https://www.techpowerup.com/325085/electronic-arts-reports-strong-q1-fy25-results-revenue-down-income-up-yoy 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.
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.
The quarterly sales were probably not as good as EA wanted, but overall not too bad in my opinion.
