[January 27, 2015] |
|
Electronic Arts Reports Q3 FY15 Financial Results
Electronic Arts Inc. (NASDAQ:EA) today announced preliminary financial
results for its third fiscal quarter ended December 31, 2014.
"Electronic Arts delivered amazing experiences to our players in Q3,
from the award-winning Dragon Age: Inquisition to SimCity
BuildIt to our live services for FIFA, Madden NFL and more,"
said Chief Executive Officer Andrew Wilson. "Great execution with our
leading IP, new mobile hits and continued strength in our catalogue of
top games and services were the foundation for an excellent performance
in Q3."
"EA has driven another quarter of record-breaking financials," said
Chief Financial Officer Blake Jorgensen. "Our ongoing digital
transformation, including live services like EA SPORTS Ultimate Team,
coupled with ongoing cost discipline, enables us to deliver consistent
cash flow and earnings growth."
News and ongoing updates regarding EA and our games are available on
EA's blog at www.ea.com/news.
Selected Operating Highlights and Metrics:
-
Calendar year 2014 EA was the #1 publisher on PlayStation®4 and Xbox
One consoles in the world, driven by the success of Dragon Age™:
Inquisition, FIFA 15, NHL®15, Madden NFL 15, EA
SPORTSTM UFC®, TitanfallTM,
Battlefield 4TM, and FIFA 14.
-
SimCity™ BuildIt just launched in December and has already
achieved 22 million downloads to date and has reached the top 5 iOS
game downloads in more than 100 countries.
-
Dragon Age: Inquisition captivated fans and critics worldwide
and it quickly became the most successful launch in BioWare™ history
in addition to being named to more than 200 "Game of the Year" lists.
The single player campaign alone has been enjoyed for more than 113
million hours.
-
Monthly active users for EA's mobile titles averaged more than 160
million in Q3.
-
EA's mobile sports games continue to engage players, with Madden
NFL Mobile and FIFA 15 Ultimate Team™ together averaging
45% more monthly active players through Q3 compared to our previous
iterations in the same period last year.
Selected Financial Highlights: *On a non-GAAP basis
-
For the quarter, net revenue* of $1.428 billion was above our guidance
of $1.275 billion. Diluted earnings per share* of $1.22 was above our
guidance of $0.90.
-
On a trailing twelve month basis, EA had net revenue* of $4.337
billion of which a record $2.178 billion was digital* (more than half
for the first time ever), net income* of $833 million and operating
cash flow of $1.150 billion (a record for a calendar year).
-
EA raised fiscal 2015 net revenue* guidance from $4.175 billion to
$4.253 billion and diluted EPS* guidance from $2.05 to $2.35 per share.
-
Net revenue* for EA's FIFA, Madden NFL and Hockey Ultimate
Team services continued to grow, collectively up 82%
year-over-year.
-
EA repurchased 2.5 million shares in Q3 for $97 million, pursuant to
the $750 million share repurchase program initiated in May 2014.
(in millions of $, except per share amounts)
|
|
Quarter Ended 12/31/14
|
|
Quarter Ended 12/31/13
|
GAAP Digital Net Revenue
|
|
$541
|
|
$410
|
GAAP Packaged Goods and Other Net Revenue
|
|
585
|
|
398
|
GAAP Total Net Revenue
|
|
$1,126
|
|
$808
|
|
|
|
|
|
Non-GAAP Digital Net Revenue
|
|
$693
|
|
$517
|
Non-GAAP Packaged Goods and Other Net Revenue
|
|
735
|
|
1,055
|
Non-GAAP Total Net Revenue
|
|
$1,428
|
|
$1,572
|
|
|
|
|
|
GAAP Net Income (Loss)
|
|
$142
|
|
$(308)
|
Non-GAAP Net Income
|
|
388
|
|
398
|
GAAP Diluted Earnings/(Loss) Per Share
|
|
0.44
|
|
(1.00)
|
Non-GAAP Diluted Earnings Per Share
|
|
1.22
|
|
1.26
|
|
|
|
|
|
Operating Cash Flow
|
|
$682
|
|
$685
|
|
|
|
|
|
Trailing Twelve Month (TTM) Financial Highlights:
|
(in millions of $)
|
|
TTM Ended 12/31/14
|
|
TTM Ended 12/31/13
|
GAAP Net Revenue
|
|
$4,453
|
|
$3,661
|
GAAP Net Income (Loss)
|
|
847
|
|
(36)
|
Non-GAAP Net Revenue
|
|
4,337
|
|
4,147
|
Non-GAAP Net Income
|
|
833
|
|
551
|
|
|
|
|
|
Operating Cash Flow
|
|
$1,150
|
|
$664
|
|
|
|
|
|
Business Outlook as of January 27, 2015
The following forward-looking statements, as well as those made above,
reflect expectations as of January 27, 2015. Electronic Arts assumes no
obligation to update these statements. Results may be materially
different and are affected by many factors detailed in this release and
in EA's annual and quarterly SEC filings.
Fiscal Year 2015 Expectations - Ending March 31, 2015`
-
GAAP net revenue is expected to be approximately $4.485 billion.
-
Non-GAAP net revenue is expected to be approximately $4.253 billion.
-
GAAP diluted earnings per share is expected to be approximately $2.57.
-
Non-GAAP diluted earnings per share is expected to be approximately
$2.35.
-
The Company estimates a share count of 324 million for purposes of
calculating fiscal year 2015 GAAP diluted earnings per share and 320
million for purposes of calculating fiscal year 2015 non-GAAP diluted
earnings per share. Non-GAAP shares used for computing diluted
earnings per share differs from GAAP due to the inclusion of the
anti-dilutive effect of the Convertible Bond Hedge.
-
Expected non-GAAP net income excludes the impact of the following
items (estimate in millions) from expected GAAP net income:
Change in deferred net revenue (online-enabled games)
|
|
$ (232
|
)
|
Income tax adjustments
|
|
(198
|
)
|
College football settlement expenses
|
|
(5
|
)
|
Amortization of debt discount
|
|
22
|
|
Acquisition-related expenses
|
|
63
|
|
Loss on licensed intellectual property commitment
|
|
122
|
|
Stock-based compensation
|
|
148
|
|
Expected Impact on Non-GAAP Net Income (net)
|
|
$ (80
|
)
|
|
|
|
|
Fourth Quarter Fiscal Year 2015 Expectations - Ending March 31, 2015
-
GAAP net revenue is expected to be approximately $1.155 billion.
-
Non-GAAP net revenue is expected to be approximately $830 million.
-
GAAP earnings per share is expected to be approximately $1.07.
-
Non-GAAP diluted earnings per share is expected to be approximately
$0.22.
-
The Company estimates a share count of 329 million for purposes of
calculating fourth quarter fiscal year 2015 GAAP diluted earnings per
share, and 322 million for non-GAAP diluted earnings per share.
Non-GAAP shares used for computing diluted earnings per share differs
from GAAP due to the inclusion of the anti-dilutive effect of the
Convertible Bond Hedge.
-
Expected non-GAAP net income excludes the impact of the following
items (estimate in millions) from expected GAAP net income:
Change in deferred net revenue (online-enabled games)
|
|
$ (325
|
)
|
Income tax adjustments
|
|
(19
|
)
|
Amortization of debt discount
|
|
6
|
|
Acquisition-related expenses
|
|
16
|
|
Stock-based compensation
|
|
40
|
|
Expected Impact on Non-GAAP Net Income (net)
|
|
$ (282
|
)
|
|
|
|
Conference Call and Supporting Documents
Electronic Arts will host a conference call on January 27, 2015 at 2:00
pm PT (5:00 pm ET) to review its results for the third quarter ended
December 31, 2014 and its outlook for the future. During the course of
the call, Electronic Arts may disclose material developments affecting
its business and/or financial performance. Listeners may access the
conference call live through the following dial-in number: 888-469-0955
(domestic) or 312-470-7475 (international), using the password "EA" or
via webcast at http://ir.ea.com.
