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Press release content from Business Wire. The AP news staff was not involved in its creation.

Electronic Arts Reports Q2 FY22 Financial Results

November 3, 2021 GMT

REDWOOD CITY, Calif.--(BUSINESS WIRE)--Nov 3, 2021--

Electronic Arts Inc. (NASDAQ: EA) today announced preliminary financial results for its second fiscal quarter ended September 30, 2021.

“This was the strongest second quarter in the history of Electronic Arts, with more players around the world joining and engaging in our leading franchises, new launches and live services,” said Andrew Wilson, CEO of Electronic Arts. “Thanks to our incredibly talented teams, we’re excited to deliver more amazing experiences this holiday season, and connect hundreds of millions of players around the world through our EA SPORTS games, Apex Legends, Battlefield 2042 and more.”

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“EA delivered another strong quarter, primarily driven by our EA SPORTS titles and Apex Legends,” said CFO Blake Jorgensen. “Based on our confidence in our franchises and live services, we are again raising guidance this quarter. We’re positioned for a strong holiday season driven by our exciting Battlefield 2042 game, with growth drivers in place for this year, next year, and beyond.”

Selected Operating Highlights and Metrics

  • Net bookings 1 for the trailing twelve months was $7.077 billion, up 27% year-over-year.
  • In the first six months of the fiscal year, approximately 100 million players have engaged with our EA SPORTS™ global football franchise across all platforms.
  • Apex Legends™ Season 9 and Season 10 each respectively set new marks for the highest active players since Season 1.
  • The Battlefield™ 2042 Open Beta had 7.7 million players.
  • Star Wars ™: Galaxy of Heroes surpassed 100 million players life to date.

Selected Financial Highlights and Metrics

  • Net cash provided by operating activities was $64 million for the quarter and $1.416 billion for the trailing twelve months.
  • EA repurchased 2.3 million shares for $325 million during the quarter, bringing the total for the last twelve months to 9.5 million shares for $1.301 billion.
  • EA paid a cash dividend of $0.17 per share during the quarter.

Dividend

EA has declared a quarterly cash dividend of $0.17 per share of the Company’s common stock. The dividend is payable on December 22, 2021 to shareholders of record as of the close of business on December 8, 2021.

Quarterly Financial Highlights

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Three Months Ended
September 30,

2021

2020

(in $ millions, except per share amounts)
Full game

617

282

Live services and other

1,209

869

Total net revenue

1,826

1,151

 
Net income

294

185

Diluted earnings per share

1.02

0.63

 
Operating cash flow

64

61

 
Value of shares repurchased

325

-

Number of shares repurchased

2.3

-

The following GAAP-based financial data 2 and tax rate of 18% was used internally by company management to adjust its GAAP results in order to assess EA’s operating results:

Three Months Ended September 30, 2021
GAAP-Based Financial Data
(in $ millions)Statement of OperationsAcquisition-related expensesChange in deferred net revenue (online-enabled games)Stock-based
compensation
Total net revenue

1,826

 

-

 

25

 

-

 

Cost of revenue

494

 

(22

)

-

 

(2

)

Gross profit

1,332

 

22

 

25

 

2

 

Total operating expenses

992

 

(30

)

-

 

(147

)

Operating income

340

 

52

 

25

 

149

 

Interest and other income (expense), net

(14

)

-

 

-

 

-

 

Income before provision for income taxes

326

 

52

 

25

 

149

 

Number of shares used in computation: 
Diluted

287

 

 

Trailing Twelve Months Financial Highlights

Twelve Months Ended
September 30,

2021

2020

(in $ millions)
Full game

1,911

1,686

Live services and other

4,485

3,904

Total net revenue

6,396

5,590

 
Net income

785

1,314

 
Operating cash flow

1,416

2,041

 
Value of shares repurchased

1,301

674

Number of shares repurchased

9.5

6.5

The following GAAP-based financial data 2 and tax rate of 18% was used internally by company management to adjust its GAAP results in order to assess EA’s operating results:

Twelve Months Ended September 30, 2021
GAAP-Based Financial Data
(in $ millions)Statement of OperationsAcquisition-related expensesChange in deferred net revenue (online-enabled games)Stock-based
compensation
Total net revenue

