| Metric [USD Million] | Q3 2023 | Q4 2023 | Q1 2024 | Q2 2024 | Q3 2024 | Q4 2024 | Q1 2025 | Q2 2025 |
|----------------------|---------|---------|---------|---------|---------|---------|---------|---------|
| Full Game Revenue    | **622**  **[0000712515-23-000008_ea-20221231.htm:41]**  | **372**  **[0000712515-23-000021_earningspressrelease2023_0.htm:10]**  | N/A     | **621**  **[0000712515-23-000048_ea-20230930.htm:24]**  | **618**  **[0000712515-24-000007_ea-20231231.htm:25]**  | **333**  **[0000712515-24-000013_earningspressrelease2024_5.htm:0]**  | **250**  **[0000712515-24-000039_ea-20240630.htm:40]**  | **716**  **[0000712515-24-000048_ea-20240930.htm:41]**  |
| Live Services and Other Revenue | **1,259**  **[0000712515-23-000008_ea-20221231.htm:41]**  | **1,502**  **[0000712515-23-000021_earningspressrelease2023_0.htm:10]**  | N/A     | **1,293**  **[0000712515-23-000048_ea-20230930.htm:24]**  | **1,327**  **[0000712515-24-000007_ea-20231231.htm:25]**  | **1,446**  **[0000712515-24-000013_earningspressrelease2024_5.htm:0]**  | **1,410**  **[0000712515-24-000039_ea-20240630.htm:40]**  | **1,309**  **[0000712515-24-000048_ea-20240930.htm:41]**  |
| Total Net Revenue    | **1,881**  **[0000712515-23-000008_ea-20221231.htm:41]**  | **1,874**  **[0000712515-23-000021_earningspressrelease2023_0.htm:10]**  | N/A     | **1,914**  **[0000712515-23-000048_ea-20230930.htm:24]**  | **1,945**  **[0000712515-24-000007_ea-20231231.htm:25]**  | **1,779**  **[0000712515-24-000013_earningspressrelease2024_5.htm:0]**  | **1,660**  **[0000712515-24-000027_earningspressrelease2024_0.htm:0]**  | **2,025**  **[0000712515-24-000048_ea-20240930.htm:41]**  |

c8433e658cd941a4a71e8b86f459129c5b2931d3c60045ced7b9acbbd1919f6b

| Metric (in $ million) | Q3 2023 | Q1 2024 | Q2 2024 | Q3 2024 | Q1 2025 | Q2 2025 |
|-----------------------|---------|---------|---------|---------|---------|---------|
| Net Bookings          | **2,342**  **[0000712515-23-000008_ea-20221231.htm:32]**  | **1,578**  **[0000712515-23-000037_ea-20230630.htm:30]**  | **1,820**  **[0000712515-23-000048_ea-20230930.htm:32]**  | **2,366**  **[0000712515-24-000007_ea-20231231.htm:32]**  | **1,262**  **[0000712515-24-000039_ea-20240630.htm:31]**  | **2,079**  **[0000712515-24-000048_ea-20240930.htm:32]**  |

9792a1db077bb4edeba60730bb42a043211f88c4903e72956c5cd97b3563762d

Electronic Arts (EA) is a global leader in digital interactive entertainment, specializing in the development, marketing, publishing, and delivery of games, content, and services for game consoles, PCs, mobile phones, and tablets **[0000712515-24-000048_ea-20240930.htm:28]** **[0000712515-24-000023_ea-20240331.htm:39]** **[0000712515-24-000007_ea-20231231.htm:29]** **[0000712515-24-000023_ea-20240331.htm:68]** **[0000712515-24-000007_ea-20231231.htm:5]** **[0000712515-24-000048_ea-20240930.htm:5]** **[0000712515-24-000039_ea-20240630.htm:4]**. EA's offerings include a diverse portfolio of intellectual property, featuring both wholly owned brands like Apex Legends, Battlefield, and The Sims, as well as licensed brands such as EA SPORTS FC and EA SPORTS Madden NFL **[0000712515-24-000048_ea-20240930.htm:28]** **[0000712515-24-000023_ea-20240331.htm:39]** **[0000712515-24-000007_ea-20231231.htm:29]** **[0000712515-24-000023_ea-20240331.htm:68]** **[0000712515-24-000007_ea-20231231.htm:5]** **[0000712515-24-000048_ea-20240930.htm:5]** **[0000712515-24-000039_ea-20240630.htm:4]**. The company generates significant revenue through its live services, which provide additional content, subscription offerings, and other revenue streams beyond the sale of full games **[0000712515-24-000023_ea-20240331.htm:39]**.

1. **Live Services** - Provides extra content, subscription offerings, and other revenue streams, significantly contributing to EA's overall revenue.
2. **Wholly Owned Brands** - Develops and markets popular game franchises such as Apex Legends, Battlefield, and The Sims, engaging global online communities.
3. **Licensed Brands** - Offers games under licensed brands like EA SPORTS FC and EA SPORTS Madden NFL, focusing on annualized sports titles.

a6ba28e321105acac520497196eb13a3dab4e36c4ff49e340278b7c4b6441bef

d8d3d159ce3ac2de69af740d6c3898b9206097e6e51524ad1f22deb57c95cf3c

1. Can you elaborate on the factors that influence your decision to release games on both previous and current-generation consoles, particularly for major franchises like college football and Madden NFL, where some features are only available on Gen 9?  **[EA_3395045_12]** 
2. Considering the sluggish growth trends in the industry over the past few years, what external dynamics do you believe are impacting demand, and how might these turn into catalysts for future growth?  **[EA_3395045_14]** 
3. With the ongoing video game actors' strike, how do you assess the potential risk of disruption to your business in the near term, and at what point could this start affecting your release schedule?  **[EA_3395045_11]** 
4. Regarding the Sims franchise as one of your tentpole brands, what specific strategies are you implementing to drive growth, such as reducing friction to bring in more players or expanding onto other platforms?  **[EA_3395045_14]** 
5. How has your thinking evolved on free-to-play as a monetization strategy in the HD gaming market versus the multimodal monetization success you've experienced with EA Sports, and do you feel free-to-play has been dilutive to industry pricing power or gamers' perception of value?  **[EA_3395045_15]** 

