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Electronic Arts - Vancouver Studio

Company exceeds expectations on the strength of EA SPORTS portfolio; Successfully launches EA SPORTS FC 24

Burnaby, BC, November 8, 2023--(T-Net)--Electronic Arts Inc. (NASDAQ: EA) today announced preliminary financial results for its second quarter ended September 30, 2023.

Andrew Wilson, CEO & Chairman, EA

"We delivered a strong Q2 and successfully launched EA SPORTS FC, transforming one of the largest franchises in the world into a powerful, interactive platform for the future of football fandom," said Andrew Wilson, CEO of EA. "Looking ahead, our incredible teams will continue to innovate and expand across our world-class IP, building experiences that entertain our massive online communities, celebrate fandom, and increase connection for our growing global player base."

"EA SPORTS strength, driven by new releases and ongoing live services, delivered Q2 results ahead of expectations," said Stuart Canfield, CFO of EA. "We remain focused on delivering for our growing player communities and building upon the momentum across our portfolio, while prioritizing investments that execute against our largest opportunities to drive long term growth."

Selected Operating Highlights and Metrics 1

• Net bookings2 for Q2 was $1.820 billion, up 4% year-over-year (up 5% in constant currency).
• Live services and other net bookings for Q2 was $1.129 billion, up 1% year-over-year (up 2% in constant currency). On a trailing twelve-month basis, live services were 73% of our business.
• EA SPORTS Madden NFL franchise outperformed Q2 expectations, delivering net bookings growth of 6% year-over-year.
• EA SPORTS global football franchise outperformed Q2 expectations driven by the continued strength of EA SPORTS FIFA 23 and demand for the release of EA SPORTS FC 24.
• EA SPORTS FC 24, within the first four weeks of global launch, had over 14.5 million active accounts.

Selected Financial Highlights and Metrics

• Net revenue was $1.914 billion for the quarter.
• Net cash provided by operating activities was $112 million for the quarterand $2.211 billion for the trailing twelve months.
• EA repurchased 2.6 million shares for $325 million during the quarter, bringing the total for the trailing twelve months to 10.5 million shares for $1.300 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 20, 2023 to shareholders of record as of the close of business on November 29, 2023.

Quarterly Financial Highlights

The following GAAP-based financial data3 and tax rate of 19% was used internally by company management to adjust its GAAP results in order to assess EA's operating results:

Trailing Twelve Months Financial Highlights

The following GAAP-based financial data3 and a tax rate of 19% was used internally by company management to adjust its GAAP results in order to assess EA's operating results.

Operating Metric

The following is a calculation of our total net bookings2 for the periods presented:

Business Outlook as of November 1, 2023

Fiscal Year 2024 Expectations - Ending March 31, 2024

Financial outlook metrics:

• Net revenue is expected to be approximately $7.300 billion to $7.700 billion.

• No change in deferred net revenue (online-enabled games) is expected.

• Net income is expected to be approximately $1.118 billion to $1.273 billion.
• Diluted earnings per share is expected to be approximately $4.10 to $4.66.
• Operating cash flow is expected to be approximately $1.950 billion to $2.100 billion.
• The Company estimates a share count of 273 million for purposes of calculating fiscal year 2024 diluted earnings per share.

Operational outlook metric:

• Net bookings2 is expected to be approximately $7.300 billion to $7.700 billion.

In addition, the following outlook for GAAP-based financial data3 and long-term tax rate of 19% are used internally by EA to adjust GAAP expectations to assess EA's operating results and plan for future periods:

Third Quarter Fiscal Year 2024 Expectations - Ending December 31, 2023

Financial outlook metrics:

• Net revenue is expected to be approximately $1.825 billion to $2.025 billion.

• Change in deferred net revenue (online-enabled games) is expected to be approximately $425 million.

• Net income is expected to be approximately $203 million to $275 million.
• Diluted earnings per share is expected to be approximately $0.75 to $1.01.
• The Company estimates a share count of 272 million for purposes of calculating third quarter fiscal 2024 diluted earnings per share.

Operational outlook metric:

• Net bookings2 is expected to be approximately $2.250 billion to $2.450 billion.

In addition, the following outlook for GAAP-based financial data3 and long-term tax rate of 19% are used internally by EA to adjust GAAP expectations to assess EA's operating results and plan for future periods:

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 2023, EA posted GAAP net revenue of approximately $7.4 billion. Headquartered in Redwood City, California, EA is recognized for a portfolio of critically acclaimed, high-quality brands such as EA SPORTS FC, Battlefield™, Apex Legends™, The Sims™, EA SPORTS Madden NFL, Need for Speed™, Titanfall™, Plants vs. Zombies™ and EA SPORTS F1®. More information about EA is available at www.ea.com/news.

EA, EA SPORTS, EA SPORTS FC, Battlefield, Need for Speed, Apex Legends, The Sims, Titanfall, and Plants vs. Zombies are trademarks of Electronic Arts Inc. John Madden, NFL, FIFA and F1 are the property of their respective owners and used with permission.