EA

ELECTRONIC ARTS INC

Communication Services | Large Cap

$0.08

EPS Forecast

$1,240

Revenue Forecast

Announcing earnings for the quarter ending 2024-06-30 soon
EX-99.1 2 d292234dex991.htm EX-99.1 EX-99.1

Exhibit 99.1

 

LOGO

Electronic Arts Reports Q3 FY22 Financial Results

REDWOOD CITY, CA – February 1, 2022 – Electronic Arts Inc. (NASDAQ: EA) today announced preliminary financial results for its third fiscal quarter ended December 31, 2021.

“FY22 has been a year of outstanding growth for Electronic Arts, and we’re proud that our franchises were among the most-downloaded, most-played, and most popular titles over the last year and the holiday quarter,” said Andrew Wilson, CEO of Electronic Arts. “Our network of more than 540 million unique active accounts continues to expand, players are spending more time in our games, and with our amazing IP we are well-positioned for continued growth.”

“Q3 was the largest quarter in the company’s history for net bookings, underlying profitability and cash generation,” said CFO Blake Jorgensen. “Our portfolio approach will enable us to deliver organic growth in the double digits this year, continue to deliver strong cash flow, and provides a strong foundation for growth as we look to the future.”

Selected Operating Highlights and Metrics

 

   

Net bookings1 for the trailing twelve months was $7.254 billion, up 22% year-over-year.

 

   

Over the last year, the EA player network has grown to more than 540 million unique active accounts.

 

   

During FY22 to date, more than 180 million monthly active accounts on average engaged in our games across all platforms.

 

   

At quarter end, Apex LegendsTM monthly active players were up more than 30% year-over-year.

 

   

Players are spending nearly 20% more time in our games in FY22 compared to the previous year.

Selected Financial Highlights and Metrics

 

   

Net cash provided by operating activities was a record $1.534 billion for the quarter and $1.826 billion for the trailing twelve months.

 

   

EA repurchased 2.4 million shares for $325 million during the quarter, bringing the total for the last twelve months to 9.4 million shares for $1.300 billion.

 

   

EA paid a cash dividend of $0.17 per share during the quarter.

Dividend

EA has declared a quarterly cash dividend of $0.17 per share of the Company’s common stock. The dividend is payable on March 23, 2022 to shareholders of record as of the close of business on March 9, 2022.


Quarterly Financial Highlights

 

     Three Months Ended
December 31,
 
     2021      2020  
(in $ millions, except per share amounts)              

Full game

     616        722  

Live services and other

     1,173        951  
  

 

 

    

 

 

 

Total net revenue

     1,789        1,673  
  

 

 

    

 

 

 
     

Net income

     66        211  

Diluted earnings per share

     0.23        0.72  
     

Operating cash flow

     1,534        1,124  
     

Value of shares repurchased

     325        326  

Number of shares repurchased

     2.4        2.5  

The following GAAP-based financial data2 and tax rate of 18% was used internally by company management to adjust its GAAP results in order to assess EA’s operating results:

 

     Three Months Ended December 31, 2021  
            GAAP-Based Financial Data  
(in $ millions)    Statement of
Operations
     Acquisition-
related
expenses
     Change in
deferred net
revenue
(online-
enabled
games)
     Stock-based
compensation
 

Total net revenue

     1,789        —          788        —    

Cost of revenue

     631        (44      —          (1
  

 

 

    

 

 

    

 

 

    

 

 

 

Gross profit

     1,158        44        788        1  

Total operating expenses

     1,056        (61      —          (128
  

 

 

    

 

 

    

 

 

    

 

 

 

Operating income

     102        105        788        129  

Interest and other income (expense), net

     (11      —          —          —    
  

 

 

    

 

 

    

 

 

    

 

 

 

Income before provision for income taxes

     91        105        788        129  

Number of shares used in computation:

           

Diluted

     285           


Trailing Twelve Months Financial Highlights

 