3aab6e7393696598d258c8cc8b232500ed2f5993ae43b2cc006f2ce2a70f92ac

Adjustments for Non-Cash Items (USD, millions)

Stock-Based Compensation (USD, millions)

Changes in Working Capital (USD, millions)

Capital Expenditures (USD, millions)

Proceeds from / Repayments of Debt (USD, millions)

Share Repurchases (USD, millions)

Dividend Payments (USD, millions)

Net Change in Cash (USD, millions)

bda734d79c783e9a9806af8f96e95dd65cb06547e838497f58eb2eb2f35db83a

54ffe3f35c2e3ee064952709ce024bc767dd3ec98d2c637a8e1db6477e93a08b

454cc3e35f9769c7ee96f6ffe4caea01d44c878783aa2dc630e07883cc2b1159

Net Bookings

52f782ddffd926587a97aca7b1f5dae4461e400bb3c8e23d4fe67cb4e8ee4d0c

- **Established interactive entertainment companies** - Compete with EA in developing games and services for consoles, PCs, and mobile devices  **[0000712515-24-000023_ea-20240331.htm:13]** **[0000712515-24-000023_ea-20240331.htm:41]** **[0000712515-24-000023_ea-20240331.htm:7]** .
- **Emerging start-ups** - New entrants in the interactive entertainment industry  **[0000712515-24-000023_ea-20240331.htm:13]** **[0000712515-24-000023_ea-20240331.htm:41]** **[0000712515-24-000023_ea-20240331.htm:7]** .
- **Large, diversified technology companies** - Compete with EA in the converging gaming, technology/internet, and entertainment industries  **[0000712515-24-000023_ea-20240331.htm:13]** **[0000712515-24-000023_ea-20240331.htm:41]** **[0000712515-24-000023_ea-20240331.htm:7]** .
- **Providers of different sources of entertainment** - Such as movies, television, online casual entertainment, and music  **[0000712515-24-000023_ea-20240331.htm:7]** .

694049fa0740ef536f8ad502532dc22aee8a8b63dc01e6b5d3fc30b7f23012ff

North America

International

- Swiss Legal Entity

Total Revenue

149763bc8a930fe6ec0fd9d8d7c3dbf227d2f92daefebfc5c72e985879aa7a83

23794d91c53ae875c8e247d72561e35d9d06ee07c70c9e0dbcc977a6d161504a

### Q2 2025 Earnings Call
- **Issued Period:** Q2 2025
- **Guided Period:** Q2 2025
- **Guidance:**
  - **Net Bookings:** $1.95 billion to $2.05 billion, up 7% to 13% year-over-year, or 8% to 13% in constant currency  **[EA_3395045_5]** .
  - **GAAP Net Revenue:** $1.9 billion to $2 billion  **[EA_3395045_5]** .
  - **Cost of Revenue:** $420 million to $450 million  **[EA_3395045_5]** .
  - **GAAP Operating Expenses:** $1.19 billion to $1.2 billion, up 10% to 11% year-over-year  **[EA_3395045_5]** .
  - **Earnings Per Share (EPS):** $0.76 to $0.93  **[EA_3395045_5]** .

### Q1 2025 Earnings Call
- **Issued Period:** Q1 2025
- **Guided Period:** Q2 2025 and FY 2025
- **Guidance for Q2 2025:**
  - **Net Bookings:** $1.95 billion to $2.05 billion, up 7% to 13% year-over-year, or 8% to 13% in constant currency  **[EA_3395045_5]** .
  - **GAAP Net Revenue:** $1.9 billion to $2 billion  **[EA_3395045_5]** .
  - **Cost of Revenue:** $420 million to $450 million  **[EA_3395045_5]** .
  - **GAAP Operating Expenses:** $1.19 billion to $1.2 billion, up 10% to 11% year-over-year  **[EA_3395045_5]** .
  - **Earnings Per Share (EPS):** $0.76 to $0.93  **[EA_3395045_5]** .
- **Guidance for FY 2025:**
  - **Net Bookings:** $7.3 billion to $7.7 billion, down 2% to up 4% year-over-year  **[EA_3395045_5]** .

### Q4 2024 Earnings Call
- **Issued Period:** Q4 2024
- **Guided Period:** Q1 FY 2025 and FY 2025
- **Guidance for Q1 FY 2025:**
  - **Net Bookings:** $1.15 billion to $1.25 billion, down 27% to down 21% year-over-year  **[EA_3386861_5]** .
  - **Net Revenue:** $1.575 billion to $1.675 billion  **[EA_3386861_5]** .
  - **Cost of Revenue:** $240 million to $250 million  **[EA_3386861_5]** .
  - **Operating Expenses:** $1.065 billion to $1.085 billion  **[EA_3386861_5]** .
  - **Earnings Per Share (EPS):** $0.73 to $0.90  **[EA_3386861_5]** .
- **Guidance for FY 2025:**
  - **Net Bookings:** $7.3 billion to $7.7 billion, down 2% to up 4% year-over-year  **[EA_3386861_5]** .
  - **Net Revenue:** $7.1 billion to $7.5 billion  **[EA_3386861_5]** .
  - **GAAP Operating Expenses:** $4.35 billion to $4.44 billion, flat to up 2% year-over-year  **[EA_3386861_5]** .
  - **GAAP Operating Margin:** 18% to 20.6%  **[EA_3386861_5]** .
  - **Non-GAAP Operating Margin:** 29.6% to 31.7%  **[EA_3386861_5]** .
  - **Impact from Change in Deferred Net Revenue:** Approximately 200 to 170 basis points  **[EA_3386861_5]** .
  - **GAAP EPS:** $3.34 to $4  **[EA_3386861_5]** .
  - **Operating Cash Flow:** $2.05 billion to $2.25 billion  **[EA_3386861_5]** .
  - **Capital Expenditures:** Around $200 million  **[EA_3386861_5]** .
  - **Free Cash Flow:** About $1.85 billion to $2.05 billion  **[EA_3386861_5]** .

