Electronic Arts Inc. Files 10-Q for Period Ending December 31, 2023

TL;DR

<b>Electronic Arts Inc. has submitted its quarterly report (10-Q) for the period ending December 31, 2023</b>.

AI Summary

ELECTRONIC ARTS INC. (EA) filed a Quarterly Report (10-Q) with the SEC on February 6, 2024. Electronic Arts Inc. filed its 10-Q report for the period ending December 31, 2023. The filing covers the third quarter of fiscal year 2024. The company's fiscal year ends on March 31st. The report was filed on February 6, 2024. The company's principal business address is 209 Redwood Shores Parkway, Redwood City, CA 94065.

Why It Matters

For investors and stakeholders tracking ELECTRONIC ARTS INC., this filing contains several important signals. This filing provides investors with the latest financial performance and operational updates for Electronic Arts Inc. Understanding the details within this 10-Q is crucial for assessing the company's current financial health and future prospects in the video game industry.

Risk Assessment

Risk Level: medium — ELECTRONIC ARTS INC. shows moderate risk based on this filing. The filing is a standard quarterly report, indicating ongoing operational and financial reporting requirements for a publicly traded company. Specific risks would be detailed within the report's risk factors section, which is not fully provided here.

Analyst Insight

Review the detailed financial statements and risk factors within the full 10-Q filing to understand Electronic Arts Inc.'s performance and potential challenges.

Key Numbers

• 20231231 — Period of Report End Date (Conformed Period of Report)
• 20240206 — Filing Date (Filed as of Date)
• 0331 — Fiscal Year End (Fiscal Year End)
• 7372 — Standard Industrial Classification (SIC Code for Prepackaged Software)

Key Players & Entities

• ELECTRONIC ARTS INC. (company) — Filer name
• 209 REDWOOD SHORES PARKWAY (location) — Business address
• REDWOOD CITY (location) — Business address city
• CA (location) — Business address state
• 94065 (location) — Business address zip

FAQ

Industry Context

Electronic Arts Inc. operates in the video game industry, a sector characterized by rapid technological advancements, evolving consumer preferences, and significant competition.

Regulatory Implications

As a publicly traded company, Electronic Arts Inc. is subject to the reporting requirements of the Securities and Exchange Commission (SEC), including the filing of quarterly (10-Q) and annual (10-K) reports.

What Investors Should Do

1. Analyze the financial statements (balance sheet, income statement, cash flow) for the quarter ended December 31, 2023.
2. Identify any new or updated risk factors disclosed in the filing that could impact future performance.
3. Compare key financial metrics to previous periods to assess trends and growth.

Key Dates

• 2023-12-31: Period End Date — End of the reporting quarter for the 10-Q filing.
• 2024-02-06: Filing Date — Date the 10-Q report was officially filed with the SEC.

Year-Over-Year Comparison

This is the 10-Q filing for the period ending December 31, 2023. Specific comparisons to the prior period's filing (e.g., 10-Q for September 30, 2023) would require access to that document.

Key Financial Figures

• $0.01 — ange on Which Registered Common Stock, $0.01 par value EA NASDAQ Global Select Marke

Filing Documents

• ea-20231231.htm (10-Q) — 1804KB
• ex-151awarenessletterofkpm.htm (EX-15.1) — 3KB
• ex-311sec302ceocert123123.htm (EX-31.1) — 11KB
• ex-312sec302cfocert123123.htm (EX-31.2) — 11KB
• ex-321sec906ceocert123123.htm (EX-32.1) — 6KB
• ex-322sec906cfocert123123.htm (EX-32.2) — 6KB
• 0000712515-24-000007.txt (&nbsp;) — 10083KB
• ea-20231231.xsd (EX-101.SCH) — 63KB
• ea-20231231_cal.xml (EX-101.CAL) — 81KB
• ea-20231231_def.xml (EX-101.DEF) — 308KB
• ea-20231231_lab.xml (EX-101.LAB) — 802KB
• ea-20231231_pre.xml (EX-101.PRE) — 539KB
• ea-20231231_htm.xml (XML) — 1937KB

