In a press release sent to Gaming Cypher today, EA reported its Q1 FY15 financial results.
Take a look below:
Q1 Non-GAAP Net Revenue up 57% and Operating Income Up $246 Million Year-Over-Year
Trailing Twelve Month Operating Cash Flow Hits a Company Record High of $964 Million
REDWOOD CITY, Calif.–(BUSINESS WIRE)– Electronic Arts Inc. (NASDAQ: EA) today announced preliminary financial results for its first fiscal quarter ended June 30, 2014.
“It was a strong start to the year for Electronic Arts. We are committed to putting our players first and delivering the entertainment, innovation and creativity that our players want,” said Chief Executive Officer Andrew Wilson. “Through exciting new titles and fresh content in our live services, we are well-positioned to deliver on that commitment in FY15 and beyond.”
“EA delivered first quarter EPS above prior year and our guidance through a combination of revenue growth, higher gross margins and lower operating expenses,” said Chief Financial Officer Blake Jorgensen. “We have gotten off to a great start and are encouraged by the trends in our industry and business.”
Selected Financial and Operating Highlights and Metrics:
*On a non-GAAP basis
- In EA’s fiscal Q1, gamers played more than 13.6 billion online sessions of EA games, totaling nearly 2.4 billion hours played across console, mobile and PC.
- EA received more than 40 E3 awards: Dragon AgeTM Inquisition won more than 20 awards at E3, including Best RPG, and NHL®15 took home Best Sports Game from the E3 Game Critics.
- Monthly active players for EA MobileTM titles reached more than 140 million in Q1.
- Calendar year-to-date, EA continues to be the #1 publisher on PlayStation®4 and Xbox One consoles in the Western World led by FIFA 14, TitanfallTM, Battlefield 4TM, and EA SPORTSTM UFC®.
- More than 53 million matches were played in FIFA Ultimate Team World Cup mode in the quarter, equivalent to playing over 800,000 FIFA World Cup tournaments.
- Revenue for EA’s Ultimate Team services continued to grow in fiscal Q1, with NHL Hockey Ultimate Team growing 50%*, FIFA Ultimate Team growing nearly 80%* and Madden Ultimate Team growing over 350%* year-over-year.
- Operating cash flow for the quarter improved $252 million versus the same period last year and hit a Company record high of $964 million on a trailing twelve month basis.
- EA repurchased 1.4 million shares in Q1 for $50 million pursuant to the $750 million Share Repurchase Program initiated in May 2014.
- EA reaffirmed fiscal 2015 guidance of $4.1 billion in net revenue* and $1.85 in EPS*, which reflects the launch date changes for Battlefield™ Hardline and Dragon Age Inquisition announced today.
Q1 Financial Highlights:
For the quarter, non-GAAP net revenue of $775 million was above our guidance of $700 million. Non-GAAP diluted earnings per share of $0.19 was above our guidance of ($0.05).
| (in millions of $, except per share amounts) | Quarter Ended 6/30/14 |
Quarter Ended 6/30/13 |
|||
| GAAP Digital Net Revenue | $536 | $482 | |||
| GAAP Packaged Goods and Other Net Revenue | 678 | 467 | |||
| GAAP Total Net Revenue | $1,214 | $949 | |||
| Non-GAAP Digital Net Revenue | $482 | $378 | |||
| Non-GAAP Packaged Goods and Other Net Revenue | 293 | 117 | |||
| Non-GAAP Total Net Revenue | $775 | $495 | |||
| GAAP Net Income | $335 | $222 | |||
| Non-GAAP Net Income/(Loss) | 61 | (121 | ) | ||
| GAAP Diluted Earnings Per Share | 1.04 | 0.71 | |||
| Non-GAAP Diluted Earnings/(Loss) Per Share | 0.19 | (0.40 | ) | ||
| Operating Cash Flow Provided by (Used In) Operations | $4 | ($248 | ) | ||
Trailing Twelve Month (TTM) Financial Highlights:
| (in millions of $) | TTM Ended 6/30/14 |
TTM Ended 6/30/13 |
||
| GAAP Net Revenue | $3,840 | $3,791 | ||
| GAAP Net Income | 121 | 119 | ||
| Non-GAAP Net Revenue | 4,301 | 3,797 | ||
| Non-GAAP Net Income | 716 | 273 | ||
| Operating Cash Flow Provided by Operations | $964 | $320 | ||
Business Outlook as of July 22, 2014
The following forward-looking statements, as well as those made above, reflect expectations as of July 22, 2014. Electronic Arts assumes no obligation to update these statements. Results may be materially different and are affected by many factors detailed in this release and in EA’s annual and quarterly SEC filings.
