431)(1,452)(1,264)
Effect of foreign exchange on cash and cash equivalents(31)14 (25)5 
Change in cash and cash equivalents579 796 (124)318 
Beginning cash and cash equivalents2,197 1,946 2,900 2,424 
Ending cash and cash equivalents2,776 2,742 2,776 2,742 















ELECTRONIC ARTS INC. AND SUBSIDIARIES
Unaudited Supplemental Financial Information and Business Metrics
(in $ millions, except per share data)
Q3Q4Q1Q2Q3YOY %
FY24FY24FY25FY25FY25Change
Net revenue
 Net revenue1,945 1,779 1,660 2,025 1,883 (3 %)
GAAP-based financial data
Change in deferred net revenue (online-enabled games)1
421 (113)(398)54 332 
Gross profit
Gross profit1,416 1,422 1,397 1,569 1,427 1 %
Gross profit (as a % of net revenue)73 %80 %84 %78 %76 %
GAAP-based financial data
Acquisition-related expenses16 29 10 10 10 
Change in deferred net revenue (online-enabled games)1
421 (113)(398)54 332 
Stock-based compensation2 2 4 4 3 
Operating income
Operating income365 234 364 384 377 3 %
Operating income (as a % of net revenue)19 %13 %22 %19 %20 %
GAAP-based financial data
Acquisition-related expenses37 101 27 27 26 
Change in deferred net revenue (online-enabled games)1
421 (113)(398)54 332 
Restructuring and related charges— 61 6 52 — 
Stock-based compensation151 148 143 174 163 
Net income
Net income290 182 280 294 293 1 %
Net income (as a % of net revenue)15 %10 %17 %15 %16 %
GAAP-based financial data
Acquisition-related expenses37 101 27 27 26 
Change in deferred net revenue (online-enabled games)1
421 (113)(398)54 332 
Restructuring and related charges— 61 6 52 — 
Stock-based compensation151 148 143 174 163 
Tax rate used for management reporting19 %19 %19 %19 %19 %
Diluted earnings per share1.07 0.67 1.04 1.11 1.11 4 %
Number of shares used in computation
Basic269 267 266 264 262 
Diluted271 270 268 266 265 


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)
Q3Q4Q1Q2Q3YOY %
FY24FY24FY25FY25FY25Change
QUARTERLY NET REVENUE PRESENTATIONS
Net revenue by composition
Full game downloads431 265 190 475 446 3 %
Packaged goods187 68 60 241 153 (18 %)
Full game618 333 250 716 599 (3 %)
Live services and other1,327 1,446 1,410 1,309 1,284 (3 %)
Total net revenue1,945 1,779 1,660 2,025 1,883 (3 %)
Full game32 %19 %15 %35 %32 %
Live services and other68 %81 %85 %65 %68 %
Total net revenue %100 %100 %100 %100 %100 %
GAAP-based financial data
Full game downloads32 (37)(47)70 25 
Packaged goods4 (37)(35)46 9 
Full game36 (74)(82)116 34 
Live services and other385 (39)(316)(62)298 
Total change in deferred net revenue (online-enabled games) by composition1
421 (113)(398)54 332 
Net revenue by platform
Console1,229 1,049 1,005 1,374 1,215 (1 %)
PC & Other420 423 365 364 392 (7 %)
Mobile296 307 290 287 276 (7 %)
Total net revenue1,945 1,779 1,660 2,025 1,883 (3 %)
GAAP-based financial data
Console 377 (94)(328)108 275 
PC & Other33 (10)(70)(37)33 
Mobile11 (9)— (17)24 
Total change in deferred net revenue (online-enabled games) by platform1
421 (113)(398)54 332 

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)
Q3Q4Q1Q2Q3YOY %
FY24FY24FY25FY25FY25Change
CASH FLOW DATA
Investing cash flow(51)(49)(69)(46)(62)
Investing cash flow - TTM(195)(207)(232)(215)(226)(16 %)
Financing cash flow(431)(360)(546)(402)(504)
Financing cash flow - TTM(1,622)(1,624)(1,688)(1,739)(1,812)(12 %)
Operating cash flow1,264 580 120 234 1,176 
Operating cash flow - TTM2,352 2,315 2,076 2,198 2,110 (10 %)
Capital expenditures52 51 67 50 50 
Capital expenditures - TTM19519922122021812 %
Free cash flow3
1,212 529 53 184 1,126 
Free cash flow3 - TTM
2,157 2,116 1,855 1,978 1,892 (12 %)
Common stock repurchases and excise taxes paid325 325 375 375 383 18 %
Cash dividends paid5151505150(2 %)
DEPRECIATION
Depreciation expense48505151516 %
BALANCE SHEET DATA
Cash and cash equivalents2,7422,9002,4002,1972,776
Short-term investments362362366366379
Cash and cash equivalents, and short-term investments3,104 3,262 2,766 2,563 3,155 2 %
Receivables, net8675654331,012742(14 %)
STOCK-BASED COMPENSATION
Cost of revenue2 2 4 4 3 
Research and development108104101122119
Marketing and sales1414121614
General and administrative2728263227
Total stock-based compensation151 148 143 174 163 
RESTRUCTURING AND RELATED CHARGES
Restructuring— 59 2 51 1 
Office space reductions— 2 4 1 (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 December 31, 2024 plus a comparison to the actuals for the three months ended December 31, 2023.
Three Months Ended
December 31,
20242023YOY % Change
Net revenue1,8831,945(3%)
GAAP operating income3773653%
Acquisition-related expenses2637
Stock-based compensation163151
Non-GAAP operating income5665532%
GAAP operating margin20.0%18.8%
Non-GAAP operating margin30.1%28.4%
Impact from change in deferred net revenue (online-enabled games)1040 bps1280 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 revenue7,250to7,400———7,250to7,400(250)
Cost of revenue1,480to1,490(40)—(15)1,425to1,435—
Operating expense4,380to4,390(70)(65)(630)3,615to3,625—
Operating margin19.2%to20.5%150 bps90 bps880 bps30.5%to31.6%(250) bps to (240) bps
Income before provision for income taxes1,483to1,614110656452,303to2,434(250)
Net income4
1,038to1,130
Number of shares used in computation:
Diluted266


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 Q4 FY25 guidance.
Three Months Ending March 31, 2025
GAAP-Based Financial Data
GAAP Guidance RangeAcquisition-related expensesRestructuring and related chargesStock-based compensationChange in deferred net revenue (online-enabled games)
Net revenue1,682to1,832———(238)
Cost of revenue305to315(10)—(4)—
Operating expense1,112to1,122(20)(7)(161)—
Income before provision for income taxes285to416307165(238)
Net income4
171to263
Number of shares used in computation:
Diluted 264


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.





v3.25.0.1
Cover Page
Jan. 31, 2025
Cover [Abstract]  
Document Type 8-K
Document Period End Date Jan. 31, 2025
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
Electronic Arts (NASDAQ:EA)
Historical Stock Chart
From Jan 2025 to Feb 2025 Click Here for more Electronic Arts Charts.
Electronic Arts (NASDAQ:EA)
Historical Stock Chart
From Feb 2024 to Feb 2025 Click Here for more Electronic Arts Charts.