EA - Earnings call transcript Q2 2020

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Operator

Good afternoon. My name is Brandy, and I will be your conference operator today. At this time, I would like to welcome everyone to the Electronic Arts Q2 Fiscal '20 Earnings Conference Call.

Mr. Investor may of your VP Evenden, Relations, begin you conference. Chris

Chris Evenden

our quarter Welcome call earnings Wilson, our Jorgensen, SEC to release note Brandy. our available CFO. fiscal COO today and and our EA's Andrew filings the Thanks, that on at second XXXX ir.ea.com. Please Blake me call. are earnings and CEO; are With

In remarks. accompany our addition, prepared we have posted earnings slides to

a an transcript. call, we financial will audio remarks, replay the prepared a of after Lastly, model, our and call, this post

With refer Arts calendar, recent materially Thursday, expectations. earnings as XX, regarding these our from discussion actual our you for Actual a the could regards most is them. update XXXX. call Electronic risks and differ company. of results any forward-looking October to XXXX, to the and include today. events and XX-Q materially XXXX our to makes our future of results discussed fiscal QX our and Form of differ that financial disclaims presentation scheduled cause statements January for events XX, comments duty statements to performance today, future This those And from we may

otherwise a the made call will the cash with financial be the stated. call, same All against in are prior basis. exception free unless presented the of this During the year metrics, course this on GAAP comparisons flow of in period

the over call to turn I'll Now, Andrew.

Andrew Wilson

Thanks, Chris.

excellent second a an continued 'XX quarter. with We strong FY

SPORTS in continued live EA our titles a services global engagement ongoing these through latest Our our deep captivating QX. momentum base, and growing player are titles and fueled

are expectations year exceeded today. for and revenue our raising earnings a As share per guidance our QX, full we our and result,

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hand call the Now, over Blake. I’ll to

Blake Jorgensen

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this GAAP I’ll business. operational to refer net discuss downloadable basis, our historically-reported results results the to the report to use measure non-GAAP in compare dynamics on our tabs quarter’s financial a bookings relevant then of measures, our of please our To model.

compared income Operating $X.XX, $XX $X income and EA’s of to than million were earnings an ago, million, $XXX a was net share million our above resulted billion, revenue guidance. million, year lower $X.XXX better operating operating our our guidance. million. expenses $X.XX than guidance GAAP per by was $XXX in $XXX of

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See was for Operating was higher $XXX from the The $XX last driven up cash months increase collections. million, faster profit trailing flow quarter cash the for twelve Operating flow million by a primarily were resulting was information. year. and earnings free our cash in $XX cash $X.XXX for above flow last Capital million, flow billion, of $XXX year. million. expenditures the further slides million quarter $XX for

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and the cash of short-term end billion. the Our were investments quarter at $X.X

year. trailing XX% were our $XXX this net bookings to the Performance an like on numerous up net year, well of a a second net turn $XX basis, twelve-month and represented as guidance. with record as the of prior key compared $XX Digital driven drivers by XX% I’d prior driven our broad growth million, to quarter. were downloads. offerings portfolio increase up for year-ago in XX% Now, $X.XXX notable digital strength million full-game to live for million by was services. on quarter our and Total bookings bookings billion, in the in our period, business Digital the our live guidance over growth the on across across the above new services business quarter,

each Live year-on-year, the this $XXX another digital quarter’s turn, were Team, to a Madden, the by bookings by QX was services offset components in of new tail and The NHL, million, net at of start increase driven Access on Legends, to up net of Online, off bookings X, Looking and in DLC. XX% FIFA X great Apex The EA PlayStation. partially is FIFA Sims Battlefield Ultimate record.

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FIFA down expectations, titles. quarter, Mobile Galaxy Wars of day bookings XX% end, its Mobile outperformed Galaxy segment to of Heroes new Mobile, Online of X million, Mobile $XXX subsequent The this all aging grew Wars Galaxy year-on-year, Wars delivered ever. FIFA by Star second-biggest Heroes by Heroes. net Star Madden driven driven Star quarter and China, our in content had of and,

to higher downloads net than another FIFA XX%. generated of sales year, digital Full The console X game year-on-year, PC of and last points XX% portion QX bookings Madden $XXX million, increased was record. of end of the weeks just the in but up period days FIFA launched about from quarter, X digital, XX% based XX. the for comparable XX% on before the first sales, it percentage

physical, over to Overall, unit X XX% on of our sales PlayStation XX% were digital and compares Xbox XX months year ago. September This than measured just a the rather XX. One to

