Live services drive Q1 expectation beat and
builds momentum for FY25
Electronic Arts (NASDAQ: EA) today announced preliminary
financial results for its first quarter ended June 30, 2024.
“EA delivered a strong start to FY25, beating net bookings
guidance as we continue to execute across our business,” said
Andrew Wilson, CEO of EA. "Our focus on delivering bigger, bolder,
and more connected experiences for our players has never been
sharper and is illustrated by the record-breaking launch of EA
SPORTS College Football 25 as we head into another historic Q2
sports season at EA."
“Strong execution, live events and continued player engagement
across our experiences, delivered Q1 results above expectations,”
said Stuart Canfield, CFO of EA. “Looking ahead, the remarkable
success of our launch week for College Football, combined with the
upcoming launches for EA SPORTS Madden NFL, EA SPORTS FC and Dragon
Age: The Veilguard, is building momentum for FY25 and beyond. We
are well positioned to deliver our multi-year financial
objectives.”
Selected Operating Highlights and
Metrics
- Net bookings1 for the quarter totaled $1.262 billion, exceeding
the high end of the guidance range of $1.250 billion. This was
driven by stronger performance across Madden NFL 24, FC Online and
FC Mobile.
- EA SPORTS FCTM celebrated real-world tournaments and events
during Q1, attracting tens of millions of new fans and driving
engagement across the franchise during the quarter.
- EA SPORTSTM Madden NFL delivered sustained momentum through the
quarter, with weekly average users in Ultimate Team and total net
bookings up double digits year-over-year.
- During the quarter, EA revealed Dragon Age: The Veilguard
gameplay, which trended #1 on YouTube Gaming and received millions
of views.
- After the quarter ended, EA SPORTSTM College Football 25
welcomed 5 million unique players into the game through its first
week, with over 500,000 more playing via the EA Play trial.
Selected Financial Highlights and
Metrics
- Net revenue was $1.660 billion for the quarter.
- Net cash provided by operating activities was $120 million for
the quarter and $2.076 billion for the trailing twelve months.
- EA repurchased 2.8 million shares for $375 million during the
quarter under the new stock repurchase program, bringing the total
for the trailing twelve months to 10.2 million shares for $1.350
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 September
18, 2024 to stockholders of record as of the close of business on
August 28, 2024.
Quarterly Financial
Highlights
Three Months Ended
June 30,
2024
2023
(in $ millions, except per share
amounts)
Full game
250
443
Live services and other
1,410
1,481
Total net revenue
1,660
1,924
Net income
280
402
Diluted earnings per share
1.04
1.47
Operating cash flow
120
359
Value of shares repurchased
375
325
Number of shares repurchased
2.8
2.6
Cash dividend paid
50
52
Trailing Twelve Months Financial
Highlights
Twelve Months Ended
June 30,
2024
2023
(in $ millions)
Full game
1,822
2,039
Live services and other
5,476
5,544
Total net revenue
7,298
7,583
Net income
1,151
893
Operating cash flow
2,076
1,987
Value of shares repurchased
1,350
1,300
Number of shares repurchased
10.2
10.5
Operating Metric
The following is a calculation of our total net bookings1 for
the periods presented:
Three Months Ended
Twelve Months Ended
June 30,
June 30,
2024
2023
2024
2023
(in $ millions)
Total net revenue
1,660
1,924
7,298
7,583
Change in deferred net revenue
(online-enabled games)
(398
)
(346
)
(184
)
37
Total net bookings
1,262
1,578
7,114
7,620
Business Outlook as of July 30,
2024
Fiscal Year 2025 Expectations – Ending March 31, 2025
Financial outlook metrics:
- Net revenue is expected to be approximately $7.100 billion to
$7.500 billion.
- Change in deferred net revenue (online-enabled games) is
expected to be approximately $200 million.
- Net income is expected to be approximately $904 million to
$1.085 billion.
- Diluted earnings per share is expected to be approximately
$3.34 to $4.00.
- Operating cash flow is expected to be approximately $2.050
billion to $2.250 billion.
- The Company estimates a share count of 271 million for purposes
of calculating diluted earnings per share.
Operational outlook metric:
- Net bookings1 is expected to be approximately $7.300 billion to
$7.700 billion.
Second Quarter Fiscal Year 2025 Expectations – Ending
September 30, 2024
Financial outlook metrics:
- Net revenue is expected to be approximately $1.900 billion to
$2.000 billion.
- Change in deferred net revenue (online-enabled games) is
expected to be approximately $50 million.
- Net income is expected to be approximately $204 million to $248
million.
