NASDAQ$EA

Electronic Arts Inc · Q3 2024 earnings

Q3 2024 earnings · · Investor relations

Briefing

EA reported strong Q3 FY24 results, driven by EA SPORTS FCTM momentum and record live services net bookings.

Electronic Arts announced strong Q3 FY24 results, with EA SPORTS FC outperforming expectations and driving record live services net bookings. Net revenue was $1.945 billion, and net bookings reached $2.366 billion, up 1% year-over-year.

  • Net bookings for Q3 was $2.366 billion, up 1% year-over-year (up 2% in constant currency).
  • Live services and other net bookings for Q3 achieved a record $1.712 billion, up 3% year-over-year (up 5% in constant currency).
  • The EA SPORTS FCTM franchise outperformed Q3 expectations, delivering 7% net bookings growth against a prior year that included the World Cup.
  • EA SPORTSTM Madden NFL delivered net bookings growth of 5% year-over-year.

Headline financials

Total Revenue

$1.95B

Previous: $1.88B+3.4%
EPS

$1.07

Previous: $2.80-61.8%
Net Bookings

$2.37B

No prior period
Capital Expenditures

-$148M

Previous: -$160M+7.5%
Free Cash Flow

$142M

Previous: $44M+222.7%
Net Income

$290M

Previous: $204M+42.2%
Operating Income

$365M

Previous: $289M+26.3%
Gross Profit

$1.42B

Previous: $1.31B+7.8%
Cash & Equivalents

$2.74B

Previous: $2.2B+24.5%
Total Assets

$13.6B

Previous: $13.5B+1.1%
R&D Expense

$584M

No prior period
Stock-Based Comp

$151M

Previous: $141M+7.1%

Revenue & EPS history

EA · Revenue · Quarterly

$1.95B

Q3 2024+3.4%vs Q3 2023
Beat estimate in 9 of 15 quarters(60%)
ActualEstimate

Revenue by segment

EA · $1.91B total across 3 segments · Q2 2024

  • Live Services & Other
    $1.29B-0.7%
  • Full Game Downloads
    $346M+5.5%
  • Packaged Goods
    $275M+0.4%

Forward guidance

EA anticipates net revenue between $1.625 billion and $1.925 billion for Q4 FY24.

Tailwinds

  • Net revenue is expected to be approximately $1.625 billion to $1.925 billion.
  • No change in deferred net revenue (online-enabled games) is expected.
  • Net income is expected to be approximately $54 million to $183 million.
  • Diluted earnings per share is expected to be approximately $0.20 to $0.68.
  • Net bookings is expected to be approximately $1.625 billion to $1.925 billion.

Headwinds

  • Cost of revenue between $360 million and $410 million
  • Operating expense between $1.125 billion and $1.205 billion
  • Q4 impairment of acquisition-related intangible assets totaling approximately $70 million
  • Net income is expected to be approximately $54 million to $183 million.
  • Diluted earnings per share is expected to be approximately $0.20 to $0.68.

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 2024

Historical avgQ3 2024

+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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