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)) | ||
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933(17 CFR §230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR §240.12b-2). | |||
Emerging growth company o | |||
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o |
Exhibit No. | Description | |
99.1 | Press release dated May 8, 2018, relating to Electronic Arts Inc.’s financial results for the fiscal quarter and fiscal year ended March 31, 2018. |
ELECTRONIC ARTS INC. | |||
Dated: | May 8, 2018 | By: | /s/ Blake Jorgensen |
Blake Jorgensen | |||
Chief Operating Officer and Chief Financial Officer |
Electronic Arts Reports Q4 FY18 and | |||||||
Full Year FY18 Financial Results |
• | Digital net bookings* was $3.538 billion for fiscal 2018, up 17% year-over-year and represents 68% of total net bookings. |
• | The EA SPORTS™ franchises grew to nearly 90 million players on current generation consoles life to date. |
• | Nearly 18 million players engaged in competitive gaming across FIFA 18 and Madden NFL 18, up more than 75% year-over-year. |
• | The Battlefield™ community, across current generation consoles and PC HD, now has more than 54 million players life to date. |
• | The Sims™ community had more than 80 million Sims players across PC and mobile in fiscal 2018. |
• | Net cash provided by operating activities was $615 million for the fourth quarter and $1.692 billion for the fiscal year. |
• | EA repurchased 1.2 million shares for $148 million during the quarter and 5.3 million shares for $601 million during the fiscal year. |
• | EA announced a new $2.4 billion, two-year stock repurchase program. |
Three Months Ended | |||||
March 31, | |||||
2018 | 2017 | ||||
(in $ millions, except per share amounts) | |||||
Digital net revenue | 1,102 | 934 | |||
Packaged goods and other net revenue | 480 | 593 | |||
Total net revenue | 1,582 | 1,527 | |||
Net income | 607 | 566 | |||
Diluted earnings per share | 1.95 | 1.81 | |||
Operating cash flow | 615 | 437* | |||
Value of shares repurchased | 148 | 125 | |||
Number of shares repurchased | 1.2 | 1.5 |
Three Months Ended March 31, 2018 | |||||||||||
GAAP-Based Financial Data | |||||||||||
(in $ millions) | Statement of Operations | Acquisition-related expenses | Change in deferred net revenue (online-enabled games) | Stock-based compensation | |||||||
Total net revenue | 1,582 | — | (327 | ) | — | ||||||
Cost of revenue | 233 | (1 | ) | — | (1 | ) | |||||
Gross profit | 1,349 | 1 | (327 | ) | 1 | ||||||
Total operating expenses | 596 | (5 | ) | — | (68 | ) | |||||
Operating income | 753 | 6 | (327 | ) | 69 | ||||||
Interest and other income, net | 1 | — | — | — | |||||||
Income before provision for income taxes | 754 | 6 | (327 | ) | 69 | ||||||
Number of shares used in computation: | |||||||||||
Diluted | 311 |
Twelve Months Ended | |||||
March 31, | |||||
2018 | 2017 | ||||
(in $ millions, except per share amounts) | |||||
Digital net revenue | 3,450 | 2,874 | |||
Packaged goods and other net revenue | 1,700 | 1,971 | |||
Total net revenue | 5,150 | 4,845 | |||
Net income | 1,043* | 967 | |||
Diluted earnings per share | 3.34* | 3.08 | |||