- Diluted earnings per share is expected to be approximately
$0.76 to $0.93.
- 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 $1.950 billion to
$2.050 billion.
Conference Call and Supporting
Documents
Electronic Arts will host a conference call on July 30, 2024 at
2:00 pm PT (5:00 pm ET) to review its results for the first fiscal
quarter ended June 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
August 14, 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 July 30, 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 I,
Item 1A of Electronic Arts’ latest Annual Report on Form 10-K under
the heading “Risk Factors”, as well as in other documents we have
filed with the Securities and Exchange Commission.
These forward-looking statements are current as of July 30,
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 June 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 June 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.
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 June
30,
2024
2023
Net revenue
1,660
1,924
Cost of revenue
263
368
Gross profit
1,397
1,556
Operating expenses:
Research and development
629
596
Marketing and sales
205
229
General and administrative
180
163
Amortization of intangibles
17
25
Restructuring
2
1
Total operating expenses
1,033
1,014
Operating income
364
542
Interest and other income (expense),
net
30
14
Income before provision for income
taxes
394
556
Provision for income taxes
114
154
Net income
280
402
Earnings per share
Basic
1.05
1.48
Diluted
1.04
1.47
Number of shares used in
computation
Basic
266
272
Diluted
268
274
Results (in $ millions, except per share data)
The following table reports the variance of the actuals versus
our guidance provided on May 7, 2024 for the three months ended
June 30, 2024 plus a comparison to the actuals for the three months
ended June 30, 2023.
Three Months Ended June
30,
2024 Guidance
(Mid-Point)
2024 Actuals
2023 Actuals
Variance
Net revenue
Net revenue
1,625
35
1,660
1,924
GAAP-based financial data
Change in deferred net revenue
(online-enabled games)1
(425
)
27
(398
)
(346
)
Cost of revenue
Cost of revenue
245
18
263
368
GAAP-based financial data
Acquisition-related expenses
(10
)
—
(10
)
(16
)
Stock-based compensation
(5
)
1
(4
)
(2
)
Operating expenses
Operating expenses
1,075
(42
)
1,033
1,014
GAAP-based financial data
Acquisition-related expenses
(20
)
3
(17
)
(25
)
Restructuring and related charges
(65
)
59
(6
)
(3
)
Stock-based compensation
(135
)
(4
)
(139
)
(128
)
Income before tax
Income before tax
324
70
394
556
GAAP-based financial data
Acquisition-related expenses
30
(3
)
27
41
Change in deferred net revenue
(online-enabled games)1
(425
)
27
(398
)
(346
)
Restructuring and related charges
65
(59
)
6
3
Stock-based compensation
140
3
143
130
Tax rate used for management reporting
19
%
19
%
19
%
Earnings per share
Basic
0.83
0.22
1.05
1.48
Diluted
0.82
0.22
1.04
1.47
Number of shares used in
computation
Basic
268
(2
)
266
272
Diluted
270
(2
)
268
274
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)
June 30, 2024
March 31, 20242
ASSETS
Current assets:
Cash and cash equivalents
2,400
2,900
Short-term investments
366
362
Receivables, net
433
565
Other current assets
388
420
Total current assets
3,587
4,247
Property and equipment, net
558
578
Goodwill
5,379
5,379
Acquisition-related intangibles, net
373
400
Deferred income taxes, net
2,393
2,380
Other assets
418
436
TOTAL ASSETS
12,708
13,420
LIABILITIES AND STOCKHOLDERS’
EQUITY
Current liabilities:
Accounts payable
80
110
Accrued and other current liabilities
976
1,166
Deferred net revenue (online-enabled
games)
1,412
1,814
Total current liabilities
2,468
3,090
Senior notes, net
1,882
1,882
Income tax obligations
525
497
Deferred income taxes, net
1
1
Other liabilities
432
437
Total liabilities
5,308
5,907
Stockholders’ equity:
Common stock
3
3
Retained earnings
7,457
7,582
Accumulated other comprehensive loss
(60
)
(72
)
Total stockholders’ equity
7,400