     Twelve Months Ended
December 31,
 
     2021      2020  
(in $ millions)              

Full game

     1,805        1,719  

Live services and other

     4,707        3,951  
  

 

 

    

 

 

 

Total net revenue

     6,512        5,670  
  

 

 

    

 

 

 
     

Net income

     640        1,179  
     

Operating cash flow

     1,826        2,061  
     

Value of shares repurchased

     1,300        695  

Number of shares repurchased

     9.4        5.9  

The following GAAP-based financial data2 and tax rate of 18% was used internally by company management to adjust its GAAP results in order to assess EA’s operating results:

 

     Twelve Months Ended December 31, 2021  
            GAAP-Based Financial Data  
(in $ millions)    Statement of
Operations
     Acquisition-
related
expenses
     Change in
deferred net
revenue
(online-
enabled
games)
     Stock-based
compensation
 

Total net revenue

     6,512        —          742        —    

Cost of revenue

     1,759        (92      —          (5
  

 

 

    

 

 

    

 

 

    

 

 

 

Gross profit

     4,753        92        742        5  

Total operating expenses

     3,814        (145      —          (507
  

 

 

    

 

 

    

 

 

    

 

 

 

Operating income

     939        237        742        512  

Interest and other income (expense), net

     (49      —          —          —    
  

 

 

    

 

 

    

 

 

    

 

 

 

Income before provision for income taxes

     890        237        742        512  

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,
 
     2021      2020      2021      2020  
(in $ millions)                            

Total net revenue

     1,789        1,673        6,512        5,670  

Change in deferred net revenue (online-enabled games)

     788        727        742        286  
  

 

 

    

 

 

    

 

 

    

 

 

 

Net bookings

     2,577        2,400        7,254        5,956  
  

 

 

    

 

 

    

 

 

    

 

 

 


Business Outlook as of February 1, 2022

Our financial expectations for the quarter and fiscal year ending March 31, 2022 include estimates of the impact of our completed acquisitions on consolidated results and could be materially impacted as we integrate these acquisitions.

Fiscal Year 2022 Expectations – Ending March 31, 2022

Financial metrics:

 

   

Net revenue is expected to be approximately $6.925 billion.

 

   

Change in deferred net revenue (online-enabled games) is expected to be approximately $600 million.

 

   

Net income is expected to be approximately $694 million.

 

   

Diluted earnings per share is expected to be approximately $2.43.

 

   

Operating cash flow is expected to be approximately $1.900 billion.

 

   

The Company estimates a share count of 286 million for purposes of calculating fiscal year 2022 diluted earnings per share.

Operational metric:

 

   

Net bookings1 is expected to be approximately $7.525 billion.

In addition, the following outlook for GAAP-based financial data2 and a long-term tax rate of 18% are used internally by EA to adjust our GAAP expectations to assess EA’s operating results and plan for future periods:

 

     Twelve Months Ending March 31, 2022  
            GAAP-Based Financial Data  
     GAAP
Guidance
     Acquisition-
related
expenses
     Change in
deferred net
revenue (online-
enabled games)
     Stock-based
compensation
 
(in $ millions)                            

Total net revenue

     6,925        —          600        —    

Cost of revenue

     1,844        (130      —          (5

Operating expense

     4,048        (180      —          (525

Income before provision for income taxes

     984        310        600        530  

Net income

     694           

Number of shares used in computation:

           

Diluted shares

     286           


Fourth Quarter Fiscal Year 2022 Expectations – Ending March 31, 2022

Financial metrics:

 

   

Net revenue is expected to be approximately $1.759 billion.

 

   

Change in deferred net revenue (online-enabled games) is expected to be approximately $2 million.

 

   

Net income is expected to be approximately $130 million.

 

   

Diluted earnings per share is expected to be approximately $0.46.

 

   

The Company estimates a share count of 284 million for purposes of calculating fourth quarter fiscal 2022 diluted earnings per share.