Turning guidance. to

for billion, of expectation revenue GAAP share full-year earnings $X.XXX and Our is $X.XX. per

driven this disclosed of benefit we previously. $X.XX reminder, a is As the by tax

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cash capital anticipate We about continue to would flow deliver $XXX million, of billion. $X.XX expenditures around free which of

strong, expect both and Apex Legends we drivers, remain net $XXX services million The $X.XXX to to to Live have to the range. the continue deliver raised in we Sims bookings business $XXX million regards and bookings net With year outlook billion. for our to

through significantly net full VR million pushed not to these we as our the Medal for the We’re XX bookings. of FX original headwind and and Honor increased title of beat, Respawn’s have $XXX amount primarily expectations approximately out NBA against the Live year. headwinds Together, passing has

operating the diluted of share in revenue up XXX negative quarter, $X.XX This of quarter using $X.XX the we ago. revenue to of share OpEx million, of million. billion, For to count expect year-on-year, net million. year the expenses variable of be third the earnings $XXX a driven third for per is compensation and results adjustment by cost $XXX

reaction be positive. versus XX% services, and driven the launches This two Jedi: and launch Star we morning, to this trailer year-on-year, quarter year, and $X.XX live early We the last Apex up by billion. for year. in quarter is the We anticipate Order particularly Ultimate net Wars Team, extremely Legends bookings because one released Fallen for have appears this

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to similarly previous in million Speed For We Heat perform X to are with X units. titles sales that franchise, modelling to of unit Need

expand gave you ahead, slate. Looking to fiscal further XXXX on our like I’d view into Andrew the

We’re down franchises. doubling live core with our combined services on

Apex in in investing our XXXX. fiscal as Legends We’re shooter

We services all to our expect live major next in of Apex drive growth and including Ultimate The Team, year, Sims. FIFA Online Legends,

and part and We believe the will driven continued be mobile. continue in content grow growth expansion on by will new of platforms, our to geographies We subscription of business. launch the on service Apex by the

to us, noted, new the content for As and franchise platforms. now driven $X a new continues it Sims billion grow, by and Andrew is

be vs. aging FIFA on mobile, portfolio. the ramp titles Mobile Zombies by offset in Legends, elsewhere by in including title, Mobile Asia, Plants will driven Apex new of growth our our and sports

regards With sports more annual title product fiscal add in will launches one to to we slate. XXXX, our at least

Medal We’ll already Conquer the coming developers. will two Honor unannounced We we disclosed. including Command deliver favorites, of new launch fan we’ve of Partners third-party And some exciting game & remasters from VR. titles have EA

titles we have nearer give the slate, unannounced addition, in In the FYXX we time. other will specifics

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discussing call Battlefield formal as new very provide be our on and XXXX have a build in the changed and the led deliver will title. we usual. exciting by how introduced fiscal I will way player Growth quarter We by games. preferences guidance QX

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will for year company beyond. drive this of the and and the strategy through remainder expect this profitability We to continue growth and focus

Andrew. to call With that I’ll the turn back

Andrew Wilson

great every entertainment throughout Thanks of interactive part of Making the The Blake. us how the new experiences Billions from of for form is to at time drives more of possible innovation games Electronic their industry. be play, people, corner to the any one connect, a can every is entertainment what and bring than passion through other together. of people that games. world, It community compete, excitement and bring share single shows Arts.

our the business are core of very games Amazing growth.

EA connection powerful studios of our experiences Order, and future, of a genres, SPORTS, Creativity We more development. escape From and diverse fulfilling our in more. to portfolio Jedi: a competition social have breadth and players. many Wars Fallen games Star V, motivations our though for across fuels have in in Battlefield to new

