NASDAQ$EA

Electronic Arts Inc · Q2 2022 earnings

Q2 2022 earnings · · Investor relations

Briefing

Reported strongest second quarter in the history of Electronic Arts, driven by EA SPORTS titles and Apex Legends.

Electronic Arts announced strong Q2 FY22 financial results, exceeding expectations and raising the outlook for the full year. The company's success was primarily driven by EA SPORTS titles and Apex Legends, with significant player engagement across leading franchises and live services.

  • Net bookings for the trailing twelve months were $7.077 billion, up 27% year-over-year.
  • Approximately 100 million players engaged with EA SPORTS global football franchise across all platforms in the first six months of the fiscal year.
  • Apex Legends Season 9 and Season 10 each set new records for highest active players since Season 1.
  • The Battlefield 2042 Open Beta had 7.7 million players.

Headline financials

Total Revenue

$1.83B

Previous: $1.15B+58.6%
EPS (adj)

$1.58

Previous: $0.05+3060.0%
Net Bookings

$1.85B

Previous: $910M+103.4%
Capital Expenditures

-$87M

Previous: -$63M-38.1%
Free Cash Flow

$207M

Previous: $122M+69.7%
Net Income

$294M

Previous: $185M+58.9%
Operating Income

$340M

Previous: $149M+128.2%
Gross Profit

$1.33B

Previous: $865M+54.0%
Cash & Equivalents

$1.63B

Previous: $4.06B-59.8%
Total Assets

$13B

Previous: $11.5B+13.5%
Stock-Based Comp

$149M

Previous: $113M+31.9%

Revenue & EPS history

EA · Revenue · Quarterly

$1.83B

Q2 2022+58.6%vs Q2 2021
Beat estimate in 12 of 16 quarters(75%)
ActualEstimate

Revenue by segment

EA · $1.83B total across 3 segments · Q2 2022

  • Live Services & Other
    $1.21B+39.1%
  • Full Game Downloads
    $337M+106.7%
  • Packaged Goods
    $280M+135.3%

Forward guidance

EA provides financial expectations for the quarter ending December 31, 2021. Net revenue is expected to be approximately $1.750 billion and net bookings is expected to be approximately $2.625 billion.

Tailwinds

  • Net revenue is expected to be approximately $1.750 billion.
  • Change in deferred net revenue (online-enabled games) is expected to be approximately $875 million.
  • Net income is expected to be approximately $5 million.
  • Diluted earnings per share is expected to be approximately $0.02.
  • Net bookings is expected to be approximately $2.625 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 Q2 2022

Historical avgQ2 2022

+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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