Operational metric:

 

   

Net bookings1 is expected to be approximately $1.761 billion.

In addition, the following outlook for GAAP-based financial data2 and a long-term tax rate of 18% are used internally by EA to adjust our GAAP expectations to assess EA’s operating results and plan for future periods:

 

     Three Months Ending March 31, 2022  
            GAAP-Based Financial Data  
     GAAP
Guidance
     Acquisition-
related
expenses
     Change in deferred
net revenue (online-
enabled games)
     Stock-based
compensation
 
(in $ millions)                            

Total net revenue

     1,759        —          2        —    

Cost of revenue

     404        (42      —          (1

Operating expense

     1,086        (49      —          (126

Income before provision for income taxes

     259        91        2        127  

Net income

     130           

Number of shares used in computation:

           

Diluted shares

     284           

Conference Call and Supporting Documents

Electronic Arts will host a conference call on February 1, 2022 at 2:00 pm PT (5:00 pm ET) to review its results for the fiscal quarter ended December 31, 2021 and its outlook for the future. During the course of the call, Electronic Arts may disclose material developments affecting its business and/or financial performance. Listeners may access the conference call live through the following dial-in number (866) 324-3683 (domestic) or (509) 844-0959 (international), using the conference code 4063695 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 15, 2022 at 855-859-2056 (domestic) or 404-537-3406 (international) using pin code 4063695. 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 1, 2022” and other information regarding EA’s fiscal 2022 and other future expectations contain forward-looking statements that are subject to change. Statements including words such as “anticipate,” “believe,” “expect,” “intend,” “estimate,” “plan,” “predict,” “seek,” “goal,” “will,” “may,” “likely,” “should,” “could” (and the negative of any of these terms), “future” and similar expressions also identify forward-looking statements. These forward-looking statements are not guarantees of future performance and reflect management’s current expectations. Our actual results could differ materially from those discussed in the forward-looking statements.

Some of the factors which could cause the Company’s results to differ materially from its expectations include the following: the impact of the COVID-19 pandemic, sales of the Company’s products and services; the Company’s ability to develop and support digital products and services, including managing online security and privacy; outages of our products, services and technological infrastructure; the Company’s ability to manage expenses; the competition in the interactive entertainment industry; governmental regulations; the effectiveness of the Company’s sales and marketing programs; timely development and release of the Company’s products and services; the Company’s ability to realize the anticipated benefits of, and integrate, acquisitions; the consumer demand for, and the availability of an adequate supply of console hardware units; the Company’s ability to predict consumer preferences among competing platforms; the Company’s ability to develop and implement new technology; foreign currency exchange rate fluctuations; general economic 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, 2021.

These forward-looking statements are current as of February 1, 2022. 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 December 31, 2021. 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, 2021.

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 2021, EA posted GAAP net revenue of $5.6 billion. Headquartered in Redwood City, California, EA is recognized for a portfolio of critically acclaimed, high-quality brands such as EA SPORTS FIFA, Battlefield, Apex Legends, The Sims, Madden NFL, Need for Speed, Titanfall, Plants vs. Zombies and F1®. More information about EA is available at www.ea.com/news.


EA SPORTS, Battlefield, Need for Speed, Apex Legends, The Sims, Titanfall and Plants vs. Zombies are trademarks of Electronic Arts Inc. STAR WARS © & TM 2015 Lucasfilm Ltd. All rights reserved. John Madden, NFL, FIFA and F1 are the property of their respective owners and used with permission.

For additional information, please contact:

 

Chris Evenden    John Reseburg
Vice President, Investor Relations    Vice President, Global Communications
650-628-0255    650-628-3601
cevenden@ea.com    jreseburg@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.

2

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, 2021.