New Motive, titles, IP developer mobile DICE, for continue EA projects our at to new Maxis audience. Criterion, new new new at titles, will all titles Bioware, indie and grow and excite and SPORTS, that global third-party

game evolving new pioneers continuously extend experience franchises our on with more success and months. fueled by X, set coming the Apex thriving Heroes of services FIFA, our of and gaming of global and of building to deliver adds in here this have Live more spanning fan-requested experience and games. Legends, to esports of space, dimension to We’ve millions expertise experiences strength to those enter of been and of another the and years we’re on updates. Galaxy watch, the players. top content, Competitive enhance building play events, in in our The Sims franchises communities hundreds

and vital growth the play longer live As our for to world time, business. continue players games driver services to periods be favorite a experience, will of their around the for robust

for Reaching is also us. on key players driver more a more platforms

platform and continue cloud to expand addressable the more will consoles, choices audience. gaming, New

platforms Steam reach the We’re future. we’re in through be subscription, Access EA near EA to together the and the and more working thrilled to bringing communities

public at gaming Atlas space. ensure on this to through As continues the developing forefront develop, we are to Project of are streamed games cloud we infrastructure cloud testing

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are With some building creative we talented, of the and teams passionate most the in industry, momentum.

world making on never focus and the services more players for has been live games stronger. great Our around

for I here and questions. your are Blake Now

Operator

Sheridan [Operator Eric Instructions] comes UBS. line And first of the your question from with

Eric Sheridan

Thanks two can. for taking if question. I Maybe the

doubling the pockets understanding new has key franchises to key make On make to one. how portfolio think out down sure looking industry you just see broaden can services franchises, the the services the you That's we the next are how to of investment messages which where should over live on existing on and much the live extend number couple live do where services we out into of commentary, about against is the want years? and with

the as potential And, Andrew, coming and the EA area there success I'm should where How some the possible just guys much, MCAA historically curious a compensation you about headline of athlete. to broadening the we an SPORTS, on well? what ago. broaden out We Thanks you're about by going back from so EA saw well. That's you football portfolio around today out opportunity title had guys. have to as think years SPORTS mean

Blake Jorgensen

So first, take server live let one me Eric.

the to all years. we new we're invest Obviously, try is business. have as an two about place. business view we we're across of response trying a year in that business. like XX know, that live Apex to shooter not annual The past build titles roadmap a in put continue invested year that excited year in You the And Ultimate very We over which or grow Team Sims, And will live heavily services team one effectively. to the with our today sports XX that obviously franchise service benefits heavily and the that we're to seeing has as

bad we in from X one year is so that, do to the live But a move as Online Korea of critical. Beyond X growth and X FIFA We're from X, operating there. FIFA single over in woods extend every Online platforms And online we're and looking single we across comp how and see obviously good is that than what can sports game want Apex. many our we that can across than action continue and Battlefield more titles includes how successful titles, and successful about the the that The you’ll titles improvements titles see to like and successful growth. to China last or and we're starting both be game very FIFA to we We're That we’re rapid like platform online we're at of continue we like there. skillset time, Anthem our there. announcing move Sims we see services the on in as think that people have to go. out different still where It excited It to of on companies games. feel other we be play we a where we'll is Asia is think can Online and

Andrew Wilson

SPORTS of On a worked there point, games or that developed the the EA’s over are or number on EA we’ve SPORTS published years.

sports, sports resurgence today we Working That have NCAA global strong and the you, before fed a back business, the did those as strong fans. as yes, we’re population of have an key for new of and in Some and to news seeing general, NCAA of we’re that an us respect teams into to been a well. EA It’s strength Group. ability had engage area With demonstrated growth, business truly us. in. SPORTS news in Sports was we as today saw to We investing

number that able but before to We digesting business, will would over back is watching certainly we into the still would still it. a We’re to have coming years get things that there closely. happen be we’re anticipate that of

Chris Evenden

Next question?

Operator

Piper of Olson Jaffray. from comes the Michael with question line next Your

Michael Olson

Hey, good afternoon.

‘XX launching fiscal about ‘XX. you kind you talked So, be incremental I to into coming titles summarize comp and fiscal of fiscal just thought ‘XX. how a it guys what’s helpful might lot

if titles NBA for maybe Team Legends, title, two Conquer, it, FIFA was can both right grow there Madden Live, of Online or in & that for titles rattling growth growth you correct sure couple regarding? and a grow, Apex now. of through a partner other missed kind Asia FIFA new announce you new VR, not I Ultimate were Is and Sims sound I’m just sports Command implying So, that anything or not, will

