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Dec 31, 2020
EA Q3 2021 Earnings Report
Reported strong Q3 FY21 financial results, driven by live services outperformance in Ultimate Team and Apex Legends.
Key Takeaways
Electronic Arts announced strong preliminary financial results for Q3 FY21, ended December 31, 2020. The company delivered strong performance driven by live services, particularly Ultimate Team and Apex Legends. EA is raising its net bookings outlook for the full year and anticipates growth in fiscal year 2022, driven by the next Battlefield.
Net bookings for the trailing twelve months was $5.956 billion, up 8% year-over-year.
FIFA Ultimate Team had a record of nearly 6 million daily active players in December.
Apex Legends had 30% growth in new players, year-over-year.
The Sims 4 has more than 33 million players and reached record daily, weekly, and monthly average players in December.
Revenue by Segment
Revenue by Geographic Location
Forward Guidance
Electronic Arts provided financial outlook for Q4 FY21, ending March 31, 2021.
Positive Outlook
- Net revenue is expected to be approximately $1.317 billion.
- Change in deferred net revenue (online-enabled games) is expected to be approximately $58 million.
- The Company estimates a GAAP basic and diluted share count of 289 million shares due to a forecasted net loss.
- If the Company reports net income instead of a net loss, diluted share count for calculating diluted earnings per share would be 292 million shares.
- Net bookings is expected to be approximately $1.375 billion.
Challenges Ahead
- Net loss is expected to be approximately ($19) million; this forecast includes the impact of an incremental tax accounting charge of ($152) million.
- Loss per share is expected to be approximately ($0.07), which includes ($0.52) per share from the tax accounting charge.
- Total net revenue is expected to be approximately $5.600 billion.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
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