EA will also post a slide presentation that accompanies the call at http://ir.ea.com.
A dial-in replay of the conference call will be provided until February
10, 2015 at 800-841-4034 (domestic) or 203-369-3360 (international). An
audio webcast replay of the conference call will be available for one
year at http://ir.ea.com.
Non-GAAP Financial Measures
To supplement the Company's unaudited condensed consolidated financial
statements presented in accordance with GAAP, Electronic Arts uses
certain non-GAAP measures of financial performance. The presentation of
these non-GAAP financial measures is not intended to be considered in
isolation from, as a substitute for, or superior to, the financial
information prepared and presented in accordance with GAAP, and may be
different from non-GAAP financial measures used by other companies. In
addition, these non-GAAP measures have limitations in that they do not
reflect all of the amounts associated with the Company's results of
operations as determined in accordance with GAAP. The non-GAAP financial
measures used by Electronic Arts include: non-GAAP net revenue, non-GAAP
gross profit, non-GAAP operating income (loss), non-GAAP net income
(loss), non-GAAP diluted earnings (loss) per share and non-GAAP diluted
shares. These non-GAAP financial measures exclude the following items
(other than Shares from Convertible Bond Hedge, which are included), as
applicable in a given reporting period, from the Company's unaudited
condensed consolidated statements of operations:
-
Acquisition-related expenses
-
Amortization of debt discount
-
Change in deferred net revenue (online-enabled games)
-
College football settlement expenses
-
Income tax adjustments
-
Loss (gain) on strategic investments
-
Loss on licensed intellectual property commitment (COGS)
-
Restructuring charges
-
Shares from Convertible Bond Hedge
-
Stock-based compensation
Electronic Arts may consider whether other significant non-recurring
items that arise in the future should also be excluded in calculating
the non-GAAP financial measures it uses.
Electronic Arts believes that these non-GAAP financial measures, when
taken together with the corresponding GAAP financial measures, provide
meaningful supplemental information regarding the Company's performance
by excluding certain items that may not be indicative of the Company's
core business, operating results or future outlook. Electronic Arts'
management uses, and believes that investors benefit from referring to,
these non-GAAP financial measures in assessing the Company's operating
results both as a consolidated entity and at the business unit level, as
well as when planning, forecasting and analyzing future periods. The
Company's management team is evaluated on the basis of non-GAAP
financial measures and these measures also facilitate comparisons of the
Company's performance to prior periods.
In addition to the reasons stated above, which are generally applicable
to each of the items Electronic Arts excludes from its non-GAAP
financial measures, the Company believes it is appropriate to exclude
certain items for the following reasons:
Acquisition-Related Expenses. GAAP requires expenses to be
recognized for various types of events associated with a business
acquisition. These events include, expensing acquired intangible assets,
including acquired in-process technology, post-closing adjustments
associated with changes in the estimated amount of contingent
consideration to be paid in an acquisition, and the impairment of
accounting goodwill created as a result of an acquisition when future
events indicate there has been a decline in its value. When analyzing
the operating performance of an acquired entity, Electronic Arts'
management focuses on the total return provided by the investment (i.e.,
operating profit generated from the acquired entity as compared to the
purchase price paid including the final amounts paid for contingent
consideration) without taking into consideration any allocations made
for accounting purposes. When analyzing the operating performance of an
acquisition in subsequent periods, the Company's management excludes the
GAAP impact of any adjustments to the fair value of these
acquisition-related balances to its financial results.
Amortization of Debt Discount on the Convertible Senior Notes.
Under GAAP, certain convertible debt instruments that may be settled in
cash on conversion are required to be separately accounted for as
liability (debt) and equity (conversion option) components of the
instrument in a manner that reflects the issuer's non-convertible debt
borrowing rate. Accordingly, for GAAP purposes, we are required to
amortize as a debt discount an amount equal to the fair value of the
conversion option as interest expense on the Company's $632.5 million of
0.75% convertible senior notes that were issued in a private placement
in July 2011 over the term of the notes. Electronic Arts' management
excludes the effect of this amortization in its non-GAAP financial
measures.
Change in Deferred Net Revenue (Online-enabled Games). The
majority of our software games can be connected to the Internet whereby
a consumer may be able to download unspecified content or updates on a
when-and-if-available basis ("unspecified updates") for use with the
original game software. In addition, we may also offer an online
matchmaking service that permits consumers to play against each other
via the Internet. GAAP requires us to account for the consumer's right
to receive unspecified updates or the matchmaking service for no
additional fee as a "bundled" sale, or multiple-element arrangement.
Electronic Arts is not able to objectively determine the fair value of
these unspecified updates or online service included in certain of its
online-enabled games. As a result, the Company recognizes the revenue
from the sale of these online-enabled games on a straight-line basis
over the estimated offering period. Electronic Arts' management excludes
the impact of the change in deferred net revenue related to
online-enabled games in its non-GAAP financial measures for the reasons
stated above and also to facilitate an understanding of our operations
because all related costs of revenue are expensed as incurred instead of
deferred and recognized ratably.
College Football Settlement Expenses. During fiscal 2014,
Electronic Arts recognized a $48 million charge for expected litigation
settlement and license expenses related to our college football
business. This expense is excluded from our non-GAAP financial measures.
Income Tax Adjustments. The Company uses a fixed, long-term
projected tax rate internally to evaluate its operating performance, to
forecast, plan and analyze future periods, and to assess the performance
of its management team. Prior to April 1, 2013, a 28 percent tax rate
was applied to its non-GAAP financial results. Based on a re-evaluation
of its fixed, long-term projected tax rate, beginning in fiscal year
2014, the Company has applied a tax rate of 25 percent to its non-GAAP
financial results.
Loss (gain) on Strategic Investments. From time to time, the
Company makes strategic investments. Electronic Arts' management
excludes the impact of any losses and gains on such investments from its
non-GAAP financial measures.
Loss on Licensed Intellectual Property Commitment. During the
first quarter of fiscal 2015, Electronic Arts terminated its right to
utilize certain intellectual property that the Company had previously
licensed and we incurred a loss of $122 million on the corresponding
license commitment. This expense is excluded from our non-GAAP financial
measures.
Restructuring Charges. Although Electronic Arts has engaged in
various restructuring activities in the past, each has been a discrete
event based on a unique set of business objectives. Each of these
restructurings has been unlike its predecessors in terms of its
operational implementation, business impact and scope. As such, the
Company believes it is appropriate to exclude restructuring charges from
its non-GAAP financial measures.
Shares from Convertible Bond Hedge. In July 2011, the Company
issued convertible senior notes that mature in July 2016 (the "Notes")
with an initial conversion price of approximately $31.74 per share. When
the quarterly average trading price of EA's common stock is above $31.74
per share, the potential conversion of the Notes has a dilutive impact
on the Company's earnings per share. At the time the Notes were issued,
the Company entered into convertible note hedge transactions (the
"Convertible Bond Hedge") to offset the dilutive effect of the Notes.