6,396

 

-

 

681

 

-

 

Cost of revenue

1,729

 

(48

)

-

 

(5

)

Gross profit

4,667

 

48

 

681

 

5

 

Total operating expenses

3,579

 

(89

)

-

 

(489

)

Operating income

1,088

 

137

 

681

 

494

 

Interest and other income (expense), net

(44

)

-

 

-

 

-

 

Income before provision for income taxes

1,044

 

137

 

681

 

494

 

Operating Metric

The following is a calculation of our total net bookings 1 for the periods presented:

Three Months Ended

Twelve Months Ended
September 30,September 30,

2021

2020

2021

2020

(in $ millions)
Total net revenue

1,826

1,151

 

6,396

5,590

 

Change in deferred net revenue (online-enabled games)

25

(241

)

681

(13

)

Net bookings

1,851

910

 

7,077

5,577

 

Business Outlook as of November 3, 2021

Our financial expectations for the quarter ending December 31, 2021 and the fiscal year ending March 31, 2022 include estimates of the impact of our completed acquisitions on consolidated results and could be materially impacted as we integrate these acquisitions.

Fiscal Year 2022 Expectations – Ending March 31, 2022

Financial metrics:

  • Net revenue is expected to be approximately $6.925 billion.
    • Change in deferred net revenue (online-enabled games) is expected to be approximately $700 million.
  • Net income is expected to be approximately $583 million.
  • Diluted earnings per share is expected to be approximately $2.03.
  • Operating cash flow is expected to be approximately $1.950 billion.
  • The Company estimates a share count of 287 million for purposes of calculating fiscal year 2022 diluted earnings per share.

Operational metric:

  • Net bookings 1 is expected to be approximately $7.625 billion.

In addition, the following outlook for GAAP-based financial data 2 and a long-term tax rate of 18% are used internally by EA to adjust our GAAP expectations to assess EA’s operating results and plan for future periods:

Twelve Months Ending March 31, 2022

GAAP-Based Financial Data

GAAP Guidance

Acquisition-related expenses

 

Change in deferred net revenue (online-enabled games)

Stock-based compensation

(in $ millions)   
Total net revenue

6,925

 

-

 

 

700

 

-

 

Cost of revenue

1,848

 

(130

)

 

-

 

(5

)

Operating expense

4,110

 

(145

)

 

-

 

(545

)

Income before provision for income taxes

908

 

275

 

 

700

 

550

 

Net income

583

   
Number of shares used in computation:   
Diluted shares

287

   

Third Quarter Fiscal Year 2022 Expectations – Ending December 31, 2021

Financial metrics:

  • Net revenue is expected to be approximately $1.750 billion.
    • Change in deferred net revenue (online-enabled games) is expected to be approximately $875 million.

  • Net income is expected to be approximately $5 million.
  • Diluted earnings per share is expected to be approximately $0.02.
  • The Company estimates a share count of 287 million for purposes of calculating third quarter fiscal 2022 diluted earnings per share.

Operational metric:

  • Net bookings 1 is expected to be approximately $2.625 billion.

In addition, the following outlook for GAAP-based financial data 2 and a long-term tax rate of 18% are used internally by EA to adjust our GAAP expectations to assess EA’s operating results and plan for future periods:

Three Months Ending December 31, 2021
GAAP-Based Financial Data
GAAP GuidanceAcquisition-related expensesChange in deferred net revenue (online-enabled games)Stock-based compensation
(in $ millions)  
Total net revenue

1,750

 

-

 

875

 

-

 

Cost of revenue

625

 

(50

)

-

 

-

 

Operating expense

1,100

 

(35

)

-

 

(135

)

Income before provision for income taxes

8

 

85

 

875

 

135

 

Net income

5

  
Number of shares used in computation:  
Diluted shares

287

  

Conference Call and Supporting Documents

Electronic Arts will host a conference call on November 3, 2021 at 2:00 pm PT (5:00 pm ET) to review its results for the fiscal quarter ended September 30, 2021 and its outlook for the future. During the course of the call, Electronic Arts may disclose material developments affecting its business and/or financial performance. Listeners may access the conference call live through the following dial-in number (866) 324-3683 (domestic) or (509) 844-0959 (international), using the conference code 3697115 or via webcast at EA’s IR Website at http://ir.ea.com.