7,513
TOTAL LIABILITIES AND STOCKHOLDERS’
EQUITY
12,708
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 June
30,
2024
2023
OPERATING ACTIVITIES
Net income
280
402
Adjustments to reconcile net income to net
cash provided by operating activities:
Depreciation, amortization, accretion and
impairment
80
88
Stock-based compensation
143
130
Change in assets and liabilities
Receivables, net
132
167
Other assets
58
96
Accounts payable
(11
)
(18
)
Accrued and other liabilities
(147
)
(92
)
Deferred income taxes, net
(13
)
(93
)
Deferred net revenue (online-enabled
games)
(402
)
(321
)
Net cash provided by operating
activities
120
359
INVESTING ACTIVITIES
Capital expenditures
(67
)
(45
)
Proceeds from maturities and sales of
short-term investments
128
151
Purchase of short-term investments
(130
)
(150
)
Net cash used in investing
activities
(69
)
(44
)
FINANCING ACTIVITIES
Cash dividends paid
(50
)
(52
)
Cash paid to taxing authorities for shares
withheld from employees
(121
)
(105
)
Common stock repurchases
(375
)
(325
)
Net cash used in financing
activities
(546
)
(482
)
Effect of foreign exchange on cash and
cash equivalents
(5
)
2
Change in cash and cash
equivalents
(500
)
(165
)
Beginning cash and cash equivalents
2,900
2,424
Ending cash and cash
equivalents
2,400
2,259
ELECTRONIC ARTS INC. AND
SUBSIDIARIES
Unaudited Supplemental
Financial Information and Business Metrics
(in $ millions, except per
share data)
Q1
Q2
Q3
Q4
Q1
YOY %
FY24
FY24
FY24
FY24
FY25
Change
Net revenue
Net revenue
1,924
1,914
1,945
1,779
1,660
(14
%)
GAAP-based financial data
Change in deferred net revenue
(online-enabled games)1
(346
)
(94
)
421
(113
)
(398
)
Gross profit
Gross profit
1,556
1,458
1,416
1,422
1,397
(10
%)
Gross profit (as a % of net revenue)
81
%
76
%
73
%
80
%
84
%
GAAP-based financial data
Acquisition-related expenses
16
15
16
29
10
Change in deferred net revenue
(online-enabled games)1
(346
)
(94
)
421
(113
)
(398
)
Stock-based compensation
2
2
2
2
4
Operating income
Operating income
542
377
365
234
364
(33
%)
Operating income (as a % of net
revenue)
28
%
20
%
19
%
13
%
22
%
GAAP-based financial data
Acquisition-related expenses
41
39
37
101
27
Change in deferred net revenue
(online-enabled games)1
(346
)
(94
)
421
(113
)
(398
)
Restructuring and related charges
3
—
—
61
6
Stock-based compensation
130
155
151
148
143
Net income
Net income
402
399
290
182
280
(30
%)
Net income (as a % of net revenue)
21
%
21
%
15
%
10
%
17
%
GAAP-based financial data
Acquisition-related expenses
41
39
37
101
27
Change in deferred net revenue
(online-enabled games)1
(346
)
(94
)
421
(113
)
(398
)
Restructuring and related charges
3
—
—
61
6
Stock-based compensation
130
155
151
148
143
Tax rate used for management reporting
19
%
19
%
19
%
19
%
19
%
Diluted earnings per share
1.47
1.47
1.07
0.67
1.04
(29
%)
Number of shares used in
computation
Basic
272
271
269
267
266
Diluted
274
272
271
270
268
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)
Q1
Q2
Q3
Q4
Q1
YOY %
FY24
FY24
FY24
FY24
FY25
Change
QUARTERLY NET REVENUE
PRESENTATIONS
Net revenue by composition
Full game downloads
301
346
431
265
190
(37
%)
Packaged goods
142
275
187
68
60
(58
%)
Full game
443
621
618
333
250
(44
%)
Live services and other
1,481
1,293
1,327
1,446
1,410
(5
%)
Total net revenue
1,924
1,914
1,945
1,779
1,660
(14
%)
Full game
23
%
32
%
32
%
19
%
15
%
Live services and other
77
%
68
%
68
%
81
%
85
%
Total net revenue %
100
%
100
%
100
%
100
%
100
%
GAAP-based financial data
Full game downloads
(21
)
24
32
(37
)
(47
)
Packaged goods
(21
)
46
4
(37
)
(35
)
Full game
(42
)
70
36
(74
)
(82
)
Live services and other
(304
)
(164
)
385
(39
)
(316
)
Total change in deferred net revenue
(online-enabled games) by composition1
(346
)
(94
)
421
(113
)
(398
)
Net revenue by platform
Console
1,167
1,187
1,229
1,049
1,005
(14
%)
PC & Other
451
423
420
423
365
(19
%)
Mobile
306
304
296
307
290
(5
%)
Total net revenue
1,924
1,914
1,945
1,779
1,660
(14
%)
GAAP-based financial data
