Delaware | 0-17948 | 94-2838567 |
(State or Other Jurisdiction of Incorporation) | (Commission File Number) | (IRS Employer Identification No.) |
o | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
o | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
o | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
o | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Exhibit No. | Description | |
99.1 | Press release dated October 29, 2015, relating to Electronic Arts Inc.’s financial results for the fiscal quarter ended September 30, 2015. |
ELECTRONIC ARTS INC. | |||
Dated: | October 29, 2015 | By: | /s/ Blake Jorgensen |
Blake Jorgensen | |||
Executive Vice President, Chief Financial Officer |
Exhibit No. | Description | |
99.1 | Press release dated October 29, 2015, relating to Electronic Arts Inc.’s financial results for the fiscal quarter ended September 30, 2015. |
ELECTRONIC ARTS REPORTS Q2 FY16 | |||||||
FINANCIAL RESULTS |
• | EA is the #1 publisher on PlayStation®4 and Xbox One consoles in the Western World calendar year to date and for Q2 FY16, led by the strength of the EA SPORTS™ FIFA and Madden NFL franchises. |
• | Across our annual EA SPORTS franchises that launched new titles in Q2 - Madden NFL 16, NHL 16 and FIFA 16 - monthly average players increased 30% year-over-year. |
• | Star Wars™: The Old Republic™ subscribers increased 33% since the announcement of the latest expansion at E3, Knights of the Fallen Empire. |
• | EA’s live services for Battlefield™ Hardline and Battlefield 4™ continue to engage players with more than 6 million monthly average players across the two experiences. |
• | Game sessions for Madden NFL Mobile are up more than 300% over last year. |
• | Over 9.5 million players joined the Star Wars™ Battlefront™ open beta, the largest beta in EA’s history. The game will launch worldwide starting November 17, 2015. |
• | For the quarter, non-GAAP net revenue of $1.146 billion was above guidance of $1.075 billion. Diluted non-GAAP EPS of $0.65 was above guidance of $0.40. |
• | Non-GAAP net revenue for EA’s FIFA, Madden NFL and Hockey Ultimate Team™ live services continue to perform well, collectively up 64% year-over-year. |
• | EA repurchased 1.8 million shares in Q2 for $126 million. |
• | On a trailing twelve month basis, EA had non-GAAP net revenue of $4.163 billion (of which a record $2.307 billion was digital), non-GAAP net income of $774 million and operating cash flow of $818 million. |
• | EA increased fiscal 2016 non-GAAP net revenue guidance by $50 million to $4.500 billion, diluted non-GAAP EPS guidance by $0.15 to $3.00 per share and operating cash flow by $50 million to $1.200 billion. |
(in millions of $, except per share amounts) | Quarter Ended 9/30/15 | Quarter Ended 9/30/14 | ||||
GAAP Digital Net Revenue | $ | 502 | $ | 508 | ||
GAAP Packaged Goods and Other Net Revenue | 313 | 482 | ||||
GAAP Total Net Revenue | $ | 815 | $ | 990 | ||
Non-GAAP Digital Net Revenue | $ | 480 | $ | 453 | ||
Non-GAAP Packaged Goods and Other Net Revenue | 666 | 767 | ||||
Non-GAAP Total Net Revenue | $ | 1,146 | $ | 1,220 | ||
GAAP Net Income (Loss) | $ | (140 | ) | $ | 3 | |
Non-GAAP Net Income | 212 | 232 | ||||
GAAP Diluted Earnings (Loss) Per Share | (0.45 | ) | 0.01 | |||
Non-GAAP Diluted Earnings Per Share | 0.65 | 0.73 | ||||
Operating Cash Flow | $ | 9 | $ | 183 |