- FINANCIAL INFORMATION

Part I - FINANCIAL INFORMATION

Condensed Consolidated Financial Statements (Unaudited)

Item 1. Condensed Consolidated Financial Statements (Unaudited) Condensed Consolidated Balance Sheets as of December 31, 2023 and March 31, 2023 3 Condensed Consolidated Statements of Operations for the Three and Nine Months Ended December 31, 2023 and 2022 4 Condensed Consolidated Statements of Comprehensive Income for the Three and Nine Months Ended December 31, 2023 and 2022 5 Condensed Consolidated Statements of Stockholders' Equity for the Three and Nine Months Ended December 31, 2023 and 2022 6 Condensed Consolidated Statements of Cash Flows for the Nine Months Ended December 31, 2023 and 2022 7 Notes to Condensed Consolidated Financial Statements 8 Report of Independent Registered Public Accounting Firm 28

Management's Discussion and Analysis of Financial Condition and Results of Operations

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 29

Quantitative and Qualitative Disclosures About Market Risk

Item 3. Quantitative and Qualitative Disclosures About Market Risk 42

Controls and Procedures

Item 4. Controls and Procedures 44

- OTHER INFORMATION

Part II - OTHER INFORMATION

Legal Proceedings

Item 1. Legal Proceedings 45

Risk Factors

Item 1A. Risk Factors 45

Unregistered Sales of Equity Securities and Use of Proceeds

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 55

Defaults Upon Senior Securities

Item 3. Defaults Upon Senior Securities 55

Mine Safety Disclosures

Item 4. Mine Safety Disclosures 55

Other Information

Item 5. Other Information 55

Exhibits

Item 6. Exhibits 55 Exhibit Index 56 Signature 57 2 Table of Contents

– FINANCIAL INFORMATION

PART I – FINANCIAL INFORMATION

Condensed Consolidated Financial Statements (Unaudited)

Item 1. Condensed Consolidated Financial Statements (Unaudited) ELECTRONIC ARTS INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (In millions, except par value data) December 31, 2023 March 31, 2023 (a) ASSETS Current assets: Cash and cash equivalents $ 2,742 $ 2,424 Short-term investments 362 343 Receivables, net 867 684 Other current assets 378 518 Total current assets 4,349 3,969 Property and equipment, net 561 549 Goodwill 5,382 5,380 Acquisition-related intangibles, net 501 618 Deferred income taxes, net 2,375 2,462 Other assets 449 481 TOTAL ASSETS $ 13,617 $ 13,459 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable $ 62 $ 99 Accrued and other current liabilities 1,299 1,285 Deferred net revenue (online-enabled games) 1,919 1,901 Total current liabilities 3,280 3,285 Senior notes, net 1,881 1,880 Income tax obligations 482 607 Deferred income taxes, net 2 1 Other liabilities 439 393 Total liabilities 6,084 6,166 Commitments and contingencies (See Note 12 ) Stockholders' equity: Common stock, $ 0.01 par value. 1,000 shares authorized; 268 and 273 shares issued and outstanding, respectively 3 3 Additional paid-in capital — — Retained earnings 7,614 7,357 Accumulated other comprehensive income (loss) ( 84 ) ( 67 ) Total stockholders' equity 7,533 7,293 TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 13,617 $ 13,459 See accompanying Notes to Condensed Consolidated Financial Statements (unaudited). (a) Derived from audited Consolidated Financial Statements. 3 Table of Contents ELECTRONIC ARTS INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) Three Months Ended December 31, Nine Months Ended December 31, (In millions, except per share data) 2023 2022 2023 2022 Net revenue $ 1,945 $ 1,881 $ 5,783 $ 5,552 Cost of revenue 529 568 1,353 1,344 Gross profit 1,416 1,313 4,430 4,208 Operating expenses: Research and development 584 556 1,78

View Full Filing

View this 10-Q filing on SEC EDGAR