Electronic Arts Q2 FY23 Financial Results

Key insights

7 takeaways

01
Electronic Arts reported Q2 FY23 net revenue of $1.904 billion, a 4% increase year-over-year.See it on page 1
02
Live services and other net bookings accounted for 73% of total net bookings over the trailing twelve months, highlighting the company's core business model.See it on page 3
03
EA SPORTS FIFA 23 achieved record-breaking performance with 10.3 million players in its first week and a 10% increase in unit sales compared to the previous year.See it on page 1
04
The company's active player network grew to over 600 million accounts by the end of the quarter.See it on page 1
05
Management expects a $200 million negative impact on net bookings for fiscal year 2023 due to the strengthening U.S. dollar.See it on page 4
06
The company repurchased 2.6 million shares for $325 million during the quarter while maintaining its dividend program.See it on page 1
07
Operating cash flow for the trailing twelve-month period reached $1.788 billion, despite a $(112) million operating cash flow for the specific quarter.See it on page 3

Summary

Electronic Arts reported solid financial results for the second quarter of fiscal year 2023, ending September 30, 2022, characterized by strong player engagement and growth in its live services business. The company’s primary thesis centers on the resilience of its multi-platform live services model and the strength of its EA SPORTS portfolio, which continues to drive long-term growth and social connectivity for its global player network.

Key financial metrics for the quarter included total net revenue of $1.904 billion, representing a 4% increase year-over-year. Live services and other net bookings remained a critical component of the business, accounting for 73% of total net bookings over the trailing twelve months. The company’s player network expanded to over 600 million active accounts by the end of the quarter. A significant driver of this performance was the launch of EA SPORTS FIFA 23, which achieved record-breaking success with 10.3 million players in its first week and a 10% increase in unit sales compared to the previous year’s title.

Operationally, the company maintained a disciplined capital allocation strategy, repurchasing 2.6 million shares for $325 million during the quarter and continuing its dividend program. While operating cash flow for the quarter was $(112) million, the trailing twelve-month figure reached $1.788 billion. Looking ahead, management adjusted its fiscal year 2023 outlook to account for a strengthening U.S. dollar, which is expected to create a $200 million foreign exchange impact on net bookings. Despite these macroeconomic headwinds, the company remains focused on leveraging its intellectual property and expanding its digital footprint across console, PC, and mobile platforms to sustain its competitive position in the interactive entertainment industry.