Wednesday, July 31st 2024

Electronic Arts Reports Strong Q1 FY25 Results, Revenue Down, Income Up YoY

Press Release by
TheLostSwede
 Discuss (32 Comments)
Electronic Arts (NASDAQ: EA) today announced preliminary financial results for its first quarter ended June 30, 2024. "EA delivered a strong start to FY25, beating net bookings guidance as we continue to execute across our business," said Andrew Wilson, CEO of EA. "Our focus on delivering bigger, bolder, and more connected experiences for our players has never been sharper and is illustrated by the record-breaking launch of EA SPORTS College Football 25 as we head into another historic Q2 sports season at EA."

"Strong execution, live events and continued player engagement across our experiences, delivered Q1 results above expectations," said Stuart Canfield, CFO of EA. "Looking ahead, the remarkable success of our launch week for College Football, combined with the upcoming launches for EA SPORTS Madden NFL, EA SPORTS FC and Dragon Age: The Veilguard, is building momentum for FY25 and beyond. We are well positioned to deliver our multi-year financial objectives."
Selected Operating Highlights and Metrics
  • Net bookings for the quarter totaled $1.262 billion, exceeding the high end of the guidance range of $1.250 billion. This was driven by stronger performance across Madden NFL 24, FC Online and FC Mobile.
  • EA SPORTS FC celebrated real-world tournaments and events during Q1, attracting tens of millions of new fans and driving engagement across the franchise during the quarter.
  • EA SPORTS Madden NFL delivered sustained momentum through the quarter, with weekly average users in Ultimate Team and total net bookings up double digits year-over-year.
  • During the quarter, EA revealed Dragon Age: The Veilguard gameplay, which trended #1 on YouTube Gaming and received millions of views.
  • After the quarter ended, EA SPORTS College Football 25 welcomed 5 million unique players into the game through its first week, with over 500,000 more playing via the EA Play trial.
Selected Financial Highlights and Metrics
  • Net revenue was $1.660 billion for the quarter.
  • Net cash provided by operating activities was $120 million for the quarter and $2.076 billion for the trailing twelve months.
  • EA repurchased 2.8 million shares for $375 million during the quarter under the new stock repurchase program, bringing the total for the trailing twelve months to 10.2 million shares for $1.350 billion.
Dividend
EA has declared a quarterly cash dividend of $0.19 per share of the Company's common stock. The dividend is payable on September 18, 2024 to stockholders of record as of the close of business on August 28, 2024.
Business Outlook as of July 30, 2024

Fiscal Year 2025 Expectations - Ending March 31, 2025

Financial outlook metrics:
  • Net revenue is expected to be approximately $7.100 billion to $7.500 billion.
  • Change in deferred net revenue (online-enabled games) is expected to be approximately $200 million.
  • Net income is expected to be approximately $904 million to $1.085 billion.
  • Diluted earnings per share is expected to be approximately $3.34 to $4.00.
  • Operating cash flow is expected to be approximately $2.050 billion to $2.250 billion.
  • The Company estimates a share count of 271 million for purposes of calculating diluted earnings per share.
Operational outlook metric:
  • Net bookings is expected to be approximately $7.300 billion to $7.700 billion.
Second Quarter Fiscal Year 2025 Expectations - Ending September 30, 2024

Financial outlook metrics:
  • Net revenue is expected to be approximately $1.900 billion to $2.000 billion.
    • Change in deferred net revenue (online-enabled games) is expected to be approximately $50 million.
  • Net income is expected to be approximately $204 million to $248 million.
  • Diluted earnings per share is expected to be approximately $0.76 to $0.93.
  • The Company estimates a share count of 267 million for purposes of calculating diluted earnings per share.
Operational outlook metric:
Net bookings is expected to be approximately $1.950 billion to $2.050 billion.
Source: Electronic Arts

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32 Comments on Electronic Arts Reports Strong Q1 FY25 Results, Revenue Down, Income Up YoY