EA has posted a slide presentation with a financial model of EA’s historical results and guidance on EA’s IR Website. EA will also post the prepared remarks and a transcript from the conference call on EA’s IR Website.

A dial-in replay of the conference call will be available until November 17, 2021 at 855-859-2056 (domestic) or 404-537-3406 (international) using pin code 3697115. An audio webcast replay of the conference call will be available for one year on EA’s IR Website.

Forward-Looking Statements

Some statements set forth in this release, including the information relating to EA’s expectations under the heading “Business Outlook as of November 3, 2021,” and other information regarding EA’s fiscal 2022 and other future expectations contain forward-looking statements that are subject to change. Statements including words such as “anticipate,” “believe,” “expect,” “intend,” “estimate,” “plan,” “predict,” “seek,” “goal,” “will,” “may,” “likely,” “should,” “could” (and the negative of any of these terms), “future” and similar expressions also identify forward-looking statements. These forward-looking statements are not guarantees of future performance and reflect management’s current expectations. Our actual results could differ materially from those discussed in the forward-looking statements.

Some of the factors which could cause the Company’s results to differ materially from its expectations include the following: the impact of the COVID-19 pandemic, sales of the Company’s products and services; the Company’s ability to develop and support digital products and services, including managing online security and privacy; outages of our products, services and technological infrastructure; the Company’s ability to manage expenses; the competition in the interactive entertainment industry; governmental regulations; the effectiveness of the Company’s sales and marketing programs; timely development and release of the Company’s products and services; the Company’s ability to realize the anticipated benefits of, and integrate, acquisitions; the consumer demand for, and the availability of an adequate supply of console hardware units; the Company’s ability to predict consumer preferences among competing platforms; the Company’s ability to develop and implement new technology; foreign currency exchange rate fluctuations; general economic conditions; changes in our tax rates or tax laws; and other factors described in Part II, Item 1A of Electronic Arts’ latest Quarterly Report on Form 10-Q under the heading “Risk Factors”, as well as in other documents we have filed with the Securities and Exchange Commission, including our Annual Report on Form 10-K for the fiscal year ended March 31, 2021.

These forward-looking statements are current as of November 3, 2021. Electronic Arts assumes no obligation to revise or update any forward-looking statement for any reason, except as required by law. In addition, the preliminary financial results set forth in this release are estimates based on information currently available to Electronic Arts.

While Electronic Arts believes these estimates are meaningful, they could differ from the actual amounts that Electronic Arts ultimately reports in its Quarterly Report on Form 10-Q for the fiscal quarter ended September 30, 2021. Electronic Arts assumes no obligation and does not intend to update these estimates prior to filing its Form 10-Q for the fiscal quarter ended September 30, 2021.

About Electronic Arts

Electronic Arts (NASDAQ: EA) is a global leader in digital interactive entertainment. The Company develops and delivers games, content and online services for Internet-connected consoles, mobile devices and personal computers.

In fiscal year 2021, EA posted GAAP net revenue of $5.6 billion. Headquartered in Redwood City, California, EA is recognized for a portfolio of critically acclaimed, high-quality brands such as EA SPORTS™ FIFA, Battlefield™, Apex Legends™, The Sims™, Madden NFL, Need for Speed™, Titanfall™, Plants vs. Zombies™ and F1 ®. More information about EA is available at www.ea.com/news.

EA SPORTS, Battlefield, Need for Speed, Apex Legends, The Sims, Titanfall and Plants vs. Zombies are trademarks of Electronic Arts Inc. STAR WARS © & TM 2015 Lucasfilm Ltd. All rights reserved. John Madden, NFL, FIFA and F1 are the property of their respective owners and used with permission.

1 Net bookings is defined as the net amount of products and services sold digitally or sold-in physically in the period. Net bookings is calculated by adding total net revenue to the change in deferred net revenue for online-enabled games.

2 For more information about the nature of the GAAP-based financial data, please refer to EA’s Form 10-K for the fiscal year ended March 31, 2021.

