Electronic Arts Q1 FY22 Financial Results

Key insights

7 takeaways

01
Electronic Arts reported Q1 FY22 net revenue of $1.551 billion, representing a 6% year-over-year increase.See it on page 6
02
Live services remain the primary revenue driver, contributing $1.229 billion to the total quarterly revenue.See it on page 2
03
Management raised its full-year outlook for FY22, projecting $6.850 billion in net revenue and $7.400 billion in net bookings.See it on page 4
04
Net income declined to $204 million from $365 million in the prior-year period, with operating cash flow reported at $(143) million.See it on page 3
05
Engagement remains high, with the EA Sports portfolio reaching over 140 million players over the trailing twelve months and FIFA 21 attracting over 31 million players.See it on page 1
06
Apex Legends saw strong momentum during the quarter, with Season 9 averaging over 13 million weekly active players and hitting a record for peak daily users.See it on page 1
07
The company returned capital to shareholders by repurchasing 2.3 million shares for $325 million and declaring a quarterly cash dividend of $0.17 per share.See it on page 1

Summary

Electronic Arts reported strong financial results for the first fiscal quarter of 2022, ending June 30, 2021, characterized by revenue growth and an optimistic outlook for the remainder of the fiscal year. The company achieved total net revenue of $1.551 billion, a 6% increase compared to the same period in the previous year. This performance was primarily driven by the strength of live services, which generated $1.229 billion in revenue, alongside successful recent game launches.

Key operational metrics underscore the company’s reach and engagement levels. Over the trailing twelve months, more than 140 million players engaged with the EA Sports portfolio, while FIFA 21 attracted over 31 million players on console and PC. Additionally, Apex Legends demonstrated significant momentum, with Season 9 averaging over 13 million weekly active players and reaching a new record for peak daily users. Despite these operational successes, net income for the quarter was $204 million, down from $365 million in the prior-year period, and operating cash flow was $(143) million.

The company maintains a positive long-term trajectory, supported by a robust pipeline of upcoming titles, including new sports entries and the release of Battlefield 2042. Consequently, management raised its full-year outlook, projecting net revenue of approximately $6.850 billion and net bookings of $7.400 billion for the fiscal year ending March 31, 2022. During the quarter, the company continued its capital allocation strategy by repurchasing 2.3 million shares for $325 million and declaring a quarterly cash dividend of $0.17 per share. These results reflect the company’s ongoing transition toward a digital-first, live-service model across its global operations.