https://www.techpowerup.com/328257/electronic-arts-reports-strong-q2-fy25-results Electronic Arts (NASDAQ: EA) today announced preliminary financial results for its second quarter ended September 30, 2024. "EA delivered another strong quarter with record Q2 net bookings, driven by our incredible teams, broad portfolio and technology leadership," said Andrew Wilson, CEO of EA. "The momentum in our business reinforces our strategic vision to deliver innovative experiences and interactive entertainment that deepens and expands engagement across our global communities."
"Q2 was another successful quarter for EA, exceeding the high end of our guidance range. As a result, we are also raising our FY25 outlook," said Stuart Canfield, CFO of EA. "We remain confident in our ability to drive long-term value creation through increased scale, driving top-line growth, improved margins, and greater cash flow as shared at our Investor Day."
Selected Operating Highlights and Metrics
- Net bookings for the quarter totaled $2.079 billion, setting a Q2 record and exceeding the high end of guidance range of $2.050 billion.
- American Football is on track to exceed $1 billion in net bookings for FY25, with total hours played in Q2 up over 140% year over year, and we also saw new players in the community more than double year over year.
- Through September, College Football 25 was the best-selling HD title in North America and gives EA three of the top ten HD bestsellers in North America.
- Global Football saw live service growth across all platforms in Q2, and total franchise net bookings in FY25 are on track to grow over a record FY24.
- The Sims 4 continues to expand, with more than 15 million players joining the game over the past year. Increased engagement led to higher-than-expected net bookings for the franchise in Q2.
Selected Financial Highlights and Metrics
- Net revenue was $2.025 billion for the quarter.
- Net cash provided by operating activities was $234 million for the quarter and $2.198 billion for the trailing twelve months.
- EA repurchased 2.6 million shares for $375 million during the quarter under the stock repurchase program, bringing the total for the trailing twelve months to 10.2 million shares for $1.400 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 December 18, 2024 to stockholders of record as of the close of business on November 27, 2024.
Fiscal Year 2025 Expectations - Ending March 31, 2025
Financial outlook metrics:
- Net revenue is expected to be approximately $7.400 billion to $7.700 billion.
- Change in deferred net revenue (online-enabled games) is expected to be approximately $100 million.
- Net income is expected to be approximately $1.019 billion to $1.156 billion.
- Diluted earnings per share is expected to be approximately $3.82 to $4.33.
- Operating cash flow is expected to be approximately $2.075 billion to $2.275 billion.
- 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 $7.500 billion to $7.800 billion.
Third Quarter Fiscal Year 2025 Expectations - Ending December 31, 2024
Financial outlook metrics:
- Net revenue is expected to be approximately $1.875 billion to $2.025 billion.
- Change in deferred net revenue (online-enabled games) is expected to be approximately $525 million.
- Net income is expected to be approximately $226 million to $270 million.
- Diluted earnings per share is expected to be approximately $0.85 to $1.02.
- The Company estimates a share count of 266 million for purposes of calculating diluted earnings per share.
Operational outlook metric:
- Net bookings is expected to be approximately $2.400 billion to $2.550 billion.
A very good strong quarter for EA