Operating cash flow | 1,692 | 1,578** | |||
Value of shares repurchased | 601 | 508 | |||
Number of shares repurchased | 5.3 | 6.5 |
Twelve Months Ended March 31, 2018 | |||||||||||
GAAP-Based Financial Data | |||||||||||
(in $ millions) | Statement of Operations | Acquisition-related expenses | Change in deferred net revenue (online-enabled games) | Stock-based compensation | |||||||
Total net revenue | 5,150 | — | 30 | — | |||||||
Cost of revenue | 1,277 | (2 | ) | — | (3 | ) | |||||
Gross profit | 3,873 | 2 | 30 | 3 | |||||||
Total operating expenses | 2,439 | (9 | ) | — | (239 | ) | |||||
Operating income | 1,434 | 11 | 30 | 242 | |||||||
Interest and other income, net | 15 | — | — | — | |||||||
Income before provision for income taxes | 1,449 | 11 | 30 | 242 | |||||||
Number of shares used in computation: | |||||||||||
Diluted | 312 |
Three Months Ended March 31, | Twelve Months Ended March 31, | ||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||
(in $ millions) | |||||||||||
Total net revenue | 1,582 | 1,527 | 5,150 | 4,845 | |||||||
Change in deferred net revenue (online-enabled games) | (327 | ) | (435 | ) | 30 | 97 | |||||
Net bookings | 1,255 | 1,092 | 5,180 | 4,942 |
• | Net revenue is expected to be approximately $5.600 billion. |
◦ | Change in deferred net revenue (online-enabled games) is expected to be approximately $250 million. |
◦ | Mobile platform fees are expected to be approximately ($300) million. |
• | Net income is expected to be approximately $1.108 billion. |
• | Diluted earnings per share is expected to be approximately $3.55. |
• | Operating cash flow is expected to be approximately $1.825 billion. |
• | The Company estimates a share count of 312 million for purposes of calculating fiscal year 2019 diluted earnings per share. |
• | Net bookings is expected to be approximately $5.550 billion. |
Twelve Months Ending March 31, 2019 | ||||||||||||||
GAAP-Based Financial Data | ||||||||||||||
GAAP Guidance | Acquisition-related expenses | Change in deferred net revenue (online-enabled games) | Mobile platform fees | Stock-based compensation | ||||||||||
(in $ millions) | ||||||||||||||
Digital net revenue | 4,150 | — | 200 | (300 | ) | — | ||||||||
Packaged goods & other net revenue | 1,450 | — | 50 | — | — | |||||||||
Total net revenue | 5,600 | — | 250 | (300 | ) | — | ||||||||
Cost of revenue | 1,581 | (5 | ) | — | (300 | ) | (1 | ) | ||||||
Operating expense | 2,774 | (15 | ) | — | — | (329 | ) | |||||||
Income before provision for income taxes | 1,245 | 20 | 250 | — | 330 | |||||||||
Net income | 1,108 | |||||||||||||
Number of shares used in computation: | ||||||||||||||
Diluted shares | 312 |
• | Net revenue is expected to be approximately $1.080 billion. |
◦ | Change in deferred net revenue (online-enabled games) is expected to be approximately ($300) million. |
◦ | Mobile platform fees are expected to be approximately ($60) million. |
• | Net income is expected to be approximately $200 million. |
• | Diluted earnings per share is expected to be approximately $0.64. |
• | The Company estimates a share count of 311 million for purposes of calculating first quarter fiscal year 2019 diluted earnings per share. |
