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 November 1, 2016, relating to Electronic Arts Inc.’s financial results for the fiscal quarter ended September 30, 2016. |
ELECTRONIC ARTS INC. | |||
Dated: | November 1, 2016 | By: | /s/ Blake Jorgensen |
Blake Jorgensen | |||
Executive Vice President, Chief Financial Officer |
Exhibit No. | Description | |
99.1 | Press release dated November 1, 2016, relating to Electronic Arts Inc.’s financial results for the fiscal quarter ended September 30, 2016. |
ELECTRONIC ARTS REPORTS Q2 FY17 | |||||||
FINANCIAL RESULTS |
• | Net sales* of $4.507 billion for the trailing twelve-month period are up 8% year-over-year. |
• | Battlefield™ 1 total player base for the first week was nearly double that of Battlefield 4™, and it continues to grow. |
• | In the first week of FIFA 17, 20% more players were engaged in the game compared to the first week of FIFA 16 last year and nearly 2/3 of all FIFA 17 players have engaged in “The Journey” story mode. |
• | Net sales from FIFA, Madden NFL and Hockey Ultimate Team™ are collectively up 15% for the trailing twelve months compared to last year. |
• | FIFA Mobile reached #1 on the App Store Free Games chart in 138 countries. |
• | Titanfall™ 2 has been rated 90 or above by more than 40 top outlets. |
• | For the quarter, net revenue was $898 million. Of the total net revenue 63%, or $566 million, was digital. Diluted loss per share of $(0.13) was above guidance of $(0.17). |
• | For the quarter, change in deferred net revenue was $200 million, of which $(80) million was digital. |
• | Net cash provided by operating activities for the quarter was $109 million. Trailing twelve month operating cash flow was $1.1 billion. |
• | EA repurchased 1.6 million shares in Q2 for $127 million. |
(in millions of $, except per share amounts) | Quarter Ended 9/30/16 | Quarter Ended 9/30/15 | ||||
Digital Net Revenue | $ | 566 | $ | 502 | ||
Packaged Goods and Other Net Revenue | 332 | 313 | ||||
Total Net Revenue | $ | 898 | $ | 815 | ||
Digital Change in Deferred Net Revenue | $ | (80 | ) | $ | (22 | ) |
Packaged Goods and Other Change in Deferred Net Revenue | 280 | 353 | ||||
Change in Deferred Net Revenue | $ | 200 | $ | 331 | ||
Net Loss | $ | (38 | ) | $ | (140 | ) |
Diluted Loss Per Share | $ | (0.13 | ) | $ | (0.45 | ) |
Operating Cash Flow | $ | 109 | $ | 9 |
Three Months Ended Sep 30, 2016 | |||||||||||
GAAP-Based Financial Data | |||||||||||
Statement of Operations | Acquisition-related expenses | Change in deferred net revenue (online-enabled games) | Stock-based compensation | ||||||||
Net revenue | 898 | - | 200 | - | |||||||
Cost of revenue | 401 | (12 | ) | - | (1 | ) | |||||
Gross profit | 497 | 12 | 200 | 1 | |||||||
Total operating expenses | 546 | (1 | ) | - | (47 | ) | |||||
Operating income (loss) | (49 | ) | 13 | 200 | 48 | ||||||
Interest and other income (expense), net | (3 | ) | - | - | - | ||||||
Income before provision for (benefit from) income taxes | (52 | ) | 13 | 200 | 48 | ||||||
Provision for (benefit from) income taxes | (14 | ) | - | - | - | ||||||
Net income (loss) | (38 | ) | 13 | 200 | 48 | ||||||
Loss per share | |||||||||||
Basic & Diluted | (0.13 | ) | |||||||||
Number of shares used in computation | |||||||||||
Basic & Diluted | 301 |