The Company includes the anti-dilutive effect of the Convertible Bond
Hedge in determining its non-GAAP dilutive shares.
Stock-Based Compensation. When evaluating the performance of its
individual business units, the Company does not consider stock-based
compensation charges. Likewise, the Company's management teams exclude
stock-based compensation expense from their short and long-term
operating plans. In contrast, the Company's management teams are held
accountable for cash-based compensation and such amounts are included in
their operating plans. Further, when considering the impact of equity
award grants, Electronic Arts places a greater emphasis on overall
shareholder dilution rather than the accounting charges associated with
such grants.
In the financial tables below, Electronic Arts has provided a
reconciliation of the most comparable GAAP financial measures to
non-GAAP financial measures used in this press release.
Forward-Looking Statements
Some statements set forth in this release, including the information
relating to EA's fiscal 2015 guidance information under the heading
"Business Outlook," contain forward-looking statements that are subject
to change. Statements including words such as "anticipate," "believe,"
"estimate" or "expect" and statements in the future tense are
forward-looking statements. These forward-looking statements are
preliminary estimates and expectations based on current information and
are subject to business and economic risks and uncertainties that could
cause actual events or actual future results to differ materially from
the expectations set forth in the forward-looking statements.
Some of the factors which could cause the Company's results to differ
materially from its expectations include the following: sales of the
Company's titles; the Company's ability to manage expenses; the
competition in the interactive entertainment industry; the effectiveness
of the Company's sales and marketing programs; timely development and
release of Electronic Arts' products; the Company's ability to realize
the anticipated benefits of acquisitions; the consumer demand for, and
the availability of an adequate supply of console hardware units; the
Company's ability to predict consumer preferences among competing
platforms; the Company's ability to service and support digital product
offerings, including managing online security; general economic
conditions; and other factors described in the Company's Quarterly
Report on Form 10-Q for the fiscal quarter ended September 30, 2014.
These forward-looking statements are current as of January 27, 2015.
Electronic Arts assumes no obligation and does not intend to update
these forward-looking statements. In addition, the preliminary financial
results set forth in this release are estimates based on information
currently available to Electronic Arts.
While Electronic Arts believes these estimates are meaningful, they
could differ from the actual amounts that Electronic Arts ultimately
reports in its Quarterly Report on Form 10-Q for the fiscal quarter
ended December 31, 2014. Electronic Arts assumes no obligation and does
not intend to update these estimates prior to filing its Form 10-Q for
the fiscal quarter ended December 31, 2014.
About Electronic Arts
Electronic Arts (NASDAQ:EA) is a global leader in digital interactive
entertainment. The Company delivers games, content and online services
for Internet-connected consoles, personal computers, mobile phones and
tablets. EA has more than 300 million registered players around the
world.
In fiscal year 2014, EA posted GAAP net revenue of $3.6 billion.
Headquartered in Redwood City, California, EA is recognized for a
portfolio of critically acclaimed, high-quality blockbuster brands such
as The Sims™, Madden NFL, EA SPORTS™ FIFA, Battlefield™, Dragon Age™ and
Plants vs. Zombies™. More information about EA is available at www.ea.com/news.
EA SPORTS, Ultimate Team, SimCity, BioWare, Battlefield 4, Battlefield,
Battlefield Hardline, The Sims, Dragon Age, and Plants vs. Zombies are
trademarks of Electronic Arts Inc. and its subsidiaries. Titanfall is a
trademark of Respawn Entertainment, LLC. UFC® is a registered
trademark, trademark, trade dress or service mark owned exclusively by
Zuffa, LLC and affiliated entities in the United States and other
jurisdictions. John Madden, NFL, NHL and FIFA are the property of their
respective owners and used with permission. "PlayStation" is a
registered trademark of Sony Computer Entertainment Inc.
|
ELECTRONIC ARTS INC. AND SUBSIDIARIES
|
Unaudited Condensed Consolidated Statements of Operations
|
(in millions, except per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended December 31,
|
|
|
Nine Months Ended December 31,
|
|
|
2014
|
|
|
2013
|
|
|
|
2014
|
|
|
|
2013
|
|
Net revenue
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Product
|
|
$
|
606
|
|
|
$
|
485
|
|
|
|
$
|
1,899
|
|
|
|
$
|
1,378
|
|
Service and other
|
|
520
|
|
|
323
|
|
|
|
1,431
|
|
|
|
1,074
|
|
Total net revenue
|
|
1,126
|
|
|
808
|
|
|
|
3,330
|
|
|
|
2,452
|
|
Cost of revenue
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Product
|
|
300
|
|
|
438
|
|
|
|
899
|
|
|
|
909
|
|
Service and other
|
|
101
|
|
|
79
|
|
|
|
296
|
|
|
|
215
|
|
Total cost of revenue
|
|
401
|
|
|
517
|
|
|
|
1,195
|
|
|
|
1,124
|
|
Gross profit
|
|
725
|
|
|
291
|
|
|
|
2,135
|
|
|
|
1,328
|
|
Operating expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Research and development
|
|
283
|
|
|
275
|
|
|
|
809
|
|
|
|
836
|
|
Marketing and sales
|
|
169
|
|
|
214
|
|
|
|
482
|
|
|
|
525
|
|
General and administrative
|
|
107
|
|
|
91
|
|
|
|
287
|
|
|
|
305
|
|
Acquisition-related contingent consideration
|
|
-
|
|
|
-
|
|
|
|
(2
|
)
|
|
|
(37
|
)
|
Amortization of intangibles
|
|
4
|
|
|
4
|
|
|
|
11
|
|
|
|
12
|
|
Restructuring and other
|
|
-
|
|
|
(1
|
)
|
|
|
-
|
|
|
|
(2
|
)
|
Total operating expenses
|
|
563
|
|
|
583
|
|
|
|
1,587
|
|
|
|
1,639
|
|
Operating income (loss)
|
|
162
|
|
|
(292
|
)
|
|
|
548
|
|
|
|
(311
|
)
|
Interest and other income (expense), net
|
|
(6
|
)
|
|
(6
|
)
|
|
|
(20
|
)
|
|
|
(19
|
)
|
Income (loss) before provision for income taxes
|
|
156
|
|
|
(298
|
)
|
|
|
528
|
|
|
|
(330
|
)
|
Provision for income taxes
|
|
14
|
|
|
10
|
|
|
|
48
|
|
|
|
29
|
|
Net income (loss)
|
|
$
|
142
|
|
|
$
|
(308
|
)
|
|
|
$
|
480
|
|
|
|
$
|
(359
|
)
|
Earnings (loss) per share
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
0.46
|
|
|
$
|
(1.00
|
)
|
|
|
$
|
1.54
|
|
|
|
$
|
(1.17
|
)
|
Diluted
|
|
$
|
0.44
|
|
|
$
|
(1.00
|
)
|
|
|
$
|
1.49
|
|
|
|
$
|
(1.17
|
)
|
Number of shares used in computation
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
311
|
|
|
309
|
|
|
|
312
|
|
|
|
307
|
|
Diluted
|
|
323
|
|
|
309
|
|
|
|
322
|
|
|
|
307
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP Results (in millions, except per share data)
The following tables reconcile the Company's net revenue, gross profit,
operating income (loss), net income (loss) and number of diluted shares
as presented in its Unaudited Condensed Consolidated Statements of
Operations and prepared in accordance with Generally Accepted Accounting
Principles ("GAAP") to its non-GAAP net revenue, non-GAAP gross profit,
non-GAAP operating income, non-GAAP net income, and number of non-GAAP
diluted shares.