• | Net bookings is expected to be approximately $720 million. |
Three Months Ending June 30, 2018 | ||||||||||||||
GAAP-Based Financial Data | ||||||||||||||
GAAP Guidance | Acquisition-related expenses | Change in deferred net revenue (online-enabled games) | Mobile platform fees | Stock-based compensation | ||||||||||
(in $ millions) | ||||||||||||||
Total net revenue | 1,080 | — | (300 | ) | (60 | ) | — | |||||||
Cost of revenue | 226 | (1 | ) | — | (60 | ) | — | |||||||
Operating expense | 634 | (4 | ) | — | — | (75 | ) | |||||||
Income before provision for income taxes | 220 | 5 | (300 | ) | — | 75 | ||||||||
Net Income | 200 | |||||||||||||
Number of shares used in computation: | ||||||||||||||
Diluted shares | 311 |
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 Statements of Operations | |||||||||||
(in $ millions, except share per data) | |||||||||||
Three Months Ended March 31, | Twelve Months Ended March 31, | ||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||
Net revenue | |||||||||||
Product | 757 | 887 | 2,586 | 2,640 | |||||||
Service and other | 825 | 640 | 2,564 | 2,205 | |||||||
Total net revenue | 1,582 | 1,527 | 5,150 | 4,845 | |||||||
Cost of revenue | |||||||||||
Product | 106 | 97 | 822 | 893 | |||||||
Service and other | 127 | 105 | 455 | 405 | |||||||
Total cost of revenue | 233 | 202 | 1,277 | 1,298 | |||||||
Gross profit | 1,349 | 1,325 | 3,873 | 3,547 | |||||||
Operating expenses: | |||||||||||
Research and development | 335 | 335 | 1,320 | 1,205 | |||||||
Marketing and sales | 130 | 162 | 641 | 673 | |||||||
General and administrative | 126 | 110 | 469 | 439 | |||||||
Amortization of intangibles | 5 | 1 | 9 | 6 | |||||||
Total operating expenses | 596 | 608 | 2,439 | 2,323 | |||||||
Operating income | 753 | 717 | 1,434 | 1,224 | |||||||
Interest and other income (expense), net | 1 | (1 | ) | 15 | (14 | ) | |||||
Income before provision for income taxes | 754 | 716 | 1,449 | 1,210 | |||||||
Provision for income taxes | 147 | 150 | 406 | 243 | |||||||
Net income | 607 | 566 | 1,043 | 967 | |||||||
Earnings per share | |||||||||||
Basic | 1.98 | 1.84 | 3.39 | 3.19 | |||||||
Diluted | 1.95 | 1.81 | 3.34 | 3.08 | |||||||
Number of shares used in computation | |||||||||||
Basic | 307 | 308 | 308 | 303 | |||||||
Diluted | 311 | 312 | 312 | 314 |
Three Months Ended March 31, | |||||||||||
2018 | 2018 | 2017 | |||||||||
Guidance | Variance | Actuals | Actuals | ||||||||
Net revenue | |||||||||||
Net revenue | 1,532 | 50 | 1,582 | 1,527 | |||||||
GAAP-based financial data | |||||||||||
Change in deferred net revenue (online-enabled games) | (307 | ) | (20 | ) | (327 | ) | (435 | ) | |||
Cost of revenue | |||||||||||
Cost of revenue | 234 | (1 | ) | 233 | 202 | ||||||
GAAP-based financial data | |||||||||||
Acquisition-related expenses | (1 | ) | — | (1 | ) | — | |||||
Stock-based compensation | (1 | ) | — | (1 | ) | (1 | ) | ||||
Operating expenses | |||||||||||
Operating expenses | 619 | (23 | ) | 596 | 608 | ||||||
GAAP-based financial data | |||||||||||
Acquisition-related expenses | (3 | ) | (2 | ) | (5 | ) | (1 | ) | |||
Stock-based compensation | (74 | ) | 6 | (68 | ) | (51 | ) | ||||
