Electronic Arts Q2 FY21 Financial Results

Key insights

7 takeaways

01
Electronic Arts achieved a record trailing twelve-month operating cash flow of $2.04 billion, marking a 17% year-over-year increase.See it on page 1
02
Live services and other digital revenue streams now account for 75% of the company's total net revenue, totaling $869 million for the quarter.See it on page 1
03
The company initiated its first-ever quarterly cash dividend of $0.17 per share and authorized a new two-year, $2.6 billion stock repurchase program.See it on page 2
04
Trailing twelve-month net bookings reached $5.577 billion, an 8% increase compared to the previous year.See it on page 1
05
Madden NFL 21 experienced a 30% year-over-year increase in player count, while the EA Play subscription service surpassed 6.5 million paid members.See it on page 1
06
Apex Legends is on track to become a billion-dollar franchise by the end of the fiscal year.See it on page 1
07
Management projects fiscal year 2021 net revenue of $5.625 billion and net bookings of $5.950 billion, supported by the release of over 125 games and content packs on Steam.See it on page 1

Summary

Electronic Arts reported strong financial results for the second fiscal quarter of 2021, ending September 30, 2020. The company’s performance was characterized by significant growth in live services and robust player engagement across its portfolio, particularly within the Madden and FIFA franchises. This momentum led to a record trailing twelve-month operating cash flow of $2.04 billion, an increase of 17% year-over-year. Driven by these results, the company initiated its first-ever quarterly cash dividend of $0.17 per share and authorized a new two-year, $2.6 billion stock repurchase program.

Key operational metrics underscore the company's shift toward digital and live service models. Net bookings for the trailing twelve months reached $5.577 billion, an 8% increase compared to the previous year. Live services and other revenue streams accounted for 75% of total net revenue during the quarter, totaling $869 million. The company successfully launched eight games since the start of the fiscal year, including Madden NFL 21, which saw a 30% year-over-year increase in player count, and FIFA 20, which reached nearly 35 million lifetime players. Additionally, the EA Play subscription service surpassed 6.5 million paid members, and Apex Legends is positioned to become a billion-dollar franchise by the end of the fiscal year.

The company maintains a positive outlook for the remainder of fiscal year 2021, projecting net revenue of approximately $5.625 billion and net bookings of $5.950 billion. Despite the challenges posed by the global pandemic, the company continues to expand its presence on new platforms and increase content delivery, notably through the launch of over 125 games and content packs on the Steam platform during the fiscal year.