Blake Jorgensen

exciting do ago feel Yeah, as got seven since what – Command a continues haven’t continued that really be for shipped well. that just We’ve year & that on. all line believe we no, there for robust some other and every we that title years yet. continued we Sims growth. Battlefield doing a fiscal the for XXXX, we But Battlefield it the really for announced that advantage plan next And XXXX. to were of we’re doesn’t implying is fiscal re-masters you that where Conquer XXXX the to guidance is really out is the of Battlefield of And of remember, what new title. coming installed effectively, new fairly is Bringing knowing give base potential that larger giving yield then. on pretty to may They’ve take the justice console. year, And is along grow goal growth the base small, console some the was that we

of And moving the XXXX. our so that’s title fiscal part and into driver

as about growth it about think So, excited just pretty we’re it. that out model multiyear we tried to lay for people, and

Michael Olson

title you’re dependent hard Legends the game on growth whole Apex to like still how approved to it’s will mobile in some and the on a is much then I and success just create. is in China follow-up Apex on having the not qualitatively, Battlefield quantify well? It grow but kind that know that. of next as with implying getting year having the kind Okay. sounds of of And will

Blake Jorgensen

Yeah, China, hard to you it’s don’t when so get predict in approval we know.

So, PC a of year. following the tail assume on an We we’ve I think, console globally would that the the probably game is even if pace not China faster mobile year, ex-China. Apex end got

really bulk we it but year, traction is in we we soft there. obviously start really the the of growth long the probably how during on as including as that launch. where keep in ‘XX hope those well, sometime about to see ‘XX So, depends we’re year would growth But verses to that gain we think

Michael Olson

Thank you.

Operator

the Your of Alexia JP Quadrani line next from with question comes Morgan.

Unidentified Analyst

David is for on this Alexia. Okay,

maybe from services Thanks. you all seen quantify we morning? And quarter? within the going to possible in about the think how results, your you’ve following should with announced is Just the of trajectory live Valve subscription contribution this that partnership it just it subscriptions the forward,

Blake Jorgensen

of portion so is I I mean, that. live Yeah, services subscriptions, still large, small subscription relatively mean, a

the the days they’ve around for X there and platform great grown early out us. did the Microsoft helps expectations, been it. platform partner excited much than But so has beyond and are now, on there have in we’re We consoles subscribers the we and a Sony million platform. Obviously, of faster now that Sony more our grown very well are

want Andrew subscriptions Valve as across As we clearly We where continuing as many drive gamers play. that driver was go platforms we’re the mentioned, approach. to And of Steam the can. to

spend such looking is more found we money the played they why They’re day. And and so overall be more a Apex They we’re $XXX continues because, Online content quarter, That’s those games. still it they’ve that’s and about to but smaller great for followed a relatively revenue, services Ultimate life the of it’s start it. in engage great an to in then in the monetize that there The FIFA Asia, the games business overall find longer subscriptions million never and almost to important portion reason of business sticky. of tend and What very subscribers it’s business. the in But optimistic and they’re part and Sims are obviously, stay big dominators the of the model. at the by before end Team

Unidentified Analyst

Got you. it. Thank

Operator

MKM Partners. Your comes with the from line next of Handler Eric question

Eric Handler

not can hoping and with. Thank being mentioned integrated you of all you One very so sort looked was Is call title? much been was a that on X into have Legends? now guys of thing as at far. A couple appreciate Titanfall you out still has Apex details that and the separate quick help that the things, given

Blake Jorgensen

so see it want give the we if hyper about on there. certainly brand a road. and much But keep it be future really come, there’s opportunity can’t team in It forget a a I it’s but so could Apex and the separate the – you won’t because still we sense title we of to focused where will down when certainly great

Eric Handler

with financially guys on quick doing regards or live talk with for services then down the for two while, When you’ve but Okay. double you next are live year, the on of you obviously amount as about is services doubling model focusing live these to changing spending that anything services? And anything on a other down falls. you been

Andrew Wilson

is, drive deeply on think the XX there’s apply you service games. XX than three, focused this months players even And One us off pay that saw our engage and engagement through more. seen little or year. a seeing into and we’re longer to to four over that, Again, year, really and live you’ve seeing that changes. I Yeah, want last we’re last

And we players’ those spend to as intention into games. so, greater even more time we’re forward, events look seeing

game drive really and to doubling differently. slightly – you’ve terms how cold And down to both and really we things competition, development those in our on terms types creation, year is do we the two allow live those this service, there fulfil that doubling us inside alive willingness changes. bring of on this business. And just One that motivations broad those is developed teams features we’re marketing what for in service things that interaction, things we’re seen to then down how a So, is players that self-improvement, of those social the features other cool drive market. of

we the and with seeing a this and of that If differently, year, held kickoff, differently and content around you we we’re we result and earlier that as what game whole another tremendous of entitled success launched marketed for released take audience at a Madden set different did that.