### Q3 2024 Earnings Call
- **Issued Period:** Q3 2024
- **Guided Period:** Q4 2024 and FY 2025
- **Guidance for Q4 2024:**
  - **Net Bookings:** $1.625 billion to $1.925 billion, down 16% to 1% year-over-year  **[EA_3371278_4]** .
  - **GAAP Net Revenue:** $1.625 billion to $1.925 billion  **[EA_3371278_4]** .
  - **Cost of Revenue:** $360 million to $410 million  **[EA_3371278_4]** .
  - **Operating Expenses:** $1.125 billion to $1.205 billion  **[EA_3371278_4]** .
  - **GAAP EPS:** $0.20 to $0.68  **[EA_3371278_4]** .
- **Guidance for FY 2025:**
  - **EA SPORTS FC Net Bookings Growth:** Mid- to high single digits, excluding FX  **[EA_3371278_4]** .
  - **Net Bookings Growth:** Low single-digit growth  **[EA_3371278_4]** .
  - **Underlying Profitability Growth:** Mid- to high single-digit growth, excluding share repurchases  **[EA_3371278_4]** .

1b466c38918e6c1a0153fa5be6fc23d778ea12cf947790902a833c94f58f8a45

| Program Details          | Program 1        |
|--------------------------|------------------|
| Approval Date            | **May 2024**  **[0000712515-24-000048_ea-20240930.htm:76]**  |
| End Date/Duration        | **May 9, 2027**  **[0000712515-24-000048_ea-20240930.htm:76]**  |
| Total additional amount  | **$5.0 billion**  **[0000712515-24-000048_ea-20240930.htm:76]**  |
| Remaining authorization  | **$4.403 billion**  **[0000712515-24-000048_ea-20240930.htm:76]**  |
| Details                  | Provides flexibility in capital allocation and returns value to shareholders. Can be modified, suspended, or discontinued at any time.  **[0000712515-24-000023_ea-20240331.htm:106]** **[0000712515-24-000039_ea-20240630.htm:22]** **[0000712515-24-000048_ea-20240930.htm:23]**  |

a7b891df282d557a739af1d78624443ef0aabae7acf86197d4a2dc71329d5108

| Name          | Position                                                                 | Start Date         | Short Bio                                                                                                                                                                                                 |
|---------------|--------------------------------------------------------------------------|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Andrew Wilson | Chief Executive Officer, Chair of the Board                              | September 2013     | Andrew Wilson has been serving as the **Chief Executive Officer** of Electronic Arts Inc. since **September 2013** and was appointed as the **Chair of the Board of Directors** in **August 2021**. He joined EA in **May 2000**  **[0000712515-24-000023_ea-20240331.htm:11]** **[0001308179-24-000640_ea4312271-def14a.htm:13]** .         |
| Stuart Canfield| Executive Vice President and Chief Financial Officer                     | June 20, 2023      | Stuart Canfield has served as the **Executive Vice President and Chief Financial Officer** of Electronic Arts (EA) since **June 20, 2023**. He joined EA in 2003 and has over 20 years of experience in various senior leadership positions  **[0000712515-24-000023_ea-20240331.htm:11]** **[0001308179-24-000640_ea4312271-def14a.htm:43]** . |
| Laura Miele   | President of EA Entertainment, Technology & Central Development           | June 20, 2023      | Laura Miele has been with Electronic Arts (EA) since **March 1996**. She was appointed as the President of EA Entertainment, Technology & Central Development on **June 20, 2023**  **[0000712515-24-000023_ea-20240331.htm:11]** **[0001308179-24-000640_ea4312271-def14a.htm:44]** **[0001308179-23-000906_ea4189411-def14a.htm:29]** .                                                     |
| Mala Singh    | Chief People Officer                                                     | October 2016       | Mala Singh has served as **EA's Chief People Officer since October 2016**. She was previously employed by EA from 2009 to 2013, serving as Vice President, Human Resources, EA Labels from 2011 to 2013  **[0000712515-24-000023_ea-20240331.htm:11]** **[0000712515-23-000028_ea-20230331.htm:10]** .                                  |
| Jacob Schatz  | Executive Vice President of Global Affairs, Chief Legal Officer, Corporate Secretary | June 2023          | Jacob Schatz has been with Electronic Arts (EA) since 1999, holding various roles within the company's legal department. He was appointed as General Counsel and Corporate Secretary in 2014  **[0000712515-24-000023_ea-20240331.htm:11]** **[0000712515-23-000028_ea-20230331.htm:10]** .                                              |
| Eric Kelly    | Senior Vice President and Chief Accounting Officer                        | August 2021        | Eric Kelly has served as **Senior Vice President and Chief Accounting Officer** at Electronic Arts (EA) since **August 2021**. He joined EA in 2003 and has held several positions within the company's finance organization  **[0000712515-24-000023_ea-20240331.htm:11]** **[0000712515-23-000028_ea-20230331.htm:10]** .               |

ca0cbbbe3b6f78c35179e0b0d54355adb277601edd59cbd69076a1528cb44af7

27151f679e639179b6975022797037ee72e18313feb6ef4ebb76d3c1bdaf6e69

| Name      | Start Date | End Date | Reason for Change |
|-----------|------------|----------|-------------------|
| KPMG LLP  | 1987  **[0000712515-24-000023_ea-20240331.htm:112]**    | Present  | Current auditor   |

0bf97e4e2853b44761cda526bd16f0457b24c3f4c088e8c52f626b8713e82c26

38de2b8affbada16b4013aad62df4ab20f0bed7cfaeb7e8a217200c7eca5ca94

bf2336ebe0651c82a63140fe00baef186b8e89d2a62202710cae9128378a230e

Total Net Bookings (USD millions)

Percentage of total units sold that were sold digitally (percentage)