#26
FreedomEclipse
~Technological Technocrat~
natr0nI was wondering if some places in Sweden make you feel like you are in a Dice game...So I googled modern Swedish architecture... and Yes
shipping containers everywhere?
Posted on Reply
#28
TheinsanegamerN
64KI remember reading the interview with the 2 BioWare co-founders that retired in 2012 and they said that EA didn't meddle in Mass Effect 2 but I just couldn't buy it. I question whether they got a sweet retirement package to make nice about their experience working for EA. The truly good talent started to bail out as well. It's just a pattern that repeats with Developers bought by EA. They are the Grim Reaper of gaming.
It was revealed by employees at bioware, after the anthem fiasco, that it was only after andromeda bombed hard that EA began to pay attention. Up through 2016 BioWare was allowed to do basically whatever they wanted.
Onasi@TheinsanegamerN
BioWare has been underperforming for years. One thing that kept them alive was that SWTOR, after switching to a F2P model, was surprisingly profitable and was doing good numbers. But it wasn’t really BioWare itself who ran it and now that it’s been given to Broadsword they don’t have that to hide behind anymore.
The company itself is basically just a shell with a name at this point, virtually everyone who made old Bio what it was is either gone or dead. I absolutely wouldn’t be surprised if after Veilguard inevitably flops (and I feel it will) EA will finally put a bullet in their head. Honestly, probably deserved at this point since they have basically nothing to show for more than a decade and ME5 (or whatever it’s called) can be either cancelled or transferred to another studio.
Most likely. They've been a shambling zombie for over half a decade now. Even ME3 was very unlike bioware, a warning of things to come.
evernessinceIt's truly amazing that people continue to buy EA Sports games and fall for their micro-transactions, despite the games being hot garbage for a long long time.
Consooooomers gotta consooooom. IME, these kinds of people have just 0 agency, even when they acknowledge that the games have a horrible track record and generally suck, they will still dump cash on every entry and justify it, and look at you like some kind of alien when you suggest they just.....shouldnt. The same type of people that endlessly buy overpriced cars, houses, subscribe to every service imagineable, ece. It takes a massive impact, like losing their job and house, for them to JUST. STOP. BUYING. SLOP.
Posted on Reply
#29
64K
evernessinceIt's truly amazing that people continue to buy EA Sports games and fall for their micro-transactions, despite the games being hot garbage for a long long time.
I've never bought any sports games but from what I hear it's pretty much the same game over and over year after year with mostly just a different roster for full price. I could see a large expansion yearly for a lot less money but what EA offers seems like a ripoff to me. It's no wonder they make a killing every year with fans like that.
Posted on Reply
#30
TheLostSwede
News Editor
FreedomEclipseWhats the hold up? W1zzard not paying you enough to attend?
I will not be in Sweden on that day.
FreedomEclipseshipping containers everywhere?
Well, of sorts.




Just don't ask how much it costs to live there, nor how it went for the company that built them.
Posted on Reply
#31
FreedomEclipse
~Technological Technocrat~
64KI've never bought any sports games but from what I hear it's pretty much the same game over and over year after year with mostly just a different roster for full price. I could see a large expansion yearly for a lot less money but what EA offers seems like a ripoff to me. It's no wonder they make a killing every year with fans like that.
When the word got around that Battlefield V had completely flopped. EA had an investors meeting to talk about the goings on and breaking down all their finances to date. One of the investors did say something like "But what about Battlefield V??" Obviously the guy knows it was a complete forest fire. But the EA Rep shut down that topic down so fast like a wrestler doing the dankest Moonsault flip off a turnbuckle ever seen in WWE. Didnt want anyone talking about it and deflected with a "Well, would you look at that. All that money we made off Fifa, like OMG..." Basically. They had made enough F.U. money off FiFa games not to even care about the millions they had lost from BF:V failing. FiFa to EA is like what CoD was to Activision.

Brushed it off like it was nothing.
Posted on Reply
#32
sethmatrix7
64KI've never bought any sports games but from what I hear it's pretty much the same game over and over year after year with mostly just a different roster for full price. I could see a large expansion yearly for a lot less money but what EA offers seems like a ripoff to me. It's no wonder they make a killing every year with fans like that.
On Madden your description is entirely accurate. Each year it's the same game on the same dogshit engine, with the only real changes being a roster update (which can be brought in via custom roster anyway). In Madden 25 they did try to reinvent the wheel by changing the controls, and it's absolutely terrible. I only ever played the franchise mode where you could build a team over years and years, and that mode is the same as it was in Madden 18.

The real money is made on "Ultimate Team" where the player buys packs to have better players. It's entirely centered around micro transactions.
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