|
|
|
Three Months Ended December 31,
|
|
Nine Months Ended December 31,
|
|
|
2014
|
|
|
2013
|
|
|
2014
|
|
|
|
2013
|
|
Net revenue
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP net revenue
|
|
$
|
1,126
|
|
|
$
|
808
|
|
|
$
|
3,330
|
|
|
|
$
|
2,452
|
|
Change in deferred net revenue (online-enabled games)
|
|
302
|
|
|
764
|
|
|
93
|
|
|
|
655
|
|
Non-GAAP net revenue
|
|
$
|
1,428
|
|
|
$
|
1,572
|
|
|
$
|
3,423
|
|
|
|
$
|
3,107
|
|
Gross profit
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP gross profit
|
|
$
|
725
|
|
|
$
|
291
|
|
|
$
|
2,135
|
|
|
|
$
|
1,328
|
|
Acquisition-related expenses
|
|
12
|
|
|
16
|
|
|
38
|
|
|
|
45
|
|
Change in deferred net revenue (online-enabled games)
|
|
302
|
|
|
764
|
|
|
93
|
|
|
|
655
|
|
Loss on licensed intellectual property commitment (COGS)
|
|
-
|
|
|
-
|
|
|
122
|
|
|
|
-
|
|
Stock-based compensation
|
|
1
|
|
|
-
|
|
|
2
|
|
|
|
1
|
|
Non-GAAP gross profit
|
|
$
|
1,040
|
|
|
$
|
1,071
|
|
|
$
|
2,390
|
|
|
|
$
|
2,029
|
|
Operating income (loss)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP operating income (loss)
|
|
$
|
162
|
|
|
$
|
(292
|
)
|
|
$
|
548
|
|
|
|
$
|
(311
|
)
|
Acquisition-related expenses
|
|
16
|
|
|
20
|
|
|
47
|
|
|
|
20
|
|
Change in deferred net revenue (online-enabled games)
|
|
302
|
|
|
764
|
|
|
93
|
|
|
|
655
|
|
Loss on licensed intellectual property commitment (COGS)
|
|
-
|
|
|
-
|
|
|
122
|
|
|
|
-
|
|
College football settlement expenses
|
|
-
|
|
|
-
|
|
|
(5
|
)
|
|
|
40
|
|
Restructuring and other
|
|
-
|
|
|
(1
|
)
|
|
-
|
|
|
|
(2
|
)
|
Stock-based compensation
|
|
39
|
|
|
40
|
|
|
108
|
|
|
|
111
|
|
Non-GAAP operating income
|
|
$
|
519
|
|
|
$
|
531
|
|
|
$
|
913
|
|
|
|
$
|
513
|
|
Net Income (loss)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP net income (loss)
|
|
$
|
142
|
|
|
$
|
(308
|
)
|
|
$
|
480
|
|
|
|
$
|
(359
|
)
|
Acquisition-related expenses
|
|
16
|
|
|
20
|
|
|
47
|
|
|
|
20
|
|
Amortization of debt discount
|
|
5
|
|
|
6
|
|
|
16
|
|
|
|
16
|
|
Change in deferred net revenue (online-enabled games)
|
|
302
|
|
|
764
|
|
|
93
|
|
|
|
655
|
|
Loss on licensed intellectual property commitment (COGS)
|
|
-
|
|
|
-
|
|
|
122
|
|
|
|
-
|
|
College football settlement expenses
|
|
-
|
|
|
-
|
|
|
(5
|
)
|
|
|
40
|
|
Restructuring and other
|
|
-
|
|
|
(1
|
)
|
|
-
|
|
|
|
(2
|
)
|
Stock-based compensation
|
|
39
|
|
|
40
|
|
|
108
|
|
|
|
111
|
|
Income tax adjustments
|
|
(116
|
)
|
|
(123
|
)
|
|
(180
|
)
|
|
|
(99
|
)
|
Non-GAAP net income
|
|
$
|
388
|
|
|
$
|
398
|
|
|
$
|
681
|
|
|
|
$
|
382
|
|
Non-GAAP earnings per share
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
1.25
|
|
|
$
|
1.29
|
|
|
$
|
2.18
|
|
|
|
$
|
1.24
|
|
Diluted
|
|
$
|
1.22
|
|
|
$
|
1.26
|
|
|
$
|
2.13
|
|
|
|
$
|
1.21
|
|
Number of shares
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP & Non-GAAP Basic
|
|
311
|
|
|
309
|
|
|
312
|
|
|
|
307
|
|
GAAP Diluted
|
|
323
|
|
|
309
|
|
|
322
|
|
|
|
307
|
|
GAAP loss position1
|
|
-
|
|
|
8
|
|
|
-
|
|
|
|
8
|
|
Shares from convertible bond hedge
|
|
(4
|
)
|
|
-
|
|
|
(2
|
)
|
|
|
-
|
|
Non-GAAP Diluted
|
|
319
|
|
|
317
|
|
|
320
|
|
|
|
315
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1Diluted earnings per share reflects the potential dilution
from common shares (calculated using the treasury stock method),
issuable through stock-based compensation plans. When the company incurs
a loss, shares issuable through stock-based compensation plans are
excluded from the diluted loss per share calculation as inclusion would
be anti-dilutive. In the three and nine months ended December 31, 2013,
EA incurred a GAAP loss but a non-GAAP profit; therefore 8 million
shares related to the stock-based compensation plans are excluded from
the GAAP diluted share count but are included in the non-GAAP diluted
share count.
|
ELECTRONIC ARTS INC. AND SUBSIDIARIES
|
Unaudited Condensed Consolidated Balance Sheets
|
(in millions)
|
|
|
|
|
|
|
December 31, 2014
|
|
March 31, 2014 2
|
ASSETS
|
|
|
|
|
Current assets:
|
|
|
|
|
Cash and cash equivalents
|
$
|
2,166
|
|
|
$
|
1,782
|
Short-term investments
|
774
|
|
|
583
|
Receivables, net of allowances of $189 and $186, respectively
|
488
|
|
|
327
|
Inventories
|
39
|
|
|
56
|
Deferred income taxes, net
|
57
|
|
|
74
|
Other current assets
|
230
|
|
|
316
|
Total current assets
|
3,754
|
|
|
3,138
|
Property and equipment, net
|
461
|
|
|
510
|
Goodwill
|
1,718
|
|
|
1,723
|
Acquisition-related intangibles, net
|
127
|
|
|
177
|
Deferred income taxes, net
|
6
|
|
|
28
|
Other assets
|
101
|
|
|
140
|
TOTAL ASSETS
|
$
|
6,167
|
|
|
$
|
5,716
|
LIABILITIES AND STOCKHOLDERS' EQUITY
|
|
|
|
|
Current liabilities:
|
|
|
|
|
Accounts payable
|
$
|
77
|
|
|
$
|
119
|
Accrued and other current liabilities
|
813
|
|
|
781
|
Deferred net revenue (online-enabled games)