Fiscal Year 2015 Expectations – Ending March 31, 2015
- GAAP net revenue is expected to be approximately $4.30 billion.
- Non-GAAP net revenue is expected to be approximately $4.10 billion.
- GAAP diluted earnings per share is expected to be approximately $1.78.
- Non-GAAP diluted earnings per share is expected to be approximately $1.85.
- The Company estimates a share count of 326 million for purposes of calculating fiscal year 2015 GAAP diluted earnings per share. On a non-GAAP basis, the Company estimates a share count of 324 million for purposes of calculating fiscal year 2015 diluted earnings per share. Non-GAAP shares used for computing diluted earnings per share differs from GAAP due to the inclusion of the anti-dilutive effect of the Convertible Bond Hedge.
- Expected non-GAAP net income excludes the following from expected GAAP net income:
- Non-GAAP net revenue is expected to be approximately $200 million lower than GAAP net revenue due to the impact of the change in deferred net revenue (online-enabled games);
- Approximately $150 million of stock-based compensation;
- Approximately $122 million from the loss on licensed intellectual property commitment;
- Approximately $69 million of acquisition-related expenses;
- Approximately $5 million reduction of college football settlement expenses;
- Approximately $22 million from the amortization of debt discount; and
- Non-GAAP tax expense is expected to be approximately $140 million higher than GAAP tax expense.
Second Quarter Fiscal Year 2015 Expectations – Ending September 30, 2014
- GAAP net revenue is expected to be approximately $965 million.
- Non-GAAP net revenue is expected to be approximately $1.14 billion.
- GAAP loss per share is expected to be approximately ($0.12).
- Non-GAAP diluted earnings per share is expected to be approximately $0.50.
- The Company estimates a share count of 314 million for purposes of calculating second quarter fiscal year 2015 GAAP diluted loss per share, and 323 million for non-GAAP diluted earnings per share. Non-GAAP shares used for computing diluted earnings per share differs from GAAP due to the inclusion of potentially dilutive equity instruments and the anti-dilutive effect of the Convertible Bond Hedge.
- Expected non-GAAP net income excludes the following from expected GAAP net loss:
- Non-GAAP net revenue is expected to be approximately $175 million higher than GAAP net revenue due to the impact of the change in deferred net revenue (online-enabled games);
- Approximately $40 million of stock-based compensation;
- Approximately $18 million of acquisition-related expenses;
- Approximately $5 million from the amortization of debt discount; and
- Non-GAAP tax expense is expected to be $39 million higher than GAAP tax expense.
EA SPORTS, EA Mobile, Battlefield 4, Battlefield, The Sims, Dragon Age, and Plants vs. Zombies are trademarks of Electronic Arts Inc. and its subsidiaries. Titanfall is a trademark ofRespawn Entertainment, LLC. UFC® and The Octagon™ are registered trademarks, trademarks, trade dress or service marks owned exclusively by Zuffa, LLC and affiliated entities inthe United States and other jurisdictions. John Madden, NFL, NHL and FIFA are the property of their respective owners and used with permission. “PlayStation” is a registered trademark of Sony Computer Entertainment Inc.
| ELECTRONIC ARTS INC. AND SUBSIDIARIES | ||||||||
| Unaudited Condensed Consolidated Statements of Operations | ||||||||
| (in millions, except per share data) | ||||||||
| Three Months Ended | ||||||||
| June 30, | ||||||||
| 2014 | 2013 | |||||||
| Net revenue | ||||||||
| Product | $ | 757 | $ | 543 | ||||
| Service and other | 457 | 406 | ||||||
| Total net revenue | 1,214 | 949 | ||||||
| Cost of revenue | ||||||||
| Product | 252 | 130 | ||||||
| Service and other | 115 | 64 | ||||||
| Total cost of revenue | 367 | 194 | ||||||
| Gross profit | 847 | 755 | ||||||
| Operating expenses: | ||||||||
| Marketing and sales | 130 | 147 | ||||||
| General and administrative | 88 | 85 | ||||||
| Research and development | 265 | 278 | ||||||
| Acquisition-related contingent consideration | (1 | ) | 7 | |||||
| Amortization of intangibles | 3 | 4 | ||||||
| Restructuring and other | — | 1 | ||||||
| Total operating expenses | 485 | 522 | ||||||
| Operating income | 362 | 233 | ||||||
| Interest and other income (expense), net | (8 | ) | (5 | ) | ||||
| Income before provision for income taxes | 354 | 228 | ||||||
| Provision for income taxes | 19 | 6 | ||||||
| Net income | $ | 335 | $ | 222 | ||||
| Earnings per share | ||||||||
| Basic | $ | 1.07 | $ | 0.73 | ||||
| Diluted | $ | 1.04 | $ | 0.71 | ||||
| Number of shares used in computation | ||||||||
| Basic | 313 | 304 | ||||||
| Diluted | 322 | 312 | ||||||
Non-GAAP Results (in millions, except per share data)
The following tables reconcile the Company’s net revenue, gross profit, operating income, net income, earnings per share and diluted shares as presented in its Unaudited Condensed Consolidated Statements of Operations and prepared in accordance with Generally Accepted Accounting Principles (“GAAP”) to its non-GAAP net revenue, non-GAAP gross profit, non-GAAP operating income, non-GAAP net income, non-GAAP earnings per share and non-GAAP diluted shares.