(in millions of $) | TTM Ended 9/30/15 | TTM Ended 9/30/14 | ||||
GAAP Net Revenue | $ | 4,329 | $ | 4,135 | ||
GAAP Net Income | 839 | 397 | ||||
Non-GAAP Net Revenue | 4,163 | 4,481 | ||||
Non-GAAP Net Income | 774 | 843 | ||||
Operating Cash Flow | $ | 818 | $ | 1,153 |
• | GAAP net revenue is expected to be approximately $4.400 billion. |
• | Non-GAAP net revenue is expected to be approximately $4.500 billion. |
• | GAAP diluted earnings per share is expected to be approximately $2.32. |
• | Non-GAAP diluted earnings per share is expected to be approximately $3.00. |
• | The Company estimates a share count of 334 million for purposes of calculating fiscal year 2016 GAAP diluted earnings per share and 327 million for purposes of calculating fiscal year 2016 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: |
Acquisition-related expenses | $ | 56 | |
Amortization of debt discount and loss on conversion | 26 | ||
Change in deferred net revenue (online-enabled games) | 100 | ||
Stock-based compensation | 180 | ||
Income tax adjustments | (157 | ) | |
Expected Impact on Non-GAAP Net Income (net) | $ | 205 |
• | GAAP net revenue is expected to be approximately $1.075 billion. |
• | Non-GAAP net revenue is expected to be approximately $1.775 billion. |
• | GAAP diluted loss per share is expected to be approximately ($0.17). |
• | Non-GAAP diluted earnings per share is expected to be approximately $1.75. |
• | The Company estimates a share count of 312 million for purposes of calculating third quarter fiscal year 2016 GAAP diluted loss per share, and 327 million for non-GAAP diluted earnings per share. Non-GAAP shares used for computing diluted earnings per share includes potentially dilutive equity instruments and 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 loss: |
Acquisition-related expenses | $ | 14 | |
Amortization of debt discount and loss on conversion | 6 | ||
Change in deferred net revenue (online-enabled games) | 700 | ||
Stock-based compensation | 45 | ||
Income tax adjustments | (141 | ) | |
Expected Impact on Non-GAAP Net Income (net) | $ | 624 |
• | Acquisition-related expenses |
• | Amortization of debt discount and loss on conversion of notes |
• | Change in deferred net revenue (online-enabled games) |
• | College football settlement expenses |
• | Income tax adjustments |
• | Loss on licensed intellectual property commitment (COGS) |
• | Restructuring and other |
• | Shares from Convertible Bond Hedge |
• | Stock-based compensation |
Chris Evenden | John Reseburg |
Vice President, Investor Relations | Vice President, Corporate Communications |
650-628-0255 | 650-628-3601 |
cevenden@ea.com | jreseburg@ea.com |
ELECTRONIC ARTS INC. AND SUBSIDIARIES | |||||||||||||||
Unaudited Condensed Consolidated Statement of Operations | |||||||||||||||
(in millions, except share per data) | |||||||||||||||
Three Months Ended September 30, | Six Months Ended September 30, | ||||||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||||
Net revenue | |||||||||||||||
Product | $ | 434 | $ | 536 | $ | 1,177 | $ | 1,293 | |||||||
Service and other | 381 | 454 | 841 | 911 | |||||||||||
Total net revenue | 815 | 990 | 2,018 | 2,204 | |||||||||||
Cost of revenue | |||||||||||||||
Product | 335 | 347 | 429 | 599 | |||||||||||
Service and other | 74 | 80 | 153 | 195 | |||||||||||
Total cost of revenue | 409 | 427 | 582 | 794 | |||||||||||