a we’re the to the and of development will gamers we double build going board. also set, actual only on not down feature communicating and the differently across speaking so be marketing content to And the

Blake Jorgensen

the is changing talent it mix. of part And

that in have bringing people live more expertise. We’re service

expertise probably the But to you in I we’ve sports. can teams support the that’s to make a one the mix that. on than And important because forth. successful world better think service so talent Battlefield bringing some team focus recruiting like and do continue that different people in sure you’re there’s need very is and teams been in into we support talent those live has Apex, no that in will fabulous

Eric Handler

Great. Thank you very much. Appreciate it.

Operator

comes Your Credit next of the Stephen line from Suisse. with question Ju

Stephen Ju

you. thank Hey,

a in in little process skipping dig year more of the into went to wanted bit a that terms making decision just I’m Andrew, here. So Battlefield

wondering more direction be shift decision a of Thanks. or more decision? still And with was what constraint whether is intending a maybe perpetual like a something Anthem. I those is conscientious or thinking should even and or two to year of about that like year cycle a a we to release have is – the So three maybe this do been may franchise resource this the or franchise service still you

Andrew Wilson

question. Good

about, see the we’re And I’ll the forward that there resource first on And launch us they with going really is a a theater say came to constraints, Pacific factors a in was team wall the still service to basis. very continue a it still the and So, theater a few remarks, thinking Battlefield with we and talked as whole that new that front, prepared of up still opportunity but is burgeoning that I V. through that can into drive about for thought was play. about decision how

bite So, from was it we as large Battlefield the V experience, still think the there’s inside opportunity built service beginning. as a

that and shooter is have about, about tremendous see on talked second now engage, we as to we to think want XX a take make as over And we Apex can is Blake players. now deserves. in to sure we we the into it opportunity regions The opportunity continue have annualized that the effectively Legends million that that growth an prepared And platforms. time other to give tremendous and opportunity other we talked that that growth and remarks,

wanted parent next and the the cutting as play. leading about next visual And multiplayer edge, always to of against has in team then into that. and terms It thought launching us we to for is move an to And really in us a base to in ‘XX offer things the about really strong tremendous strong with that three presents two give some first of for battlefield for us the and believe opportunity years combination growth. opportunity that, became been Battlefield opportunity was we a with install gen working But as And gameplay Battlefield. launching both began platforms in grow. for innovation. fidelity, going third, I edge, talked in a really building FY

done. the direction, It nature a driven the cutting of read in fidelity. franchise In social overall will Battlefields not ‘XX. It change industry now. and will live direction of terms to franchise be into think will in you this doing it our things multi-play be I than It that high title edge. in And service context FY as be point don’t around be competition be this other it exciting believe should of have will do a will dramatic we play the and really, really

Blake Jorgensen

our a appreciate fully depth is think business. don’t Stephen of investors, of the I things, lot catalog Other

V, to have as Battlefield we to mentioned, of Andrew that want continue catalog. our part critical As a

be II a and sold Battlefront XX all You over forward. our going of might huge surprised, copies have but That’s tale for business combined. million Battlefront we Wars Star I

our be to these of cadence think and franchises works give of them very out. time. other we’re us great for generate when but long as careful get which people I of conscious inside over period our games want well long about that returns life that we so deserve staging on think And in And the really we the used we come a some business sports, can how sports, to to annual they

Stephen Ju

you. Thank

Operator

the question comes next Berg with of line Your Berenberg. Robert from

Robert Berg

in general vanity dig growth of in versus Team of player VOLTA to may the VOLTA due this also Thanks. a you’ve in underlying trends to less? Team really Ultimate in noticed any Have Ultimate particularly on bit And spending appeal is in you in in interested growth, or be customizing, with early question but a KPIs there setting? it much there? two some quick I looking your seen thoughts the deeper any time the your player period, opinion clearly follow-on And any the any areas. some can, first of interested more and is items. a how Hi. with I the VOLTA Thanks. if interested seeing expectations, of excellent you or particularly I’m guess but just

Andrew Wilson

There will my was a there do lot in I best.

