NASDAQ$EA

Electronic Arts Inc · Q1 2021 earnings

Q1 2021 earnings · · Investor relations

Briefing

Reported strong Q1 FY21 financial results, marked by significant growth and player engagement.

Electronic Arts reported a strong first quarter with significant growth in net revenue, driven by high player engagement and successful game launches. The company exceeded expectations and saw substantial increases in player acquisition and engagement across key titles.

  • Net bookings for the trailing twelve months increased by 17% year-over-year, reaching $5.980 billion.
  • Player acquisition for FIFA was up by more than 100% year-over-year, and Madden NFL saw an increase of nearly 140%.
  • The Sims 4 has surpassed 30 million players across all platforms, with record-high daily, weekly, and monthly active player totals for a first quarter.
  • Net cash provided by operating activities was $378 million for the quarter.

Headline financials

Total Revenue

$1.46B

Previous: $1.21B+20.7%
EPS (adj)

$1.42

Previous: $0.25+468.0%
Net Bookings

$1.39B

No prior period
Capital Expenditures

-$38M

Previous: -$45M+15.6%
Free Cash Flow

$327M

Previous: $1.38B-76.2%
Net Income

$365M

Previous: $1.42B-74.3%
Operating Income

$471M

Previous: $415M+13.5%
Gross Profit

$1.17B

Previous: $1.02B+14.6%
Cash & Equivalents

$4.01B

Previous: $3.53B+13.6%
Total Assets

$11.3B

Previous: $9.75B+15.7%
Stock-Based Comp

$102M

Previous: $73M+39.7%

Revenue & EPS history

EA · Revenue · Quarterly

$1.46B

Q1 2021+20.7%vs Q1 2020
Beat estimate in 12 of 16 quarters(75%)
ActualEstimate

Revenue by segment

EA · $1.46B total across 3 segments · Q1 2021

  • Live Services & Other
    $1.1B
  • Full Game Downloads
    $223M
  • Packaged Goods
    $136M

Forward guidance

Electronic Arts provided financial guidance for the second quarter ending September 30, 2020, including net revenue of approximately $1.125 billion and net bookings of approximately $875 million.

Tailwinds

  • Net revenue is expected to be approximately $1.125 billion.
  • Change in deferred net revenue (online-enabled games) is expected to be approximately $(250) million.
  • Net income is expected to be approximately $61 million.
  • Diluted earnings per share is expected to be approximately $0.21.
  • Net bookings is expected to be approximately $875 million.

Headwinds

  • Madden NFL 21 will launch on August 28, 2020.
  • FIFA 21 will launch on October 9, 2020, moving out of the second fiscal quarter.
  • Launch dates affect the original estimated phasing of net revenue.
  • Launch dates affect the original estimated phasing of net bookings.
  • These changes affect the year-over-year quarterly comparison.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2021

Historical avgQ1 2021

+1.1%

Avg return

Earnings day

+0.7%

Avg return

5 days after

+1.8%

Avg return

30 days after

53%

35 / 66 earnings

Positive

+18.0%

Q4 2014

Best reaction

-9.5%

Q3 2023

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q4 2026-2.1%-0.7%+0.7%
Q3 2026-1.2%-0.3%-1.7%
Q2 2026-0.1%-0.2%+0.9%
Q1 2026+0.0%+3.6%+9.5%
Q4 2025+0.6%-3.4%-3.2%
Q3 2025+7.6%+8.9%+15.5%
Q2 2025+3.4%+4.9%+13.1%
Q1 2025+2.1%+0.7%+1.6%
Q4 2024-4.1%-2.6%+5.2%
Q3 2024-0.7%-1.4%+0.6%
Q2 2024+3.6%+4.4%+11.3%
Q1 2024-7.4%-10.1%-12.0%
Q4 2023-0.8%-0.2%+1.1%
Q3 2023-9.5%-11.7%-12.9%
Q2 2023+2.1%+3.0%+4.5%
Q1 2023+1.8%+1.3%-2.4%
Q4 2022+7.5%+11.5%+21.2%
Q3 2022+3.4%+3.8%-3.6%
Q2 2022+1.6%-1.4%-10.6%
Q1 2022-2.1%-2.6%+4.9%
Q4 2021-0.7%-1.4%+3.6%
Q3 2021-3.5%-3.2%-10.0%
Q2 2021-4.9%-5.1%+2.7%
Q1 2021+4.2%+7.6%+3.6%
Q4 2020-1.3%-0.2%+0.3%
Q3 2020-3.8%-4.6%-9.7%
Q2 2020+0.0%-1.5%+4.2%
Q1 2020+4.1%+4.5%+4.7%
Q4 2019+0.1%+0.1%+2.8%
Q3 2019-9.3%+10.4%+12.4%
Q2 2019-0.2%+1.4%-5.3%
Q1 2019-8.7%-12.1%-12.0%
Q4 2018+5.7%+7.2%+10.5%
Q3 2018+7.9%+5.8%+3.8%
Q2 2018-2.6%-3.7%-9.6%
Q1 2018+0.2%-0.9%-0.9%
Q4 2017+13.0%+14.0%+19.4%
Q3 2017-1.0%-3.1%+3.8%
Q2 2017+0.8%+2.2%-3.7%
Q1 2017+2.6%+4.2%+6.7%
Q4 2016+13.7%
Q3 2016-7.1%
Q2 2016-6.1%
Q1 2016-0.9%
Q4 2015+2.7%
Q3 2015+10.4%
Q2 2015+5.5%
Q1 2015-6.2%
Q4 2014+18.0%
Q3 2014+3.1%
Q2 2014+4.7%
Q1 2014+5.8%
Q4 2013+17.9%
Q3 2013+5.2%
Q2 2013+3.7%
Q1 2013+4.0%
Q4 2012+1.1%
Q3 2012-4.0%
Q2 2012-6.0%
Q1 2012+2.5%
Q4 2011+1.7%
Q3 2011+0.4%
Q2 2011+0.0%
Q1 2011-2.2%
Q4 2010-3.8%
Q1 2010-1.8%

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