| Three Months Ended | ||||||||
| June 30, | ||||||||
| 2014 | 2013 | |||||||
| Net revenue | ||||||||
| GAAP net revenue | $ | 1,214 | $ | 949 | ||||
| Change in deferred net revenue (online-enabled games) | (439 | ) | (454 | ) | ||||
| Non-GAAP net revenue | $ | 775 | $ | 495 | ||||
| Gross profit | ||||||||
| GAAP gross profit | $ | 847 | $ | 755 | ||||
| Acquisition-related expenses | 14 | 15 | ||||||
| Change in deferred net revenue (online-enabled games) | (439 | ) | (454 | ) | ||||
| Loss on licensed intellectual property commitment (COGS) | 122 | — | ||||||
| Non-GAAP gross profit | $ | 544 | $ | 316 | ||||
| Operating income | ||||||||
| GAAP operating income | $ | 362 | $ | 233 | ||||
| Acquisition-related expenses | 16 | 26 | ||||||
| Change in deferred net revenue (online-enabled games) | (439 | ) | (454 | ) | ||||
| Loss on licensed intellectual property commitment (COGS) | 122 | — | ||||||
| College football settlement expenses | (5 | ) | — | |||||
| Restructuring and other | — | 1 | ||||||
| Stock-based compensation | 29 | 33 | ||||||
| Non-GAAP operating income (loss) | $ | 85 | $ | (161 | ) | |||
| Net Income | ||||||||
| GAAP Net income | $ | 335 | $ | 222 | ||||
| Acquisition-related expenses | 16 | 26 | ||||||
| Amortization of debt discount | 5 | 5 | ||||||
| Change in deferred net revenue (online-enabled games) | (439 | ) | (454 | ) | ||||
| Loss on licensed intellectual property commitment (COGS) | 122 | — | ||||||
| College football settlement expenses | (5 | ) | — | |||||
| Restructuring and other | — | 1 | ||||||
| Stock-based compensation | 29 | 33 | ||||||
| Income tax adjustments | (2 | ) | 46 | |||||
| Non-GAAP net income (loss) | $ | 61 | $ | (121 | ) | |||
| Non-GAAP earnings (loss) per share | ||||||||
| Basic | $ | 0.19 | $ | (0.40 | ) | |||
| Diluted | $ | 0.19 | $ | (0.40 | ) | |||
| Number of shares used in computation | ||||||||
| Basic GAAP & Non-GAAP | 313 | 304 | ||||||
| Diluted GAAP | 322 | 304 | ||||||
| Shares from Convertible Bond Hedge | (1 | ) | — | |||||
| Diluted Non-GAAP | 321 | 304 | ||||||
| ELECTRONIC ARTS INC. AND SUBSIDIARIES | |||||||
| Unaudited Condensed Consolidated Balance Sheets | |||||||
| (in millions) | |||||||
| June 30, | March 31, | ||||||
| 2014 | 2014 (a) | ||||||
| ASSETS | |||||||
| Current assets: | |||||||
| Cash and cash equivalents | $ | 1,554 | $ | 1,782 | |||
| Short-term investments | 762 | 583 | |||||
| Receivables, net of allowances of $177 and $186, respectively | 219 | 327 | |||||
| Inventories | 37 | 56 | |||||
| Deferred income taxes, net | 58 | 74 | |||||
| Other current assets | 300 | 316 | |||||
| Total current assets | 2,930 | 3,138 | |||||
| Property and equipment, net | 503 | 510 | |||||
| Goodwill | 1,726 | 1,723 | |||||
| Acquisition-related intangibles, net | 160 | 177 | |||||
| Deferred income taxes, net | 15 | 28 | |||||
| Other assets | 142 | 140 | |||||
| TOTAL ASSETS | $ | 5,476 | $ | 5,716 | |||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||
| Current liabilities: | |||||||
| Accounts payable | $ | 69 | $ | 119 | |||
| Accrued and other current liabilities | 666 | 781 | |||||
| Deferred net revenue (online-enabled games) | 1,051 | 1,490 | |||||
| Total current liabilities | 1,786 | 2,390 | |||||
| 0.75% convertible senior notes due 2016, net | 586 | 580 | |||||
| Income tax obligations | 90 | 189 | |||||
| Deferred income taxes, net | 85 | 18 | |||||
| Other liabilities | 216 | 117 | |||||
| Total liabilities | 2,763 | 3,294 | |||||
| Common stock | 3 | 3 | |||||
| Paid-in capital | 2,285 | 2,353 | |||||
| Retained earnings | 364 | 29 | |||||
| Accumulated other comprehensive income | 61 | 37 | |||||
| Total stockholders’ equity | 2,713 | 2,422 | |||||
| TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ | 5,476 | $ | 5,716 | |||
(a) Derived from audited consolidated financial statements.
