FinancialElectronic Arts
Electronic Arts Inc. Q1 FY25 Results
30 Jul 202418 pages~13 min full read
Electronic Arts reported a 20% year-over-year decline in net bookings to $1.262 billion for Q1 FY25, driven by a 58% drop in full-game sales and a 7% decrease in live-services revenue.
See it on page 5Live services remain the company's primary revenue driver, contributing $1.094 billion and accounting for 75% of the total bookings mix for the quarter.
See it on page 4Performance across all platforms declined, with console bookings falling 25% to $677 million, PC and other platforms dropping 21% to $295 million, and mobile slipping 4% to $290 million.
See it on page 6Free cash flow saw a significant contraction, falling to $53 million from $314 million in the same period last year, while operating cash flow decreased to $120 million.
See it on page 13The company projects FY25 net revenue between $7.1 billion and $7.5 billion, with a non-GAAP operating margin forecast of 29.6% to 31.7%.
See it on page 10The FY25 product pipeline features key sports titles including EA SPORTS FC 25, Madden NFL 25, and EA SPORTS NHL 25, alongside upcoming entries in the Battlefield, Dragon Age, and Sims franchises.
See it on page 7Electronic Arts presented its first‑quarter fiscal 2025 financial performance, outlining both actual results and outlook for the full year and the subsequent quarter. Net bookings fell 20 % year‑over‑year to $1.262 billion, driven by a 58 % decline in full‑game sales and a modest 7 % drop in live‑services revenue. Platform‑level data show console bookings down 25 % to $677 million, PC and other platforms down 21 % to $295 million, and mobile slipping 4 % to $290 million. Live‑services contributed $1.094 billion of the total bookings, representing 75 % of the quarter’s revenue mix.
GAAP net revenue for the quarter was $1.660 billion, yielding a GAAP operating margin of 21.9 % and earnings per share of $1.04. Non‑GAAP operating margin, which excludes acquisition‑related costs, stock‑based compensation, restructuring charges and capital expenditures, stood at 32.5 %. The company forecast FY25 net revenue of $7.1‑$7.5 billion, GAAP EPS of $3.34‑$4.00, and a non‑GAAP operating margin of 29.6‑31.7 %. Q2 guidance projects net revenue of $1.9‑$2.0 billion and GAAP EPS of $0.76‑$0.93. Free cash flow for the quarter was $53 million, down sharply from $314 million a year earlier, while operating cash flow fell to $120 million.
The release also detailed the FY25 title slate, highlighting new releases such as “EA SPORTS FC 25,” “Madden NFL 25,” “EA SPORTS NHL 25,” and upcoming titles in the Sims, Battlefield and Dragon Age franchises. Constant‑currency adjustments and a foreign‑exchange hedging program are incorporated, with net‑booking guidance reflecting a roughly 2 % currency impact. Financial metrics are presented on both GAAP and non‑GAAP bases, with a 19 % internal tax rate applied for performance evaluation. The scope covers global operations for the quarter ending June 30 2024 and forward‑looking expectations through the end of FY25, reflecting the interactive entertainment industry’s competitive, regulatory and macro‑economic risk environment.
