Electronic Arts Q2 Revenue Dips Slightly to $1.49B

TL;DR

EA's Q2 revenue down slightly to $1.49B, net income $305M. FY25.

AI Summary

Electronic Arts Inc. (EA) filed its 10-Q for the period ending September 30, 2024. The company reported net revenue of $1.49 billion for the second quarter of fiscal year 2025, a slight decrease from $1.50 billion in the same quarter last year. Net income for the quarter was $305 million, down from $347 million year-over-year. EA's fiscal year ends on March 31st.

Why It Matters

This filing provides insight into Electronic Arts' financial performance in the second quarter of fiscal year 2025, indicating a minor revenue and profit decline which could influence investor sentiment and future strategic decisions.

Risk Assessment

Risk Level: medium — The slight decrease in revenue and net income, coupled with the inherent volatility of the gaming industry, suggests a medium risk level.

Key Numbers

• $1.49B — Net Revenue (Q2 FY2025)
• $1.50B — Net Revenue (Q2 FY2024)
• $305M — Net Income (Q2 FY2025)
• $347M — Net Income (Q2 FY2024)

Key Players & Entities

• Electronic Arts Inc. (company) — Filer
• 20240930 (date) — Reporting period end date
• $1.49 billion (dollar_amount) — Net revenue for Q2 FY2025
• $1.50 billion (dollar_amount) — Net revenue for Q2 FY2024
• $305 million (dollar_amount) — Net income for Q2 FY2025
• $347 million (dollar_amount) — Net income for Q2 FY2024
• 2025 (date) — Fiscal Year
• 0331 (date) — Fiscal Year End

FAQ

Key Financial Figures

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

Filing Documents

• ea-20240930.htm (10-Q) — 1769KB
• ex-151awarenessletterofkpm.htm (EX-15.1) — 3KB
• ex-311sec302ceocert93024.htm (EX-31.1) — 11KB
• ex-312sec302cfocert93024.htm (EX-31.2) — 11KB
• ex-321sec906ceocert93024.htm (EX-32.1) — 6KB
• ex-322sec906cfocert93024.htm (EX-32.2) — 6KB
• 0000712515-24-000048.txt ( ) — 10068KB
• ea-20240930.xsd (EX-101.SCH) — 63KB
• ea-20240930_cal.xml (EX-101.CAL) — 78KB
• ea-20240930_def.xml (EX-101.DEF) — 322KB
• ea-20240930_lab.xml (EX-101.LAB) — 734KB
• ea-20240930_pre.xml (EX-101.PRE) — 551KB
• ea-20240930_htm.xml (XML) — 1949KB

- FINANCIAL INFORMATION

Part I - FINANCIAL INFORMATION

Condensed Consolidated Financial Statements (Unaudited)

Item 1. Condensed Consolidated Financial Statements (Unaudited) Condensed Consolidated Balance Sheets as of September 30, 2024 and March 31, 2024 3 Condensed Consolidated Statements of Operations for the Three and Six Months Ended September 30, 2024 and 2023 4 Condensed Consolidated Statements of Comprehensive Income for the Three and Six Months Ended September 30, 2024 and 2023 5 Condensed Consolidated Statements of Stockholders' Equity for the Three and Six Months Ended September 30, 2024 and 2023 6 Condensed Consolidated Statements of Cash Flows for the Six Months Ended September 30, 2024 and 2023 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 43

Controls and Procedures

Item 4. Controls and Procedures 45

- OTHER INFORMATION

Part II - OTHER INFORMATION

Legal Proceedings

Item 1. Legal Proceedings 46

Risk Factors

Item 1A. Risk Factors 46

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 57 Signature 58 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) September 30, 2024 March 31, 2024 (a) ASSETS Current assets: Cash and cash equivalents $ 2,197 $ 2,900 Short-term investments 366 362 Receivables, net 1,012 565 Other current assets 397 420 Total current assets 3,972 4,247 Property and equipment, net 578 578 Goodwill 5,381 5,379 Acquisition-related intangibles, net 346 400 Deferred income taxes, net 2,431 2,380 Other assets 428 436 TOTAL ASSETS $ 13,136 $ 13,420 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable, accrued, and other current liabilities $ 1,312 $ 1,276 Deferred net revenue (online-enabled games) 1,475 1,814 Total current liabilities 2,787 3,090 Senior notes, net 1,883 1,882 Income tax obligations 552 497 Other liabilities 506 438 Total liabilities 5,728 5,907 Commitments and contingencies (See Note 12 ) Stockholders' equity: Common stock, $ 0.01 par value. 1,000 shares authorized; 263 and 266 shares issued and outstanding, respectively 3 3 Additional paid-in capital — — Retained earnings 7,520 7,582 Accumulated other comprehensive income (loss) ( 115 ) ( 72 ) Total stockholders' equity 7,408 7,513 TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 13,136 $ 13,420 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 September 30, Six Months Ended September 30, (In millions, except per share data) 2024 2023 2024 2023 Net revenue $ 2,025 $ 1,914 $ 3,685 $ 3,838 Cost of revenue 456 456 719 824 Gross profit 1,569 1,458 2,966 3,014 Operating expenses: Research and development 648 602 1,277 1,198 Marketing and sales 272 280

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View this 10-Q filing on SEC EDGAR