Electronic Arts Inc. has recently released its 10-Q report, revealing key financial figures and operational insights. The company, headquartered in Redwood City, California, develops, markets, and delivers games, content, and services for game consoles, PCs, and mobile phones globally. It offers a wide range of games across various genres, including sports, racing, first-person shooter, action, role-playing, and simulation, as well as live services offerings such as extra content and subscription offerings.
In the latest 10-Q report, Electronic Arts Inc. reported total net revenue of $1,839 million, down 9 percent year-over-year. Live services and other net revenue were $1,221 million, down 7 percent year-over-year. The gross margin was 75.9 percent, down 2 percentage points year-over-year. Operating expenses were $1,196 million, up 1 percent year-over-year. Operating income was $200 million, down 48 percent year-over-year, and net income was $137 million with diluted earnings per share of $0.54. Net cash provided by operating activities was $130 million, down 44 percent year-over-year, and total cash, cash equivalents, and short-term investments were $1,260 million. The company returned $423 million to stockholders through its capital return programs, including share repurchases and dividends.
The report also highlighted key trends in the company's business, including the focus on building games and experiences that grow global online communities, deepening engagement through connecting interactive storytelling to key intellectual property, and harnessing communities to grow around its games. Additionally, the report discussed trends in live services business, digital delivery of games, increased competition, and the concentration of sales among the most popular games.
Furthermore, the report provided critical accounting policies and estimates, specifically focusing on revenue recognition, online-enabled games, and the evaluation and recognition of revenue from different product and service offerings. The company evaluates and recognizes revenue by identifying the contract with the customer, determining the performance obligations, allocating the transaction price, and recognizing revenue as each performance obligation is satisfied.
Following these announcements, the company's shares moved -0.14%, and are now trading at a price of $199.92. For more information, read the company's full 10-Q submission here.