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,
 
     2021     2020     2021     2020  

Net revenue

     1,789       1,673       5,166       4,283  

Cost of revenue

     631       601       1,440       1,175  
  

 

 

   

 

 

   

 

 

   

 

 

 

Gross profit

     1,158       1,072       3,726       3,108  

Operating expenses:

        

Research and development

     539       451       1,607       1,310  

Marketing and sales

     293       216       716       493  

General and administrative

     163       149       508       418  

Amortization of intangibles

     61       5       131       16  
  

 

 

   

 

 

   

 

 

   

 

 

 

Total operating expenses

     1,056       821       2,962       2,237  
  

 

 

   

 

 

   

 

 

   

 

 

 

Operating income

     102       251       764       871  

Interest and other income (expense), net

     (11     (6     (39     (19
  

 

 

   

 

 

   

 

 

   

 

 

 

Income before provision for income taxes

     91       245       725       852  

Provision for income taxes

     25       34       161       91  
  

 

 

   

 

 

   

 

 

   

 

 

 

Net income

     66       211       564       761  
  

 

 

   

 

 

   

 

 

   

 

 

 

Earnings per share

        

Basic

     0.23       0.73       1.99       2.63  

Diluted

     0.23       0.72       1.97       2.61  

Number of shares used in computation

        

Basic

     283       290       284       289  

Diluted

     285       292       287       292  


Results (in $ millions, except per share data)

The following table reports the variance of the actuals versus our guidance provided on November 3, 2021 for the three months ended December 31, 2021 plus a comparison to the actuals for the three months ended December 31, 2020.

 

     Three Months Ended December 31,  
     2021           2021     2020  
     Guidance     Variance     Actuals     Actuals  

Net revenue

        

Net revenue

     1,750       39       1,789       1,673  

GAAP-based financial data

        

Change in deferred net revenue (online-enabled games)1

     875       (87     788       727  

Cost of revenue

        

Cost of revenue

     625       6       631       601  

GAAP-based financial data

        

Acquisition-related expenses

     (50     6       (44     —    

Stock-based compensation

     —         (1     (1     (1

Operating expenses

        

Operating expenses

     1,100       (44     1,056       821  

GAAP-based financial data

        

Acquisition-related expenses

     (35     (26     (61     (5

Stock-based compensation

     (135     7       (128     (110

Income before tax

        

Income before tax

     8       83       91       245  

GAAP-based financial data

        

Acquisition-related expenses

     85       20       105       5  

Change in deferred net revenue (online-enabled games)1

     875       (87     788       727  

Stock-based compensation

     135       (6     129       111  

Tax rate used for management reporting

     18       18     18

Earnings per share

        

Basic

     0.02       0.21       0.23       0.73  

Diluted

     0.02       0.21       0.23       0.72  

Number of shares

        

Basic

     284       (1     283       290  

Diluted

     287       (2     285       292  

 

1 

The 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, 2021     March 31, 20212  

ASSETS

   

Current assets:

   

Cash and cash equivalents

    2,670       5,260  

Short-term investments

    346       1,106  

Receivables, net

    965       521  

Other current assets

    377       326  
 

 

 

   

 

 

 

Total current assets

    4,358       7,213  

Property and equipment, net

    522       491  

Goodwill

    5,389       2,868  

Acquisition-related intangibles, net

    1,052       309  

Deferred income taxes, net

    2,130       2,045  

Other assets

    479       362  
 

 

 

   

 

 

 

TOTAL ASSETS

    13,930       13,288  
 

 

 

   

 

 

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

   

Current liabilities:

   

Accounts payable

    86       96  

Accrued and other current liabilities

    1,443       1,341  

Deferred net revenue (online-enabled games)

    2,101       1,527  
 

 

 

   

 

 

 

Total current liabilities

    3,630       2,964  

Senior notes, net

    1,878       1,876  

Income tax obligations

    326       315  

Deferred income taxes, net

    75       43  

Other liabilities

    404       250  
 

 

 

   

 

 

 

Total liabilities

    6,313       5,448  

Stockholders’ equity:

