EA Q2 2023 Earnings Report

EA delivered strong engagement and deeply immersive experiences across its portfolio, with new EA SPORTS titles and multi-platform live services powering the business.

Key Takeaways

EA's Q2 was solid, delivering on revenue and profit commitments, driven by the EA SPORTS portfolio and multi-platform live services. The EA player network grew to more than 600 million active accounts and EA SPORTS™ FIFA 23 was the most successful launch in franchise history.

Net bookings for the trailing twelve months was $7.381 billion, up 4% year-over-year.

Live services and other net bookings for the trailing twelve months were up 7% year-over-year and represent 73% of total net bookings.

The EA player network grew to more than 600 million active accounts at quarter end.

EA SPORTS™ FIFA 23 was the most successful launch in franchise history with more than 10.3 million players joining the game within the first week.

Total Revenue

$1.75B

Previous year: $1.85B

-5.2%

EPS

$1.45

Previous year: $1.58

-8.2%

Gross Profit

$1.44B

Previous year: $1.33B

+8.3%

Cash and Equivalents

$1.54B

Previous year: $1.63B

-5.6%

Total Assets

$13.1B

Previous year: $13B

+0.5%

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EA Revenue by Geographic Location

Forward Guidance

EA provided financial outlook for the third quarter ending December 31, 2022 and the full fiscal year 2023 ending March 31, 2023.

Positive Outlook

Net revenue is expected to be approximately $7.550 billion to $7.750 billion for fiscal year 2023.
Net income is expected to be approximately $871 million to $934 million for fiscal year 2023.
Diluted earnings per share is expected to be approximately $3.11 to $3.34 for fiscal year 2023.
Operating cash flow is expected to be approximately $1.600 billion to $1.650 billion for fiscal year 2023.
Net bookings is expected to be approximately $7.650 billion to $7.850 billion, up 2% to 4% year-over-year, or 6% to 9% in constant currency for fiscal year 2023.

Challenges Ahead

The US dollar has strengthened since the time of our initial FY23 guidance. As a result, we now expect an FX impact of approximately ($200) million versus our initial full year net bookings guide.
Net revenue is expected to be approximately $1.825 billion to $1.925 billion for Q3 2023.
Net income is expected to be approximately $120 million to $164 million for Q3 2023.
Diluted earnings per share is expected to be approximately $0.43 to $0.59 for Q3 2023.
Net bookings is expected to be approximately $2.425 billion to $2.525 billion for Q3 2023.

Revenue & Expenses

Visualization of income flow from segment revenue to net income

Company Overview

Full financial data and analysis

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