90fb7a0f33ce3194fc7d7987759542fc58bba3dd744c3da7fea304552e5a1ec2

| Year  | Amount Due (Millions) | Debt Type         | Interest Rate (%) | % of Total Debt                              |
|-------|------------------------|-------------------|-------------------|---------------------------------------------|
| 2026  | 400                   | Senior Notes      | 4.80             | 21.1% = (400 / 1900) * 100 **[0000712515-24-000048_ea-20240930.htm:16]**          |
| 2031  | 750                   | Senior Notes      | 1.85             | 39.5% = (750 / 1900) * 100 **[0000712515-24-000048_ea-20240930.htm:16]**          |
| 2051  | 750                   | Senior Notes      | 2.95             | 39.5% = (750 / 1900) * 100 **[0000712515-24-000048_ea-20240930.htm:16]**          |

bbe8d056d58e4bc3ed4ea0a850fb8ace93fa3eadd7e97c20cf41b2bd0be851be

1. **Operating Leverage Drivers**  
   **Q:** What are the primary drivers of operating leverage?  
   **A:** Management explained that their overarching framework is grounded in three pieces: **accelerating growth on the top line, expanding leverage on the bottom, and increasing cash flow**.  **[EA_3371278_8]**  They expect to drive **compounding growth across core franchises** and release new titles from their pipeline.  **[EA_3371278_8]**  Their **Live Services make up almost 75% of the business**, highlighting its evergreen nature and ability to drive compounded growth.  **[EA_3371278_8]**  They also focus on managing costs to ensure investment for the future, which will ultimately provide leverage over the long term.  **[EA_3371278_8]** 

2. **Top-Line Growth Acceleration**  
   **Q:** Can you accelerate top-line growth in the next two years?  
   **A:** Management expects growth in their core business, which is **73% Live Service**, and a consistent full game sports release slate.  **[EA_3371278_16]**  While FY '25 will have a lighter release slate compared to the prior year, they continue to invest in their growth opportunities.  **[EA_3371278_16]**  They believe that the **strong pipeline**, including titles like Battlefield, Mass Effect, and Star Wars, will drive **accretion and long-term growth** and accelerate incremental cash flow in the following years.  **[EA_3371278_16]** 

3. **Franchises with Most Opportunity**  
   **Q:** Which franchises have the most incremental opportunity ahead?  
   **A:** Management sees significant opportunity in existing franchises that engage massive online communities.  **[EA_3371278_10]**  They highlighted **FC (Football Club)**, noting that partnering closely with core leagues offers more growth opportunities than before.  **[EA_3371278_10]**  They are building around **Madden NFL**, expanding the college football base, and investing in **The Sims**, **Apex**, and **Battlefield**.  **[EA_3371278_10]** 

4. **Mobile Industry Outlook**  
   **Q:** What is the state of the mobile industry and EA's outlook?  
   **A:** EA's mobile bookings were **up 5% at constant currency** in Q3, excluding the prior year's Apex.  **[EA_3371278_12]**  They saw **double-digit improvement between Q2 and Q3** in their overall mobile portfolio.  **[EA_3371278_12]**  The strategy focuses on leaning into successes like **FC Mobile**, Madden, Sims, and Battlefield on mobile.  **[EA_3371278_12]**  They aim to drive profitability to historic levels while seeking big hits and IP opportunities that can stand alone on mobile.  **[EA_3371278_12]** 

5. **Apple App Store Fee Changes**  
   **Q:** Will Apple App Store fee changes in Europe impact mobile margins?  
   **A:** Management is actively reviewing the updates to the European App Store tied to fees.  **[EA_3371278_9]**  They are working to understand potential implications to their business and any changes to gross margins.  **[EA_3371278_9]**  They expect to provide a more detailed update next quarter.  **[EA_3371278_9]** 

6. **Partnerships and Sports Betting**  
   **Q:** Are there opportunities for deeper partnerships and sports betting?  
   **A:** EA has incredible relationships with sports leagues like the **NFL and NBA**, many spanning over **30 years**.  **[EA_3371278_13]**  They see tremendous opportunity to **grow their business** through evolved service opportunities with league partners.  **[EA_3371278_13]**  Regarding sports betting, management acknowledged the industry's interest but did not provide specific details on entering real-money gaming.  **[EA_3371278_13]** 

7. **Subscription Gaming and EA Play**  
   **Q:** How is EA approaching subscription gaming and EA Play?  
   **A:** EA has been early in subscription with **EA Play**, which exists across platforms and is part of **Game Pass Ultimate** on Xbox.  **[EA_3371278_10]**  Management believes that subscription will be a meaningful part of the industry over time.  **[EA_3371278_10]**  They see an opportunity to disrupt how households consume content and believe they are in a strong position due to their **unrivaled portfolio**.  **[EA_3371278_10]** 

8. **New Nintendo Console Implications**  
   **Q:** Will a new Nintendo console benefit EA's games?  
   **A:** While unable to comment on unannounced platforms, management stated that new platforms offering improved **CPU, GPU, memory, battery life, screen resolution** have been good for their business.  **[EA_3371278_16]**  Improved hardware allows players to experience their games at the highest level, benefiting franchises like **FC, Madden, Battlefield, and Apex**.  **[EA_3371278_16]** 

9. **College Football Game Impact**  
   **Q:** How will the College Football game affect your ecosystem?  
   **A:** Management expects the College Football game to be **additive**.  **[EA_3371278_9]**  Madden is performing incredibly well, being the **biggest sports game in calendar year 2023** with increased engagement and monetization.  **[EA_3371278_9]**  There's an incredible amount of pent-up demand for College Football, and they expect it to expand the football community both domestically and internationally.  **[EA_3371278_9]** 

10. **Unified Sports Community Opportunity**  
    **Q:** Have you considered unifying your sports communities?  
    **A:** EA recognizes the opportunity to harness the power of their **over 700 million player network**, with about half in sports games.  **[EA_3371278_11]**  They see a meaningful opportunity to expand both inside and outside of games, leveraging the breadth and depth of their **sports portfolio and relationships**.  **[EA_3371278_11]**  They are exploring ways to bring highlights and non-gaming content into the ecosystem.  **[EA_3371278_11]** 

