Electronic Arts Inc. has recently released its 10-Q report, providing a detailed look at the company's financial performance and operations. Electronic Arts Inc. develops, markets, publishes, and delivers games, content, and services for various platforms including game consoles, PCs, and mobile devices. The company's portfolio includes well-known brands such as EA SPORTS FC, Battlefield, Apex Legends, The Sims, Madden NFL, Need for Speed, Titanfall, and F1.
In the 10-Q report, Electronic Arts Inc. reported total net revenue of $1,660 million for the fiscal quarter ended June 30, 2024, representing a 14% decrease year-over-year. Live services and other net revenue, which includes extra content and subscription offerings, was $1,410 million, down 5% year-over-year. The company's gross margin was 84.2%, up 3 percentage points year-over-year, while operating expenses increased by 2% year-over-year to $1,033 million. Operating income decreased by 33% year-over-year to $364 million, and net income was $280 million with diluted earnings per share of $1.04. Net cash provided by operating activities was $120 million, down 67% year-over-year. Electronic Arts Inc. also repurchased 2.8 million shares of its common stock for $375 million and paid cash dividends of $50 million during the quarter ended June 30, 2024.
The report highlighted several trends in the company's business, including the increasing importance of live services, the shift towards digital delivery of games, and the competitive landscape within the industry. Electronic Arts Inc. also discussed the concentration of sales among its most popular games and the impact of its restructuring plan, which is expected to be substantially completed by December 31, 2024.
Furthermore, the company provided insights into its net bookings, a key operating performance metric, which amounted to $1,262 million for the three months ended June 30, 2024. This figure was primarily driven by sales related to EA SPORTS FC 24, Apex Legends, EA SPORTS FC Mobile, EA SPORTS FC Online, and EA SPORTS Madden NFL 24. Net bookings decreased by 20% compared to the same period in the previous year, primarily due to the prior year release of Star Wars Jedi: Survivor and a decrease in sales related to the global football franchise.
As a result of these announcements, the company's shares have moved 0.3% on the market, and are now trading at a price of $148.83. Check out the company's full 10-Q submission here.