(in millions) | TTM Ended 9/30/16 | TTM Ended 9/30/15 | ||||
Digital Net Revenue | $ | 2,539 | $ | 2,280 | ||
Packaged Goods and Other Net Revenue | 2,008 | 2,049 | ||||
Total Net Revenue | $ | 4,547 | $ | 4,329 | ||
Digital Change in Deferred Net Revenue | $ | 34 | $ | 27 | ||
Packaged Goods and Other Change in Deferred Net Revenue | (74 | ) | (193 | ) | ||
Change in Deferred Net Revenue | $ | (40 | ) | $ | (166 | ) |
Net Income | $ | 1,256 | $ | 839 | ||
Operating Cash Flow | $ | 1,146 | $ | 818 | ||
Value of Shares Repurchased | $ | 1,016 | $ | 450 | ||
Number of Shares Repurchased | 15.2 | 8.3 |
• | Net revenue is expected to be approximately $4.775 billion. |
• | Change in deferred net revenue is expected to be approximately $150 million. |
• | Net income is expected to be approximately $848 million. |
• | Diluted earnings per share is expected to be approximately $2.69. |
• | Operating cash flow is expected to be approximately $1.3 billion. |
• | The Company estimates a share count of 315 million for purposes of calculating fiscal year 2017 diluted earnings per share. |
GAAP Guidance | Acquisition-related expenses | Amortization of debt discount and loss on conversion of notes | Change in deferred net revenue (online-enabled games) | Shares from convertible bond hedge | Stock-based compensation | ||||||||||||
Digital Net Revenue | $ | 2,800 | - | - | 100 | - | - | ||||||||||
Packaged Goods & Other Net Revenue | $ | 1,975 | - | - | 50 | - | - | ||||||||||
Total Net Revenue | $ | 4,775 | - | - | 150 | - | - | ||||||||||
Cost of Revenue | $ | 1,387 | (31 | ) | - | - | - | (2 | ) | ||||||||
Operating Expense | $ | 2,304 | (6 | ) | - | - | - | (198 | ) | ||||||||
Profit Before Tax | $ | 1,060 | 37 | 2 | 150 | - | 200 | ||||||||||
Diluted Shares | 315 | - | - | - | (1 | ) | - | ||||||||||
Note: in millions |
• | Net revenue is expected to be approximately $1.125 billion. |
• | Change in deferred net revenue is expected to be approximately $910 million. |
• | Net loss is expected to be approximately $(53) million. |
• | Loss per share is expected to be approximately $(0.17). |
• | The Company estimates a share count of 304 million for purposes of calculating third quarter fiscal 2017 loss per share. If EA reports a profit, the diluted share count is expected to be 315 million shares. |
GAAP Guidance | Acquisition-related expenses | Change in deferred net revenue (online-enabled games) | Stock-based compensation | |||||||||
Total Net Revenue | $ | 1,125 | - | 910 | - | |||||||
Cost of Revenue | $ | 532 | (3 | ) | - | - | ||||||
Operating Expense | $ | 652 | (2 | ) | - | (50 | ) | |||||
Profit/(Loss) Before Tax | $ | (66 | ) | 5 | 910 | 50 | ||||||
Basic Shares | 304 | |||||||||||
Note: in millions |
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, | ||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||
Net revenue | |||||||||||
Product | 420 | 434 | 1,104 | 1,177 | |||||||
Service and other | 478 | 381 | 1,065 | 841 | |||||||
Total net revenue | 898 | 815 | 2,169 | 2,018 | |||||||
Cost of revenue | |||||||||||
Product | 317 | 335 | 407 | 429 | |||||||
Service and other | 84 | 74 | 173 | 153 | |||||||
Total cost of revenue | 401 | 409 | 580 | 582 | |||||||
Gross profit | 497 | 406 | 1,589 | 1,436 | |||||||
Operating expenses: | |||||||||||