11. **Apex Legends Crossovers**  
    **Q:** Will there be more substantial crossovers in Apex Legends?  
    **A:** The recent **Final Fantasy crossover** in Apex Legends was well received and performed incredibly well.  **[EA_3371278_14]** **[EA_3371278_15]**  It opened their eyes to possibilities and showed they could do more in that direction without impeding the game's authenticity.  **[EA_3371278_15]**  Management expects more opportunities for substantial crossovers in the future.  **[EA_3371278_15]** 

a21007bcb9fca13cf4c05e783c0e0fd7ca19683048f0f3d1ccf850d17b4edffb

- **Successful launch of EA SPORTS FC 24**: EA has successfully rebranded and launched EA SPORTS FC 24, bringing in **double-digit growth in new players** and positive feedback from the community. This reimagined franchise is expected to deliver **low single-digit growth** year-over-year, despite lapping record FIFA results that included World Cup events. EA is confident that FC will continue to expand as a platform, serving fans across multiple platforms and modalities, and driving consistent engagement and spending throughout the year.  **[EA_3363332_7]** **[EA_3363332_8]**
- **Expansion and growth of the Madden NFL franchise**: EA's Madden NFL 24 has seen **almost 10% more players** and over **10% growth in weekly average users** year-over-year. EA is working closely with the NFL and NFL Players Association to fulfill the needs of a growing global fan community for American football, leveraging their long-term partnerships to expand the franchise's audience scale and drive long-term growth.  **[EA_3363332_14]**
- **Positive momentum in Apex Legends**: Apex Legends Season 18 has resonated with players, delivering positive results through more dynamic content and new chase mechanics. The game continues to have a **deeply committed and engaged community**, and EA expects continued innovation to drive growth for the franchise over the long term.  **[EA_3363332_9]**

a74dc1d2ef88eea0a42f7a7df792b2c38d852b32abc2e75e5692b0d3b822eb39

1. **Q4 Bookings & College Football**  
   **Q:** What's driving Q4 bookings acceleration, and impact of College football on Madden?  
   **A:** The Q4 bookings acceleration is driven by differences in release schedules and seasonality, including a new title launching in Q4 that wasn't there last year, contributing to higher bookings. Regarding College football's impact on Madden, both properties are performing strongly, and EA expects continued strength in both College and NFL titles, which contributes to the raised guidance midpoint.  **[EA_3404419_14]** 

2. **Live Services Growth**  
   **Q:** Can you break down live services growth between sports and non-sports?  
   **A:** Live services are expected to grow **mid-single digits** in the back half of the year, driven by strong performance in sports titles. EA anticipates over **$1 billion** in net bookings from American football live services. Growth is expected in the FC franchise over a record prior year. Non-sports live services will contribute less, but overall live services will remain at mid-single-digit growth with a heavier mix on sports.  **[EA_3404419_10]** 

3. **Apex Legends Revitalization**  
   **Q:** Is Apex being rethought incrementally or through a full rebuild?  
   **A:** EA plans to continue supporting Apex Legends with incremental innovation and creative content on a season-by-season basis. They don't believe a complete overhaul is necessary and aim to avoid forcing players to choose between past investments and new content. The focus is on delivering progressively bigger seasons and introducing key changes without separating the experience.  **[EA_3404419_12]** **[EA_3404419_13]** 

4. **American Football Momentum**  
   **Q:** How will you sustain momentum in American football titles?  
   **A:** EA aims to transform the Madden franchise into a **football fan platform** that serves fans year-round. By integrating both NFL and College football, they plan to build a symbiotic relationship between the franchises, leveraging community-driven events and real-world events to engage fans **365 days a year**. The goal is to become the preeminent football fan platform in the U.S., growing both Madden and College football titles.  **[EA_3404419_9]** 

5. **Dragon Age: Veilguard Potential**  
   **Q:** How might Veilguard compare to recent successful fantasy games?  
   **A:** EA believes Dragon Age: Veilguard has **breakout potential**, similar to Dragon Age: Inquisition, which won **Game of the Year** a decade ago. They've given the BioWare team extra time to create a rich world with compelling stories and nuanced characters. Critical reviews have been **incredibly strong**, and EA is confident about the game's positioning in a market with limited competition in this category.  **[EA_3404419_13]** 

6. **BioWare's Future**  
   **Q:** How has BioWare been positioned to deliver Veilguard, given recent challenges?  
   **A:** BioWare has returned to focusing on what made it great: creating rich worlds, nuanced characters, and compelling stories where decisions matter. After less successful ventures like Anthem, which tried to do something different, BioWare refocused on their strengths. EA gave the studio time to deliver on these strengths in the Dragon Age world, resulting in a game like Veilguard.  **[EA_3404419_15]** 

5a1ee0f1b59a115c11cbaa47bc9069217e91bfb73650158ec6b5aef4a49d14a0

- **Electronic Arts expects low single-digit bookings growth for fiscal year 2025**, impacted by a **lighter release slate** and **challenging year-over-year comparisons** due to fewer title launches.  **[EA_3386861_9]**
- **The mobile gaming market remains challenging**, with EA projecting only **low to mid-single-digit growth over the next 12 months**. The company notes that **high user acquisition costs**, **longer development cycles**, and **difficulty capitalizing on the market** pose significant challenges.  **[EA_3386861_13]**
- **Apex Legends**, one of EA's key franchises, has faced declines, and while the company aims to drive growth back into the franchise through FY25, this is dependent on **future advancements and innovations**, indicating uncertainty in this major revenue stream.  **[EA_3386861_9]**

923b169328864c4df7985d7ad0dc45ae516546befe19bea1fc633de6818c6842

1. **Non-GAAP Margin Guidance**  
   **Q:** Does operating margin on net bookings reach 31.6%–33.4%?  
   **A:** Yes, based on your assessment and the adjustment for the change in deferred revenue, operating margin on net bookings is **31.6% to 33.4%**. The new non-GAAP measure helps you better understand our business as we move forward, especially as we consider the pipeline in FY '26 and '27. Expansion in FY '25 is driven by licensing changes, revenue mix, and cost discipline. Further expansion in FY '26 and '27 is expected, driven by our strong pipeline and continued investment in the future.  **[EA_3386861_8]** 