Income before tax | |||||||||||
Income before tax | 677 | 77 | 754 | 716 | |||||||
GAAP-based financial data | |||||||||||
Acquisition-related expenses | 4 | 2 | 6 | 1 | |||||||
Change in deferred net revenue (online-enabled games) | (307 | ) | (20 | ) | (327 | ) | (435 | ) | |||
Stock-based compensation | 75 | (6 | ) | 69 | 52 | ||||||
Tax rate used for management reporting | 21 | % | 21 | % | 21 | % | |||||
Earnings per share | |||||||||||
Basic | 1.89 | 0.09 | 1.98 | 1.84 | |||||||
Diluted | 1.86 | 0.09 | 1.95 | 1.81 | |||||||
Number of shares | |||||||||||
Basic | 307 | — | 307 | 308 | |||||||
Diluted | 311 | — | 311 | 312 |
ELECTRONIC ARTS INC. AND SUBSIDIARIES | |||||
Unaudited Condensed Consolidated Balance Sheets | |||||
(in $ millions) | |||||
March 31, 2018 | March 31, 20171 | ||||
ASSETS | |||||
Current assets: | |||||
Cash and cash equivalents | 4,258 | 2,565 | |||
Short-term investments | 1,073 | 1,967 | |||
Receivables, net of allowances of $165 and $145, respectively | 385 | 359 | |||
Other current assets | 288 | 308 | |||
Total current assets | 6,004 | 5,199 | |||
Property and equipment, net | 453 | 434 | |||
Goodwill | 1,883 | 1,707 | |||
Acquisition-related intangibles, net | 71 | 8 | |||
Deferred income taxes, net | 84 | 286 | |||
Other assets | 89 | 84 | |||
TOTAL ASSETS | 8,584 | 7,718 | |||
LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||
Current liabilities: | |||||
Accounts payable | 48 | 87 | |||
Accrued and other current liabilities | 821 | 789 | |||
Deferred net revenue (online-enabled games) | 1,622 | 1,539 | |||
Total current liabilities | 2,491 | 2,415 | |||
Senior notes, net | 992 | 990 | |||
Income tax obligations | 250 | 104 | |||
Deferred income taxes, net | 1 | 1 | |||
Other liabilities | 255 | 148 | |||
Total liabilities | 3,989 | 3,658 | |||
Stockholders’ equity: | |||||
Common stock | 3 | 3 | |||
Additional paid-in capital | 657 | 1,049 | |||
Retained earnings | 4,062 | 3,027 | |||
Accumulated other comprehensive loss | (127 | ) | (19 | ) | |
Total stockholders’ equity | 4,595 | 4,060 | |||
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | 8,584 | 7,718 |
ELECTRONIC ARTS INC. AND SUBSIDIARIES | |||||||||||
Unaudited Condensed Consolidated Statements of Cash Flows | |||||||||||
(in $ millions) | |||||||||||
Three Months Ended March 31, | Twelve Months Ended March 31, | ||||||||||
2018 | 20172 | 2018 | 2017 2 | ||||||||
OPERATING ACTIVITIES | |||||||||||
Net income | 607 | 566 | 1,043 | 967 | |||||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||
Depreciation, amortization and accretion | 39 | 32 | 136 | 172 | |||||||
Stock-based compensation | 69 | 52 | 242 | 196 | |||||||
Change in assets and liabilities | |||||||||||
Receivables, net | 502 | 231 | (25 | ) | (136 | ) | |||||
Other assets | (69 | ) | (37 | ) | 10 | 3 | |||||
Accounts payable | (60 | ) | 11 | (44 | ) | 5 | |||||
Accrued and other liabilities | (222 | ) | (86 | ) | 43 | 190 | |||||
Deferred income taxes, net | 74 | 100 | 204 | 100 | |||||||
Deferred net revenue (online-enabled games) | (325 | ) | (432 | ) | 83 | 81 | |||||
Net cash provided by operating activities | 615 | 437 | 1,692 | 1,578 | |||||||
INVESTING ACTIVITIES | |||||||||||