World be with VOLTA more Again some we We platform. years. First, years express around did journey that And new not with time. passions year think audiences with VOLTA. We number a of year we’re the that we what to we’ve this can the build laps last fans for fans, that the Cup the features and with new mode game very into FIFA who we’re talked applied the content doing objective game? is FIFA may of of franchise how happy FIFA bringing reigniting and the attract our is about with as story the with that about purpose and for our did our over broadly

the talked the in mode of prepared the FIFA. And that, board played across we result up game. second as about a board across the remarks, is the As VOLTA games most in engagement in is

about very that. very, we’re happy So

In the core terms core, Team. interaction on of Ultimate our spending do social Ultimate Team ultimately most continually a what that very has their with What find is and time. of we of impact that discover collection at often these competition the motivations mode as and players

last has most the players with of Team we one game what parts and is, the into game we World experience. journey, as we come year, see the around players the time Cup plays Ultimate FIFA on around so, the engage this together brought game of fun content positive players the year, even impact friends And over brought into their bring that do the as into and VOLTA around even a we even as in as

will them this the in, then growth, around And building that Ultimate our of bringing love continue Ultimate all in new so should Ultimate in the that our itself in in expectation drive Team people And to franchise done and That new Team, find drove VOLTA their it our Madden continue and of in think expect effectively franchise the way the through about friends to they helping growth. FIFA modes performance. is we fans that our you drove work modes Team combination will most. bring but

Robert Berg

Okay, thanks guys.

Operator

line of from with Stifel. Crum the Drew comes next Your question

Drew Crum

Hey guys, afternoon. good

Stadia? Season you for you know Apex. Google guys fiscal you And with motivation guess trends X us update the seeing some on you Thanks. XXXX? that So, that you players have there the close I you’re audience plans the to on your launch Can weekly comment then separately, conviction on X. metrics were gives growth be could Season talked And may versus around outperforming in extensively

Blake Jorgensen

Sure.

Andrew can I’ll one So, first talk the on about then start and Google.

think positive I we’re thinking, seeing the is trends. you’re key So, monetization

original it’s that’s excited test and was. key as and we where We’re The is, Apex learn. guidance service our reiterated and with live going test learn, about where why any

much we So, events new spend, they’ll then are understand as to described, those what to to events to continuing try season like each spend Andrew in and add overtime. money spending and patterns how and people will on tune the

like themes to gameplay events Halloween associated be going saw are events, holiday characters there’s as events. this event to season in or style or now. on the events and competitive new There you then new map. with style be to going be are So, going that’s going There

how we’re I think the of about All pretty of that combined that play is falls average of doing to along that all we’ve And those XX the and continuing last frequency the monetization grow lines is Ultimate the together. to out pretty of that number that years players, gotten a done try Team. And weekly good build the of process users, with over at the we’re we’ve excited on and Apex.

think positive in very there. we’re heading a path I So, more to come, but

update? On the Stadia,

Andrew Wilson

public On on some partners, Yeah. Stadia. on our some launching some old the both no are own in very the other things of things got in who and coming, right terms running infrastructure with being future. we’re project about, that Stadia, and as of We’ve tests, happy now we’re updates part cloud Atlas

Drew Crum

guys. thanks, Okay,

Operator

comes the question with next Your from Lu Mario line of Barclays.

Mario Lu

one Hey, and guys. on mobile. questions, FIFA Couple on one of

Ultimate both So, money. the spending year. two double cosmetic items And that by glad all can I versus mentioned but earned only FIFA hear you mode, don’t be believe still mode, expected that as grow a playing monetize to currently bookings to is digits Team in as next you number

any And thoughts to on help well? bucket would in mechanism is be from friendly battle included next a your So, mobile, future parties year? partnering Thanks. mode like titles? develop two companies titles path this overall some Tencent to third And your include possibility in a there overseas as on with the or that of in monetization mobile

Andrew Wilson

content. the and on seeing we’re visual of yes, monetization content that a VOLTA, on in strong the focus So, this the We aesthetic year. content engagement don’t have

the is years, new we objective done As the attract players. have to first over

that done very we’ve far. so think I well

drives The that ultimately is base drive this second not but you once to our put focus And deep together, of that’s two typically, overtime. monetization, it player then year. things those engagement objective