   

Common stock

    3       3  

Retained earnings

    7,608       7,887  

Accumulated other comprehensive income (loss)

    6       (50
 

 

 

   

 

 

 

Total stockholders’ equity

    7,617       7,840  
 

 

 

   

 

 

 

TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY

    13,930       13,288  
 

 

 

   

 

 

 

 

2 

Derived 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,
 
    2021     2020     2021     2020  
OPERATING ACTIVITIES        

Net income

    66       211       564       761  

Adjustments to reconcile net income to net cash provided by operating activities:

       

Depreciation, amortization and accretion

    146       46       345       123  

Stock-based compensation

    129       111       403       326  

Change in assets and liabilities

       

Receivables, net

    56       (348     (390     (309

Other assets

    (24     85       (75     (28

Accounts payable

    (51     (77     (9     29  

Accrued and other liabilities

    433       341       183       245  

Deferred income taxes, net

    —         14       (140     (18

Deferred net revenue (online-enabled games)

    779       741       574       434  
 

 

 

   

 

 

   

 

 

   

 

 

 

Net cash provided by operating activities

    1,534       1,124       1,455       1,563  
 

 

 

   

 

 

   

 

 

   

 

 

 
INVESTING ACTIVITIES        

Capital expenditures

    (48     (30     (135     (93

Proceeds from maturities and sales of short-term investments

    65       670       1,193       2,088  

Purchase of short-term investments

    (69     (640     (438     (2,056

Acquisitions, net of cash acquired

    3       —         (3,391     —    
 

 

 

   

 

 

   

 

 

   

 

 

 

Net cash used in investing activities

    (49 )               (2,771 )      (61 ) 
 

 

 

   

 

 

   

 

 

   

 

 

 
FINANCING ACTIVITIES        

Proceeds from issuance of common stock

    3       13       44       56  

Cash dividends paid

    (48     (49     (145     (49

Cash paid to taxing authorities for shares withheld from employees

    (72     (67     (193     (144

Repurchase and retirement of common stock

    (325     (326     (975     (404
 

 

 

   

 

 

   

 

 

   

 

 

 

Net cash used in financing activities

    (442 )      (429 )      (1,269 )      (541 ) 
 

 

 

   

 

 

   

 

 

   

 

 

 

Effect of foreign exchange on cash and cash equivalents

    (3     18       (5     43  
 

 

 

   

 

 

   

 

 

   

 

 

 

Change in cash and cash equivalents

    1,040       713       (2,590     1,004  

Beginning cash and cash equivalents

    1,630       4,059       5,260       3,768  
 

 

 

   

 

 

   

 

 

   

 

 

 

Ending cash and cash equivalents

    2,670       4,772       2,670       4,772  
 

 

 

   

 

 

   

 

 

   

 

 

 


ELECTRONIC ARTS INC. AND SUBSIDIARIES

Unaudited Supplemental Financial Information and Business Metrics

(in $ millions, except per share data)

 

     Q3     Q4     Q1     Q2     Q3     YOY%  
     FY21     FY21     FY22     FY22     FY22     Change  

Net revenue

            

Net revenue

     1,673       1,346       1,551       1,826       1,789       7 % 

GAAP-based financial data

            

Change in deferred net revenue (online-enabled games)1

     727       144       (215     25       788    

Gross profit

            

Gross profit

     1,072       1,027       1,236       1,332       1,158       8 % 

Gross profit (as a % of net revenue)

     64     76     80     73     65  

GAAP-based financial data

            

Acquisition-related expenses

           4       22       22       44    

Change in deferred net revenue (online-enabled games)1

     727       144       (215     25       788    

Stock-based compensation

     1       1       1       2       1    

Operating income

            

Operating income

     251       175       322       340       102       (59 %) 

Operating income (as a % of net revenue)

     15     13     21     19     6  

GAAP-based financial data

            