2. **Franchise Growth Expectations**  
   **Q:** Outlook for Apex and FC in fiscal '25?  
   **A:** There is **no material change** from prior guidance. We expect growth in our core live service business, with mid-single-digit growth outpacing the market. **FC** grew in '24 and is expected to continue growing in '25 with new innovations. For **Apex**, we saw great engagement and retention in Q4. We are investing in the franchise with new seasons and innovations to drive growth in FY '25.  **[EA_3386861_9]** 

3. **FY '26 and '27 Growth Outlook**  
   **Q:** How will growth accelerate between FY '26 and '27?  
   **A:** We expect operating margin expansion of **150 to 200 basis points** on the FY '25 platform through '26 and '27. This growth is driven by expansion in our core business from increased player acquisition, engagement, and retention. Our pipeline of new IP will contribute to growth, alongside leverage from our cost structure investments, leading to non-GAAP operating margin expansion through FY '26 and '27.  **[EA_3386861_13]** 

4. **Stock Repurchase Program**  
   **Q:** Why accelerate the buyback over other capital options?  
   **A:** Our **dividend remains unchanged**. The increased stock repurchase program aligns with our extended guidance framework, raising authorization from **$2.6 billion to $5 billion**. This signals our intention to scale through the stock repurchase plan, providing value to shareholders and flexibility over the next 2–3 years.  **[EA_3386861_10]** 

5. **AI Efficiency and Expansion**  
   **Q:** How will AI impact development processes?  
   **A:** We are early in leveraging generative AI but already seeing efficiency gains, such as reducing stadium creation from **6 months to 6 weeks**. In **FC 24**, we increased run cycles from **36 to 1,200**, enhancing player individuality. Over **50%** of our development processes could be impacted by AI. In the next 1–3 years, we expect efficiency gains; in 3–5 years, expansion to build bigger worlds; and beyond 5 years, transformation by offering AI tools to the community. Our **40 years of data** may accelerate this timeline.  **[EA_3386861_14]** 

6. **Mobile Strategy and Expectations**  
   **Q:** Mobile growth drivers and market share outlook?  
   **A:** Mobile remains important but is a high-risk market requiring significant user acquisition costs and longer development cycles. We expect **low to mid-single-digit growth** in the mobile market over the next 12 months. Our mobile business is profitable; we will lean into our massive online communities like **FC**, **Madden**, and **The Sims**, which will be mobile native. We are investing in a limited number of mobile-native titles with breakout potential.  **[EA_3386861_13]** 

7. **Advertising Revenue Opportunity**  
   **Q:** Thoughts on dynamic ads in AAA games?  
   **A:** It's still early, but as we build community beyond our games, advertising has the potential to be a meaningful growth driver. We are thoughtful about advertising in our gameplay experiences and have teams exploring implementations inside game experiences and beyond.  **[EA_3386861_15]** 

8. **Apex Legends Growth and Strategy**  
   **Q:** Why bring back solo mode in Apex Legends?  
   **A:** The Respawn team works closely with the community and adapts based on player feedback. Introducing solo mode reflects the **evolution of Apex** and our commitment to serving the community. We plan to expand modalities of play and attract more deeply engaged global communities. **Apex** will remain a cornerstone of our live service business for many years.  **[EA_3386861_12]** 

9. **IP Adaptation into Media**  
   **Q:** Plans for game IP in broader media?  
   **A:** Players want to engage with their favorite IP across play, create, watch, and connect. We expect more gaming IP to manifest in film and television, which will be a tailwind for us. Additionally, we focus on expanding play experiences and fostering community creation, leading to billions of hours of content and deep social connections.  **[EA_3386861_15]** 

b994690ff393c9a32712516bb2c0adaf9528ed873d030feb8173fad2a2452c5a

- **EA is experiencing softness in certain markets, particularly Europe, which could impact their financial performance.**  **[EA_3363332_14]**
- **EA SPORTS FC is expected to achieve only low single-digit growth for the full year, facing tough comparisons due to last year's exceptional performance boosted by the World Cup.**  **[EA_3363332_7]** **[EA_3363332_8]**
- **The anticipated benefits from the transition to EA SPORTS FC, including new revenue opportunities from partnerships and sponsorships, may take time to materialize, potentially delaying expected gains.**  **[EA_3363332_10]**

54ea83a627a58688a5c35de50fc0f510e3ef524c6b10520f97db8e896fd99c8e

- **EA continues to grow post-COVID, outperforming the broader industry which has seen sluggish growth.**  **[EA_3395045_14]**
- **Leveraging multiple business models (premium, free-to-play, live service) across platforms to reach a global player base of over 3 billion people, expected to drive meaningful growth for the company.**  **[EA_3395045_15]**
- **Focusing on building massive online communities and expanding its biggest franchises (like EA Sports FC, Madden NFL, Apex Legends, Battlefield, and The Sims) to benefit disproportionately from shifts in entertainment consumption by Gen Z and Gen Alpha.**  **[EA_3395045_14]**

e0cdb933f8dd2e4de399efdbbfc1127cc176e1f5ce007c7a2e38adf9397d6257

- The video gaming industry is experiencing sluggish growth, which could negatively impact EA's performance. Investors are frequently questioning the industry's relatively sluggish growth trends in recent years.  **[EA_3395045_14]**
- EA faces challenges in deciding whether to release games on previous or current generation consoles. The lack of a clear decision-making process could affect major franchises like College Football and Madden NFL, potentially impacting sales and player adoption.  **[EA_3395045_12]**
- EA's heavy reliance on AI technologies for game development may pose risks if these technologies do not deliver as expected. The development of College Football 25 depended heavily on AI and machine learning to generate 11,000 star player heads, which would have been impossible without AI, even with many years of development.  **[EA_3395045_12]**

