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Dec 31, 2022

EA Q3 2023 Earnings Report

EA delivered high-quality experiences, driving record engagement and growing their player network, but the current macro environment impacted Q3 results.

Key Takeaways

EA reported strong engagement across its franchises and growth in its player network, but Q3 results were impacted by the current macro environment. The company is focused on prioritizing the player experience and directing investment to areas with the most positive impact on players and growth.

EA delivered high-quality experiences, driving record engagement across some of our biggest franchises and growing our player network.

The EA player network grew to more than 650 million at quarter end.

EA SPORTSâ„¢ FIFA 23 is pacing to be the biggest title in franchise history and delivered record engagement in Q3.

The Sims welcomed over 10 million new players into the community during the quarter, with daily active users, weekly active users and monthly active users all up double digits year-over-year.

Total Revenue
$2.34B
Previous year: $2.58B
-9.1%
EPS
$2.8
Previous year: $3.2
-12.5%
Gross Profit
$1.31B
Previous year: $1.16B
+13.4%
Cash and Equivalents
$2.2B
Previous year: $2.67B
-17.5%
Total Assets
$13.5B
Previous year: $13.9B
-3.3%

EA

EA

EA Revenue by Segment

Forward Guidance

EA anticipates net revenue between $1.700 billion and $1.800 billion, net income between $14 million and $55 million, and net bookings between $1.675 billion and $1.775 billion for the fourth quarter of fiscal year 2023.

Positive Outlook

  • Net revenue is expected to be approximately $1.700 billion to $1.800 billion.
  • Change in deferred net revenue (online-enabled games) is expected to be approximately ($25) million.
  • Net income is expected to be approximately $14 million to $55 million.
  • Diluted earnings per share is expected to be approximately $0.05 to $0.20.
  • The Company estimates a share count of 277 million for purposes of calculating fourth quarter fiscal 2023 diluted earnings per share.

Challenges Ahead

  • This guidance includes the shift of Star Wars Jedi: Survivor to Q1 FY24.
  • Net revenue is expected to be approximately $1.700 billion to $1.800 billion.
  • Change in deferred net revenue (online-enabled games) is expected to be approximately ($25) million.
  • Net income is expected to be approximately $14 million to $55 million.
  • Diluted earnings per share is expected to be approximately $0.05 to $0.20.

Revenue & Expenses

Visualization of income flow from segment revenue to net income