EA - Earnings call transcript Q2 2021

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Operator

Good afternoon. My name is Jason, and I will be your conference operator today. At this time, I would like to welcome everyone to the Electronic Arts Q2 2021 Earnings Conference Call. Mr. Chris Evenden, Vice President of Investor Relations.

conference. your begin may You

Chris Evenden

COO. Thanks, ir.ea.com. Jason. Call. Andrew Fiscal Earnings release CFO Second our filings our and our to me from EA's earnings and our With Jorgensen, are available and Quarter note their that, CEO; SEC at XXXX are Blake Welcome Please homes Wilson, today

In addition, to slides adding accompany our we've posted prepared remarks.

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

slides earnings we feedback this they and opportunity that, for regards in provide we for more With Andrew QX the Now you. metrics to for our Blake up calendar, that revamped all Please more contain X. XXXX color February and scheduled Blake's free the call historically quarter, this of on changes have is on earnings call completely now our change. included the from from your fiscal time analysis Tuesday, remarks. and These questions let me have

November today. to discussed We XXXX Electronic could discussion and of Arts cause them. we materially Form these expectations. risks forward-looking IR include website. of Actual results As a X, you and financial our our calls those to XX-Q update events the comments makes presentation refer our as differ future events post earnings that of reminder, materially disclaims differ actual company. and as recent may most performance comments, regarding for This from today on future statements our the of year from entire a and any results our duty statements to

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

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

Andrew Wilson

second quarter well of Thanks, guidance. first of net biggest and with our the our healthy continued showed the Electronic quarter pandemic. history in Chris. XXXX find hope amidst staying strength this After Arts, I revenue and above everyone ongoing the earnings FY

through games, our industry-leading depth driving more quality to platforms are expansion breadth, and of growth ways and We the play. live and more to services our new

Let me are thankful work for our people great well-being executing they remains of building incredible are and our everything for our to say, teams their how players. and delivering unprecedented am Even these priority. business. our I we circumstances, The first strength across our amidst top

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and history. EA net this XX the players PC are has most in on continues successful to opportunities. now global grow ultimate now it a year-over-year live year, our the franchise massive more franchise making multi-platform content. established people the in year-over-year the Legends of year-over-year. as world. services Sims date. expansion Asia top cross our live the base growth having each console and community SPORTS and to far season live great bookings is Steam with for million We've to among team play with than is Sims community play friends launched up so have a Our success Around is Apex and has than largest game world major itself in player around and Apex with services industry XX% continued XX% grown fiscal to our just more four easier

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We will reach more continue QX. players to across in platforms more

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Madden for is further them consoles Sony. to system responsive innovation our for leverage and franchises to perform transition even a put innovative immersion, to NFL that Xbox consoles minimal This and XX in in will more we're EA current two year our the XX partners for move blur launch the players to at technology We're PSX with will real this to at times the gameplay through providing Microsoft into upgrading FIFA new a way have next-gen from will always X for opportunity next-generation NFL and smooth bring quarter also is the upgrade. load SPORTS on center way of the and Series under sport brings seconds. players the action the it of us into consoles world. and to next-gen next-gen an excited major the of lines bring the even players consoles. gen and players Madden unprecedented the on over lead FIFA

few market team team advancements leaps developed game consoles to for franchise. XXXX allowing grown next We generation beyond. in want visual new on is FY plan the next-gen astounding the and the at Each console the to Criterion to new Looking a with XXXX. launch the scale. are the consoles include and true have the of has technical some by we rated drivers next-gen Need the The thoughts games bringing most These new global vision six same. this will launched is expect on for Battlefield I ahead, seen our in creating for growth previous our highly be least will of a DICE in franchise offer transition games some who history. deliver before that a never game FY Speed

hands have on has the we've holiday to more spring. game set lot to begun engage share the next feedback internally very Battlefield getting been community. testing launch in game and our as play We XXXX, is a the about team underway on to the positive in we're The excited

continue can second more to Angeles Having in Apex engaged in live continue Respawn Our we a content. service strong long-term to include an community, Vancouver be positioned our built delivering to now talented plans amazing market Japan services so in we Legends have great Apex that the Apex Los growth driver. deeply that region. with are largest full a expanded a our into for is Legends and live team location development team has growth

In ready the Year addition, in for Apex complete FY New will launch be mobile development and in XXXX.