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- **EA expects accelerated growth beyond FY25, bolstered by their portfolio of industry-leading IP, including blockbuster releases like Battlefield and The Sims**, which will fuel net bookings growth and increase underlying profitability.  **[EA_3371278_16]** **[EA_3371278_10]**
- **EA is focusing on expanding their major franchises like EA SPORTS FC, Madden, The Sims, Battlefield, and Apex Legends to drive compounded growth and operating leverage**, leveraging their massive player base of over **700 million** players.  **[EA_3371278_11]** **[EA_3371278_10]** **[EA_3371278_8]**
- **EA is leveraging strong partnerships with sports leagues to create new engagement opportunities**, such as the **additive release of EA SPORTS College Football**, tapping into **incredible pent-up demand** and expanding their football community.  **[EA_3371278_9]** **[EA_3371278_13]** **[EA_3371278_11]**

c7e44a85a214e13b90e379f9291054024eba146e5887a838a3e1891823d16b94

1. **Fiscal Guidance**  
   **Q:** Why didn't strong Q1 and Q2 flow through to full-year outlook?  
   **A:** Despite strong Q1 results and a stronger-than-expected Q2 guidance, EA reiterated its full-year outlook because major releases like **Madden, FC, and Dragon Age** are still ahead. The company prefers to assess performance after these key titles launch before adjusting full-year expectations.  **[EA_3395045_10]** 

2. **Videogame Strike Impact**  
   **Q:** How might the video game strike disrupt EA's business and release schedule?  
   **A:** EA doesn't expect any significant short-term impact from the strike. They are working closely with contractors, and since the strike affects games starting production after **September 2023**, current projects and live services remain unaffected.  **[EA_3395045_11]** 

3. **Madden and EA Sports FC Growth**  
   **Q:** How will EA build on Madden's global momentum and what were the learnings from rebranding to EA Sports FC?  
   **A:** EA plans to grow Madden through **geographic, demographic, and platform expansion**, introducing new game modes and business models. The rebranding to EA Sports FC allowed for **faster innovation**, expanded gameplay, new commercial partnerships, and a focus on moving quickly to align with cultural shifts.  **[EA_3395045_8]** 

4. **AI and ML Efficiencies**  
   **Q:** How did AI and machine learning enhance the development of the college football game?  
   **A:** AI and machine learning enabled EA to generate **11,000 new star player heads** for the college football game—a task that would have been impossible without these technologies. This allowed for greater visual fidelity and accurate player representation.  **[EA_3395045_9]** **[EA_3395045_12]** 

5. **Potential Cannibalization**  
   **Q:** Is there potential cannibalization between Madden Ultimate Team and college football's Ultimate Team?  
   **A:** EA believes the two games are **complementary**, attracting new and returning players, thus expanding the overall community without significantly cannibalizing Madden Ultimate Team engagement. **Preorders for Madden are ahead of expectations**, indicating positive reception.  **[EA_3395045_9]** 

6. **Apex Battle Pass Monetization**  
   **Q:** How does player reception to Apex Battle Pass changes affect monetization?  
   **A:** While recent Battle Pass changes prompted player feedback, EA doesn't see this reflecting broader monetization issues. The team is **responsive to community input** and expects upcoming seasons to be well-received due to significant content updates.  **[EA_3395045_13]** 

7. **Sims Franchise Growth**  
   **Q:** How is EA planning to grow the Sims franchise?  
   **A:** EA is committed to evolving The Sims 4 with over **15 updates** in the coming year, adding new social features, marketplaces, and user-generated content. Plans include expanding social interaction, platforms, and gameplay modes to build out the global Sims community.  **[EA_3395045_14]** 

8. **Free-to-Play Monetization Strategy**  
   **Q:** Has free-to-play been dilutive to industry pricing power or gamer value perception?  
   **A:** EA doesn't believe free-to-play has diluted pricing power. Instead, it has **expanded the industry**, especially in mobile gaming, effectively doubling the market. EA supports all business models, using free-to-play to reach more players globally and sees it driving growth for both the company and the industry.  **[EA_3395045_15]** 

9. **Console Generation Considerations**  
   **Q:** What factors influence decisions to release games on previous vs. current-gen consoles?  
   **A:** EA considers where the **player base is largest** and where supporting a platform makes financial sense. For major franchises with geographically dispersed audiences, supporting previous generations can be worthwhile. However, new games like college football focus on current-gen to deliver advanced experiences leveraging **AI and machine learning**.  **[EA_3395045_12]** 

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- **EA expects a lighter release slate in FY25**, including no Battlefield release, which may lead to slower growth compared to prior years.  **[EA_3371278_16]**
- **The company anticipates headwinds due to timing of content releases and tough comparisons**, especially with major franchises like FC and Apex, potentially impacting net bookings.  **[EA_3371278_7]**
- **Uncertainty around the impact of changes in the European App Store fees on gross margins** could negatively affect EA's mobile business, with implications still being assessed.  **[EA_3371278_9]**

e8271680868263874e61fef0b8bac8ef3aae9161dc6644e756bdcac42c7a08c7

**Quarterly guidance for Q4 2025:**  
- **Net Bookings**: $1.444B to $1.594B  **[EA_3414297_7]**  (no prior guidance)  
- **Net Revenue**: $1.682B to $1.832B  **[EA_3414297_7]**  (no prior guidance)  
- **Cost of Revenue**: $305M to $315M  **[EA_3414297_7]**  (no prior guidance)  
- **Operating Expenses**: $1.112B to $1.122B  **[EA_3414297_7]**  (no prior guidance)  
- **Earnings Per Share**: $0.65 to $1  **[EA_3414297_7]**  (no prior guidance)

