NASDAQ$EA

Electronic Arts Inc · Q3 2023 earnings

Q3 2023 earnings · · Investor relations

Briefing

EA delivered high-quality experiences, driving record engagement and growing their player network, but the current macro environment impacted Q3 results.

EA reported strong engagement across its franchises and growth in its player network, but Q3 results were impacted by the current macro environment. The company is focused on prioritizing the player experience and directing investment to areas with the most positive impact on players and growth.

  • EA delivered high-quality experiences, driving record engagement across some of our biggest franchises and growing our player network.
  • The EA player network grew to more than 650 million at quarter end.
  • EA SPORTS™ FIFA 23 is pacing to be the biggest title in franchise history and delivered record engagement in Q3.
  • The Sims welcomed over 10 million new players into the community during the quarter, with daily active users, weekly active users and monthly active users all up double digits year-over-year.

Headline financials

Total Revenue

$1.88B

Previous: $1.79B+5.1%
EPS (adj)

$2.80

Previous: $3.20-12.5%
Capital Expenditures

-$160M

Previous: -$135M-18.5%
Free Cash Flow

$44M

Previous: -$69M+163.8%
Net Income

$204M

Previous: $66M+209.1%
Operating Income

$289M

Previous: $102M+183.3%
Gross Profit

$1.31B

Previous: $1.16B+13.4%
Cash & Equivalents

$2.2B

Previous: $2.67B-17.5%
Total Assets

$13.5B

Previous: $13.9B-3.3%
Stock-Based Comp

$141M

Previous: $129M+9.3%

Revenue & EPS history

EA · Revenue · Quarterly

$1.88B

Q3 2023+5.1%vs Q3 2022
Beat estimate in 9 of 15 quarters(60%)
ActualEstimate

Revenue by segment

EA · $1.88B total across 3 segments · Q3 2023

  • Live Services & Other
    $1.26B+7.3%
  • Full Game Downloads
    $423M+5.8%
  • Packaged Goods
    $199M-7.9%

Forward guidance

EA anticipates net revenue between $1.700 billion and $1.800 billion, net income between $14 million and $55 million, and net bookings between $1.675 billion and $1.775 billion for the fourth quarter of fiscal year 2023.

Tailwinds

  • Net revenue is expected to be approximately $1.700 billion to $1.800 billion.
  • Change in deferred net revenue (online-enabled games) is expected to be approximately ($25) million.
  • Net income is expected to be approximately $14 million to $55 million.
  • Diluted earnings per share is expected to be approximately $0.05 to $0.20.
  • The Company estimates a share count of 277 million for purposes of calculating fourth quarter fiscal 2023 diluted earnings per share.

Headwinds

  • This guidance includes the shift of Star Wars Jedi: Survivor to Q1 FY24.
  • Net revenue is expected to be approximately $1.700 billion to $1.800 billion.
  • Change in deferred net revenue (online-enabled games) is expected to be approximately ($25) million.
  • Net income is expected to be approximately $14 million to $55 million.
  • Diluted earnings per share is expected to be approximately $0.05 to $0.20.

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 2023

Historical avgQ3 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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