Blake Jorgensen

And your just on clarifications a second question. couple of

double year. digits what said grow. quarter in don't next year. to next FIFA We're know continue we excited the can of sort is I So, we growth digit doing That's we the for But we're double that say didn't for not healthy growth on any will for products sizing very said. what year. next of give we any for double the digit I growth. that

the because we've there mobile China, But be obviously you ability growth we party assume reporting using of that. So I'm in we're have as for think in speaking And not we're terms the talking those in And the of were We're continuation PC about And double by third could other I one mobile titles. economies not across titles, on use partner talking the we're some we about two considering globally, of, about a would for using obviously Apex maybe. scale quarter. in XX% Apex some a here. third titles that third are should XX%, that console both party and said, excited digit healthy mobile of And to very party. FIFA just Madden. we're there

Mario Lu

you. thank Okay,

Operator

Your of of with next from America. question Bank the Ryan Gee comes line

Ryan Gee

if may. for ones, Two Hey, I questions. quick taking guys, my thanks

down you report were guys at but the revenue from download, digits. FIFA in double a nicely packaged Madden did you and year-over-year, up if was goods So that bit little it like and looks game look full

So a the sales on ASPs games have up and new there revenue first any the you That's new down your catalog the was some can just in being Was And year-over-year? between pressure explain follow-up. question. releases disconnect being weaker? of or I

Blake Jorgensen

so yeah, year-over-year is up XX%. game actually so full download Yeah,

stopped Madden FIFA. only year well from this FIFA, driven days we've the X not remember did ago. it's year XXX strength that as year, So FIFA. selling we by FIFA X there's a in few was And first Remember XXX in million a FIFA. gen and The gen ship

some gen downward on imagine was you So can three. pressure there

added also PSX We into subscription. the

can FIFA also some people through the subscription. you so there was And imagine playing

still we impressive. so see with pretty those And growth factors is

full We still downloads, tend well might to age, a XX so know, buy are like, titles World seeing dropping are they older the know, though full game an mode. wanted sell off obviously, you as the FIFA always even those they're you you as probably Cup download because some but that game of someone something they know, a on

led overall, of by all growth saw seeing across we You're the madden. core franchises But and that. FIFA less

Ryan Gee

Okay, that's helpful.

sounds and plus revenue because at more like for of are year-over-year. packaged look out revenue, helpful So game maybe goods it shifting us people it is plus subscriptions in to full bucket each downloads

at look your forward? So business maybe way going that's a better to

Blake Jorgensen

the remember Yeah, now of to digitally. sold is, thing I over XX% think we're games full other being

with imagine full have you're that if a a support huge less retailer that to You to built time games. amounts historically, those you out out had these the are the digitally. think a period and either some of dramatically. then games, of or just see buying that But over less buying sales And curve reserves. even Retailers long you'll and there, buying And in things you you are maybe are business sold was marketing with on, games. sold oftentimes has business. I industry, That across because not not in in And sales that of or us. people the for changed some that's entire flattens business way

Ryan Gee

just question then second my related is DICE Okay, great. Battlefield. to and And

going So year, why that to they're would console a you title do as not year want that to Battlefront you franchise that And think X you mentioned from or benefit And call might some next to year? year, from next just benefit will everything it 'XX? still they wouldn't next a launches, out will what have the that till you larger titles as would that, you base? fiscal the new you have project hold you Battlefield fair have if know, install be it why assume for about next something is Wars project not for any could Star

Andrew Wilson

there's I doing a couple think DICE going is for anything year. of we're And imagine play I One Battlefield not reference support the continue Blake will on announcing X. a else strength Battlefront there. that But ongoing next of ongoing live so and you to talked that in II, strength is things services Yeah, specifics should with of number those. about the and of

about that lift. launch titles we greater and of to seen around will have the is think next game and we both As get play boost sports a year, seen greatest of the generations titles balancing that later propensity we've on, what title portfolio across players for

the of in that Battlefield inside things Battlefield a show the up for. have fidelity deep a well want some of base to as the to it install new We'd will really like do relates franchise that game. And really to we

'XX FY grow game grow opportunity be year, will next in well our range we a it and So to and what business next very of whole down But balancing things that Battlefield feel different about a portfolio. really platforms. comes our on for tall across good there the have deliver will Battlefield fan to the expectations gen on

Ryan Gee

guys. Thanks, it. Appreciate

Operator

Your Goldman next question Sachs. Ng with comes Michael from the of line

Michael Ng

until years? you few second, to had first with 'XX Thank the talk for if Skywalker the affects Hi. Madden of FIFA timing content the Thank theatrical on two color you to engagement just comment strategy from monetization opportunity and Could bit compares question Wars see being next if forward, in you how And And about Star just going just little you and and And rises content the the the I last all? I perspective? very you. Star a for and whether XXXX, the how 'XX. for gap can at movie much Madden. the fiscal could. is there your close Wars about