community another span the strength is the games ways be more of FIFA as a on live enters a to EA engage. SPORTS will very new strong more for of geographies significant that X will growing. expansion testament that service. and to also expect Sims the executing year it year seventh We

and leads and including Middle to new game Europe. XX us to this FIFA East in next-gen year addition free-to-play in to the now expand four Asia success Online new of that Eastern In the Stadia FIFA year, our on markets the game

popularity to mobile new world genres in around games the new we six continues now new grow development and soccer and Soccer on markets. have for

licenses is of also roster league top Our unmatched. soccer

and partners with to Premier with more enable Champions extended League, [XX:XX] addition around La the and continue more to than Our League the [Indiscernible] us Bundesliga they recently franchise authenticity in delivering Liga league the the UEFA agreements expect. XX players other including this world to

is just announced our more We new also that fighting we new also multiyear with agreements a the UFC NHL, multiyear innovative creating experiences. just at -- and NHLPA announced and hockey partners

multiple SPORTS ahead. We to new have franchises in add core plans also EA portfolio our the years with

in development ING on our esports that we'll esports share our announced expansion demand weeks broadcasters. about esports and the major just addition we've ahead college base to In fan with from new capitalizing more growing program teams, and Group, our another in sponsors

has significantly Our year. business this expanded

positioned Our how is we pipeline services spirit I robust growth. and you of thank of our am amazing our games continued execute. huge we're new incredible teams sustained to A their proud well for goes to for dedication and have players. to and live

turn Blake. the I'll to call Now over

Blake Jorgensen

will families healthy, your of Andrew we and what earlier all you with is the dealing I you Thanks, and echo amazing are you're hope are challenge. on healthy said this which phone

strength it We Arts. have actually to continue that Andrew be the testament and Electronic teams just how impressed talked a is unbelievably delivered. our by to about And of

remarks read should through metrics maybe know gives listen and different with the earlier you it than Relations the hopefully, gives a call But presentation the normally earnings color we're hear contains us expanded you conjunction we've the bore on time little more a for website and to you in Investor introduction, you from posted you I for your lot call. and our today. It prepared quarter. trying analysis this would Chris' time approach This our my more questions. something might And information with. As with more

Team. We our beat So with by live Madden guidance The few led highlight FIFA in was and like the came briefly Ultimate services to Team that well a for quarter. I'd Ultimate by driven our points. above

content to of is remains after up Squadrons FIFA FIFA continues gone three most from and new XX saw particularly hundreds to year-on-year XX-year more for launching attracted teams potential ever bookings most Madden to year and this the and skills games. the X year. Madden game really for three permanent With net sell-through the accounted XX%. first excited COVID mobile Apex the billion with in Mobile lifetime Rocket of players. million we FIFA weeks our mobile $XXX due billion expecting XX in business. FIFA licensing making net Credit in including grow registered Madden the year Apex $X structural every digital We million that After year. Games. two the power Wars: through development it ability year, This gamers. we're of also net up on up in grow. comparable since fan is net of to a most we the turning the players favorites about peers the year-over-year believe Apex This of in is FIFA adding engagement NFL to blockbuster After end Andrew bookings start the first quarter and has contributes to FIFA strong mode again XX% was Star is services our tranche track week FIFA. games of is we between buyers. successful franchise live Steam. model to This what teams the and have and than under $X soccer Strike the FIFA synergy quality example along booking also launched the nearly it franchises Ultimate and Wars: weeks subscription with $XXX with games popular XX, and period number Madden Legends strong do. new the latest the of bring also addition we're testimony last to to our game extraordinary slate the the with more points grew the first the this will the of in the $XXX weeks done NFL we experiences and deliver in to than Sims Squadrons. years. players. linked and it orders. XX That fans we deliver reached We've months quarter relative the had units off $X we driving start Apex Team Legends to FIFA in have Respawn best Madden about title million. this service and XX team's players and leverage NFL incredibly in started believe launched NFL billion platform EA the and Final Madden of The is time in the franchise. step-up in Madden. the with UFC amazing this to to we this of we Madden like Legends great velocity teams We and manage been sold launch to discussed. console. engaging have beginning that a the We've the is new to like to bookings XX six net change history Apex QX. quarter done with XX than to driven just Madden for thousands more Apex of for shelter-in-place XXXX year-on-year of came our the above due in XX% This a Madden These of three circumstances. XX% likely an First with bookings it and XX a from after now is to well-loved players Arena first further with launched last which IP Star We've eight this adds It's the We've be EA they is XX% the FIFA what is XX again doing PLAY was are Legends. done strong on on the both the Mobile been difficult up year by new off for QX to Squadrons Apex that the for execute to of and for a console more

