NASDAQ$EA

Electronic Arts Inc · Q1 2023 earnings

Q1 2023 earnings · · Investor relations

Briefing

EA delivered strong results in Q1 with growing player network deeply engaged in new games and live services.

Electronic Arts (EA) announced its Q1 FY23 financial results, reporting a total net revenue of $1.767 billion and net income of $311 million. The EA player network grew to nearly 600 million active accounts at quarter end. FIFA Mobile delivered the highest net bookings quarter in history, with record high DAUs, up 10% from last quarter.

  • EA delivered strong results in Q1 with growing player network deeply engaged in new games and live services.
  • FIFA Ultimate Team engagement during the quarter was up nearly 40% year-over-year in weekly and daily average players.
  • FIFA franchise and the successful launch of F1 drove net bookings outperformance.
  • EA repurchased 2.5 million shares for $320 million during the quarter.

Headline financials

Total Revenue

$1.77B

Previous: $1.55B+13.9%
EPS (adj)

$0.47

Previous: $0.79-40.5%
Net Bookings

$1.3B

No prior period
Capital Expenditures

-$59M

Previous: -$44M-34.1%
Free Cash Flow

$252M

Previous: $160M+57.5%
Net Income

$311M

Previous: $204M+52.5%
Operating Income

$441M

Previous: $322M+37.0%
Gross Profit

$1.45B

Previous: $1.24B+17.6%
Cash & Equivalents

$2.08B

Previous: $2.84B-26.6%
Total Assets

$13.2B

Previous: $12.7B+3.6%
Stock-Based Comp

$125M

Previous: $125M+0.0%

Revenue & EPS history

EA · Revenue · Quarterly

$1.77B

Q1 2023+13.9%vs Q1 2022
Beat estimate in 12 of 16 quarters(75%)
ActualEstimate

Revenue by segment

EA · $1.77B total across 3 segments · Q1 2023

  • Live Services & Other
    $1.43B+16.0%
  • Full Game Downloads
    $237M+1.7%
  • Packaged Goods
    $104M+16.9%

Forward guidance

EA provided financial guidance for the second quarter of fiscal year 2023, ending September 30, 2022.

Tailwinds

  • Net revenue is expected to be approximately $1.850 to $1.900 billion.
  • Change in deferred net revenue (online-enabled games) is expected to be approximately $(125) million.
  • Net income is expected to be approximately $220 to $242 million.
  • Diluted earnings per share is expected to be approximately $0.78 to $0.86.
  • Net bookings is expected to be approximately $1.725 to $1.775 billion.

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 2023

Historical avgQ1 2023

+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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