| ELECTRONIC ARTS INC. AND SUBSIDIARIES | ||||||||
| Unaudited Condensed Consolidated Statements of Cash Flows | ||||||||
| (in millions) | ||||||||
| Three Months Ended | ||||||||
| June 30, | ||||||||
| 2014 | 2013 | |||||||
| OPERATING ACTIVITIES | ||||||||
| Net income | $ | 335 | $ | 222 | ||||
| Adjustments to reconcile net income to net cash provided by (used in) operating activities: | ||||||||
| Depreciation, amortization and accretion | 56 | 56 | ||||||
| Stock-based compensation | 29 | 33 | ||||||
| Acquisition-related contingent consideration | (1 | ) | 7 | |||||
| Change in assets and liabilities: | ||||||||
| Receivables, net | 110 | 192 | ||||||
| Inventories | 19 | 1 | ||||||
| Other assets | 21 | (30 | ) | |||||
| Accounts payable | (43 | ) | (82 | ) | ||||
| Accrued and other liabilities | (84 | ) | (195 | ) | ||||
| Deferred income taxes, net | 1 | 2 | ||||||
| Deferred net revenue (online-enabled games) | (439 | ) | (454 | ) | ||||
| Net cash provided by (used in) operating activities | 4 | (248 | ) | |||||
| INVESTING ACTIVITIES | ||||||||
| Capital expenditures | (27 | ) | (29 | ) | ||||
| Proceeds from maturities and sales of short-term investments | 155 | 133 | ||||||
| Purchase of short-term investments | (335 | ) | (101 | ) | ||||
| Acquisition of subsidiaries, net of cash acquired | — | (5 | ) | |||||
| Net cash used in investing activities | (207 | ) | (2 | ) | ||||
| FINANCING ACTIVITIES | ||||||||
| Proceeds from issuance of common stock | 5 | 22 | ||||||
| Excess tax benefit from stock-based compensation | 12 | — | ||||||
| Repurchase and retirement of common stock | (50 | ) | — | |||||
| Acquisition-related contingent consideration payment | — | (1 | ) | |||||
| Net cash provided by (used in) financing activities | (33 | ) | 21 | |||||
| Effect of foreign exchange on cash and cash equivalents | 8 | (7 | ) | |||||
| Decrease in cash and cash equivalents | (228 | ) | (236 | ) | ||||
| Beginning cash and cash equivalents | 1,782 | 1,292 | ||||||
| Ending cash and cash equivalents | $ | 1,554 | $ | 1,056 | ||||
| ELECTRONIC ARTS INC. AND SUBSIDIARIES | ||||||||||||||||||
| Unaudited Supplemental Financial Information and Business Metrics | ||||||||||||||||||
| (in millions, except per share data) | ||||||||||||||||||
| Q1 | Q2 | Q3 | Q4 | Q1 | YOY % | |||||||||||||
| FY14 | FY14 | FY14 | FY14 | FY15 | Change | |||||||||||||
| QUARTERLY RECONCILIATION OF RESULTS | ||||||||||||||||||
| Net revenue | ||||||||||||||||||
| GAAP net revenue | 949 | 695 | 808 | 1,123 | 1,214 | 28 | % | |||||||||||
| Change in deferred net revenue (online-enabled games) | (454 | ) | 345 | 764 | (209 | ) | (439 | ) | ||||||||||
| Non-GAAP net revenue | 495 | 1,040 | 1,572 | 914 | 775 | 57 | % | |||||||||||
| Gross profit | ||||||||||||||||||
| GAAP gross profit | 755 | 282 | 291 | 900 | 847 | 12 | % | |||||||||||
| Acquisition-related expenses | 15 | 14 | 16 | 15 | 14 | |||||||||||||
| Change in deferred net revenue (online-enabled games) | (454 | ) | 345 | 764 | (209 | ) | (439 | ) | ||||||||||
| Loss on licensed intellectual property commitment (COGS) | — | — | — | — | 122 | |||||||||||||
| Stock-based compensation | — | 1 | — | 1 | — | |||||||||||||
| Non-GAAP gross profit | 316 | 642 | 1,071 | 707 | 544 | 72 | % | |||||||||||
