Electronic Arts Q1 FY24 Earnings Results

Key insights

6 takeaways

01
Electronic Arts achieved record Q1 FY24 net bookings of $1.578 billion, a 21% year-over-year increase driven by FIFA Ultimate Team and Star Wars Jedi: Survivor.See it on page 4
02
Live services remain the company's primary revenue driver, accounting for 75% of total net bookings during the quarter.See it on page 15
03
Console segment performance saw significant growth, rising 41% year-over-year to $901 million, while PC and other platforms grew 7% to $374 million.See it on page 6
04
The company projects total net bookings for the full fiscal year to fall between $7.3 billion and $7.7 billion as it transitions to the new EA SPORTS FC brand.See it on page 5
05
Apex Legends Season 17 underperformed expectations, while mobile bookings experienced a slight year-over-year decline of 4%.See it on page 5
06
Operating cash flow for the quarter reached $359 million, contributing to a trailing 12-month total of $1.987 billion.See it on page 13

Summary

Electronic Arts reported strong financial performance for the first quarter of fiscal year 2024, ending June 30, 2023. The company achieved record net bookings of $1.578 billion, representing a 21% increase year-over-year, or 25% on a constant currency basis. This growth was primarily driven by the robust performance of the FIFA Ultimate Team franchise and the release of Star Wars Jedi: Survivor, which helped offset lower-than-anticipated results from Apex Legends Season 17. Live services continued to be a cornerstone of the business, accounting for 75% of total net bookings during the quarter.

The company’s platform performance showed significant gains in the console segment, which grew 41% year-over-year to $901 million. PC and other platforms also saw growth, rising 7% to $374 million, while mobile bookings experienced a slight decline of 4%. The company maintains a positive outlook for the remainder of the fiscal year, projecting total net bookings between $7.3 billion and $7.7 billion. This guidance reflects the company's strategic transition toward its new EA SPORTS FC brand, which aims to leverage extensive licensing partnerships and proprietary technology to serve a global football community of over 150 million players.

Financial metrics were derived from internal company data and third-party platform logs, with constant currency adjustments applied to facilitate period-to-period comparisons. The company’s operating cash flow for the quarter reached $359 million, with trailing 12-month operating cash flow totaling $1.987 billion. Management remains focused on executing its fiscal 2024 title slate, which includes major releases such as Madden NFL 24 and EA SPORTS FC 24, while navigating potential risks related to economic conditions, foreign currency fluctuations, and the competitive interactive entertainment landscape.