Capital expenditures | (20 | ) | (29 | ) | (107 | ) | (123 | ) | |||
Proceeds from maturities and sales of short-term investments | 1,510 | 313 | 3,166 | 1,281 | |||||||
Purchase of short-term investments | (275 | ) | (545 | ) | (2,287 | ) | (1,917 | ) | |||
Acquisition, net of cash acquired | — | — | (150 | ) | — | ||||||
Net cash provided by (used in) investing activities | 1,215 | (261 | ) | 622 | (759 | ) | |||||
FINANCING ACTIVITIES | |||||||||||
Payment of convertible notes | — | — | — | (163 | ) | ||||||
Proceeds from issuance of common stock | 21 | 39 | 78 | 72 | |||||||
Cash paid to taxing authorities for shares withheld from employees | (8 | ) | (18 | ) | (120 | ) | (130 | ) | |||
Repurchase and retirement of common stock | (148 | ) | (125 | ) | (601 | ) | (508 | ) | |||
Net cash used in financing activities | (135 | ) | (104 | ) | (643 | ) | (729 | ) | |||
Effect of foreign exchange on cash and cash equivalents | (3 | ) | 10 | 22 | (18 | ) | |||||
Increase in cash and cash equivalents | 1,692 | 82 | 1,693 | 72 | |||||||
Beginning cash and cash equivalents | 2,566 | 2,483 | 2,565 | 2,493 | |||||||
Ending cash and cash equivalents | 4,258 | 2,565 | 4,258 | 2,565 |
ELECTRONIC ARTS INC. AND SUBSIDIARIES | |||||||||||||||||
Unaudited Supplemental Financial Information and Business Metrics | |||||||||||||||||
(in $ millions, except per share data) | |||||||||||||||||
Q4 | Q1 | Q2 | Q3 | Q4 | YOY % | ||||||||||||
FY17 | FY18 | FY18 | FY18 | FY18 | Change | ||||||||||||
Net revenue | |||||||||||||||||
Net revenue | 1,527 | 1,449 | 959 | 1,160 | 1,582 | 4 | % | ||||||||||
GAAP-based financial data | |||||||||||||||||
Change in deferred net revenue (online-enabled games)3 | (435) | (674) | 220 | 811 | (327) | ||||||||||||
Gross profit | |||||||||||||||||
Gross profit | 1,325 | 1,295 | 570 | 659 | 1,349 | 2 | % | ||||||||||
GAAP-based financial data | |||||||||||||||||
Acquisition-related expenses | — | — | — | 1 | 1 | ||||||||||||
Change in deferred net revenue (online-enabled games)3 | (435 | ) | (674 | ) | 220 | 811 | (327 | ) | |||||||||
Stock-based compensation | 1 | 1 | 1 | — | 1 | ||||||||||||
Gross profit (as a % of net revenue) | 87 | % | 89 | % | 59 | % | 57 | % | 85 | % | |||||||
Operating income (loss) | |||||||||||||||||
Operating income (loss) | 717 | 743 | (41 | ) | (21 | ) | 753 | 5 | % | ||||||||
GAAP-based financial data | |||||||||||||||||
Acquisition-related expenses | 1 | 1 | 2 | 2 | 6 | ||||||||||||
Change in deferred net revenue (online-enabled games)3 | (435 | ) | (674 | ) | 220 | 811 | (327 | ) | |||||||||
Stock-based compensation | 52 | 48 | 62 | 63 | 69 | ||||||||||||
Operating income (loss) (as a % of net revenue) | 47 | % | 51 | % | (4 | %) | (2 | %) | 48 | % | |||||||
Net income (loss) | |||||||||||||||||
Net income (loss) | 566 | 644 | (22 | ) | (186 | ) | 607 | 7 | % | ||||||||
GAAP-based financial data | |||||||||||||||||
Acquisition-related expenses | 1 | 1 | 2 | 2 | 6 | ||||||||||||
Change in deferred net revenue (online-enabled games)3 | (435 | ) | (674 | ) | 220 | 811 | (327 | ) | |||||||||
Stock-based compensation | 52 | 48 | 62 | 63 | 69 | ||||||||||||