Gross profit | 406 | 563 | 1,436 | 1,410 | |||||||||||
Operating expenses: | |||||||||||||||
Research and development | 265 | 261 | 561 | 526 | |||||||||||
Marketing and sales | 156 | 183 | 279 | 313 | |||||||||||
General and administrative | 101 | 92 | 199 | 180 | |||||||||||
Acquisition-related contingent consideration | — | (1 | ) | — | (2 | ) | |||||||||
Amortization of intangibles | 3 | 4 | 4 | 7 | |||||||||||
Total operating expenses | 525 | 539 | 1,043 | 1,024 | |||||||||||
Operating income (loss) | (119 | ) | 24 | 393 | 386 | ||||||||||
Interest and other expense, net | (9 | ) | (6 | ) | (12 | ) | (14 | ) | |||||||
Income (loss) before provision for income taxes | (128 | ) | 18 | 381 | 372 | ||||||||||
Provision for income taxes | 12 | 15 | 79 | 34 | |||||||||||
Net income (loss) | $ | (140 | ) | $ | 3 | $ | 302 | $ | 338 | ||||||
Earnings (loss) per share | |||||||||||||||
Basic | $ | (0.45 | ) | $ | 0.01 | $ | 0.97 | $ | 1.08 | ||||||
Diluted | $ | (0.45 | ) | $ | 0.01 | $ | 0.90 | $ | 1.05 | ||||||
Number of shares used in computation | |||||||||||||||
Basic | 312 | 313 | 311 | 312 | |||||||||||
Diluted | 312 | 322 | 334 | 322 |
Three Months Ended September 30, | Six Months Ended September 30, | ||||||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||||
Net revenue | |||||||||||||||
GAAP net revenue | $ | 815 | $ | 990 | $ | 2,018 | $ | 2,204 | |||||||
Change in deferred net revenue (online-enabled games) | 331 | 230 | (179 | ) | (209 | ) | |||||||||
Non-GAAP net revenue | $ | 1,146 | $ | 1,220 | $ | 1,839 | $ | 1,995 | |||||||
Gross profit | |||||||||||||||
GAAP gross profit | $ | 406 | $ | 563 | $ | 1,436 | $ | 1,410 | |||||||
Acquisition-related expenses | 11 | 12 | 23 | 26 | |||||||||||
Change in deferred net revenue (online-enabled games) | 331 | 230 | (179 | ) | (209 | ) | |||||||||
Loss on licensed intellectual property commitment (COGS) | — | — | — | 122 | |||||||||||
Stock-based compensation | 1 | 1 | 1 | 1 | |||||||||||
Non-GAAP gross profit | $ | 749 | $ | 806 | $ | 1,281 | $ | 1,350 | |||||||
Operating income | |||||||||||||||
GAAP operating income (loss) | $ | (119 | ) | $ | 24 | $ | 393 | $ | 386 | ||||||
Acquisition-related expenses | 14 | 15 | 27 | 31 | |||||||||||
Change in deferred net revenue (online-enabled games) | 331 | 230 | (179 | ) | (209 | ) | |||||||||
Loss on licensed intellectual property commitment (COGS) | — | — | — | 122 | |||||||||||
College football settlement expenses | — | — | — | (5 | ) | ||||||||||
Stock-based compensation | 44 | 40 | 89 | 69 | |||||||||||
Non-GAAP operating income | $ | 270 | $ | 309 | $ | 330 | $ | 394 | |||||||
Net Income | |||||||||||||||
GAAP net income (loss) | $ | (140 | ) | $ | 3 | $ | 302 | $ | 338 | ||||||
Acquisition-related expenses | 14 | 15 | 27 | 31 | |||||||||||
Amortization of debt discount and loss on conversion of notes | 11 | 6 | 17 | 11 | |||||||||||
Change in deferred net revenue (online-enabled games) | 331 | 230 | (179 | ) | (209 | ) | |||||||||
Loss on licensed intellectual property commitment (COGS) | — | — | — | 122 | |||||||||||
College football settlement expenses | — | — | — | (5 | ) | ||||||||||
Stock-based compensation | 44 | 40 | 89 | 69 | |||||||||||
Income tax adjustments | (48 | ) | (62 | ) | 5 | (64 | ) | ||||||||
Non-GAAP net income | $ | 212 | $ | 232 | $ | 261 | $ | 293 | |||||||
