Electronic Arts 10-Q – Q3 FY2024 (November 2024)

Electronic Arts reported a net revenue of $2,025 million for the quarter ended September 30 2024, reflecting a 6 % year‑over‑year increase driven by its flagship sports franchises and the Apex Legends live‑service title. Gross margin expanded to 77.5 %, while operating income rose modestly to $384 million, and net cash from operations surged 109 % YoY to $234 million. Net income, however, fell to $294 million from $399 million in 2023, largely due to a $51 million restructuring charge and a lower tax provision. Cash and cash equivalents declined by $703 million, primarily from share repurchases ($375 million) and dividends ($51 million). The company maintains a $500 million revolving credit line that remains unused, and it reports no outstanding debt.

Revenue composition shifted toward digital full‑game downloads, which now account for 73 % of total units sold—up from 68 % in FY23—boosting margins through lower distribution costs. Full‑game sales increased 15 % to $716 million, while live‑services revenue grew only 1 %. Research and development expenditures climbed 8 % to $648 million, whereas marketing spend fell 3 %. General‑administrative costs rose 14 % due to higher personnel and contract expenses.

Geographically, 60 % of revenue originates from international markets, exposing the firm to currency and interest‑rate volatility that is partially hedged through short‑term forward contracts. The company remains heavily dependent on major platform partners and high‑value licenses; disruptions in these relationships or regulatory changes—particularly digital‑services taxes—could materially affect future earnings.