Electronic Arts Q2 FY24 Earnings Release

Key insights

7 takeaways

01
Electronic Arts reported Q2 FY24 net revenue of $1.914 billion and net bookings of $1.820 billion, marking a 4% year-over-year increase.See it on page 1
02
Live services continue to drive the business, accounting for 73% of total bookings on a trailing twelve-month basis.See it on page 3
03
The launch of EA SPORTS FC 24 was a primary growth driver, recording over 14.5 million active accounts within its first four weeks.See it on page 1
04
The EA SPORTS Madden NFL franchise achieved 6% year-over-year growth in net bookings.See it on page 1
05
Management projects full-year net revenue and net bookings for FY24 to range between $7.300 billion and $7.700 billion.See it on page 4
06
The company returned $325 million to shareholders through the repurchase of 2.6 million shares and declared a quarterly dividend of $0.19 per share.See it on page 2
07
Operating cash flow for the quarter reached $112 million, contributing to a trailing twelve-month total of $2.211 billion.See it on page 3

Summary

Electronic Arts reported strong financial results for the second quarter of fiscal year 2024, ending September 30, 2023, driven primarily by the successful launch of EA SPORTS FC 24 and the continued performance of the EA SPORTS portfolio. The company exceeded internal expectations for the quarter, highlighting a strategic shift toward transforming its major football franchise into a long-term interactive platform for global fans.

Key financial metrics for the quarter included net revenue of $1.914 billion and net bookings of $1.820 billion, representing a 4% year-over-year increase. Live services remained a cornerstone of the business, accounting for 73% of total bookings on a trailing twelve-month basis. The EA SPORTS Madden NFL franchise saw 6% year-over-year growth in net bookings, while the global football franchise benefited from the transition to the new EA SPORTS FC brand, which recorded over 14.5 million active accounts within its first four weeks of release. Operating cash flow for the quarter reached $112 million, with a trailing twelve-month total of $2.211 billion.

The company maintains a positive outlook for the remainder of fiscal year 2024, projecting full-year net revenue and net bookings to fall between $7.300 billion and $7.700 billion. Management continues to prioritize investments in high-growth opportunities and ongoing live services to sustain momentum across its intellectual property portfolio. During the second quarter, the company returned capital to shareholders by repurchasing 2.6 million shares for $325 million and declaring a quarterly cash dividend of $0.19 per share. These results reflect the company's focus on scaling its digital interactive entertainment offerings across console, PC, and mobile platforms.