**Annual guidance for FY 2025:**  
- **Net Bookings**: $7.0B to $7.15B  **[EA_3414297_6]**  (lowered from $7.5B to $7.8B  **[EA_3404419_6]** )  
- **Net Revenue**: $7.25B to $7.4B  **[EA_3414297_6]**  (lowered from $7.4B to $7.7B  **[EA_3404419_6]** )  
- **Cost of Revenue**: $1.48B to $1.49B  **[EA_3414297_6]**  (lowered from $1.53B to $1.56B  **[EA_3404419_6]** )  
- **Operating Expenses**: $4.38B to $4.39B  **[EA_3414297_6]**  (raised from $4.15B to $4.445B  **[EA_3404419_6]** )  
- **GAAP Operating Margin**: 19.2% to 20.5%  **[EA_3414297_6]**  (lowered from 19.3% to 21.1%  **[EA_3404419_6]** )  
- **Non-GAAP Operating Margin**: 30.5% to 31.6%  **[EA_3414297_6]**  (lowered from 30.7% to 32.1%  **[EA_3404419_6]** )  
- **Impact from Deferred Net Revenue**: -250 to -240 bps  **[EA_3414297_6]**  (lowered from 90 to 80 bps  **[EA_3404419_6]** )  
- **Operating Cash Flow**: $1.8B to $1.9B  **[EA_3414297_7]**  (lowered from $2.075B to $2.275B  **[EA_3404419_6]** )  
- **Capital Expenditures**: $225M  **[EA_3414297_7]**  (no change from $225M  **[EA_3404419_6]** )  
- **Free Cash Flow**: $1.575B to $1.675B  **[EA_3414297_7]**  (lowered from $1.85B to $2.05B  **[EA_3404419_6]** )  

f1cb31b885e36878d618bc8aa74e5f0284cf42290597544a85874e9c4d08531e

- EA **expects to return to growth in fiscal year 2026**, driven by a strong pipeline of new experiences including **EA Sports College Football 26**, **Battlefield**, **SCAPE**, and expansion of **The Sims** franchise. Even without Battlefield, they anticipate growth due to these initiatives. * **[EA_3414297_15]** *
- Recent gameplay updates and events have led to a **significant turnaround in momentum for EA Sports FC**. After addressing gameplay issues and launching the Team of the Year event, they **reactivated over 2 million Ultimate Team players**, achieved **record net bookings** during the event, and saw **positive trends across all cohorts**. This suggests the underperformance was temporary, and they are confident in the sustainable long-term growth of Global Football. * **[EA_3414297_9]** *
- The **overwhelmingly positive response to Battlefield Labs** indicates strong community support and excitement for the upcoming Battlefield release. EA is engaging closely with players to ensure a successful launch of the **biggest Battlefield game ever made**, which could lead to significant growth upon release. * **[EA_3414297_10]** *

143404a33f347a6f6fc29ef0734ba120b555c0c6aa8f83b38d369a054dca197b

1. **EA Sports FC Underperformance**  
   **Q:** Why was there slower uptake of the new FC title?  
   **A:** The underperformance of **EA Sports FC** was unexpected, with acquisition levels lower than anticipated.  **[EA_3414297_9]**  We believe this was due to players being satisfied with previous versions, as we had over **40 million** people playing across iterations.  **[EA_3414297_9]**  Feedback indicated the gameplay was too defensively focused, so we implemented a major update to make it more attacking.  **[EA_3414297_9]**  Following this, we saw positive momentum with record **net bookings**, record **weekly active users**, and reactivated **2 million** Ultimate Team players during the Team of the Year event.  **[EA_3414297_9]** 

2. **Apex Legends Trajectory**  
   **Q:** How is Apex Legends performing and what's the outlook?  
   **A:** **Apex Legends** hasn't met our desired trajectory.  **[EA_3414297_11]**  We're supporting the core community of over **200 million** players with quality updates and new content.  **[EA_3414297_11]**  We plan a significant update after the Battlefield launch, and in the longer term, we're envisioning an **Apex 2.0** to expand the franchise.  **[EA_3414297_11]**  Financially, **Q3 was in line with expectations**, with **sequential improvements** in player conversion and monetization.  **[EA_3414297_11]** 

3. **Battlefield Launch Timing**  
   **Q:** How does competition affect Battlefield's launch timing?  
   **A:** We're targeting an **FY '26** launch for **Battlefield**, but given this year's competitive landscape, we may adjust timing to ensure it launches when we can maximize its potential.  **[EA_3414297_12]**  We aim to deliver the biggest Battlefield ever and will consider industry dynamics in our timing.  **[EA_3414297_12]** 

4. **Fiscal '26 Growth Without Battlefield**  
   **Q:** Can you grow in FY '26 without Battlefield?  
   **A:** Yes, we expect growth in **FY '26** even without Battlefield.  **[EA_3414297_15]**  Key drivers include a rebound in **FC**, the launch of **College Football** in the summer, and expansions in our lifestyle brands like **SCAPE** and **The Sims**.  **[EA_3414297_15]**  We remain committed to our multi-year growth framework.  **[EA_3414297_15]** 

5. **College Football Outlook**  
   **Q:** How will College Football contribute to growth?  
   **A:** **College Football** had an **exceptional launch** with pent-up demand.  **[EA_3414297_15]**  Featuring **12,000** young athletes, it serves as a powerful ambassador.  **[EA_3414297_15]**  The sport is growing, and combined with the NFL, we see an opportunity to build a massive online community across American football.  **[EA_3414297_15]** 

6. **Opportunity with New Switch Console**  
   **Q:** What opportunities does the new Switch console present?  
   **A:** New consoles benefit us by allowing access to new players.  **[EA_3414297_12]**  Our franchises like **FC** and **Madden** have performed well on Nintendo platforms.  **[EA_3414297_12]**  Titles like **The Sims** and the **MySims: Cozy Bundle** exceeded expectations on Switch, with **50% of players new to EA**.  **[EA_3414297_12]** 

7. **FC '25 Rush Mode Impact**  
   **Q:** Did Rush mode affect FC's performance?  
   **A:** **Rush** is the **second most played mode** in **FC '25** and hasn't diluted monetization.  **[EA_3414297_13]**  We believe it will ultimately be additive.  **[EA_3414297_13]**  The Q3 softness was due to acquisition challenges and gameplay balancing, which we have addressed.  **[EA_3414297_13]** 

8. **Server Issues in FC '25**  
   **Q:** Are server issues affecting FC '25 performance?  
   **A:** Our data shows **FC '25** is at least as stable as previous versions.  **[EA_3414297_14]**  While server issues can occur, they have a very low impact on overall player experience.  **[EA_3414297_14]** 

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002c6e39a7965a4c46f4645381e469910c28cc8fa1125dc2a17f8deab5640d1a

Electronic Arts Inc (EA)

Financials