Console
(266
)
(35
)
377
(94
)
(328
)
PC & Other
(77
)
(34
)
33
(10
)
(70
)
Mobile
(3
)
(25
)
11
(9
)
—
Total change in deferred net revenue
(online-enabled games) by platform1
(346
)
(94
)
421
(113
)
(398
)
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)
Q1
Q2
Q3
Q4
Q1
YOY %
FY24
FY24
FY24
FY24
FY25
Change
CASH FLOW DATA
Investing cash flow
(44
)
(63
)
(51
)
(49
)
(69
)
Investing cash flow - TTM
(196
)
(205
)
(195
)
(207
)
(232
)
(18
%)
Financing cash flow
(482
)
(351
)
(431
)
(360
)
(546
)
Financing cash flow - TTM
(1,606
)
(1,609
)
(1,622
)
(1,624
)
(1,688
)
(5
%)
Operating cash flow
359
112
1,264
580
120
Operating cash flow - TTM
1,987
2,211
2,352
2,315
2,076
4
%
Capital expenditures
45
51
52
51
67
Capital expenditures - TTM
193
191
195
199
221
15
%
Free cash flow3
314
61
1,212
529
53
Free cash flow3 - TTM
1,794
2,020
2,157
2,116
1,855
3
%
Common stock repurchases
325
325
325
325
375
15
%
Cash dividends paid
52
51
51
51
50
(4
%)
DEPRECIATION
Depreciation expense
49
49
48
50
51
4
%
BALANCE SHEET DATA
Cash and cash equivalents
2,259
1,946
2,742
2,900
2,400
Short-term investments
343
359
362
362
366
Cash and cash equivalents, and short-term
investments
2,602
2,305
3,104
3,262
2,766
6
%
Receivables, net
517
1,047
867
565
433
(16
%)
STOCK-BASED COMPENSATION
Cost of revenue
2
2
2
2
4
Research and development
93
113
108
104
101
Marketing and sales
11
13
14
14
12
General and administrative
24
27
27
28
26
Total stock-based compensation
130
155
151
148
143
RESTRUCTURING AND RELATED
CHARGES
Restructuring
1
2
—
59
2
Office space reductions
2
(2
)
—
2
4
Total restructuring and related
charges
3
—
—
61
6
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 June 30, 2024 plus a comparison to the actuals for the
three months ended June 30, 2023.
Three Months Ended
June 30,
2024
2023
YOY % Change
Net revenue
1,660
1,924
(14
%)
GAAP operating income
364
542
(33
%)
Acquisition-related expenses
27
41
Restructuring and related charges
6
3
Stock-based compensation
143
130
Non-GAAP operating income
540
716
(25
%)
GAAP operating margin
21.9
%
28.2
%
Non-GAAP operating margin
32.5
%
37.2
%
Impact from change in deferred net revenue
(online-enabled games)
(2,120) bps
(1,380) 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
Data
GAAP-Based Financial
Data
A
B
C
D
GAAP Guidance Range
Acquisition related
expenses2
Restructuring and related
charges2
Stock-based
compensation2
Non-GAAP Guidance Range = A +
B +C + D
Change in deferred net revenue
(online- enabled games)2
Net revenue
7,100
to
7,500
—
—
—
7,100
to
7,500
200
Cost of revenue
1,480
to
1,520
(40
)
—
(10
)
1,430
to
1,470
—
Operating expense
4,345
to
4,435
(70
)
(95
)
(615
)
3,565
to
3,655
—
Operating margin
18.0
%
to
20.6
%
150 bps
130 bps
860 bps
29.6
%
to
31.7
%
200 bps to 170 bps
Income before provision for income
taxes
1,329
to
1,596
110
95
625
2,159
to
2,426
200
Net income1
904
to
1,085
Number of shares used in computation:
Diluted
271
1 The Company uses a tax rate of 19% internally to evaluate its
operating performance and to forecast, plan and analyze future
periods.
2 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 Q2 FY25 guidance.
Three Months Ending September
30, 2024
GAAP-Based Financial
Data
GAAP Guidance Range
Acquisition -related
expenses
Restructuring and related
charges
Stock-based
compensation
Change in deferred net revenue
(online -enabled games)
Net revenue
1,900
to
2,000
—
—
—
50
Cost of revenue
420
to
450
(10
)
—
(5
)
—
Operating expense
1,190
to
1,200
(20
)
(65
)
(160
)
—
Income before provision for income
taxes
300
to
365
30
65
165
50
Net income1
204
to
248
Number of shares used in computation:
Diluted
267
1 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.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240730845001/en/
Andrew Uerkwitz Vice President, Investor Relations 650-674-7191
auerkwitz@ea.com
Erin Rheaume Director, Financial Communications 650-628-7978
erheaume@ea.com
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