|
1,583
|
|
|
1,490
|
0.75% convertible senior notes due 2016, net
|
596
|
|
|
-
|
Total current liabilities
|
3,069
|
|
|
2,390
|
0.75% convertible senior notes due 2016, net
|
-
|
|
|
580
|
Income tax obligations
|
88
|
|
|
189
|
Deferred income taxes, net
|
85
|
|
|
18
|
Other liabilities
|
201
|
|
|
117
|
Total liabilities
|
3,443
|
|
|
3,294
|
0.75% convertible senior notes due 2016, net
|
37
|
|
|
-
|
|
|
|
|
|
Common stock
|
3
|
|
|
3
|
Paid-in capital
|
2,152
|
|
|
2,353
|
Retained earnings
|
509
|
|
|
29
|
Accumulated other comprehensive income
|
23
|
|
|
37
|
Total stockholders' equity
|
2,687
|
|
|
2,422
|
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY
|
$
|
6,167
|
|
|
$
|
5,716
|
|
|
|
|
|
|
|
2 Derived from audited consolidated financial statements.
|
ELECTRONIC ARTS INC. AND SUBSIDIARIES
|
Unaudited Condensed Consolidated Statements of Cash Flows
|
(in millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended December 31,
|
|
Nine Months Ended December 31,
|
|
|
2014
|
|
|
2013
|
|
|
2014
|
|
|
2013
|
|
OPERATING ACTIVITIES
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
|
|
$
|
142
|
|
|
$
|
(308
|
)
|
|
$
|
480
|
|
|
$
|
(359
|
)
|
Adjustments to reconcile net income (loss) to net cash provided by
operating activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation, amortization and accretion
|
|
53
|
|
|
58
|
|
|
165
|
|
|
170
|
|
Stock-based compensation
|
|
39
|
|
|
40
|
|
|
108
|
|
|
111
|
|
Acquisition-related contingent consideration
|
|
-
|
|
|
-
|
|
|
(2
|
)
|
|
(37
|
)
|
Net loss on investment
|
|
-
|
|
|
1
|
|
|
-
|
|
|
1
|
|
Change in assets and liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
Receivables, net
|
|
332
|
|
|
68
|
|
|
(176
|
)
|
|
(210
|
)
|
Inventories
|
|
27
|
|
|
3
|
|
|
16
|
|
|
(12
|
)
|
Other assets
|
|
(1
|
)
|
|
9
|
|
|
137
|
|
|
17
|
|
Accounts payable
|
|
(112
|
)
|
|
(64
|
)
|
|
(29
|
)
|
|
13
|
|
Accrued and other liabilities
|
|
(105
|
)
|
|
112
|
|
|
68
|
|
|
75
|
|
Deferred income taxes, net
|
|
5
|
|
|
2
|
|
|
9
|
|
|
7
|
|
Deferred net revenue (online-enabled games)
|
|
302
|
|
|
764
|
|
|
93
|
|
|
655
|
|
Net cash provided by operating activities
|
|
682
|
|
|
685
|
|
|
869
|
|
|
431
|
|
INVESTING ACTIVITIES
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital expenditures
|
|
(15
|
)
|
|
(28
|
)
|
|
(63
|
)
|
|
(81
|
)
|
Proceeds from maturities and sales of short-term investments
|
|
168
|
|
|
81
|
|
|
520
|
|
|
331
|
|
Purchase of short-term investments
|
|
(180
|
)
|
|
(79
|
)
|
|
(717
|
)
|
|
(270
|
)
|
Acquisition of subsidiaries, net of cash acquired
|
|
-
|
|
|
-
|
|
|
-
|
|
|
(5
|
)
|
Net cash used in investing activities
|
|
(27
|
)
|
|
(26
|
)
|
|
(260
|
)
|
|
(25
|
)
|
FINANCING ACTIVITIES
|
|
|
|
|
|
|
|
|
|
|
|
|
Proceeds from issuance of common stock
|
|
5
|
|
|
1
|
|
|
31
|
|
|
51
|
|
Excess tax benefit from stock-based compensation
|
|
2
|
|
|
-
|
|
|
16
|
|
|
-
|
|
Repurchase and retirement of common stock
|
|
(97
|
)
|
|
-
|
|
|
(242
|
)
|
|
-
|
|
Acquisition-related contingent consideration payment
|
|
-
|
|
|
-
|
|
|
-
|
|
|
(1
|
)
|
Net cash provided by (used in) financing activities
|
|
(90
|
)
|
|
1
|
|
|
(195
|
)
|
|
50
|
|
Effect of foreign exchange on cash and cash equivalents
|
|
(23
|
)
|
|
(4
|
)
|
|
(30
|
)
|
|
(2
|
)
|
Increase in cash and cash equivalents
|
|
542
|
|
|
656
|
|
|
384
|
|
|
454
|
|
Beginning cash and cash equivalents
|
|
1,624
|
|
|
1,090
|
|
|
1,782
|
|
|
1,292
|
|
Ending cash and cash equivalents
|
|
$
|
2,166
|
|
|
$
|
1,746
|
|
|
$
|
2,166
|
|
|
$
|
1,746
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ELECTRONIC ARTS INC. AND SUBSIDIARIES
|
Unaudited Supplemental Financial Information and Business Metrics
|
(in millions, except per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Q3
|
|
Q4
|
|
Q1
|
|
Q2
|
|
Q3
|
|
YOY %
|
|
|
FY14
|
|
FY14
|
|
FY15
|
|
FY15
|
|
FY15
|
|
Change
|
QUARTERLY RECONCILIATION OF RESULTS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net revenue
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP net revenue
|
|
808
|
|
|
1,123
|
|
|
1,214
|
|
|
990
|
|
|
1,126
|
|
|
39
|
%
|
Change in deferred net revenue (online-enabled games)
|
|
764
|
|
|
(209
|
)
|
|
(439
|
)
|
|
230
|
|
|
302
|
|
|
|
|
Non-GAAP net revenue
|
|
1,572
|
|
|
914
|
|
|
775
|
|
|
1,220
|
|
|
1,428
|
|
|
(9
|
%)
|
Gross profit
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP gross profit
|
|
291
|
|
|
900
|
|
|
847
|
|
|
563
|
|
|
725
|
|
|
149
|
%
|
Acquisition-related expenses
|
|
16
|
|
|
15
|
|
|
14
|
|
|
12
|
|
|
12
|
|
|
|
|
Change in deferred net revenue (online-enabled games)
|
|
764
|
|
|
(209
|
)
|
|
(439
|
)
|
|
230
|
|
|
302
|
|
|
|
|
Loss on licensed intellectual property commitment (COGS)