| GAAP gross profit % (as a % of GAAP net revenue) | 80 | % | 41 | % | 36 | % | 80 | % | 70 | % | ||||||||
| Non-GAAP gross profit % (as a % of non-GAAP net revenue) | 64 | % | 62 | % | 68 | % | 77 | % | 70 | % | ||||||||
| Operating income (loss) | ||||||||||||||||||
| GAAP operating income (loss) | 233 | (252 | ) | (292 | ) | 344 | 362 | 55 | % | |||||||||
| Acquisition-related expenses | 26 | (26 | ) | 20 | 21 | 16 | ||||||||||||
| Change in deferred net revenue (online-enabled games) | (454 | ) | 345 | 764 | (209 | ) | (439 | ) | ||||||||||
| Loss on licensed intellectual property commitment (COGS) | — | — | — | — | 122 | |||||||||||||
| College football settlement expenses | — | 40 | — | 8 | (5 | ) | ||||||||||||
| Restructuring and other | 1 | (2 | ) | (1 | ) | 1 | — | |||||||||||
| Stock-based compensation | 33 | 38 | 40 | 39 | 29 | |||||||||||||
| Non-GAAP operating income (loss) | (161 | ) | 143 | 531 | 204 | 85 | 153 | % | ||||||||||
| GAAP operating income (loss) % (as a % of GAAP net revenue) | 25 | % | (36 | %) | (36 | %) | 31 | % | 30 | % | ||||||||
| Non-GAAP operating income (loss) % (as a % of non-GAAP net revenue) | (33 | %) | 14 | % | 34 | % | 22 | % | 11 | % | ||||||||
| Net income (loss) | ||||||||||||||||||
| GAAP net income (loss) | 222 | (273 | ) | (308 | ) | 367 | 335 | 51 | % | |||||||||
| Acquisition-related expenses | 26 | (26 | ) | 20 | 21 | 16 | ||||||||||||
| Amortization of debt discount | 5 | 5 | 6 | 5 | 5 | |||||||||||||
| Change in deferred net revenue (online-enabled games) | (454 | ) | 345 | 764 | (209 | ) | (439 | ) | ||||||||||
| Loss on licensed intellectual property commitment (COGS) | — | — | — | — | 122 | |||||||||||||
| College football settlement expenses | — | 40 | — | 8 | (5 | ) | ||||||||||||
| Restructuring and other | 1 | (2 | ) | (1 | ) | 1 | — | |||||||||||
| Stock-based compensation | 33 | 38 | 40 | 39 | 29 | |||||||||||||
| Income tax adjustments | 46 | (22 | ) | (123 | ) | (80 | ) | (2 | ) | |||||||||
| Non-GAAP net income (loss) | (121 | ) | 105 | 398 | 152 | 61 | 150 | % | ||||||||||
| GAAP net income (loss) % (as a % of GAAP net revenue) | 23 | % | (39 | %) | (38 | %) | 33 | % | 28 | % | ||||||||
| Non-GAAP net income (loss) % (as a % of non-GAAP net revenue) | (24 | %) | 10 | % | 25 | % | 17 | % | 8 | % | ||||||||
| Diluted earnings (loss) per share | ||||||||||||||||||
| GAAP earnings (loss) per share | 0.71 | (0.89 | ) | (1.00 | ) | 1.15 | 1.04 | 46 | % | |||||||||
| Non-GAAP earnings (loss) per share | (0.40 | ) | 0.33 | 1.26 | 0.48 | 0.19 | 148 | % | ||||||||||
| Number of diluted shares used in computation* | ||||||||||||||||||
| GAAP | 312 | 308 | 309 | 319 | 322 | |||||||||||||
| Non-GAAP | 304 | 316 | 317 | 319 | 321 | |||||||||||||
*Diluted EPS reflects the potential dilution from common shares issuable through stock-based compensation plans including stock options, restricted stock, restricted stock units, common stock through our ESPP, warrants, and other convertible securities using the treasury stock method. When in a loss position, all outstanding equity based instruments are excluded from the diluted loss per share calculation as their inclusion would have had an anti-dilutive effect.