Research and development | 291 | 265 | 585 | 561 | |||||||
Marketing and sales | 143 | 156 | 271 | 279 | |||||||
General and administrative | 111 | 101 | 219 | 199 | |||||||
Amortization of intangibles | 1 | 3 | 3 | 4 | |||||||
Total operating expenses | 546 | 525 | 1,078 | 1,043 | |||||||
Operating income (loss) | (49 | ) | (119 | ) | 511 | 393 | |||||
Interest and other income (expense), net | (3 | ) | (9 | ) | (11 | ) | (12 | ) | |||
Income before provision for (benefit from) income taxes | (52 | ) | (128 | ) | 500 | 381 | |||||
Provision for (benefit from) income taxes | (14 | ) | 12 | 98 | 79 | ||||||
Net income (loss) | (38 | ) | (140 | ) | 402 | 302 | |||||
Earnings (loss) per share | |||||||||||
Basic | (0.13 | ) | (0.45 | ) | 1.34 | 0.97 | |||||
Diluted | (0.13 | ) | (0.45 | ) | 1.28 | 0.90 | |||||
Number of shares used in computation | |||||||||||
Basic | 301 | 312 | 301 | 311 | |||||||
Diluted | 301 | 312 | 315 | 334 |
Three Months Ended September 30, | |||||||||||
2016 | 2016 | 2015 | |||||||||
Guidance | Variance | Actuals | Actuals | ||||||||
Net revenue | |||||||||||
Net revenue | 915 | (17 | ) | 898 | 815 | ||||||
GAAP-based financial data | |||||||||||
Change in deferred net revenue (online-enabled games) | 160 | 40 | 200 | 331 | |||||||
Cost of revenue | |||||||||||
Cost of revenue | 405 | (4 | ) | 401 | 409 | ||||||
GAAP-based financial data | |||||||||||
Acquisition-related expenses | (13 | ) | 1 | (12 | ) | (11 | ) | ||||
Stock-based compensation | — | (1 | ) | (1 | ) | (1 | ) | ||||
Operating expenses | |||||||||||
Operating expenses | 566 | (20 | ) | 546 | 525 | ||||||
GAAP-based financial data | |||||||||||
Acquisition-related expenses | (1 | ) | — | (1 | ) | (3 | ) | ||||
Stock-based compensation | (50 | ) | 3 | (47 | ) | (43 | ) | ||||
Loss before tax | |||||||||||
Loss before tax | (65 | ) | 13 | (52 | ) | (128 | ) | ||||
GAAP-based financial data | |||||||||||
Acquisition-related expenses | 14 | (1 | ) | 13 | 14 | ||||||
Amortization of debt discount and loss on conversion of notes | — | — | — | 11 | |||||||
Change in deferred net revenue (online-enabled games) | 160 | 40 | 200 | 331 | |||||||
Stock-based compensation | 50 | (2 | ) | 48 | 44 | ||||||
Tax rate used for management reporting | 21 | % | 21 | % | 22 | % | |||||
Loss per share | |||||||||||
Basic | (0.17 | ) | 0.04 | (0.13 | ) | (0.45 | ) | ||||
Diluted1 | (0.17 | ) | 0.04 | (0.13 | ) | (0.45 | ) | ||||
Number of shares | |||||||||||
Basic | 302 | (1 | ) | 301 | 312 | ||||||
Diluted1 | 302 | (1 | ) | 301 | 312 |
Three Months Ended | Twelve Months Ended | ||||
Dec 31, 2016 | Mar 31, 2017 | ||||
Net revenue | |||||
Net revenue | 1,125 | 4,775 | |||
GAAP-based financial data | |||||
Change in deferred net revenue (online-enabled games) | 910 | 150 | |||
Cost of revenue | |||||
Cost of revenue | 532 | 1,387 | |||
GAAP-based financial data | |||||
Acquisition-related expenses | (3 | ) | (31 | ) | |
Stock-based compensation | — | (2 | ) | ||
Operating expenses | |||||
Operating expenses | 652 | 2,304 | |||
GAAP-based financial data | |||||
Acquisition-related expenses | (2 | ) | (6 | ) | |
Stock-based compensation | (50 | ) | (198 | ) | |
Income before tax | |||||
Income (loss) before tax | (66 | ) | 1,060 | ||
GAAP-based financial data | |||||
