Electronic Arts Reports Strong Q3 FY24 Results

Key insights

6 takeaways

01
Electronic Arts reported Q3 FY24 net bookings of $2.366 billion, a 1% year-over-year increase driven by record-setting live services performance.See it on page 1
02
Live services and other net bookings reached an all-time high of $1.712 billion, accounting for 73% of the company's business on a trailing twelve-month basis.See it on page 3
03
The EA SPORTS FC franchise grew net bookings by 7%, while the EA SPORTS Madden NFL franchise saw a 5% increase.See it on page 1
04
Net cash provided by operating activities rose 13% year-over-year to $1.264 billion, supporting a $325 million share repurchase program and a $0.19 per share dividend.See it on page 2
05
Full-year net revenue for FY24 is projected to fall between $7.408 billion and $7.708 billion.See it on page 4
06
The company continues its strategic transition toward a digital-first model, focusing on recurring live service engagement across console, PC, and mobile platforms.See it on page 13

Summary

Electronic Arts reported strong financial results for the third quarter of fiscal year 2024, ending December 31, 2023. The company achieved net bookings of $2.366 billion, a 1% year-over-year increase, driven largely by record-setting performance in live services. Live services and other net bookings reached an all-time high of $1.712 billion, representing 73% of the company’s business on a trailing twelve-month basis.

Key growth drivers included the EA SPORTS FC franchise, which exceeded expectations with 7% net bookings growth despite the prior year’s inclusion of the World Cup, and the EA SPORTS Madden NFL franchise, which saw a 5% increase in net bookings. Net revenue for the quarter reached $1.945 billion, while net cash provided by operating activities rose 13% year-over-year to $1.264 billion. The company maintained its capital allocation strategy by repurchasing 2.5 million shares for $325 million and declaring a quarterly cash dividend of $0.19 per share.

The company’s financial outlook for the remainder of the fiscal year remains positive, with expectations for full-year net revenue to range between $7.408 billion and $7.708 billion. Management continues to prioritize investment in its largest franchises and long-term growth opportunities. These results reflect the company's ongoing transition toward a digital-first model, with a significant portion of revenue derived from online-enabled games and recurring live service engagement across console, PC, and mobile platforms. The company continues to monitor macroeconomic conditions and potential risks, including foreign currency fluctuations and the competitive landscape of the interactive entertainment industry.