|
|
-
|
|
|
-
|
|
|
122
|
|
|
-
|
|
|
-
|
|
|
|
|
Stock-based compensation
|
|
-
|
|
|
1
|
|
|
-
|
|
|
1
|
|
|
1
|
|
|
|
|
Non-GAAP gross profit
|
|
1,071
|
|
|
707
|
|
|
544
|
|
|
806
|
|
|
1,040
|
|
|
(3
|
%)
|
GAAP gross profit % (as a % of GAAP net revenue)
|
|
36
|
%
|
|
80
|
%
|
|
70
|
%
|
|
57
|
%
|
|
64
|
%
|
|
|
|
Non-GAAP gross profit % (as a % of non-GAAP net revenue)
|
|
68
|
%
|
|
77
|
%
|
|
70
|
%
|
|
66
|
%
|
|
73
|
%
|
|
|
|
Operating income (loss)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP operating income (loss)
|
|
(292
|
)
|
|
344
|
|
|
362
|
|
|
24
|
|
|
162
|
|
|
155
|
%
|
Acquisition-related expenses
|
|
20
|
|
|
21
|
|
|
16
|
|
|
15
|
|
|
16
|
|
|
|
|
Change in deferred net revenue (online-enabled games)
|
|
764
|
|
|
(209
|
)
|
|
(439
|
)
|
|
230
|
|
|
302
|
|
|
|
|
Loss on licensed intellectual property commitment (COGS)
|
|
-
|
|
|
-
|
|
|
122
|
|
|
-
|
|
|
-
|
|
|
|
|
College football settlement expenses
|
|
-
|
|
|
8
|
|
|
(5
|
)
|
|
-
|
|
|
-
|
|
|
|
|
Restructuring and other
|
|
(1
|
)
|
|
1
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
|
|
Stock-based compensation
|
|
40
|
|
|
39
|
|
|
29
|
|
|
40
|
|
|
39
|
|
|
|
|
Non-GAAP operating income
|
|
531
|
|
|
204
|
|
|
85
|
|
|
309
|
|
|
519
|
|
|
(2
|
%)
|
GAAP operating income (loss) % (as a % of GAAP net revenue)
|
|
(36
|
%)
|
|
31
|
%
|
|
30
|
%
|
|
2
|
%
|
|
14
|
%
|
|
|
|
Non-GAAP operating income % (as a % of non-GAAP net revenue)
|
|
34
|
%
|
|
22
|
%
|
|
11
|
%
|
|
25
|
%
|
|
36
|
%
|
|
|
|
Net income (loss)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP net income (loss)
|
|
(308
|
)
|
|
367
|
|
|
335
|
|
|
3
|
|
|
142
|
|
|
146
|
%
|
Acquisition-related expenses
|
|
20
|
|
|
21
|
|
|
16
|
|
|
15
|
|
|
16
|
|
|
|
|
Amortization of debt discount
|
|
6
|
|
|
5
|
|
|
5
|
|
|
6
|
|
|
5
|
|
|
|
|
Change in deferred net revenue (online-enabled games)
|
|
764
|
|
|
(209
|
)
|
|
(439
|
)
|
|
230
|
|
|
302
|
|
|
|
|
Loss on licensed intellectual property commitment (COGS)
|
|
-
|
|
|
-
|
|
|
122
|
|
|
-
|
|
|
-
|
|
|
|
|
College football settlement expenses
|
|
-
|
|
|
8
|
|
|
(5
|
)
|
|
-
|
|
|
-
|
|
|
|
|
Restructuring and other
|
|
(1
|
)
|
|
1
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
|
|
Stock-based compensation
|
|
40
|
|
|
39
|
|
|
29
|
|
|
40
|
|
|
39
|
|
|
|
|
Income tax adjustments
|
|
(123
|
)
|
|
(80
|
)
|
|
(2
|
)
|
|
(62
|
)
|
|
(116
|
)
|
|
|
|
Non-GAAP net income
|
|
398
|
|
|
152
|
|
|
61
|
|
|
232
|
|
|
388
|
|
|
(3
|
%)
|
GAAP net income (loss) % (as a % of GAAP net revenue)
|
|
(38
|
%)
|
|
33
|
%
|
|
28
|
%
|
|
-
|
|
|
13
|
%
|
|
|
|
Non-GAAP net income % (as a % of non-GAAP net revenue)
|
|
25
|
%
|
|
17
|
%
|
|
8
|
%
|
|
19
|
%
|
|
27
|
%
|
|
|
|
Diluted earnings (loss) per share
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP earnings (loss) per share
|
|
(1.00
|
)
|
|
1.15
|
|
|
1.04
|
|
|
0.01
|
|
|
0.44
|
|
|
144
|
%
|
Non-GAAP earnings per share
|
|
1.26
|
|
|
0.48
|
|
|
0.19
|
|
|
0.73
|
|
|
1.22
|
|
|
(3
|
%)
|
Number of diluted shares used in computation
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP
|
|
309
|
|
|
319
|
|
|
322
|
|
|
322
|
|
|
323
|
|
|
|
|
Non-GAAP
|
|
317
|
|
|
319
|
|
|
321
|
|
|
319
|
|
|
319
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ELECTRONIC ARTS INC. AND SUBSIDIARIES
|
Unaudited Supplemental Financial Information and Business Metrics
|
(in millions, except per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Q3
|
|
Q4
|
|
Q1
|
|
Q2
|
|
Q3
|
|
YOY %
|
|
|
FY14
|
|
FY14
|
|
FY15
|
|
FY15
|
|
FY15
|
|
Change
|
QUARTERLY NET REVENUE PRESENTATIONS - GAAP AND NON-GAAP
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Geography net revenue
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
North America
|
|
338
|
|
|
474
|
|
|
522
|
|
|
433
|
|
|
473
|
|
|
40
|
%
|
International
|
|
470
|
|
|
649
|
|
|
692
|
|
|
557
|
|
|
653
|
|
|
39
|
%
|
Total GAAP net revenue
|
|
808
|
|
|
1,123
|
|
|
1,214
|
|
|
990
|
|
|
1,126
|
|
|
39
|
%
|
North America
|
|
352
|
|
|
(63
|
)
|
|
(201
|
)
|
|
51
|
|
|
152
|
|
|
|
|
International
|
|
412
|
|
|
(146
|
)
|
|
(238
|
)
|
|
179
|
|
|
150
|
|
|
|
|
Change in deferred net revenue (online-enabled games)
|
|
764
|
|
|
(209
|
)
|
|
(439
|
)
|
|
230
|
|
|
302
|
|
|
|
|
North America
|
|
690
|
|
|
411
|
|
|
321
|
|
|
484
|
|
|
625
|
|
|
(9
|
%)
|
International
|
|
882
|
|
|
503
|
|
|
454
|
|
|
736
|
|
|
803
|
|
|
(9
|
%)
|
Total Non-GAAP net revenue
|
|
1,572
|
|
|
914
|
|
|
775
|
|
|
1,220
|
|
|
1,428
|
|
|
(9
|
%)
|
North America
|
|
42%
|
|
42
|
%
|
|
43
|
%
|
|
44
|
%
|
|
42
|
%
|
|
|
|
International
|
|
58%
|
|
58
|
%
|
|
57
|
%
|
|
56
|
%
|
|
58
|
%
|
|
|
|
Total GAAP net revenue %