Acquisition-related expenses | 5 | 37 | |||
Amortization of debt discount and loss on conversion of notes | — | 2 | |||
Change in deferred net revenue (online-enabled games) | 910 | 150 | |||
Stock-based compensation | 50 | 200 | |||
Tax rate used for management reporting | 21 | % | 21 | % | |
Earnings (loss) per share | |||||
Basic | (0.17 | ) | 2.79 | ||
Diluted | (0.17 | ) | 2.69 | ||
Number of shares | |||||
Basic | 304 | 304 | |||
Diluted2 | 304 | 315 |
ELECTRONIC ARTS INC. AND SUBSIDIARIES | |||||
Unaudited Condensed Consolidated Balance Sheets | |||||
(in $ millions) | |||||
September 30, 2016 | March 31, 2016 3 | ||||
ASSETS | |||||
Current assets: | |||||
Cash and cash equivalents | 1,746 | 2,493 | |||
Short-term investments | 1,520 | 1,341 | |||
Receivables, net of allowances of $105 and $159, respectively | 723 | 233 | |||
Inventories | 50 | 33 | |||
Other current assets | 221 | 254 | |||
Total current assets | 4,260 | 4,354 | |||
Property and equipment, net | 431 | 439 | |||
Goodwill | 1,709 | 1,710 | |||
Acquisition-related intangibles, net | 28 | 57 | |||
Deferred income taxes, net | 366 | 387 | |||
Other assets | 98 | 103 | |||
TOTAL ASSETS | 6,892 | 7,050 | |||
LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||
Current liabilities: | |||||
Accounts payable | 206 | 89 | |||
Accrued and other current liabilities | 777 | 710 | |||
0.75% convertible senior notes due 2016, net | — | 161 | |||
Deferred net revenue (online-enabled games) | 1,067 | 1,458 | |||
Total current liabilities | 2,050 | 2,418 | |||
Senior notes, net | 990 | 989 | |||
Income tax obligations | 86 | 80 | |||
Deferred income taxes, net | 2 | 2 | |||
Other liabilities | 156 | 163 | |||
Total liabilities | 3,284 | 3,652 | |||
0.75% convertible senior notes due 2016 | — | 2 | |||
Common stock | 3 | 3 | |||
Additional paid-in capital | 1,153 | 1,349 | |||
Retained earnings | 2,462 | 2,060 | |||
Accumulated other comprehensive loss | (10 | ) | (16 | ) | |
Total stockholders’ equity | 3,608 | 3,396 | |||
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | 6,892 | 7,050 |
ELECTRONIC ARTS INC. AND SUBSIDIARIES | |||||||||||
Unaudited Condensed Consolidated Statements of Cash Flows | |||||||||||
(in $ millions) | |||||||||||
Three Months Ended September 30, | Six Months Ended September 30, | ||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||
OPERATING ACTIVITIES | |||||||||||
Net income (loss) | (38 | ) | (140 | ) | 402 | 302 | |||||
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | |||||||||||
Depreciation, amortization and accretion | 45 | 50 | 91 | 99 | |||||||
Stock-based compensation | 48 | 44 | 96 | 89 | |||||||
Loss on conversion of convertible notes | — | 6 | — | 6 | |||||||
Change in assets and liabilities: | |||||||||||
Receivables, net | (481 | ) | (598 | ) | (493 | ) | (379 | ) | |||
Inventories | (24 | ) | (29 | ) | (17 | ) | (26 | ) | |||
Other assets | 55 | 13 | 54 | 39 | |||||||
Accounts payable | 165 | 142 | 133 | 126 | |||||||
Accrued and other liabilities | 168 | 182 | (34 | ) | (149 | ) | |||||
Deferred income taxes, net | (23 | ) | 1 | 20 | 1 | ||||||
Deferred net revenue (online-enabled games) | 194 | 338 | (391 | ) | (170 | ) | |||||
Net cash provided by (used in) operating activities | 109 | 9 | (139 | ) | (62 | ) | |||||
INVESTING ACTIVITIES | |||||||||||