Tax rate used for management reporting | 21 | % | 21 | % | 21 | % | 21 | % | 21 | % | |||||||
Net income (loss) (as a % of net revenue) | 37 | % | 44 | % | (2 | %) | (16 | %) | 38 | % | |||||||
Diluted earnings (loss) per share | 1.81 | 2.06 | (0.07 | ) | (0.60 | ) | 1.95 | 8 | % | ||||||||
Number of diluted shares used in computation | |||||||||||||||||
Basic | 308 | 309 | 309 | 308 | 307 | ||||||||||||
Diluted | 312 | 313 | 309 | 308 | 311 | ||||||||||||
Anti-dilutive shares excluded for loss position4 | — | — | 3 | 3 | — |
ELECTRONIC ARTS INC. AND SUBSIDIARIES | ||||||||||||||||||
Unaudited Supplemental Financial Information and Business Metrics | ||||||||||||||||||
(in $ millions) | ||||||||||||||||||
Q4 | Q1 | Q2 | Q3 | Q4 | YOY % | |||||||||||||
FY17 | FY18 | FY18 | FY18 | FY18 | Change | |||||||||||||
QUARTERLY NET REVENUE PRESENTATIONS | ||||||||||||||||||
Net revenue by geography | ||||||||||||||||||
North America | 644 | 611 | 427 | 452 | 600 | (7 | %) | |||||||||||
International | 883 | 838 | 532 | 708 | 982 | 11 | % | |||||||||||
Total net revenue | 1,527 | 1,449 | 959 | 1,160 | 1,582 | 4 | % | |||||||||||
North America | (198 | ) | (287 | ) | 59 | 313 | (113 | ) | ||||||||||
International | (237 | ) | (387 | ) | 161 | 498 | (214 | ) | ||||||||||
Change in deferred net revenue (online-enabled games)3 | (435 | ) | (674 | ) | 220 | 811 | (327 | ) | ||||||||||
North America | 42 | % | 42 | % | 45 | % | 39 | % | 38 | % | ||||||||
International | 58 | % | 58 | % | 55 | % | 61 | % | 62 | % | ||||||||
Total net revenue % | 100 | % | 100 | % | 100 | % | 100 | % | 100 | % | ||||||||
Net revenue by composition | ||||||||||||||||||
Full game downloads | 259 | 209 | 123 | 143 | 232 | (10 | %) | |||||||||||
Live services | 510 | 501 | 408 | 476 | 698 | 37 | % | |||||||||||
Mobile | 165 | 169 | 158 | 161 | 172 | 4 | % | |||||||||||
Total digital | 934 | 879 | 689 | 780 | 1,102 | 18 | % | |||||||||||
Packaged goods and other | 593 | 570 | 270 | 380 | 480 | (19 | %) | |||||||||||
Total net revenue | 1,527 | 1,449 | 959 | 1,160 | 1,582 | 4 | % | |||||||||||
Full game downloads | (67 | ) | (98 | ) | (4 | ) | 117 | (39 | ) | |||||||||
Live services | 8 | (81 | ) | (98 | ) | 311 | (19 | ) | ||||||||||
Mobile | 10 | (19 | ) | (8 | ) | 22 | 4 | |||||||||||
Total digital | (49 | ) | (198 | ) | (110 | ) | 450 | (54 | ) | |||||||||
Packaged goods and other | (386 | ) | (476 | ) | 330 | 361 | (273 | ) | ||||||||||
Change in deferred net revenue (online-enabled games)3 | (435 | ) | (674 | ) | 220 | 811 | (327 | ) | ||||||||||
Full game downloads | 17 | % | 14 | % | 13 | % | 12 | % | 15 | % | ||||||||
Live services | 33 | % | 35 | % | 43 | % | 41 | % | 44 | % | ||||||||
Mobile | 11 | % | 12 | % | 16 | % | 14 | % | 11 | % | ||||||||
Total digital | 61 | % | 61 | % | 72 | % | 67 | % | 70 | % | ||||||||
Packaged goods and other | 39 | % | 39 | % | 28 | % | 33 | % | 30 | % | ||||||||
Total net revenue % | 100 | % | 100 | % | 100 | % | 100 | % | 100 | % |
ELECTRONIC ARTS INC. AND SUBSIDIARIES | ||||||||||||||||||
Unaudited Supplemental Financial Information and Business Metrics | ||||||||||||||||||
(in $ millions) | ||||||||||||||||||
Q4 | Q1 | Q2 | Q3 | Q4 | YOY % | |||||||||||||