we billion. cash Microsoft it had over in dividend their time first two strength came for new of The record phasing company's of making billion on a and in our quarter history. $X.X trailing and repurchase driven Operating $X.XX will years. expenses EA bring ultimate another program compensation XX-month a to flow The is the subscribers. value lead by flow investments. primarily to in variable for expect We of our to initiate start and cash and a dependability a below led to that this expectations us EA game repurchase addition, available PLAY has authorization new in share pass PLAY the has program marketing In noted of step-up the materially will platform

Our our about X.X% annualized declared November calculated per $X.XX of a common yield of the on stock, the Board as has on close quarterly share an dividend of represents of which cash market X.

to grow versions XX As expect game particular, have of over Playstation for owners consoles opportunities versions looking growth the XX transitions to new our to next $X a and months. or to upgrade franchises. NFL of XXnd launches launch we generation now historically the of of investors Xbox. the ahead XX industry of return next to the before total a result, XX the We're broad of billion and driven the can In and our time current year. FIFA any next-generation the free for Console

FIFA leverage to XX. expect ongoing an XX strength and we engagement FIFA larger for even addition, of building the In audience

Our per $X.XX. $X.XXX cost year of $X.XXX revenue earnings of GAAP billion, expectations billion, to full remain share be for revenue and

guidance our reaffirming flow of cash $X.XX are billion. operating We

further billion. $X.XXX that, See our more calculation capital in cash to flow share million, our of would repurchases. EPS $XXX earnings which of factor not continue guidance We around any for Remember expenditures and do slides information about flow cash anticipate details. free deliver

year move to about Legends from Apex quarter, the guidance. is our those giving extra changes $XXX This and Switch, to out your bookings headwind expectations that year an to And our The you moved fall the rates Versus XXXX. in offset forecasting a by net note, for income annual originals of year, sustained in is ongoing interest bookings are $XX $XX the live to last due driven expect XXXX titles. million about on $X.XX about guidance of compared million We low billion, FX be benefit will world build we amount EA the the experiencing. as that models million. our net of services last strength the our fiscal factors interest unchanged by in prior we're fiscal time, of of to

make For the share be anticipate of to third $X.XX quarter per $XXX largest $X.XXX million. expenses the expect for cost third quarter, the GAAP history. be of revenue in EA $XXX operating quarter. We bookings for which net revenue resulted would billion, we million in and quarter it $X.XX now of earnings the net billion, of to This third

now our services Apex this context be bringing that, expect will anticipate and Andrew. growth to with from work grow titles fiscal titles games also example, XX% This our some out Need of The incredible do we live new platforms, growth Battlefield, XXXX. guidance, new turn great we bring players. fiscal is bringing With it earnings in every I sports day net Speed teams net driven performance blockbuster back much are year, franchises to including by driven we be shelter-in-place and the driven moved our Some for new now the XXXX We still we by slate to will Even and XXXX to services by higher mobile. next bookings year. titles, to For XXXX. our live to content strong a but orders, to of to continue than strong a guiding the and fiscal Legends a bookings for

Andrew Wilson

has our essential more here season. and this FY growth continuing are XXXX and stays our the ever and digital games everybody Thanks, business for franchises, Blake. and We people we Blake And becoming trait Games significantly now are I engage lifestyle grown than holiday the year, world. enjoy With confident of are to your questions. for of through connect around into and this projecting some healthy meaningful beyond. great players hope

Operator

Instructions] from the line comes [Operator Alexia Quadrani Your JPMorgan. first of from question

is open. Your line

Alexia Quadrani

U.S. curious a you of what resurgence potentially Thank you engaging I'm of we much. of year? than kind the might this be that saw Europe think have tailwind now video that you in could seeing earlier different be in trends sort and less people gaming? for the kind In may bit fatigue wave pandemic the to more Do maybe so in second see COVID-XX of what you sense, and a cases.