ELECTRONIC ARTS INC. AND SUBSIDIARIES

Unaudited Condensed Consolidated Statements of Operations

(in $ millions, except per share data)

 

 

 

 

 

 

Three Months Ended

September 30,

Six Months Ended

September 30,

 

 

2021

2020

2021

2020

Net revenue

1,826

 

1,151

 

3,377

 

2,610

 

Cost of revenue

494

 

286

 

809

 

574

 

Gross profit

1,332

 

865

 

2,568

 

2,036

 

Operating expenses:

 

 

 

 

Research and development

553

 

421

 

1,068

 

859

 

Marketing and sales

233

 

156

 

423

 

277

 

General and administrative

176

 

133

 

345

 

269

 

Amortization of intangibles

30

 

6

 

70

 

11

 

Total operating expenses

992

 

716

 

1,906

 

1,416

 

Operating income

340

 

149

 

662

 

620

 

Interest and other income (expense), net

(14

)

(10

)

(28

)

(13

)

Income before provision for (benefit from) income taxes

326

 

139

 

634

 

607

 

Provision for (benefit from) income taxes

32

 

(46

)

136

 

57

 

Net income

294

 

185

 

498

 

550

 

Earnings per share

 

 

 

 

Basic

1.03

 

0.64

 

1.75

 

1.90

 

Diluted

1.02

 

0.63

 

1.73

 

1.88

 

Number of shares used in computation

 

 

 

 

Basic

285

 

289

 

285

 

289

 

Diluted

287

 

293

 

288

 

292

 

 

Results (in $ millions, except per share data)

The following table reports the variance of the actuals versus our guidance provided on August 4, 2021 for the three months ended September 30, 2021 plus a comparison to the actuals for the three months ended September 30, 2020.

 

Three Months Ended September 30,

 

2021

 

2021

2020

 

Guidance

Variance

Actuals

Actuals

Net revenue

 

 

 

 

Net revenue

1,775

 

51

 

1,826

 

1,151

 

GAAP-based financial data

 

 

 

 

Change in deferred net revenue (online-enabled games) 1

(50

)

75

 

25

 

(241

)

Cost of revenue

 

 

 

 

Cost of revenue

518

 

(24

)

494

 

286

 

GAAP-based financial data

 

 

 

 

Acquisition-related expenses

(35

)

13

 

(22

)

 

Stock-based compensation

 

(2

)

(2

)

(2

)

Operating expenses

 

 

 

 

Operating expenses

1,030

 

(38

)

992

 

716

 

GAAP-based financial data

 

 

 

 

Acquisition-related expenses

(40

)

10

 

(30

)

(6

)

Stock-based compensation

(150

)

3

 

(147

)

(111

)

Income before tax

 

 

 

 

Income before tax

212

 

114

 

326

 

139

 

GAAP-based financial data

 

 

 

 

Acquisition-related expenses

75

 

(23

)

52

 

6

 

Change in deferred net revenue (online-enabled games) 1

(50

)

75

 

25

 

(241

)

Stock-based compensation

150

 

(1

)

149

 

113

 

Tax rate used for management reporting

18

%

 

18

%

18

%

Earnings per share

 

 

 

 

Basic

0.37

 

0.66

 

1.03

 

0.64

 

Diluted

0.36

 

0.66

 

1.02

 

0.63

 

Number of shares

 

 

 

 

Basic

286

 

(1

)

285

 

289

 

Diluted

288

 

(1

)

287

 

293

 

1 The change in deferred net revenue (online-enabled games) in the unaudited condensed consolidated statements of cash flows does not necessarily equal the change in deferred net revenue (online-enabled games) in the unaudited condensed consolidated statements of operations primarily due to the impact of unrecognized gains/losses on cash flow hedges.