| ELECTRONIC ARTS INC. AND SUBSIDIARIES | ||||||||||||||||||
| Unaudited Supplemental Financial Information and Business Metrics | ||||||||||||||||||
| (in millions, except per share data) | ||||||||||||||||||
| Q1 | Q2 | Q3 | Q4 | Q1 | YOY % | |||||||||||||
| FY14 | FY14 | FY14 | FY14 | FY15 | Change | |||||||||||||
| QUARTERLY NET REVENUE PRESENTATIONS – GAAP AND NON-GAAP | ||||||||||||||||||
| Geography net revenue | ||||||||||||||||||
| North America | 395 | 303 | 338 | 474 | 522 | 32 | % | |||||||||||
| International | 554 | 392 | 470 | 649 | 692 | 25 | % | |||||||||||
| Total GAAP net revenue | 949 | 695 | 808 | 1,123 | 1,214 | 28 | % | |||||||||||
| North America | (190 | ) | 136 | 352 | (63 | ) | (201 | ) | ||||||||||
| International | (264 | ) | 209 | 412 | (146 | ) | (238 | ) | ||||||||||
| Change in deferred net revenue (online-enabled games) | (454 | ) | 345 | 764 | (209 | ) | (439 | ) | ||||||||||
| North America | 205 | 439 | 690 | 411 | 321 | 57 | % | |||||||||||
| International | 290 | 601 | 882 | 503 | 454 | 57 | % | |||||||||||
| Total Non-GAAP net revenue | 495 | 1,040 | 1,572 | 914 | 775 | 57 | % | |||||||||||
| North America | 42 | % | 44 | % | 42 | % | 42 | % | 43 | % | ||||||||
| International | 58 | % | 56 | % | 58 | % | 58 | % | 57 | % | ||||||||
| Total GAAP net revenue % | 100 | % | 100 | % | 100 | % | 100 | % | 100 | % | ||||||||
| North America | 41 | % | 42 | % | 44 | % | 45 | % | 41 | % | ||||||||
| International | 59 | % | 58 | % | 56 | % | 55 | % | 59 | % | ||||||||
| Total Non-GAAP net revenue % | 100 | % | 100 | % | 100 | % | 100 | % | 100 | % | ||||||||
| Net revenue composition | ||||||||||||||||||
| Packaged goods and other* | 467 | 245 | 398 | 632 | 678 | 45 | % | |||||||||||
| Full game downloads | 63 | 93 | 61 | 93 | 107 | |||||||||||||
| Extra content | 209 | 200 | 185 | 212 | 225 | |||||||||||||
| Subscriptions, advertising and other | 99 | 80 | 67 | 71 | 81 | |||||||||||||
| Mobile** | 111 | 77 | 97 | 115 | 123 | |||||||||||||
| Total Digital | 482 | 450 | 410 | 491 | 536 | 11 | % | |||||||||||
| Total GAAP net revenue | 949 | 695 | 808 | 1,123 | 1,214 | 28 | % | |||||||||||
| Packaged goods and other* | (350 | ) | 447 | 657 | (268 | ) | (385 | ) | ||||||||||
| Full game downloads | (25 | ) | (38 | ) | 54 | 22 | (36 | ) | ||||||||||
| Extra content | (32 | ) | (73 | ) | 28 | 31 | (14 | ) | ||||||||||
| Subscriptions, advertising and other | (38 | ) | (18 | ) | (1 | ) | (2 | ) | (1 | ) | ||||||||
| Mobile** | (9 | ) | 27 | 26 | 8 | (3 | ) | |||||||||||
| Total Digital | (104 | ) | (102 | ) | 107 | 59 | (54 | ) | ||||||||||
| Change in deferred net revenue (online-enabled games) | (454 | ) | 345 | 764 | (209 | ) | (439 | ) | ||||||||||
| Packaged goods and other* | 117 | 692 | 1,055 | 364 | 293 | 150 | % | |||||||||||
| Full game downloads | 38 | 55 | 115 | 115 | 71 | |||||||||||||
| Extra content | 177 | 127 | 213 | 243 | 211 | |||||||||||||
| Subscriptions, advertising and other | 61 | 62 | 66 | 69 | 80 | |||||||||||||
| Mobile** | 102 | 104 | 123 | 123 | 120 | |||||||||||||
| Total Digital | 378 | 348 | 517 | 550 | 482 | 28 | % | |||||||||||
| Total Non-GAAP net revenue | 495 | 1,040 | 1,572 | 914 | 775 | 57 | % | |||||||||||
| Packaged goods and other* | 49 | % | 35 | % | 49 | % | 56 | % | 56 | % | ||||||||
| Full game downloads | 7 | % | 13 | % | 8 | % | 8 | % | 9 | % | ||||||||
| Extra content | 22 | % | 29 | % | 23 | % | 19 | % | 19 | % | ||||||||
| Subscriptions, advertising and other | 10 | % | 12 | % | 8 | % | 6 | % | 7 | % | ||||||||
| Mobile** | 12 | % | 11 | % | 12 | % | 11 | % | 9 | % | ||||||||
| Total Digital | 51 | % | 65 | % | 51 | % | 44 | % | 44 | % | ||||||||
| Total GAAP net revenue % | 100 | % | 100 | % | 100 | % | 100 | % | 100 | % | ||||||||
| Packaged goods and other* | 24 | % | 66 | % | 67 | % | 40 | % | 38 | % | ||||||||
| Full game downloads | 7 | % | 6 | % | 7 | % | 13 | % | 9 | % | ||||||||
| Extra content | 36 | % | 12 | % | 14 | % | 27 | % | 27 | % | ||||||||
| Subscriptions, advertising and other | 12 | % | 6 | % | 4 | % | 7 | % | 10 | % | ||||||||
| Mobile** | 21 | % | 10 | % | 8 | % | 13 | % | 16 | % | ||||||||
| Total Digital | 76 | % | 34 | % | 33 | % | 60 | % | 62 | % | ||||||||
| Total Non-GAAP net revenue % | 100 | % | 100 | % | 100 | % | 100 | % | 100 | % | ||||||||
*Packaged goods and other includes distribution which was previously disclosed separately.