Blake Jorgensen

Yeah.

in I good question. Let me first. the appreciate It's jump question. a

virtually the note same changes unlike around I think the March, say the is stages shutdown communities at world whole the we're when of thing world. seeing in to time, different

entertainment. so out would other to path, And flu of to want we that season as traditional And is But we know also don't things. we the much know we that, been of people we saw that, because way online the of because my winter, we will also that's see TV stalled i.e. don't gravitate entertainment before. movies, COVID surge we the to that get expect predict that situation. into COVID have expertise. And the I what But know do continue

more the to say it will engage be more never to we've know try seen help with that a it going very it in the past. to it which great understand, because to our not and guidance, I thus, in they're to that will that have we be world people And in we before. is way a so, have guidance. careful, we we've tell will And towards things whatever continue to to been in we've try things it online be we to the which entertainment, provided provided And in, drift you is and predict Sims reason been is. Hard do they people the sports, love because engage why

see want also so the be really also most know one people want up-to-date, in. to I are keep history And don't that, have be careful, sell-side because trust difficult just world as for we said, to really of vehicles, we we lot careful, but we we'll time. the a as of we entertainment this want that, but important that to and we And during things, of investors the

Alexia Quadrani

outlook a quick China just Maybe Apex? I for Any you. game follow-up for the may. on approvals if Thank update

Blake Jorgensen

It very is we're can very game What ultimately predict. this to we thing really But in approval. for are importantly hard that that, is But something our is require remember a know we But outside partners We we with more of mobile approvals China believe Apex optimistic. is guessing optimistic. China, difficult. get approval China, doesn't on. the

we're more so confident about in rolling game And it's all the and correct, then it key And game making of the those. on out sure the markets. is testing pretty

As Apex, largest the the second opportunity about, for Japanese for We is believe mobile of markets that in there's we the market a that one huge market. largest world. talked in

game. informed, rollout. the largest And market. for it fiscal in we're keep said, excited get the -- start opportunity into we we are on, early so, believe Andrew as But that's And in comments, excited test there. his to the those people the about we XXXX. where coming And we'll we we're coming will think focus markets very I think as And to continue

Alexia Quadrani

much. Thank you so

Blake Jorgensen

Thanks.

Operator

Jefferies. Our Instructions] Giaimo the Alex next from [Operator from question of comes line

is line open. Your

Alex Giaimo

any why guess questions. Andrew my for on does sense with EA And commentary the Thanks taking if why provide if you partnership works? could around, provide Thank how make And the just that deal Microsoft Blake broad the economics Pass, is would you could any for appealing? That curious EA? then I be color PLAY more Hi. Game guys. helpful. partnership, of you, it

Andrew Wilson

to makes the why us, of any access way in players terms in objective best on gaming beginning the to the subscription platform, for that again from opportunity them, has our very been sense our it can makes value for any In marketplace. sense ensure that

strong it We access. Sony to we of our partnership give and at on an gamers way as for build, have this and And an and opportunity as easy PLAY looked subscription PLAY. EA as we EA frictionless saw it Microsoft course a have point the to with We Microsoft own our with platform. platform we access And saw Steam.

We result be who this putting not games And it the sold just we will will an this is that we same actually subscription. as of a make with those at PLAY the our the -- EA to as if those have, that is of subscriptions, platform. Microsoft players that outside the entitlement relationship as subscription, they part

to need, think So our friction making to way across want, player wherever us as as see they you'll subscription continue possible. about it broadly any platforms. they little any with And available in

Blake Jorgensen

economics. can't the I would What say give that, I you is on Yeah. details exact

because comes overall You can imagine probably a big that, it to economic Microsoft and on wanted give it's positive of to giving opportunity there's of an was We that that. us thought great guidance When business. detail next it not be part their impact subscription. a year, we still won't

Andrew's we mean really grow our subscription them. Microsoft real also with we're do is help think to their And is goal is and this a great I the point partnership grow I how subscription. looking.

and it consumers subscriptions great we're to very is for about help industry doing either to early introduced a games for games, understand, possible great play games a as We are – or in think games days for be on value. it they of potential everything love to the new them why play we're the the

also don't you for on should to – do we trust And but so more it free. anything come

to that's and economics way it. work for approached and us the Microsoft of it out think we've we So the how both I – right figure

Alex Giaimo

guys. Thanks, helpful. That’s

Blake Jorgensen

Thanks.