Acquisition-related expenses

     5       18       62       52       105    

Change in deferred net revenue (online-enabled games)1

     727       144       (215     25       788    

Stock-based compensation

     111       109       125       149       129    

Net income

            

Net income

     211       76       204       294       66       (69 %) 

Net income (as a % of net revenue)

     13     6     13     16     4  

GAAP-based financial data

            

Acquisition-related expenses

     5       18       62       52       105    

Change in deferred net revenue (online-enabled games)1

     727       144       (215     25       788    

Stock-based compensation

     111       109       125       149       129    

Tax rate used for management reporting

     18     18     18     18     18  

Diluted earnings per share

     0.72       0.26       0.71       1.02       0.23       (68 %) 

Number of diluted shares used in computation

            

Basic

     290       288       286       285       283    

Diluted

     292       290       289       287       285    

 

1 

The 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)

 

    Q3     Q4     Q1     Q2     Q3     YOY %  
    FY21     FY21     FY22     FY22     FY22     Change  

QUARTERLY NET REVENUE PRESENTATIONS

           

Net revenue by composition

           

Full game downloads

    347       185       233       337       400       15

Packaged goods

    375       65       89       280       216       (42 %) 
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

Full game

    722       250       322       617       616       (15 %) 
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

Live services and other

    951       1,096       1,229       1,209       1,173       23
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

Total net revenue

    1,673       1,346       1,551       1,826       1,789       7

Full game

    43     19     21     34     34  

Live services and other

    57     81     79     66     66  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

Total net revenue %

    100     100     100     100     100  

GAAP-based financial data

 

     

Full game downloads

    53       (19     (5     35       179    

Packaged goods

    83       (44     (35     44       105    
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

Full game

    136       (63     (40     79       284    
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

Live services and other

    591       207       (175     (54     504    
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

Total change in deferred net revenue (online-enabled games) by composition

    727       144       (215     25       788    

Net revenue by platform

           

Console

    1,191       879       972       1,198       1,138       (4 %) 

PC & Other

    326       295       361       377       374       15

Mobile

    156       172       218       251       277       78
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

Total net revenue

    1,673       1,346       1,551       1,826       1,789       7
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

GAAP-based financial data

 

     

Console

    619       71       (278     (29     608    

PC & Other

    73       51       9       26       137    

Mobile

    35       22       54       28       43    
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

Total change in deferred net revenue (online-enabled games) by platform1

    727       144       (215     25       788    

 

1 

The 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)

 

    Q3
FY21
    Q4
FY21
    Q1
FY22
    Q2
FY22
     Q3
FY22
     YOY %
Change
 

CASH FLOW DATA

             

Operating cash flow

    1,124       371       (143     64        1,534        36

Operating cash flow—TTM

    2,061       1,934       1,413       1,416        1,826        (11 %) 

Capital expenditures

    30       31       44       43        48        60

Capital expenditures—TTM

    133       124       130       148        166        25

Repurchase and retirement of common stock

    326       325       325       325        325        —  

Cash dividends paid

    49       49       49       48        48        (2 %) 

DEPRECIATION

             

Depreciation expense

    37       38       40       39        41        11

BALANCE SHEET DATA

             

Cash and cash equivalents

    4,772       5,260       2,838       1,630        2,670     

Short-term investments

    1,938       1,106       881       342        346     
 

 

 

   

 

 

   

 

 

   

 

 

    

 

 

    

Cash and cash equivalents, and short-term investments

    6,710       6,366       3,719       1,972        3,016        (55 %) 

Receivables, net

    778       521       557       1,031        965        24

STOCK-BASED COMPENSATION

             

Cost of revenue

    1       1       1       2        1     

Research and development

    74       71       85       101        86     

Marketing and sales

    11       12       12       15        14     

General and administrative

    25       25       27       31        28     
 

 

 

   

 

 

   

 

 

   

 

 

    

 

 

    

Total stock-based compensation

    111       109       125       149        129