FY17 | FY18 | FY18 | FY18 | FY18 | Change | |||||||||||||
QUARTERLY NET REVENUE PRESENTATIONS | ||||||||||||||||||
Net revenue by platform | ||||||||||||||||||
Xbox One, PLAYSTATION 4, Switch | 1,039 | 974 | 569 | 785 | 1,167 | 12 | % | |||||||||||
Other consoles | 70 | 60 | 26 | 25 | 29 | (59 | %) | |||||||||||
Total consoles | 1,109 | 1,034 | 595 | 810 | 1,196 | 8 | % | |||||||||||
PC / Browser | 246 | 240 | 196 | 181 | 210 | (15 | %) | |||||||||||
Mobile | 165 | 171 | 162 | 166 | 173 | 5 | % | |||||||||||
Other | 7 | 4 | 6 | 3 | 3 | (57 | %) | |||||||||||
Total net revenue | 1,527 | 1,449 | 959 | 1,160 | 1,582 | 4 | % | |||||||||||
Xbox One, PLAYSTATION 4, Switch | (375 | ) | (548 | ) | 244 | 705 | (298 | ) | ||||||||||
Other consoles | (40 | ) | (42 | ) | 14 | 5 | (15 | ) | ||||||||||
Total consoles | (415 | ) | (590 | ) | 258 | 710 | (313 | ) | ||||||||||
PC / Browser | (30 | ) | (61 | ) | (30 | ) | 83 | (20 | ) | |||||||||
Mobile | 9 | (20 | ) | (7 | ) | 21 | 5 | |||||||||||
Other | 1 | (3 | ) | (1 | ) | (3 | ) | 1 | ||||||||||
Change in deferred net revenue (online-enabled games)3 | (435 | ) | (674 | ) | 220 | 811 | (327 | ) | ||||||||||
Xbox One, PLAYSTATION 4, Switch | 68 | % | 67 | % | 59 | % | 68 | % | 74 | % | ||||||||
Other consoles | 5 | % | 4 | % | 3 | % | 2 | % | 2 | % | ||||||||
Total consoles | 73 | % | 71 | % | 62 | % | 70 | % | 76 | % | ||||||||
PC / Browser | 16 | % | 17 | % | 20 | % | 16 | % | 13 | % | ||||||||
Mobile | 11 | % | 12 | % | 17 | % | 14 | % | 11 | % | ||||||||
Other | — | — | 1 | % | — | — | ||||||||||||
Total net revenue % | 100 | % | 100 | % | 100 | % | 100 | % | 100 | % |
ELECTRONIC ARTS INC. AND SUBSIDIARIES | |||||||||||||||||
Unaudited Supplemental Financial Information and Business Metrics | |||||||||||||||||
(in $ millions) | |||||||||||||||||
Q4 | Q1 | Q2 | Q3 | Q4 | YOY % | ||||||||||||
FY17 | FY18 | FY18 | FY18 | FY18 | Change | ||||||||||||
CASH FLOW DATA | |||||||||||||||||
Operating cash flow5 | 437 | 176 | 52 | 849 | 615 | 41 | % | ||||||||||
Operating cash flow5 - TTM | 1,578 | 1,872 | 1,802 | 1,514 | 1,692 | 7 | % | ||||||||||
Capital expenditures | 29 | 33 | 30 | 24 | 20 | (31 | %) | ||||||||||
Capital expenditures - TTM | 123 | 116 | 117 | 116 | 107 | (13 | %) | ||||||||||
Repurchase and retirement of common stock | 125 | 150 | 153 | 150 | 148 | 18 | % | ||||||||||
DEPRECIATION | |||||||||||||||||
Depreciation expense | 29 | 29 | 30 | 30 | 31 | 7 | % | ||||||||||
BALANCE SHEET DATA | |||||||||||||||||
Cash and cash equivalents | 2,565 | 2,248 | 2,067 | 2,566 | 4,258 | ||||||||||||
Short-term investments | 1,967 | 2,222 | 2,288 | 2,318 | 1,073 | ||||||||||||
Cash and cash equivalents, and short-term investments | 4,532 | 4,470 | 4,355 | 4,884 | 5,331 | 18 | % | ||||||||||
Receivables, net | 359 | 222 | 812 | 886 | 385 | 7 | % | ||||||||||
STOCK-BASED COMPENSATION | |||||||||||||||||
Cost of revenue | 1 | 1 | 1 | — | 1 | ||||||||||||
Research and development | 28 | 28 | 36 | 38 | 44 | ||||||||||||
Marketing and sales | 8 | 7 | 9 | 8 | 8 | ||||||||||||
General and administrative | 15 | 12 | 16 | 17 | 16 | ||||||||||||
Total stock-based compensation | 52 | 48 | 62 | 63 | 69 |