ELECTRONIC ARTS INC. AND SUBSIDIARIES

Unaudited Condensed Consolidated Balance Sheets

(in $ millions)

 

 

 

 

September 30, 2021

March 31, 2021 2

ASSETS

 

 

Current assets:

 

 

Cash and cash equivalents

1,630

 

5,260

 

Short-term investments

342

 

1,106

 

Receivables, net

1,031

 

521

 

Other current assets

387

 

326

 

Total current assets

3,390

 

7,213

 

Property and equipment, net

516

 

491

 

Goodwill

5,459

 

2,868

 

Acquisition-related intangibles, net

1,080

 

309

 

Deferred income taxes, net

2,139

 

2,045

 

Other assets

435

 

362

 

TOTAL ASSETS

13,019

 

13,288

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

 

 

Current liabilities:

 

 

Accounts payable

136

 

96

 

Accrued and other current liabilities

1,119

 

1,341

 

Deferred net revenue (online-enabled games)

1,322

 

1,527

 

Total current liabilities

2,577

 

2,964

 

Senior notes, net

1,877

 

1,876

 

Income tax obligations

318

 

315

 

Deferred income taxes, net

68

 

43

 

Other liabilities

323

 

250

 

Total liabilities

5,163

 

5,448

 

 

 

 

Stockholders’ equity:

 

 

Common stock

3

 

3

 

Retained earnings

7,855

 

7,887

 

Accumulated other comprehensive loss

(2

)

(50

)

Total stockholders’ equity

7,856

 

7,840

 

TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY

13,019

 

13,288

 

2 Derived from audited consolidated financial statements.

ELECTRONIC ARTS INC. AND SUBSIDIARIES

Unaudited Condensed Consolidated Statements of Cash Flows

(in $ millions)

 

 

 

 

 

 

Three Months Ended

September 30,

Six Months Ended

September 30,

 

2021

2020

2021

2020

OPERATING ACTIVITIES

 

 

 

 

Net income

294

 

185

 

498

 

550

 

Adjustments to reconcile net income to net cash provided by (used in) operating activities:

 

 

 

 

Depreciation, amortization and accretion

94

 

40

 

199

 

77

 

Stock-based compensation

149

 

113

 

274

 

215

 

Change in assets and liabilities

 

 

 

 

Receivables, net

(458

)

83

 

(446

)

39

 

Other assets

23

 

(157

)

(51

)

(113

)

Accounts payable

61

 

109

 

42

 

106

 

Accrued and other liabilities

52

 

(30

)

(250

)

(96

)

Deferred income taxes, net

(168

)

(42

)

(140

)

(32

)

Deferred net revenue (online-enabled games)

17

 

(240

)

(205

)

(307

)

Net cash provided by (used in) operating activities

64

 

61

 

(79

)

439

 

INVESTING ACTIVITIES

 

 

 

 

Capital expenditures

(43

)

(25

)

(87

)

(63

)

Proceeds from maturities and sales of short-term investments

621

 

724

 

1,128

 

1,418

 

Purchase of short-term investments

(84

)

(752

)

(369

)

(1,416

)

Acquisitions, net of cash acquired

(1,405

)

 

(3,394

)

 

Net cash used in investing activities

(911

)

(53

)

(2,722

)

(61

)

FINANCING ACTIVITIES

 

 

 

 

Proceeds from issuance of common stock

41

 

40

 

41

 

43

 

Cash dividends paid

(48

)

 

(97

)

 

Cash paid to taxing authorities for shares withheld from employees

(16

)

(8

)

(121

)

(77

)

Repurchase and retirement of common stock

(325

)

 

(650

)

(78

)

Net cash provided by (used in) financing activities

(348

)

32

 

(827

)

(112

)

Effect of foreign exchange on cash and cash equivalents

(13

)

6

 

(2

)

25

 

Change in cash and cash equivalents

(1,208

)

46

 

(3,630

)

291

 

Beginning cash and cash equivalents

2,838

 

4,013

 

5,260

 

3,768

 

Ending cash and cash equivalents

1,630

 

4,059

 

1,630

 

4,059

 

 

ELECTRONIC ARTS INC. AND SUBSIDIARIES

Unaudited Supplemental Financial Information and Business Metrics

(in $ millions, except per share data)

 

 

 

 

 

 

 

 

Q2

Q3

Q4

Q1

Q2

YOY %

 

FY21

FY21

FY21

FY22

FY22

Change

Net revenue

 

 

 

 

 

 

Net revenue

1,151

 