**Handheld revenue is included within each respective category of Full game downloads, Extra content and Subscriptions, advertising and other. Handheld revenue was previously grouped with Mobile and presented as Mobile and handheld.
| ELECTRONIC ARTS INC. AND SUBSIDIARIES | ||||||||||||||||||
| Unaudited Supplemental Financial Information and Business Metrics | ||||||||||||||||||
| (in millions, except per share data) | ||||||||||||||||||
| Q1 | Q2 | Q3 | Q4 | Q1 | YOY % | |||||||||||||
| FY14 | FY14 | FY14 | FY14 | FY15 | Change | |||||||||||||
| QUARTERLY NET REVENUE PRESENTATIONS – GAAP AND NON-GAAP | ||||||||||||||||||
| Platform net revenue | ||||||||||||||||||
| Xbox One, PLAYSTATION 4 | — | — | 24 | 172 | 293 | 100 | % | |||||||||||
| Xbox 360, PLAYSTATION 3 | 494 | 298 | 425 | 562 | 543 | 10 | % | |||||||||||
| Other consoles | 4 | 11 | 10 | 5 | 3 | (25 | %) | |||||||||||
| Total consoles | 498 | 309 | 459 | 739 | 839 | 68 | % | |||||||||||
| PC / Browser | 298 | 274 | 210 | 238 | 231 | (22 | %) | |||||||||||
| Mobile | 113 | 75 | 97 | 115 | 123 | 9 | % | |||||||||||
| Other | 40 | 37 | 42 | 31 | 21 | (48 | %) | |||||||||||
| Total GAAP net revenue | 949 | 695 | 808 | 1,123 | 1,214 | 28 | % | |||||||||||
| Xbox One, PLAYSTATION 4 | — | — | 368 | 133 | (95 | ) | ||||||||||||
| Xbox 360, PLAYSTATION 3 | (307 | ) | 389 | 282 | (316 | ) | (268 | ) | ||||||||||
| Other consoles | — | (1 | ) | — | (1 | ) | — | |||||||||||
| Total consoles | (307 | ) | 388 | 650 | (184 | ) | (363 | ) | ||||||||||
| PC / Browser | (123 | ) | (76 | ) | 86 | (31 | ) | (67 | ) | |||||||||
| Mobile | (9 | ) | 28 | 27 | 7 | (3 | ) | |||||||||||
| Other | (15 | ) | 5 | 1 | (1 | ) | (6 | ) | ||||||||||
| Change in deferred net revenue (online-enabled games) | (454 | ) | 345 | 764 | (209 | ) | (439 | ) | ||||||||||
| Xbox One, PLAYSTATION 4 | — | — | 392 | 305 | 198 | 100 | % | |||||||||||
| Xbox 360, PLAYSTATION 3 | 187 | 687 | 707 | 246 | 275 | 47 | % | |||||||||||
| Other consoles | 4 | 10 | 10 | 4 | 3 | (25 | %) | |||||||||||
| Total consoles | 191 | 697 | 1,109 | 555 | 476 | 149 | % | |||||||||||
| PC / Browser | 175 | 198 | 296 | 207 | 164 | (6 | %) | |||||||||||
| Mobile | 104 | 103 | 124 | 122 | 120 | 15 | % | |||||||||||
| Other | 25 | 42 | 43 | 30 | 15 | (40 | %) | |||||||||||
| Total Non-GAAP net revenue | 495 | 1,040 | 1,572 | 914 | 775 | 57 | % | |||||||||||
| Xbox One, PLAYSTATION 4 | — | — | 2 | % | 16 | % | 24 | % | ||||||||||
| Xbox 360, PLAYSTATION 3 | 52 | % | 43 | % | 53 | % | 50 | % | 45 | % | ||||||||
| Other consoles | — | 1 | % | 1 | % | — | — | |||||||||||
| Total consoles | 52 | % | 44 | % | 56 | % | 66 | % | 69 | % | ||||||||
| PC / Browser | 32 | % | 39 | % | 26 | % | 21 | % | 19 | % | ||||||||
| Mobile | 12 | % | 11 | % | 12 | % | 10 | % | 10 | % | ||||||||
| Other | 4 | % | 6 | % | 6 | % | 3 | % | 2 | % | ||||||||