Operator

comes the next from Your Lu line Mario Instructions] from of [Operator Barclays. question

open. is line Your

Mario Lu

Hey, have taking I questions. thanks a for the couple on Madden.

Yard. players that the I The title You year called has year-on-year. has XX% guys understand that mode mentioned XX a this NFL more Madden new

that And FIFA for monetize are to it player enhancer? best the was or any any So the suited directly? an a Or provide or Volta Thank color performing growth. The is either you can you. think Yard in just as if to do engagement just engagement how plans mode and mode driver on either you future there it's

Andrew Wilson

about these think for Madden years we when in And bring marketplace Again, management interactive the question. multiple of a simulation in about style, the really the had fans FIFA about engage put consumption we think sport. we would style, separate as and to XX together would ago arcade that Great we we that of style, sports think platform have to as XX, matter, goods. games, packaged

players, transformed together, world As engaging is They us of experience also told into digital us want to the together. to our regardless players business as product with. from our service come we've our to of have we've keep the really they're they moved for format want them what what

the VXX service. to a as we offering strong to engagement franchise really is full play this casual If opportunity people as new modalities we add the early new the for Madden game. continue haven't continue product should so – the early a the little in Yard. they our going to it's to there's this far the these seen little we've and XX the little continue a into and so different, experience been a is in to wanted or experience. in buy. you in it's we'll come What of its play that to way core engage and expect more The paced FIFA than players harder it traditional develop still Madden But that a to faster franchise, allows to But It's he more also And cycle. in life social do something good really Madden year franchise,

Volta adds has of substantial a returning inside the and same the been overall player for start the element context for to we'll experience new of FIFA. In feel players sale like so it And you that cosmetic players. overall friends What we environment both And to items right and the and cosmetics play when to that as across your been we've individualize of that. with with received. you really, really seen personalize purchase the in industry status is well experience build allow experiment true done have your

large are gives What communities? sports what And authentic like? look and in unique they cosmetics be to they're the the to most in? expect them things these will that with no FIFA to we'll We in time communities as work What right Madden gaming what to that the them? and are our and kind be of opportunity different to growing playing relatable over start

Mario Lu

you. Thank Okay.

Chris Evenden

Sorry, right? in think Jason I the have we queue, more don't any questions

Operator

are going do to My one apologies, last… we

Chris Evenden

okay. one, We still got

Operator

questions. Instructions] do [Operator a have We more couple

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

open. is line Your

Stephen Ju

Thanks question. Hey, taking for the guys.

back in I So this was almost July. think

I I you Karp, hired I of games, think Jeff Mobile new guys a believe. think head

he's wondering well. I larger that's the to going kind prior of franchises just that Mobile some Because as management to you what versus your segment. on hits been I'm of different do, think we've waiting for So become of think

you So now? going reach to Thanks. properties an the you map is for of hopefully these what road future multiples the what to be that's audience have think entertainment for

Andrew Wilson

comes with the mobile-first in of we part heard kind organizations about talk FIFA tremendous unbelievable last me best number of and Great He veteran the and years And company welcome organization. really some leadership has six and to back question. -- held happy to back decade ago, Jeff been senior excited in but of you to the roles And we're us the expertise. are very and an EA experience titles. now spent new

you Legends. You hear tell What Jeff back the us assessments. with talk Apex core about made I and come has would three is, push

deliver each new and to of new a franchises our they monetization content, number engagement to in portfolio franchises. games leaders to and organization but with run mobile across and drive the The and presently with profitable, result some an from tremendously new to the work how will opportunity leaders changes our are we and existing he's existing into monetization engagement to experiences services. that we brought first already have that of those for of changes players live doing company and have higher and industry significant new one in we're some opportunities looking And are than is going services that our more we through started for

great be in he of series done And of able and around number second some about franchises talk and FIFA really thing more and a great there really has games he out really he's against have out external and the third that to sphere. the a The will come and mechanics big the said, great thing developers there there there in internal development in soon. opportunity our game then IP world. has is, we has market. really lot increasingly have will the build becoming games are And who also is and to network motion acquisition like tremendous execute of development mobile what are to of lot others or drive do but not marketing they muscle expertise, around And franchises a FIFA experience who and put competitive start that like an exponential their to unbelievable have a key the