|
|
100%
|
|
100
|
%
|
|
100
|
%
|
|
100
|
%
|
|
100
|
%
|
|
|
|
North America
|
|
44%
|
|
45
|
%
|
|
41
|
%
|
|
40
|
%
|
|
44
|
%
|
|
|
|
International
|
|
56%
|
|
55
|
%
|
|
59
|
%
|
|
60
|
%
|
|
56
|
%
|
|
|
|
Total Non-GAAP net revenue %
|
|
100%
|
|
100
|
%
|
|
100
|
%
|
|
100
|
%
|
|
100
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net revenue composition
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Packaged goods and other3
|
|
398
|
|
|
632
|
|
|
678
|
|
|
482
|
|
|
585
|
|
|
47
|
%
|
Full game downloads
|
|
61
|
|
|
93
|
|
|
107
|
|
|
83
|
|
|
108
|
|
|
|
|
Extra content
|
|
185
|
|
|
212
|
|
|
225
|
|
|
212
|
|
|
210
|
|
|
|
|
Subscriptions, advertising and other
|
|
67
|
|
|
71
|
|
|
81
|
|
|
91
|
|
|
102
|
|
|
|
|
Mobile4
|
|
97
|
|
|
115
|
|
|
123
|
|
|
122
|
|
|
121
|
|
|
|
|
Total Digital
|
|
410
|
|
|
491
|
|
|
536
|
|
|
508
|
|
|
541
|
|
|
32
|
%
|
Total GAAP net revenue
|
|
808
|
|
|
1,123
|
|
|
1,214
|
|
|
990
|
|
|
1,126
|
|
|
39
|
%
|
Packaged goods and other3
|
|
657
|
|
|
(268
|
)
|
|
(385
|
)
|
|
285
|
|
|
150
|
|
|
|
|
Full game downloads
|
|
54
|
|
|
22
|
|
|
(36
|
)
|
|
11
|
|
|
32
|
|
|
|
|
Extra content
|
|
28
|
|
|
31
|
|
|
(14
|
)
|
|
(59
|
)
|
|
104
|
|
|
|
|
Subscriptions, advertising and other
|
|
(1
|
)
|
|
(2
|
)
|
|
(1
|
)
|
|
-
|
|
|
(2
|
)
|
|
|
|
Mobile4
|
|
26
|
|
|
8
|
|
|
(3
|
)
|
|
(7
|
)
|
|
18
|
|
|
|
|
Total Digital
|
|
107
|
|
|
59
|
|
|
(54
|
)
|
|
(55
|
)
|
|
152
|
|
|
|
|
Change in deferred net revenue (online-enabled games)
|
|
764
|
|
|
(209
|
)
|
|
(439
|
)
|
|
230
|
|
|
302
|
|
|
|
|
Packaged goods and other3
|
|
1,055
|
|
|
364
|
|
|
293
|
|
|
767
|
|
|
735
|
|
|
(30
|
%)
|
Full game downloads
|
|
115
|
|
|
115
|
|
|
71
|
|
|
94
|
|
|
140
|
|
|
|
|
Extra content
|
|
213
|
|
|
243
|
|
|
211
|
|
|
153
|
|
|
314
|
|
|
|
|
Subscriptions, advertising and other
|
|
66
|
|
|
69
|
|
|
80
|
|
|
91
|
|
|
100
|
|
|
|
|
Mobile4
|
|
123
|
|
|
123
|
|
|
120
|
|
|
115
|
|
|
139
|
|
|
|
|
Total Digital
|
|
517
|
|
|
550
|
|
|
482
|
|
|
453
|
|
|
693
|
|
|
34
|
%
|
Total Non-GAAP net revenue
|
|
1,572
|
|
|
914
|
|
|
775
|
|
|
1,220
|
|
|
1,428
|
|
|
(9
|
%)
|
Packaged goods and other3
|
|
49
|
%
|
|
56
|
%
|
|
56
|
%
|
|
49
|
%
|
|
52
|
%
|
|
|
|
Full game downloads
|
|
8
|
%
|
|
8
|
%
|
|
9
|
%
|
|
8
|
%
|
|
9
|
%
|
|
|
|
Extra content
|
|
23
|
%
|
|
19
|
%
|
|
19
|
%
|
|
21
|
%
|
|
19
|
%
|
|
|
|
Subscriptions, advertising and other
|
|
8
|
%
|
|
6
|
%
|
|
7
|
%
|
|
9
|
%
|
|
9
|
%
|
|
|
|
Mobile4
|
|
12
|
%
|
|
11
|
%
|
|
9
|
%
|
|
13
|
%
|
|
11
|
%
|
|
|
|
Total Digital
|
|
51
|
%
|
|
44
|
%
|
|
44
|
%
|
|
51
|
%
|
|
48
|
%
|
|
|
|
Total GAAP net revenue %
|
|
100%
|
|
100
|
%
|
|
100
|
%
|
|
100
|
%
|
|
100
|
%
|
|
|
|
Packaged goods and other3
|
|
67
|
%
|
|
40
|
%
|
|
38
|
%
|
|
63
|
%
|
|
51
|
%
|
|
|
|
Full game downloads
|
|
7
|
%
|
|
13
|
%
|
|
9
|
%
|
|
8
|
%
|
|
10
|
%
|
|
|
|
Extra content
|
|
14
|
%
|
|
27
|
%
|
|
27
|
%
|
|
13
|
%
|
|
22
|
%
|
|
|
|
Subscriptions, advertising and other
|
|
4
|
%
|
|
7
|
%
|
|
10
|
%
|
|
7
|
%
|
|
7
|
%
|
|
|
|
Mobile4
|
|
8
|
%
|
|
13
|
%
|
|
16
|
%
|
|
9
|
%
|
|
10
|
%
|
|
|
|
Total Digital
|
|
33
|
%
|
|
60
|
%
|
|
62
|
%
|
|
37
|
%
|
|
49
|
%
|
|
|
|
Total Non-GAAP net revenue %
|
|
100%
|
|
100
|
%
|
|
100
|
%
|
|
100
|
%
|
|
100
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3 Packaged goods and other includes distribution which was
previously presented separately through Q4-FY14.
4 Handheld revenue is included within each respective
category of Full game downloads, Extra content and Subscriptions,
advertising and other. Handheld revenue was previously grouped with
Mobile and presented as Mobile and handheld through Q4-FY14.
|
ELECTRONIC ARTS INC. AND SUBSIDIARIES
|
Unaudited Supplemental Financial Information and Business Metrics
|
(in millions, except per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Q3
|
|
Q4
|
|
Q1
|
|
Q2
|
|
Q3
|
|
YOY %
|
|
|
FY14
|
|
FY14
|
|
FY15
|
|
FY15
|
|
FY15
|
|
Change
|
QUARTERLY NET REVENUE PRESENTATIONS - GAAP AND NON-GAAP
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Platform net revenue
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Xbox One, PLAYSTATION 4
|
|
24
|
|
|
172
|
|
|
293
|
|
|
317
|
|
|
427
|
|
|
1,679
|
%
|
Xbox 360, PLAYSTATION 3
|
|
425
|
|
|
562
|
|
|
543
|
|
|
308
|
|
|
306
|
|
|
(28
|
%)
|
Other consoles
|
|
10
|
|
|
5
|
|
|
3
|
|
|
6
|
|
|
9
|
|
|
(10
|
%)
|
Total consoles
|
|
459
|
|
|
739
|
|
|
839
|
|
|
631
|
|
|
742
|
|
|
62
|
%
|
PC / Browser
|
|
210
|
|
|
238
|
|
|
231
|
|
|
208
|
|
|
218
|
|
|
4
|
%
|
Mobile
|
|
97
|
|
|
115
|
|
|
123
|
|
|
123
|
|
|
122
|
|
|
26
|
%
|
Other
|
|
42
|
|
|
31
|
|
|
21
|
|
|
28
|
|
|
44
|
|
|
5
|
%
|