1,673

 

1,346

 

1,551

 

1,826

 

59

%

GAAP-based financial data

 

 

 

 

 

 

Change in deferred net revenue (online-enabled games) 1

(241

)

727

 

144

 

(215

)

25

 

 

Gross profit

 

 

 

 

 

 

Gross profit

865

 

1,072

 

1,027

 

1,236

 

1,332

 

54

%

Gross profit (as a % of net revenue)

75

%

64

%

76

%

80

%

73

%

 

GAAP-based financial data

 

 

 

 

 

 

Acquisition-related expenses

 

 

4

 

22

 

22

 

 

Change in deferred net revenue (online-enabled games) 1

(241

)

727

 

144

 

(215

)

25

 

 

Stock-based compensation

2

 

1

 

1

 

1

 

2

 

 

Operating income

 

 

 

 

 

 

Operating income

149

 

251

 

175

 

322

 

340

 

128

%

Operating income (as a % of net revenue)

13

%

15

%

13

%

21

%

19

%

 

GAAP-based financial data

 

 

 

 

 

 

Acquisition-related expenses

6

 

5

 

18

 

62

 

52

 

 

Change in deferred net revenue (online-enabled games) 1

(241

)

727

 

144

 

(215

)

25

 

 

Stock-based compensation

113

 

111

 

109

 

125

 

149

 

 

Net income

 

 

 

 

 

 

Net income

185

 

211

 

76

 

204

 

294

 

59

%

Net income (as a % of net revenue)

16

%

13

%

6

%

13

%

16

%

 

GAAP-based financial data

 

 

 

 

 

 

Acquisition-related expenses

6

 

5

 

18

 

62

 

52

 

 

Change in deferred net revenue (online-enabled games) 1

(241

)

727

 

144

 

(215

)

25

 

 

Stock-based compensation

113

 

111

 

109

 

125

 

149

 

 

Tax rate used for management reporting

18

%

18

%

18

%

18

%

18

%

 

Diluted earnings per share

0.63

 

0.72

 

0.26

 

0.71

 

1.02

 

62

%

Number of diluted shares used in computation

 

 

 

 

 

 

Basic

289

 

290

 

288

 

286

 

285

 

 

Diluted

293

 

292

 

290

 

289

 

287

 

 

1 The change in deferred net revenue (online-enabled games) in the unaudited condensed consolidated statements of cash flows does not necessarily equal the change in deferred net revenue (online-enabled games) in the unaudited condensed consolidated statements of operations primarily due to the impact of unrecognized gains/losses on cash flow hedges.

ELECTRONIC ARTS INC. AND SUBSIDIARIES

Unaudited Supplemental Financial Information and Business Metrics

(in $ millions)

 

 

 

 

 

 

 

 

Q2

Q3

Q4

Q1

Q2

YOY %

 

FY21

FY21

FY21

FY22

FY22

Change

QUARTERLY NET REVENUE PRESENTATIONS

 

 

 

 

 

 

Net revenue by composition

 

 

 

 

 

 

Full game downloads

163

 

347

 

185

 

233

 

337

 

107

%

Packaged goods

119

 

375

 

65

 

89

 

280

 

135

%

Full game

282

 

722

 

250

 

322

 

617

 

119

%

Live services and other

869

 

951

 

1,096

 

1,229

 

1,209

 

39

%

Total net revenue

1,151

 

1,673

 

1,346

 

1,551

 

1,826

 

59

%

Full game

25

%

43

%

19

%

21

%

34

%

 

Live services and other

75

%

57

%

81

%

79

%

66

%

 

Total net revenue %

100

%

100

%

100

%

100

%

100

%

 

GAAP-based financial data

 

 

 

Full game downloads

(2

)

53

 

(19

)

(5

)

35

 

 

Packaged goods

(14

)

83

 

(44

)

(35

)

44

 

 

Full game

(16

)

136

 

(63

)

(40

)

79

 

 

Live services and other

(225

)

591

 

207

 

(175

)

(54

)

 

Total change in deferred net revenue (online-enabled games) by composition 1

(241

)

727

 

144

 

(215

)

25

 

 

 

 

 

 

 

 

 

