EA Q3 2024 Earnings Report
Key Takeaways
Electronic Arts announced strong Q3 FY24 results, with EA SPORTS FC outperforming expectations and driving record live services net bookings. Net revenue was $1.945 billion, and net bookings reached $2.366 billion, up 1% year-over-year.
Net bookings for Q3 was $2.366 billion, up 1% year-over-year (up 2% in constant currency).
Live services and other net bookings for Q3 achieved a record $1.712 billion, up 3% year-over-year (up 5% in constant currency).
The EA SPORTS FCTM franchise outperformed Q3 expectations, delivering 7% net bookings growth against a prior year that included the World Cup.
EA SPORTSTM Madden NFL delivered net bookings growth of 5% year-over-year.
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EA Revenue by Segment
EA Revenue by Geographic Location
Forward Guidance
EA anticipates net revenue between $1.625 billion and $1.925 billion for Q4 FY24.
Positive Outlook
- Net revenue is expected to be approximately $1.625 billion to $1.925 billion.
- No change in deferred net revenue (online-enabled games) is expected.
- Net income is expected to be approximately $54 million to $183 million.
- Diluted earnings per share is expected to be approximately $0.20 to $0.68.
- Net bookings is expected to be approximately $1.625 billion to $1.925 billion.
Challenges Ahead
- Cost of revenue between $360 million and $410 million
- Operating expense between $1.125 billion and $1.205 billion
- Q4 impairment of acquisition-related intangible assets totaling approximately $70 million
- Net income is expected to be approximately $54 million to $183 million.
- Diluted earnings per share is expected to be approximately $0.20 to $0.68.
Revenue & Expenses
Visualization of income flow from segment revenue to net income