| Total GAAP net revenue % | 100 | % | 100 | % | 100 | % | 100 | % | 100 | % | ||||||||
| Xbox One, PLAYSTATION 4 | — | — | 25 | % | 34 | % | 26 | % | ||||||||||
| Xbox 360, PLAYSTATION 3 | 38 | % | 66 | % | 45 | % | 27 | % | 35 | % | ||||||||
| Other consoles | 1 | % | 1 | % | 1 | % | — | — | ||||||||||
| Total consoles | 39 | % | 67 | % | 71 | % | 61 | % | 61 | % | ||||||||
| PC / Browser | 35 | % | 19 | % | 19 | % | 23 | % | 21 | % | ||||||||
| Mobile | 21 | % | 10 | % | 8 | % | 13 | % | 15 | % | ||||||||
| Other | 5 | % | 4 | % | 2 | % | 3 | % | 3 | % | ||||||||
| Total Non-GAAP net revenue % | 100 | % | 100 | % | 100 | % | 100 | % | 100 | % | ||||||||
| ELECTRONIC ARTS INC. AND SUBSIDIARIES | |||||||||||||||||
| Unaudited Supplemental Financial Information and Business Metrics | |||||||||||||||||
| (in millions, except per share data) | |||||||||||||||||
| Q1 | Q2 | Q3 | Q4 | Q1 | YOY % | ||||||||||||
| FY14 | FY14 | FY14 | FY14 | FY15 | Change | ||||||||||||
| CASH FLOW DATA | |||||||||||||||||
| Operating cash flow | (248 | ) | (6 | ) | 685 | 281 | 4 | 102 | % | ||||||||
| Operating cash flow – TTM | 320 | 342 | 664 | 712 | 964 | 201 | % | ||||||||||
| Capital expenditures | 29 | 24 | 28 | 16 | 27 | (7 | %) | ||||||||||
| Capital expenditures – TTM | 104 | 103 | 106 | 97 | 95 | (9 | %) | ||||||||||
| BALANCE SHEET DATA | |||||||||||||||||
| Cash and cash equivalents | 1,056 | 1,090 | 1,746 | 1,782 | 1,554 | 47 | % | ||||||||||
| Short-term investments | 355 | 328 | 324 | 583 | 762 | 115 | % | ||||||||||
| Cash and cash equivalents, and short-term investments | 1,411 | 1,418 | 2,070 | 2,365 | 2,316 | 64 | % | ||||||||||
| Receivables, net | 120 | 594 | 526 | 327 | 219 | 83 | % | ||||||||||
| Inventories | 41 | 58 | 55 | 56 | 37 | (10 | %) | ||||||||||
| Deferred net revenue (online-enabled games) | |||||||||||||||||
| End of the quarter | 590 | 935 | 1,699 | 1,490 | 1,051 | 78 | % | ||||||||||
| Less: Beginning of the quarter | 1,044 | 590 | 935 | 1,699 | 1,490 | ||||||||||||
| Change in deferred net revenue (online-enabled games) | (454 | ) | 345 | 764 | (209 | ) | (439 | ) | |||||||||
| STOCK-BASED COMPENSATION | |||||||||||||||||
| Cost of revenue | — | 1 | — | 1 | — | ||||||||||||
| Marketing and sales | 7 | 6 | 7 | 6 | 4 | ||||||||||||
| General and administrative | 6 | 8 | 8 | 10 | 9 | ||||||||||||
| Research and development | 20 | 23 | 25 | 22 | 16 | ||||||||||||
| Total stock-based compensation | 33 | 38 | 40 | 39 | 29 | ||||||||||||
Related: EA to Webcast 2014 Annual Meeting of Stockholders
Source: Press Release
I'm a published author and proud US Army veteran who happens to be a gamer, so I decided to combine the two and love every minute of it! Feel free to contact me with any questions or comments and I'll be sure to get back to you.
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