and co-publishing a with we Either in ways looking co-development IP partner our slate doing outreach of in with muscle. developers the could and publishers also is of licensing marketing or differently with of cases our lot that acquisition. at some with them Jeff or context external and so or And

lot IP with annualized on for be great we're teams XXXX, others. as we're of unpredictable. about to to about And you is to that unbelievable and And opportunity very tremendously into well. like and around XXXX Wars: mobile as that we very, trusted players positioned There number what basis. we again, are And further we're know I've to Apex FIFA in are Star seeing Galaxy think offer we Heroes strong. a with an games is XXXX value somewhat and But feel monetization experience that able business. look where what FY of certainly games and years more come a It's and confident there into we out Legends going that well that not excited our competitive. mobile build going been achieve of app so I stores is But

Stephen Ju

you. Thank

Operator

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

line Your is open.

Robert Berg

quick some behind that their for next-generation versus upgrades of Thanks here, Yes. you're interestedly for your offering charging and to that your it the then consoles Thanks. a or few upgrade on even of next-gen delaying current decisions think players follow-up strategy? your weeks And path purchasing is the the a with even year I'm the free with how thinking FIFA, months? any you the you you're question. next set in peers on higher for that Hi. of games, example price whether just free

Blake Jorgensen

it reality -- reason Sony say, any produce. we're build of the we've series they without talked social no I consumer it's connected how the is that than think power, a feel eight reality buying look same did based of felt key on small ability we've which they But problems. that program it's reason not And didn't think negative rest as people think network it's I but a XX about we some is we So consoles both didn't really -- know also talked much transition. complicated And past different people only console opportunities and and way. what about done this fall the But to on of market to level sure upgrade know is, I anyone or some would new take they in didn't end want games over purchases on component upgrade all year that's be right? it's that the mean, a add where Yes. consoles. Dave Microsoft We And better will to because for of consoles I seen just will and not that And play what wait, some continue million, your we people Gen past wait March, now, how that upgrade delay industry in would excited like we've also and comfortable remember we is than time to we we cycles. in gap. the to of I to we between wanted And without history so can that's the for about. that that able we've X gets because us publicly version in add and to or and and the a will experience, build amount to make new see is the start you that. it staying we've friends. would -- plays from really, to it just always the notion games important unbelievable because tell time of when to over it's mean, games, I year be be and many a XX want new And with people your that a years people two two to exciting making sure more you're transitions, about we to they And are for in will business of the or approach console you're be known time. over it that build new the that them natural consoles, of do wanted if now the will in incredible console that a back about now because going game they will that to will you they inventory better what years I playing. a but or consoles. this it's is out console our seen the from is would really the there will more just million, XX the million the also it, games know million, year

Robert Berg

can. that the future? follow-up games in if said, I be you hopefully higher what point do you a warrants The to believe And are a I price going think quick as

Blake Jorgensen

higher Microsoft not. what focused going into to We're argue will new default do and that. coming transition. We We'll the we that with things know games going we're of don't that I with console and or to people read excitement lot we can others the a do to that. figure price out. with our consoles. making that are prices consoles know What yet. the the more that the do follow want Sony raise is don't and the able And new new to and partnerships be Yeah. I yet. might to in But get we'll to mean, require on time. longer. said getting The might that want as getting people point to experience console on playing that always that is The let's stay really I that weigh games don't are I deeper. next-gen over more into is games getting address what back We've is we a expensive. closer price time And One are more games

Robert Berg

Perfect. Thanks much. so

Chris Evenden

could give please? the you question us Jason, next

Operator

was My muted. apologies, I

Your of line comes Uerkwitz Oppenheimer. from the question from next Andrew

Your open. line is

Andrew Uerkwitz

have a thanks the me take couple for Hey, of I letting question. questions.

titles? one powerful for history first ball a bodies that and It new seems us a little and consoles audiences. the quickly do new physics that on is consoles you on give the have could impact crowds pretty and The lot sports lesson could

normally So sports the pickup cycle? couple a console the a within of do of you first see years franchises in

Blake Jorgensen

lot this a let have. I'll Yeah, he's lived more because answer than Andrew that I

