NASDAQ$EA

Electronic Arts Inc · Q3 2021 earnings

Q3 2021 earnings · · Investor relations

Briefing

Reported strong Q3 FY21 financial results, driven by live services outperformance in Ultimate Team and Apex Legends.

Electronic Arts announced strong preliminary financial results for Q3 FY21, ended December 31, 2020. The company delivered strong performance driven by live services, particularly Ultimate Team and Apex Legends. EA is raising its net bookings outlook for the full year and anticipates growth in fiscal year 2022, driven by the next Battlefield.

  • Net bookings for the trailing twelve months was $5.956 billion, up 8% year-over-year.
  • FIFA Ultimate Team had a record of nearly 6 million daily active players in December.
  • Apex Legends had 30% growth in new players, year-over-year.
  • The Sims 4 has more than 33 million players and reached record daily, weekly, and monthly average players in December.

Headline financials

Total Revenue

$1.67B

Previous: $1.59B+5.0%
EPS (adj)

$3.06

Previous: $2.52+21.4%
Net Bookings

$2.4B

Previous: $1.98B+21.3%
Capital Expenditures

-$93M

Previous: -$100M+7.0%
Free Cash Flow

$118M

Previous: $246M-52.0%
Net Income

$211M

Previous: $346M-39.0%
Operating Income

$251M

Previous: $361M-30.5%
Gross Profit

$1.07B

Previous: $1.09B-1.2%
Cash & Equivalents

$4.77B

Previous: $3.6B+32.4%
Total Assets

$12.4B

Previous: $11.2B+11.3%
Stock-Based Comp

$111M

Previous: $91M+22.0%

Revenue & EPS history

EA · Revenue · Quarterly

$1.67B

Q3 2021+5%vs Q3 2020
Beat estimate in 13 of 16 quarters(81%)
ActualEstimate

Revenue by segment

EA · $1.67B total across 3 segments · Q3 2021

  • Live Services & Other
    $951M+40.5%
  • Packaged Goods
    $375M-20.0%
  • Full Game Downloads
    $347M+21.3%

Forward guidance

Electronic Arts provided financial outlook for Q4 FY21, ending March 31, 2021.

Tailwinds

  • Net revenue is expected to be approximately $1.317 billion.
  • Change in deferred net revenue (online-enabled games) is expected to be approximately $58 million.
  • The Company estimates a GAAP basic and diluted share count of 289 million shares due to a forecasted net loss.
  • If the Company reports net income instead of a net loss, diluted share count for calculating diluted earnings per share would be 292 million shares.
  • Net bookings is expected to be approximately $1.375 billion.

Headwinds

  • Net loss is expected to be approximately ($19) million; this forecast includes the impact of an incremental tax accounting charge of ($152) million.
  • Loss per share is expected to be approximately ($0.07), which includes ($0.52) per share from the tax accounting charge.
  • Total net revenue is expected to be approximately $5.600 billion.
  • Net income is expected to be approximately $742 million.
  • Operating cash flow is expected to be approximately $1.850 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 Q3 2021

Historical avgQ3 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%

Discussion

Share your read of this quarter. Sign-in carries your eToro identity.

Join the conversation

Sign in with eToro to post your read of this quarter and vote on others'.

Sign in with eToro