Non-GAAP earnings per share | |||||||||||||||
Basic | $ | 0.68 | $ | 0.74 | $ | 0.84 | $ | 0.94 | |||||||
Diluted | $ | 0.65 | $ | 0.73 | $ | 0.80 | $ | 0.92 | |||||||
Number of shares | |||||||||||||||
GAAP & Non-GAAP Basic | 312 | 313 | 311 | 312 | |||||||||||
GAAP Diluted | 312 | 322 | 334 | 322 | |||||||||||
Anti-dilutive shares excluded for GAAP loss position1 | 21 | — | — | — | |||||||||||
Shares from convertible bond hedge | (7 | ) | (3 | ) | (9 | ) | (2 | ) | |||||||
Non-GAAP Diluted | 326 | 319 | 325 | 320 |
ELECTRONIC ARTS INC. AND SUBSIDIARIES | |||||||
Unaudited Condensed Consolidated Balance Sheets | |||||||
(in millions) | |||||||
September 30, 2015 | March 31, 2015 2 | ||||||
ASSETS | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 1,598 | $ | 2,068 | |||
Short-term investments | 990 | 953 | |||||
Receivables, net of allowances of $116 and $140, respectively | 737 | 362 | |||||
Inventories | 62 | 36 | |||||
Deferred income taxes, net | 46 | 54 | |||||
Other current assets | 213 | 247 | |||||
Total current assets | 3,646 | 3,720 | |||||
Property and equipment, net | 430 | 459 | |||||
Goodwill | 1,709 | 1,713 | |||||
Acquisition-related intangibles, net | 84 | 111 | |||||
Deferred income taxes, net | 14 | 13 | |||||
Other assets | 117 | 131 | |||||
TOTAL ASSETS | $ | 6,000 | $ | 6,147 | |||
LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||
Current liabilities: | |||||||
Accounts payable | $ | 188 | $ | 68 | |||
Accrued and other current liabilities | 802 | 794 | |||||
Deferred net revenue (online-enabled games) | 1,113 | 1,283 | |||||
0.75% convertible senior notes due 2016, net | 422 | 602 | |||||
Total current liabilities | 2,525 | 2,747 | |||||
Income tax obligations | 66 | 70 | |||||
Deferred income taxes, net | 75 | 80 | |||||
Other liabilities | 175 | 183 | |||||
Total liabilities | 2,841 | 3,080 | |||||
0.75% convertible senior notes due 2016 | 13 | 31 | |||||
Common stock | 3 | 3 | |||||
Additional paid-in capital | 1,981 | 2,127 | |||||
Retained earnings | 1,206 | 904 | |||||
Accumulated other comprehensive income (loss) | (44 | ) | 2 | ||||
Total stockholders’ equity | 3,146 | 3,036 | |||||
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ | 6,000 | $ | 6,147 |
ELECTRONIC ARTS INC. AND SUBSIDIARIES | |||||||||||||||
Unaudited Condensed Consolidated Statements of Cash Flows | |||||||||||||||
(in millions) | |||||||||||||||
Three Months Ended September 30, | Six Months Ended September 30, | ||||||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||||
OPERATING ACTIVITIES | |||||||||||||||
Net income (loss) | $ | (140 | ) | $ | 3 | $ | 302 | $ | 338 | ||||||
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | |||||||||||||||
Depreciation, amortization and accretion | 50 | 56 | 99 | 112 | |||||||||||
Stock-based compensation | 44 | 40 | 89 | 69 | |||||||||||
Acquisition-related contingent consideration | — | (1 | ) | — | (2 | ) | |||||||||
Loss on extinguishment of senior notes | 6 | — | 6 | — | |||||||||||
Change in assets and liabilities: | |||||||||||||||
Receivables, net | (598 | ) | (618 | ) | (379 | ) | (508 | ) | |||||||
Inventories | (29 | ) | (30 | ) | (26 | ) | (11 | ) | |||||||
Other assets | 13 | 117 | 39 | 138 | |||||||||||
Accounts payable | 142 | 126 | 126 | 83 | |||||||||||
Accrued and other liabilities | 182 | 257 | (149 | ) | 173 | ||||||||||