Capital expenditures | (29 | ) | (18 | ) | (69 | ) | (42 | ) | |||
Proceeds from maturities and sales of short-term investments | 368 | 264 | 644 | 513 | |||||||
Purchase of short-term investments | (507 | ) | (186 | ) | (824 | ) | (551 | ) | |||
Net cash provided by (used in) investing activities | (168 | ) | 60 | (249 | ) | (80 | ) | ||||
FINANCING ACTIVITIES | |||||||||||
Payment of convertible notes | (136 | ) | (198 | ) | (163 | ) | (198 | ) | |||
Proceeds from issuance of common stock | 27 | 39 | 31 | 84 | |||||||
Excess tax benefit from stock-based compensation | 4 | 25 | 37 | 65 | |||||||
Repurchase and retirement of common stock | (127 | ) | (126 | ) | (256 | ) | (258 | ) | |||
Net cash used in financing activities | (232 | ) | (260 | ) | (351 | ) | (307 | ) | |||
Effect of foreign exchange on cash and cash equivalents | (5 | ) | (21 | ) | (8 | ) | (21 | ) | |||
Decrease in cash and cash equivalents | (296 | ) | (212 | ) | (747 | ) | (470 | ) | |||
Beginning cash and cash equivalents | 2,042 | 1,810 | 2,493 | 2,068 | |||||||
Ending cash and cash equivalents | 1,746 | 1,598 | 1,746 | 1,598 |
ELECTRONIC ARTS INC. AND SUBSIDIARIES | |||||||||||||||||
Unaudited Supplemental Financial Information and Business Metrics | |||||||||||||||||
(in $ millions, except per share data) | |||||||||||||||||
Q2 | Q3 | Q4 | Q1 | Q2 | YOY % | ||||||||||||
FY16 | FY16 | FY16 | FY17 | FY17 | Change | ||||||||||||
Net revenue | |||||||||||||||||
Net revenue | 815 | 1,070 | 1,308 | 1,271 | 898 | 10 | % | ||||||||||
GAAP-based financial data | |||||||||||||||||
Change in deferred net revenue (online-enabled games) | 331 | 733 | (384) | (589) | 200 | ||||||||||||
Gross Profit | |||||||||||||||||
Gross profit | 406 | 524 | 1,082 | 1,092 | 497 | 22 | % | ||||||||||
GAAP-based financial data | |||||||||||||||||
Acquisition-related expenses | 11 | 12 | 12 | 13 | 12 | ||||||||||||
Change in deferred net revenue (online-enabled games) | 331 | 733 | (384 | ) | (589 | ) | 200 | ||||||||||
Stock-based compensation | 1 | — | 1 | 1 | 1 | ||||||||||||
Gross profit % (as a % of net revenue) | 50 | % | 49 | % | 83 | % | 86 | % | 55 | % | |||||||
Operating income | |||||||||||||||||
Operating income (loss) | (119 | ) | (31 | ) | 536 | 560 | (49 | ) | 59 | % | |||||||
GAAP-based financial data | |||||||||||||||||
Acquisition-related expenses | 14 | 14 | 13 | 15 | 13 | ||||||||||||
Change in deferred net revenue (online-enabled games) | 331 | 733 | (384 | ) | (589 | ) | 200 | ||||||||||
Stock-based compensation | 44 | 42 | 47 | 48 | 48 | ||||||||||||
Operating income (loss) % (as a % of net revenue) | (15 | %) | (3 | %) | 41 | % | 44 | % | (5 | %) | |||||||
Net income | |||||||||||||||||
Net income (loss) | (140 | ) | (45 | ) | 899 | 440 | (38 | ) | 73 | % | |||||||
GAAP-based financial data | |||||||||||||||||
Acquisition-related expenses | 14 | 14 | 13 | 15 | 13 | ||||||||||||
Amortization of debt discount and loss on conversion of notes | 11 | 5 | 5 | 2 | — | ||||||||||||
Change in deferred net revenue (online-enabled games) | 331 | 733 | (384 | ) | (589 | ) | 200 | ||||||||||
Stock-based compensation | 44 | 42 | 47 | 48 | 48 | ||||||||||||
Tax rate used for management reporting | 22 | % | 22 | % | 22 | % | 21 | % | 21 | % | |||||||
