Electronic Arts Inc (EA, Financial) released its earnings report for the second quarter ended September 30, 2023, on November 1, 2023. The company reported strong Q2 results, exceeding expectations largely due to the strength of its EA SPORTS portfolio and the successful launch of EA SPORTS FC 24.
Performance and Challenges
EA's Q2 results were driven by the strength of its EA SPORTS portfolio, including the successful launch of EA SPORTS FC 24. The company's net bookings for Q2 reached $1.820 billion, marking a 4% increase year-over-year. Live services and other net bookings for Q2 were $1.129 billion, up 1% year-over-year. On a trailing twelve-month basis, live services accounted for 73% of EA's business.
Financial Achievements
EA's net revenue for the quarter was $1.914 billion. The company's net income rose to $399 million, a significant increase from $299 million in the same period last year. Net cash provided by operating activities was $112 million for the quarter and $2.211 billion for the trailing twelve months. EA repurchased 2.6 million shares for $325 million during the quarter, bringing the total for the trailing twelve months to 10.5 million shares for $1.300 billion.
Income Statement, Balance Sheet, Cash Flow Statement Details
EA's income statement shows a net income of $399 million for the quarter, up from $299 million in the same period last year. The balance sheet details the company's assets, liabilities, and shareholders' equity. The cash flow statement shows a net cash provided by operating activities of $112 million for the quarter and $2.211 billion for the trailing twelve months.
Analysis on the Company's Performance
EA's strong Q2 results reflect the company's successful strategy of leveraging its EA SPORTS portfolio to drive growth. The successful launch of EA SPORTS FC 24 and the continued strength of EA SPORTS FIFA 23 contributed significantly to the company's performance. The company's focus on live services, which accounted for 73% of its business on a trailing twelve-month basis, also played a key role in its strong performance.
Other Pertinent Details
EA has declared a quarterly cash dividend of $0.19 per share of the Company’s common stock, payable on December 20, 2023 to shareholders of record as of the close of business on November 29, 2023. Looking ahead, EA expects net revenue for fiscal year 2024 to be approximately $7.300 billion to $7.700 billion, and net income to be approximately $1.118 billion to $1.273 billion.
Explore the complete 8-K earnings release (here) from Electronic Arts Inc for further details.