Deferred income taxes, net | 1 | 3 | 1 | 4 | |||||||||||
Deferred net revenue (online-enabled games) | 338 | 230 | (170 | ) | (209 | ) | |||||||||
Net cash provided by (used in) operating activities | 9 | 183 | (62 | ) | 187 | ||||||||||
INVESTING ACTIVITIES | |||||||||||||||
Capital expenditures | (18 | ) | (21 | ) | (42 | ) | (48 | ) | |||||||
Proceeds from maturities and sales of short-term investments | 264 | 197 | 513 | 352 | |||||||||||
Purchase of short-term investments | (186 | ) | (202 | ) | (551 | ) | (537 | ) | |||||||
Net cash provided by (used in) investing activities | 60 | (26 | ) | (80 | ) | (233 | ) | ||||||||
FINANCING ACTIVITIES | |||||||||||||||
Payment of senior notes | (198 | ) | — | (198 | ) | — | |||||||||
Proceeds from issuance of common stock | 39 | 21 | 84 | 26 | |||||||||||
Excess tax benefit from stock-based compensation | 25 | 2 | 65 | 14 | |||||||||||
Repurchase and retirement of common stock | (126 | ) | (95 | ) | (258 | ) | (145 | ) | |||||||
Net cash (used in) financing activities | (260 | ) | (72 | ) | (307 | ) | (105 | ) | |||||||
Effect of foreign exchange on cash and cash equivalents | (21 | ) | (15 | ) | (21 | ) | (7 | ) | |||||||
Increase (Decrease) in cash and cash equivalents | (212 | ) | 70 | (470 | ) | (158 | ) | ||||||||
Beginning cash and cash equivalents | 1,810 | 1,554 | 2,068 | 1,782 | |||||||||||
Ending cash and cash equivalents | $ | 1,598 | $ | 1,624 | $ | 1,598 | $ | 1,624 |
ELECTRONIC ARTS INC. AND SUBSIDIARIES | |||||||||||||||||
Unaudited Supplemental Financial Information and Business Metrics | |||||||||||||||||
(in millions, except per share data) | |||||||||||||||||
Q2 | Q3 | Q4 | Q1 | Q2 | YOY % | ||||||||||||
FY15 | FY15 | FY15 | FY16 | FY16 | Change | ||||||||||||
QUARTERLY RECONCILIATION OF RESULTS | |||||||||||||||||
Net revenue | |||||||||||||||||
GAAP net revenue | 990 | 1,126 | 1,185 | 1,203 | 815 | (18 | %) | ||||||||||
Change in deferred net revenue (online-enabled games) | 230 | 302 | (289 | ) | (510 | ) | 331 | ||||||||||
Non-GAAP net revenue | 1,220 | 1,428 | 896 | 693 | 1,146 | (6 | %) | ||||||||||
Gross profit | |||||||||||||||||
GAAP gross profit | 563 | 725 | 951 | 1,030 | 406 | (28 | %) | ||||||||||
Acquisition-related expenses | 12 | 12 | 14 | 12 | 11 | ||||||||||||
Change in deferred net revenue (online-enabled games) | 230 | 302 | (289 | ) | (510 | ) | 331 | ||||||||||
Stock-based compensation | 1 | 1 | — | — | 1 | ||||||||||||
Non-GAAP gross profit | 806 | 1,040 | 676 | 532 | 749 | (7 | %) | ||||||||||
GAAP gross profit % (as a % of GAAP net revenue) | 57 | % | 64 | % | 80 | % | 86 | % | 50 | % | |||||||
Non-GAAP gross profit % (as a % of non-GAAP net revenue) | 66 | % | 73 | % | 75 | % | 77 | % | 65 | % | |||||||
Operating income | |||||||||||||||||
GAAP operating income (loss) | 24 | 162 | 400 | 512 | (119 | ) | (596 | %) | |||||||||
Acquisition-related expenses | 15 | 16 | 16 | 13 | 14 | ||||||||||||
Change in deferred net revenue (online-enabled games) | 230 | 302 | (289 | ) | (510 | ) | 331 | ||||||||||
Stock-based compensation | 40 | 39 | 36 | 45 | 44 | ||||||||||||
Non-GAAP operating income | 309 | 519 | 163 | 60 | 270 | (13 | %) | ||||||||||
GAAP operating income (loss) % (as a % of GAAP net revenue) | 2 | % | 14 | % | 34 | % | 43 | % | (15 | %) | |||||||
Non-GAAP operating income % (as a % of non-GAAP net revenue) | 25 | % | 36 | % | 18 | % | 9 | % | 24 | % | |||||||