Net income (loss) % (as a % of net revenue) | (17 | %) | (4 | %) | 69 | % | 35 | % | (4 | %) | |||||||
Diluted earnings (loss) per share | |||||||||||||||||
Earnings (loss) per share | (0.45 | ) | (0.14 | ) | 2.79 | 1.40 | (0.13 | ) | 71 | % | |||||||
Number of diluted shares used in computation | |||||||||||||||||
Basic | 312 | 311 | 307 | 301 | 301 | ||||||||||||
Diluted | 312 | 311 | 322 | 315 | 301 | ||||||||||||
Anti-dilutive shares excluded for loss position1 | 21 | 20 | — | — | 13 | ||||||||||||
Shares from convertible bond hedge | (7 | ) | (6 | ) | (3 | ) | (2 | ) | — |
ELECTRONIC ARTS INC. AND SUBSIDIARIES | ||||||||||||||||||
Unaudited Supplemental Financial Information and Business Metrics | ||||||||||||||||||
(in $ millions, except per share data) | ||||||||||||||||||
Q2 | Q3 | Q4 | Q1 | Q2 | YOY % | |||||||||||||
FY16 | FY16 | FY16 | FY17 | FY17 | Change | |||||||||||||
QUARTERLY NET REVENUE PRESENTATIONS | ||||||||||||||||||
Net revenue by geography | ||||||||||||||||||
North America | 381 | 448 | 572 | 525 | 389 | 2 | % | |||||||||||
International | 434 | 622 | 736 | 746 | 509 | 17 | % | |||||||||||
Total net revenue | 815 | 1,070 | 1,308 | 1,271 | 898 | 10 | % | |||||||||||
North America | 91 | 403 | (147 | ) | (245 | ) | 58 | |||||||||||
International | 240 | 330 | (237 | ) | (344 | ) | 142 | |||||||||||
Change in deferred net revenue (online-enabled games) | 331 | 733 | (384 | ) | (589 | ) | 200 | |||||||||||
North America | 47 | % | 42 | % | 44 | % | 41 | % | 43 | % | ||||||||
International | 53 | % | 58 | % | 56 | % | 59 | % | 57 | % | ||||||||
Total net revenue % | 100 | % | 100 | % | 100 | % | 100 | % | 100 | % | ||||||||
Net revenue by composition | ||||||||||||||||||
Full game downloads | 82 | 112 | 152 | 137 | 94 | 15 | % | |||||||||||
Extra content | 213 | 241 | 317 | 300 | 240 | 13 | % | |||||||||||
Subscriptions, advertising and other | 84 | 89 | 94 | 87 | 83 | (1 | %) | |||||||||||
Mobile | 123 | 127 | 152 | 165 | 149 | 21 | % | |||||||||||
Total Digital | 502 | 569 | 715 | 689 | 566 | 13 | % | |||||||||||
Packaged goods and other | 313 | 501 | 593 | 582 | 332 | 6 | % | |||||||||||
Total net revenue | 815 | 1,070 | 1,308 | 1,271 | 898 | 10 | % | |||||||||||
Full game downloads | 7 | 83 | (18 | ) | (53 | ) | (1 | ) | ||||||||||
Extra content | (18 | ) | 119 | (7 | ) | (42 | ) | (68 | ) | |||||||||
Subscriptions, advertising and other | (1 | ) | 1 | 1 | (2 | ) | — | |||||||||||
Mobile | (10 | ) | 35 | 21 | (24 | ) | (11 | ) | ||||||||||
Total Digital | (22 | ) | 238 | (3 | ) | (121 | ) | (80 | ) | |||||||||
Packaged goods and other | 353 | 495 | (381 | ) | (468 | ) | 280 | |||||||||||
Change in deferred net revenue (online-enabled games) | 331 | 733 | (384 | ) | (589 | ) | 200 | |||||||||||
Full game downloads | 10 | % | 10 | % | 12 | % | 11 | % | 10 | % | ||||||||
Extra content | 26 | % | 23 | % | 24 | % | 23 | % | 27 | % | ||||||||
Subscriptions, advertising and other | 11 | % | 8 | % | 7 | % | 7 | % | 9 | % | ||||||||
Mobile | 15 | % | 12 | % | 12 | % | 13 | % | 17 | % | ||||||||
Total Digital | 62 | % | 53 | % | 55 | % | 54 | % | 63 | % | ||||||||
Packaged goods and other | 38 | % | 47 | % | 45 | % | 46 | % | 37 | % | ||||||||
Total 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 % | |||||||||||||
FY16 | FY16 | FY16 | FY17 | FY17 | Change | |||||||||||||