Net revenue by platform

 

 

 

 

 

 

Console

714

 

1,191

 

879

 

972

 

1,198

 

68

%

PC & Other

249

 

326

 

295

 

361

 

377

 

51

%

Mobile

188

 

156

 

172

 

218

 

251

 

34

%

Total net revenue

1,151

 

1,673

 

1,346

 

1,551

 

1,826

 

59

%

GAAP-based financial data

 

 

 

Console

(201

)

619

 

71

 

(278

)

(29

)

 

PC & Other

(24

)

73

 

51

 

9

 

26

 

 

Mobile

(16

)

35

 

22

 

54

 

28

 

 

Total change in deferred net revenue (online-enabled games) by platform 1

(241

)

727

 

144

 

(215

)

25

 

 

1 The change in deferred net revenue (online-enabled games) in the unaudited condensed consolidated statements of cash flows does not necessarily equal the change in deferred net revenue (online-enabled games) in the unaudited condensed consolidated statements of operations primarily due to the impact of unrecognized gains/losses on cash flow hedges.

ELECTRONIC ARTS INC. AND SUBSIDIARIES

Unaudited Supplemental Financial Information and Business Metrics

(in $ millions)

 

 

 

 

 

 

 

 

 

 

 

 

 

Q2

 

Q3

 

Q4

 

Q1

 

Q2

 

YOY %

 

FY21

 

FY21

 

FY21

 

FY22

 

FY22

 

Change

CASH FLOW DATA

 

 

 

 

 

 

 

 

 

 

 

Operating cash flow

61

 

 

1,124

 

 

371

 

 

(143

)

 

64

 

 

5

%

Operating cash flow - TTM

2,041

 

 

2,061

 

 

1,934

 

 

1,413

 

 

1,416

 

 

(31

%)

Capital expenditures

25

 

 

30

 

 

31

 

 

44

 

 

43

 

 

72

%

Capital expenditures - TTM

131

 

133

 

124

 

130

 

148

 

13

%

Repurchase and retirement of common stock

 

 

326

 

 

325

 

 

325

 

 

325

 

 

100

%

Cash dividends paid

 

 

49

 

49

 

49

 

48

 

100

%

DEPRECIATION

 

 

 

 

 

 

 

 

 

 

 

Depreciation expense

32

 

37

 

38

 

40

 

39

 

22

%

BALANCE SHEET DATA

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

4,059

 

4,772

 

5,260

 

2,838

 

1,630

 

 

Short-term investments

1,972

 

1,938

 

1,106

 

881

 

342

 

 

Cash and cash equivalents, and short-term investments

6,031

 

 

6,710

 

 

6,366

 

 

3,719

 

 

1,972

 

 

(67

%)

Receivables, net

423

 

778

 

521

 

557

 

1,031

 

144

%

STOCK-BASED COMPENSATION

 

 

 

 

 

 

 

 

 

 

 

Cost of revenue

2

 

 

1

 

 

1

 

 

1

 

 

2

 

 

 

Research and development

74

 

74

 

71

 

85

 

101

 

 

Marketing and sales

12

 

11

 

12

 

12

 

15

 

 

General and administrative

25

 

25

 

25

 

27

 

31

 

 

Total stock-based compensation

113

 

 

111

 

 

109

 

 

125

 

 

149

 

 

 

Category: Company News

View source version on businesswire.com:https://www.businesswire.com/news/home/20211103005997/en/

CONTACT: Chris Evenden

Vice President, Investor Relations

650-628-0255

cevenden@ea.comJohn Reseburg

Vice President, Global Communications

650-628-3601

jreseburg@ea.com

KEYWORD: UNITED STATES NORTH AMERICA CALIFORNIA

INDUSTRY KEYWORD: ELECTRONIC GAMES TECHNOLOGY GENERAL SPORTS SPORTS ENTERTAINMENT ONLINE MOBILE ENTERTAINMENT SOFTWARE INTERNET

SOURCE: Electronic Arts Inc.

Copyright Business Wire 2021.

PUB: 11/03/2021 04:01 PM/DISC: 11/03/2021 04:02 PM

http://www.businesswire.com/news/home/20211103005997/en