Net income | |||||||||||||||||
GAAP net income (loss) | 3 | 142 | 395 | 442 | (140 | ) | (4,767 | %) | |||||||||
Acquisition-related expenses | 15 | 16 | 16 | 13 | 14 | ||||||||||||
Amortization of debt discount and loss on conversion of notes | 6 | 5 | 6 | 6 | 11 | ||||||||||||
Change in deferred net revenue (online-enabled games) | 230 | 302 | (289 | ) | (510 | ) | 331 | ||||||||||
Stock-based compensation | 40 | 39 | 36 | 45 | 44 | ||||||||||||
Income tax adjustments | (62 | ) | (116 | ) | (39 | ) | 53 | (48 | ) | ||||||||
Non-GAAP net income | 232 | 388 | 125 | 49 | 212 | (9 | %) | ||||||||||
GAAP net income (loss) % (as a % of GAAP net revenue) | — | 13 | % | 33 | % | 37 | % | (17 | %) | ||||||||
Non-GAAP net income % (as a % of non-GAAP net revenue) | 19 | % | 27 | % | 14 | % | 7 | % | 18 | % | |||||||
Diluted earnings (loss) per share | |||||||||||||||||
GAAP earnings (loss) per share | 0.01 | 0.44 | 1.19 | 1.32 | (0.45 | ) | (4,600 | %) | |||||||||
Non-GAAP earnings per share | 0.73 | 1.22 | 0.39 | 0.15 | 0.65 | (11 | %) | ||||||||||
Number of diluted shares used in computation | |||||||||||||||||
GAAP | 322 | 323 | 332 | 335 | 312 | ||||||||||||
Non-GAAP | 319 | 319 | 324 | 325 | 326 |
ELECTRONIC ARTS INC. AND SUBSIDIARIES | ||||||||||||||||||
Unaudited Supplemental Financial Information and Business Metrics | ||||||||||||||||||
(in millions, except per share data) | ||||||||||||||||||
Q2 | Q3 | Q4 | Q1 | Q2 | YOY % | |||||||||||||
FY15 | FY15 | FY15 | FY16 | FY16 | Change | |||||||||||||
QUARTERLY NET REVENUE PRESENTATIONS - GAAP AND NON-GAAP | ||||||||||||||||||
Geography net revenue | ||||||||||||||||||
North America | 433 | 473 | 528 | 506 | 381 | (12 | %) | |||||||||||
International | 557 | 653 | 657 | 697 | 434 | (22 | %) | |||||||||||
Total GAAP net revenue | 990 | 1,126 | 1,185 | 1,203 | 815 | (18 | %) | |||||||||||
North America | 51 | 152 | (125 | ) | (215 | ) | 91 | |||||||||||
International | 179 | 150 | (164 | ) | (295 | ) | 240 | |||||||||||
Change in deferred net revenue (online-enabled games) | 230 | 302 | (289 | ) | (510 | ) | 331 | |||||||||||
North America | 484 | 625 | 403 | 291 | 472 | (2 | %) | |||||||||||
International | 736 | 803 | 493 | 402 | 674 | (8 | %) | |||||||||||
Total Non-GAAP net revenue | 1,220 | 1,428 | 896 | 693 | 1,146 | (6 | %) | |||||||||||
North America | 44 | % | 42 | % | 45 | % | 42 | % | 47 | % | ||||||||
International | 56 | % | 58 | % | 55 | % | 58 | % | 53 | % | ||||||||
Total GAAP net revenue % | 100 | % | 100 | % | 100 | % | 100 | % | 100 | % | ||||||||
North America | 40 | % | 44 | % | 45 | % | 42 | % | 41 | % | ||||||||
International | 60 | % | 56 | % | 55 | % | 58 | % | 59 | % | ||||||||
Total Non-GAAP net revenue % | 100 | % | 100 | % | 100 | % | 100 | % | 100 | % | ||||||||
Net revenue composition | ||||||||||||||||||
Packaged goods and other | 482 | 585 | 571 | 580 | 313 | (35 | %) | |||||||||||
Full game downloads | 83 | 108 | 122 | 119 | 82 | |||||||||||||
Extra content | 212 | 210 | 265 | 291 | 213 | |||||||||||||
Subscriptions, advertising and other | 91 | 102 | 92 | 71 | 84 | |||||||||||||
Mobile | 122 | 121 | 135 | 142 | 123 | |||||||||||||
Total Digital | 508 | 541 | 614 | 623 | 502 | (1 | %) | |||||||||||
Total GAAP net revenue | 990 | 1,126 | 1,185 | 1,203 | 815 | (18 | %) | |||||||||||