Total GAAP net revenue
|
|
808
|
|
|
1,123
|
|
|
1,214
|
|
|
990
|
|
|
1,126
|
|
|
39
|
%
|
Xbox One, PLAYSTATION 4
|
|
368
|
|
|
133
|
|
|
(95
|
)
|
|
117
|
|
|
166
|
|
|
|
|
Xbox 360, PLAYSTATION 3
|
|
282
|
|
|
(316
|
)
|
|
(268
|
)
|
|
63
|
|
|
106
|
|
|
|
|
Other consoles
|
|
-
|
|
|
(1
|
)
|
|
-
|
|
|
(1
|
)
|
|
-
|
|
|
|
|
Total consoles
|
|
650
|
|
|
(184
|
)
|
|
(363
|
)
|
|
179
|
|
|
272
|
|
|
|
|
PC / Browser
|
|
86
|
|
|
(31
|
)
|
|
(67
|
)
|
|
56
|
|
|
13
|
|
|
|
|
Mobile
|
|
27
|
|
|
7
|
|
|
(3
|
)
|
|
(6
|
)
|
|
17
|
|
|
|
|
Other
|
|
1
|
|
|
(1
|
)
|
|
(6
|
)
|
|
1
|
|
|
-
|
|
|
|
|
Change in deferred net revenue (online-enabled games)
|
|
764
|
|
|
(209
|
)
|
|
(439
|
)
|
|
230
|
|
|
302
|
|
|
|
|
Xbox One, PLAYSTATION 4
|
|
392
|
|
|
305
|
|
|
198
|
|
|
434
|
|
|
593
|
|
|
51
|
%
|
Xbox 360, PLAYSTATION 3
|
|
707
|
|
|
246
|
|
|
275
|
|
|
371
|
|
|
412
|
|
|
(42
|
%)
|
Other consoles
|
|
10
|
|
|
4
|
|
|
3
|
|
|
5
|
|
|
9
|
|
|
(10
|
%)
|
Total consoles
|
|
1,109
|
|
|
555
|
|
|
476
|
|
|
810
|
|
|
1,014
|
|
|
(9
|
%)
|
PC / Browser
|
|
296
|
|
|
207
|
|
|
164
|
|
|
264
|
|
|
231
|
|
|
(22
|
%)
|
Mobile
|
|
124
|
|
|
122
|
|
|
120
|
|
|
117
|
|
|
139
|
|
|
12
|
%
|
Other
|
|
43
|
|
|
30
|
|
|
15
|
|
|
29
|
|
|
44
|
|
|
2
|
%
|
Total Non-GAAP net revenue
|
|
1,572
|
|
|
914
|
|
|
775
|
|
|
1,220
|
|
|
1,428
|
|
|
(9
|
%)
|
Xbox One, PLAYSTATION 4
|
|
2
|
%
|
|
16
|
%
|
|
24
|
%
|
|
32
|
%
|
|
38
|
%
|
|
|
|
Xbox 360, PLAYSTATION 3
|
|
53
|
%
|
|
50
|
%
|
|
45
|
%
|
|
31
|
%
|
|
27
|
%
|
|
|
|
Other consoles
|
|
1
|
%
|
|
-
|
|
|
-
|
|
|
1
|
%
|
|
1
|
%
|
|
|
|
Total consoles
|
|
56
|
%
|
|
66
|
%
|
|
69
|
%
|
|
64
|
%
|
|
66
|
%
|
|
|
|
PC / Browser
|
|
26
|
%
|
|
21
|
%
|
|
19
|
%
|
|
21
|
%
|
|
19
|
%
|
|
|
|
Mobile
|
|
12
|
%
|
|
10
|
%
|
|
10
|
%
|
|
12
|
%
|
|
11
|
%
|
|
|
|
Other
|
|
6
|
%
|
|
3
|
%
|
|
2
|
%
|
|
3
|
%
|
|
4
|
%
|
|
|
|
Total GAAP net revenue %
|
|
100
|
%
|
|
100
|
%
|
|
100
|
%
|
|
100
|
%
|
|
100
|
%
|
|
|
|
Xbox One, PLAYSTATION 4
|
|
25
|
%
|
|
34
|
%
|
|
26
|
%
|
|
36
|
%
|
|
41
|
%
|
|
|
|
Xbox 360, PLAYSTATION 3
|
|
45
|
%
|
|
27
|
%
|
|
35
|
%
|
|
30
|
%
|
|
29
|
%
|
|
|
|
Other consoles
|
|
1
|
%
|
|
-
|
|
|
-
|
|
|
-
|
|
|
1
|
%
|
|
|
|
Total consoles
|
|
71
|
%
|
|
61
|
%
|
|
61
|
%
|
|
66
|
%
|
|
71
|
%
|
|
|
|
PC / Browser
|
|
19
|
%
|
|
23
|
%
|
|
21
|
%
|
|
22
|
%
|
|
16
|
%
|
|
|
|
Mobile
|
|
8
|
%
|
|
13
|
%
|
|
15
|
%
|
|
10
|
%
|
|
10
|
%
|
|
|
|
Other
|
|
2
|
%
|
|
3
|
%
|
|
3
|
%
|
|
2
|
%
|
|
3
|
%
|
|
|
|
Total Non-GAAP net revenue %
|
|
100
|
%
|
|
100
|
%
|
|
100
|
%
|
|
100
|
%
|
|
100
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ELECTRONIC ARTS INC. AND SUBSIDIARIES
|
Unaudited Supplemental Financial Information and Business Metrics
|
(in millions, except per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Q3
|
|
Q4
|
|
Q1
|
|
Q2
|
|
Q3
|
|
YOY %
|
|
|
FY14
|
|
FY14
|
|
FY15
|
|
FY15
|
|
FY15
|
|
Change
|
CASH FLOW DATA
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating cash flow
|
|
685
|
|
|
281
|
|
|
4
|
|
|
183
|
|
|
682
|
|
|
-
|
|
Operating cash flow - TTM
|
|
664
|
|
|
712
|
|
|
964
|
|
|
1,153
|
|
|
1,150
|
|
|
73
|
%
|
Capital expenditures
|
|
28
|
|
|
16
|
|
|
27
|
|
|
21
|
|
|
15
|
|
|
(46
|
%)
|
Capital expenditures - TTM
|
|
106
|
|
|
97
|
|
|
95
|
|
|
92
|
|
|
79
|
|
|
(25
|
%)
|
BALANCE SHEET DATA
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
1,746
|
|
|
1,782
|
|
|
1,554
|
|
|
1,624
|
|
|
2,166
|
|
|
24
|
%
|
Short-term investments
|
|
324
|
|
|
583
|
|
|
762
|
|
|
764
|
|
|
774
|
|
|
139
|
%
|
Cash and cash equivalents, and short-term investments
|
|
2,070
|
|
|
2,365
|
|
|
2,316
|
|
|
2,388
|
|
|
2,940
|
|
|
42
|
%
|
Receivables, net
|
|
526
|
|
|
327
|
|
|
219
|
|
|
829
|
|
|
488
|
|
|
(7
|
%)
|
Inventories
|
|
55
|
|
|
56
|
|
|
37
|
|
|
67
|
|
|
39
|
|
|
(29
|
%)
|
Deferred net revenue (online-enabled games)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
End of the quarter
|
|
1,699
|
|
|
1,490
|
|
|
1,051
|
|
|
1,281
|
|
|
1,583
|
|
|
(7
|
%)
|
Less: Beginning of the quarter
|
|
935
|
|
|
1,699
|
|
|
1,490
|
|
|
1,051
|
|
|
1,281
|
|
|
|
|
Change in deferred net revenue (online-enabled games)
|
|
764
|
|
|
(209
|
)
|
|
(439
|
)
|
|
230
|
|
|
302
|
|
|
|
|
STOCK-BASED COMPENSATION
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of revenue
|
|
-
|
|
|
1
|
|
|
-
|
|
|
1
|
|
|
1
|
|
|
|
|
Research and development
|
|
25
|
|
|
22
|
|
|
16
|
|
|
23
|
|
|
22
|
|
|
|
|
Marketing and sales
|
|
7
|
|
|
6
|
|
|
4
|
|
|
6
|
|
|
6
|
|
|
|
|
General and administrative
|
|
8
|
|
|
10
|
|
|
9
|
|
|
10
|
|
|
10
|
|
|
|
|
Total stock-based compensation
|
|
40
|
|
|
39
|
|
|
29
|
|
|
40
|
|
|
39
|
|
|
|
|
[ Back To TMCnet.com's Homepage ]
|