Blake Jorgensen

exception metrics FIFA Madden than U.S. the global. actually Madden better sport FIFA very the very FIFA are because So metrics metrics is primarily with a based similar that it's one to the and monetize

And so you obviously differences. have economic

similar. in similar. effectively of are people the are spend who Team very timing ARPU But number higher The season number relative sports play Ultimate of to And how the in the very the the of U.S. people play people similar. who So Team is Ultimate is

not things to the a demand FIFA full engaged longer engagement a FIFA that good and And plus people post job But other right, a nine that that a try long all transpire. The season months we're has and of Bowl season, getting you're keep thing around – extending in the we've to draft done Super you where get out. Madden. is the combine those events, that stretching of

the with even the Team. It's one know, you we at hockey, Ultimate is similar of revenue of but day, people patterns. much game their – Obviously, the so a size two And game. spend willing driven how the across patterns really are end larger FIFA the by overall it's economics the global relative because local and see around spend by the to to

question? second The

Andrew Wilson

of is particular Wars On the set. so well Skywalker this Star the piece, the rise in film last

plus talked You theme talked And was, What Mandalorian time. Edge having Disney with plans in movie extraordinarily robust franchise we the about Disney know, parks. around coming know, Galaxy's about over you that had The new

Wars we provision the experiences Star that is get ongoing And many our development the come. years for around of so will with continued to fans great the and of content for expectation partnership Disney, in plans benefit

Michael Ng

very you Thank Great. much.

Operator

And we question. final have time for one

The the comes Mike Benchmark Your question line Hickey with from as Company.

Mike Hickey

Great quarter taking Andrew. questions. guys. Hi my Thanks for

weekly question season. on bit active to granularity gave it's think XX players, like million little X a after more I last you

on for give Then you for sounds reiterated. fiscal quick follow-up. within set 'XX? we just that that of confirm have update, like XXX stage And us you sort million are that? high, trending some year, growth Can that you could range then I the where million as want the perspective your XXX You to a for to

Blake Jorgensen

small give make portion I more of going don't it. is a XXX just it year. index people don't so X.XXX XXX quarter the to billion, you and was can't that versus three that's think than if a I any million remind on versus the I X.XX break But to a XXX, Because range. million over

that still one In average of that I largest we've that X Andrew mentioned think the range. drive terms happy And that. portfolio as feel of seen weekly very continues the And, robust. that and million ever very was And engagement would users thought. know and things games you see extremely obviously it's more It's with you similar and add community. have inside We're you'll esports engaged continue on. profile, tracking very to our like content. in XX user to know, like that us That's we we

Mike Hickey

gave is, a Star next console sort me see from anything you of us of perspective Wars 'XX fiscal, over and PC likely you. you any up, think going of expire? then couple IP 'XX, or thoughts that studio Anthem the second looking I that years, is on should for to question if just Good. or the games from Dragon we BioWare on assume at Wars, post think releases? BioWare, as going or I Age guess that development to Thank did is Star And or go BioWare, related future

Blake Jorgensen

that 'XX. the know, it we early you there, there's, Age guidance guidance in and or comes Dragon Yeah, that about talked it's fiscal period. probably I the multiyear multiyear mean, you give we don't you after But, works assume this know, year in and should publicly typically out

but close want $X more 'XX its still I've with license. So some assume revenue 'XX are The plans guidance on maybe from it's not, We're a hint start million that Believe highly Disney Old I other it start Star on Disney giving of that. engaged or we history. around might the even into are for Wars: started to the to – stuff products. there come But some drop 'XX. or Republic, drop stuff you Star earlier, well into There's to a that on out now and that as Wars that should underway as don't product, other might

keeps business it's those So to in layer businesses continue and we that a process. we're that of types of like you just is to And Wars on and know, going going. clearly those part Star

Mike Hickey

Thanks a lot.

Blake Jorgensen

everyone. you quarter. or talk We'll between the Thank end of and quarter now right. next either All to of end next everybody, the

Operator

conference concludes today's call. This

disconnect. may You now

Electronic Arts (EA) 29 Oct 192020 Q2 Earnings call transcript