Packaged goods and other | 285 | 150 | (277 | ) | (419 | ) | 353 | |||||||||||
Full game downloads | 11 | 32 | (8 | ) | (35 | ) | 7 | |||||||||||
Extra content | (59 | ) | 104 | (18 | ) | (36 | ) | (18 | ) | |||||||||
Subscriptions, advertising and other | — | (2 | ) | (1 | ) | — | (1 | ) | ||||||||||
Mobile | (7 | ) | 18 | 15 | (20 | ) | (10 | ) | ||||||||||
Total Digital | (55 | ) | 152 | (12 | ) | (91 | ) | (22 | ) | |||||||||
Change in deferred net revenue (online-enabled games) | 230 | 302 | (289 | ) | (510 | ) | 331 | |||||||||||
Packaged goods and other | 767 | 735 | 294 | 161 | 666 | (13 | %) | |||||||||||
Full game downloads | 94 | 140 | 114 | 84 | 89 | |||||||||||||
Extra content | 153 | 314 | 247 | 255 | 195 | |||||||||||||
Subscriptions, advertising and other | 91 | 100 | 91 | 71 | 83 | |||||||||||||
Mobile | 115 | 139 | 150 | 122 | 113 | |||||||||||||
Total Digital | 453 | 693 | 602 | 532 | 480 | 6 | % | |||||||||||
Total Non-GAAP net revenue | 1,220 | 1,428 | 896 | 693 | 1,146 | (6 | %) | |||||||||||
Packaged goods and other | 49 | % | 52 | % | 48 | % | 48 | % | 38 | % | ||||||||
Full game downloads | 8 | % | 9 | % | 10 | % | 10 | % | 10 | % | ||||||||
Extra content | 21 | % | 19 | % | 22 | % | 24 | % | 26 | % | ||||||||
Subscriptions, advertising and other | 9 | % | 9 | % | 8 | % | 6 | % | 11 | % |
Q2 | Q3 | Q4 | Q1 | Q2 | YOY % | |||||||||||||
FY15 | FY15 | FY15 | FY16 | FY16 | Change | |||||||||||||
Mobile | 13 | % | 11 | % | 12 | % | 12 | % | 15 | % | ||||||||
Total Digital | 51 | % | 48 | % | 52 | % | 52 | % | 62 | % | ||||||||
Total GAAP net revenue % | 100 | % | 100 | % | 100 | % | 100 | % | 100 | % | ||||||||
Packaged goods and other | 63 | % | 51 | % | 33 | % | 23 | % | 58 | % | ||||||||
Full game downloads | 8 | % | 10 | % | 13 | % | 12 | % | 8 | % | ||||||||
Extra content | 13 | % | 22 | % | 27 | % | 37 | % | 17 | % | ||||||||
Subscriptions, advertising and other | 7 | % | 7 | % | 10 | % | 10 | % | 7 | % | ||||||||
Mobile | 9 | % | 10 | % | 17 | % | 18 | % | 10 | % | ||||||||
Total Digital | 37 | % | 49 | % | 67 | % | 77 | % | 42 | % | ||||||||
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) | ||||||||||||||||||
Q2 | Q3 | Q4 | Q1 | Q2 | YOY % | |||||||||||||
FY15 | FY15 | FY15 | FY16 | FY16 | Change | |||||||||||||
QUARTERLY NET REVENUE PRESENTATIONS - GAAP AND NON-GAAP | ||||||||||||||||||
Platform net revenue | ||||||||||||||||||
Xbox One, PLAYSTATION 4 | 317 | 427 | 468 | 487 | 332 | 5 | % | |||||||||||
Xbox 360, PLAYSTATION 3 | 308 | 306 | 328 | 293 | 155 | (50 | %) | |||||||||||
Other consoles | 6 | 9 | 3 | 2 | 1 | (83 | %) | |||||||||||
Total consoles | 631 | 742 | 799 | 782 | 488 | (23 | %) | |||||||||||
PC / Browser | 208 | 218 | 221 | 253 | 184 | (12 | %) | |||||||||||
Mobile | 123 | 122 | 136 | 145 | 124 | 1 | % | |||||||||||
Other | 28 | 44 | 29 | 23 | 19 | (32 | %) | |||||||||||
Total GAAP net revenue | 990 | 1,126 | 1,185 | 1,203 | 815 | (18 | %) | |||||||||||
Xbox One, PLAYSTATION 4 | 117 | 166 | (92 | ) | (253 | ) | 310 | |||||||||||
Xbox 360, PLAYSTATION 3 | 63 | 106 | (164 | ) | (204 | ) | 55 | |||||||||||
Other consoles | (1 | ) | — | (1 | ) | — | 1 | |||||||||||
Total consoles | 179 | 272 | (257 | ) | (457 | ) | 366 | |||||||||||
PC / Browser | 56 | 13 | (49 | ) | (33 | ) | (19 | ) | ||||||||||
Mobile | (6 | ) | 17 | 16 | (19 | ) | (12 | ) | ||||||||||
Other | 1 | — | 1 | (1 | ) | (4 | ) | |||||||||||