QUARTERLY NET REVENUE PRESENTATIONS | ||||||||||||||||||
Net revenue by platform | ||||||||||||||||||
Xbox One, PLAYSTATION 4 | 332 | 571 | 793 | 776 | 513 | 55 | % | |||||||||||
Xbox 360, PLAYSTATION 3 | 155 | 157 | 147 | 133 | 64 | (59 | %) | |||||||||||
Other consoles | 1 | 3 | 1 | 1 | 1 | — | ||||||||||||
Total consoles | 488 | 731 | 941 | 910 | 578 | 18 | % | |||||||||||
PC / Browser | 184 | 182 | 195 | 179 | 158 | (14 | %) | |||||||||||
Mobile | 124 | 128 | 151 | 165 | 149 | 20 | % | |||||||||||
Other | 19 | 29 | 21 | 17 | 13 | (32 | %) | |||||||||||
Total net revenue | 815 | 1,070 | 1,308 | 1,271 | 898 | 10 | % | |||||||||||
Xbox One, PLAYSTATION 4 | 310 | 626 | (287 | ) | (441 | ) | 177 | |||||||||||
Xbox 360, PLAYSTATION 3 | 55 | 16 | (93 | ) | (92 | ) | 43 | |||||||||||
Other consoles | 1 | (1 | ) | (1 | ) | — | — | |||||||||||
Total consoles | 366 | 641 | (381 | ) | (533 | ) | 220 | |||||||||||
PC / Browser | (19 | ) | 55 | (27 | ) | (30 | ) | (9 | ) | |||||||||
Mobile | (12 | ) | 35 | 23 | (24 | ) | (11 | ) | ||||||||||
Other | (4 | ) | 2 | 1 | (2 | ) | — | |||||||||||
Change in deferred net revenue (online-enabled games) | 331 | 733 | (384 | ) | (589 | ) | 200 | |||||||||||
Xbox One, PLAYSTATION 4 | 41 | % | 53 | % | 61 | % | 61 | % | 57 | % | ||||||||
Xbox 360, PLAYSTATION 3 | 19 | % | 15 | % | 11 | % | 11 | % | 7 | % | ||||||||
Other consoles | — | — | — | — | — | |||||||||||||
Total consoles | 60 | % | 68 | % | 72 | % | 72 | % | 64 | % | ||||||||
PC / Browser | 23 | % | 17 | % | 15 | % | 14 | % | 18 | % | ||||||||
Mobile | 15 | % | 12 | % | 11 | % | 13 | % | 17 | % | ||||||||
Other | 2 | % | 3 | % | 2 | % | 1 | % | 1 | % | ||||||||
Total 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 % | ||||||||||||
FY16 | FY16 | FY16 | FY17 | FY17 | Change | ||||||||||||
CASH FLOW DATA | |||||||||||||||||
Operating cash flow | 9 | 889 | 396 | (248 | ) | 109 | 1,111 | % | |||||||||
Operating cash flow - TTM | 818 | 1,025 | 1,223 | 1,046 | 1,146 | 40 | % | ||||||||||
Capital expenditures | 18 | 21 | 30 | 40 | 29 | 61 | % | ||||||||||
Capital expenditures - TTM | 89 | 95 | 93 | 109 | 120 | 35 | % | ||||||||||
Repurchase and retirement of common stock | 126 | 126 | 634 | 129 | 127 | 1 | % | ||||||||||
BALANCE SHEET DATA | |||||||||||||||||
Cash and cash equivalents | 1,598 | 2,263 | 2,493 | 2,042 | 1,746 | ||||||||||||
Short-term investments | 990 | 966 | 1,341 | 1,385 | 1,520 | ||||||||||||
Cash and cash equivalents, and short-term investments | 2,588 | 3,229 | 3,834 | 3,427 | 3,266 | 26 | % | ||||||||||
Receivables, net | 737 | 621 | 233 | 246 | 723 | (2 | %) | ||||||||||
Deferred net revenue (online-enabled games) | |||||||||||||||||
End of the quarter | 1,113 | 1,844 | 1,458 | 873 | 1,067 | (4 | %) | ||||||||||
Less: Beginning of the quarter | 775 | 1,113 | 1,844 | 1,458 | 873 | ||||||||||||
Change in deferred net revenue (online-enabled games)4 | 338 | 731 | (386 | ) | (585 | ) | 194 | ||||||||||
STOCK-BASED COMPENSATION | |||||||||||||||||
Cost of revenue | 1 | — | 1 | 1 | 1 | ||||||||||||
Research and development | 25 | 26 | 26 | 27 | 27 | ||||||||||||
Marketing and sales | 7 | 5 | 7 | 7 | 8 | ||||||||||||
General and administrative | 11 | 11 | 13 | 13 | 12 | ||||||||||||
Total stock-based compensation | 44 | 42 | 47 | 48 | 48 |