Change in deferred net revenue (online-enabled games) | 230 | 302 | (289 | ) | (510 | ) | 331 | |||||||||||
Xbox One, PLAYSTATION 4 | 434 | 593 | 376 | 234 | 642 | 48 | % | |||||||||||
Xbox 360, PLAYSTATION 3 | 371 | 412 | 164 | 89 | 210 | (43 | %) | |||||||||||
Other consoles | 5 | 9 | 2 | 2 | 2 | (60 | %) | |||||||||||
Total consoles | 810 | 1,014 | 542 | 325 | 854 | 5 | % | |||||||||||
PC / Browser | 264 | 231 | 172 | 220 | 165 | (38 | %) | |||||||||||
Mobile | 117 | 139 | 152 | 126 | 112 | (4 | %) | |||||||||||
Other | 29 | 44 | 30 | 22 | 15 | (48 | %) | |||||||||||
Total Non-GAAP net revenue | 1,220 | 1,428 | 896 | 693 | 1,146 | (6 | %) | |||||||||||
Xbox One, PLAYSTATION 4 | 32 | % | 38 | % | 39 | % | 41 | % | 41 | % | ||||||||
Xbox 360, PLAYSTATION 3 | 31 | % | 27 | % | 28 | % | 24 | % | 19 | % | ||||||||
Other consoles | 1 | % | 1 | % | — | — | — | |||||||||||
Total consoles | 64 | % | 66 | % | 67 | % | 65 | % | 60 | % | ||||||||
PC / Browser | 21 | % | 19 | % | 19 | % | 21 | % | 23 | % | ||||||||
Mobile | 12 | % | 11 | % | 12 | % | 12 | % | 15 | % | ||||||||
Other | 3 | % | 4 | % | 2 | % | 2 | % | 2 | % | ||||||||
Total GAAP net revenue % | 100 | % | 100 | % | 100 | % | 100 | % | 100 | % | ||||||||
Xbox One, PLAYSTATION 4 | 36 | % | 41 | % | 42 | % | 34 | % | 56 | % | ||||||||
Xbox 360, PLAYSTATION 3 | 30 | % | 29 | % | 18 | % | 13 | % | 19 | % | ||||||||
Other consoles | — | 1 | % | — | — | — | ||||||||||||
Total consoles | 66 | % | 71 | % | 60 | % | 47 | % | 75 | % | ||||||||
PC / Browser | 22 | % | 16 | % | 19 | % | 32 | % | 14 | % | ||||||||
Mobile | 10 | % | 10 | % | 17 | % | 18 | % | 10 | % | ||||||||
Other | 2 | % | 3 | % | 4 | % | 3 | % | 1 | % | ||||||||
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) | |||||||||||||||||
Q2 | Q3 | Q4 | Q1 | Q2 | YOY % | ||||||||||||
FY15 | FY15 | FY15 | FY16 | FY16 | Change | ||||||||||||
CASH FLOW DATA | |||||||||||||||||
Operating cash flow | 183 | 682 | 198 | (71 | ) | 9 | (95 | %) | |||||||||
Operating cash flow - TTM | 1,153 | 1,150 | 1,067 | 992 | 818 | (29 | %) | ||||||||||
Capital expenditures | 21 | 15 | 32 | 24 | 18 | (14 | %) | ||||||||||
Capital expenditures - TTM | 92 | 79 | 95 | 92 | 89 | (3 | %) | ||||||||||
Repurchase and retirement of common stock | 95 | 97 | 95 | 132 | 126 | 33 | % | ||||||||||
BALANCE SHEET DATA | |||||||||||||||||
Cash and cash equivalents | 1,624 | 2,166 | 2,068 | 1,810 | 1,598 | (2 | %) | ||||||||||
Short-term investments | 764 | 774 | 953 | 1,069 | 990 | 30 | % | ||||||||||
Cash and cash equivalents, and short-term investments | 2,388 | 2,940 | 3,021 | 2,879 | 2,588 | 8 | % | ||||||||||
Receivables, net | 829 | 488 | 362 | 144 | 737 | (11 | %) | ||||||||||
Deferred net revenue (online-enabled games) | |||||||||||||||||
End of the quarter | 1,281 | 1,583 | 1,283 | 775 | 1,113 | (13 | %) | ||||||||||
Less: Beginning of the quarter | 1,051 | 1,281 | 1,583 | 1,283 | 775 | ||||||||||||
Change in deferred net revenue (online-enabled games)3 | 230 | 302 | (300 | ) | (508 | ) | 338 | ||||||||||
STOCK-BASED COMPENSATION | |||||||||||||||||
Cost of revenue | 1 | 1 | — | — | 1 | ||||||||||||
Research and development | 23 | 22 | 21 | 26 | 25 | ||||||||||||
Marketing and sales | 6 | 6 | 5 | 5 | 7 | ||||||||||||
General and administrative | 10 | 10 | 10 | 14 | 11 | ||||||||||||
Total stock-based compensation | 40 | 39 | 36 | 45 | 44 |