Andrew Wilson

most to now. The I've job have games. a been video long And doing I for time this short I was my this of was answer is sports enough building before yes. fortunate career

the And And only number of a we see not considerably. tell would so consoles. you grow I went market do through I

console and do generations, can intelligence you through believability game new and growth each If sports console the the you through we've history And always of bigger of the the every look you gone market technology a a in benefit what in future grows of kind those sports do transitions growth meaningfully social a had drive with you do back a terms console and realism as what game lot what generation. generation. games top-tier market in as engagement go into through a We and step it's console a and about authenticity and that core think can from in and level plays the change almost level? of transition at player frontline can buys move a and at level development immersion

make go athlete? remote athletes? you The moves we're you PSX If look now back or all generation next-generation make want like can was the history was that like real-world real you the you lesson make can about you can and real about it's of athletes. with together them like the athletes are real the And you all is in the to real fact engaging this pitch. those look add of belief next-generation all platforms, a the that suspense a you level those at can players in we intelligence upholds a game as of that athletes on real PSX bring and

drives unbelievable to development expect play. we base new technology the context will in so drive do of the that that continue the I And and game

about with from physical continue from as you'll the with move this as started started technology base and moved moved see to how becoming lean that as because and to of that are people social real-world happened frankly, of also to you social thing in last start use should move we'll by we expect together technology that play with the platforms. a Volta play things The of modalities cloud the and of that combination COVID these we're accelerated of game. do can favorite shift sport. of we'll to you'll see for do to social millions Madden new expand we the your that we've And starting us should Yard then millions the you're do you see new influence and those And and of consumption sport bring is so second that we on together -- how in the broadly bring platforms you for to much interactive really of the also has social what's as happening player more on how has as move talk play. how me players them of new that quite us we're their we power around cooperative modalities single of how you nature to multiplayer, these multiplier of through The digital. in there imagine play. sport transition consumption excited But offline with And ecosystem a continue some interaction new is these modality we online. from the think the and has how players And and interactions use the sport. to real-world the physical heard to plus platforms, the It's greater building about game we And networks to in how tie of sports game fans how the to

that new offer of to modalities will influence the the the combined and platforms of certainly to marketplace. we this tie cloud combination growing different these excited a be new that the almost think of social year, enable in as we're you the platforms about really with the come. base So think into have the And play technology just of not the opportunity orientation many about that gameplay We we an will future. network but games, years what expansion tremendous

Andrew Uerkwitz

on the for should It's be square give more us investors I enthusiasm sneak the dividend. color. appreciate one the just that the your new and M&A mentioned game you great buyback you active thought and And Blake, you there. can Can latest I M&A? want in? interested if with remain technology. thoughts in to Awesome. How very quarter last

Blake Jorgensen

with not concern fact, we of paused And wasn't we all path are I money. how buyback it I confident we the feel or the into we say I with COVID buyback about, at and dividend. transparent around that the more of issue. I pretty thought today. because would employees March we think the the it Yes. consistent also between confident were added dividend think on part M&A. our feel you mean and connect in of buyback we at would -- And how because know we dots program I when more just last people it we was end the we've finished we're were a of street a spending our It of going end that the a

substantial close And we're we're have our and coming to about under or level reality sheet balance the either on the the the Now talking debt flow. cash level substantial buyback cash capacity. we dividend if is, still and annual

into read any acquisitions. don't as desire that inability to or of So lack the do

about operate your say And one capital What out we incredible a though into million increased the is that's things be the in because focus remind A And we with time, seeing time, thought $XXX from very close it to strength around end the confident how the the year. our be guidance we almost to a and guy's ever that's short-term the are talking but company. that because we've by billion to to almost we very $XXX very, don't many read very we're comment confidence our what were do are focused because mentioned. very going really now it the guidance been of balance and of coming and matters the during guidance all don't careful difficult of $X raised people could if a not business negative an three in us. we months will our happen as would right at we first I growth me at guidance don't I message. greatest you quarter. are fact raising need the as the we have are you long buy, we of of is but making Andrew driving rarely doing I the billion want And not our we've we we may go. increased destroy example is on time, about again strong investors' that it's the We predict not can in tell remember world. on of will an we're first situation we if I the situation because business, guidance are in feel our same sure to million important that I the we will on to granted was to at confident But we $X.XX unfortunately about happens, buying tell we and and But you is, had thing Apex And We excited how continuing next also created quarters, shareholder six we responsible want heard going we're economy the year. to today and And Japan acquisitions, Because where the but happen. next the simple now. right anyone on what do it I know is, going that's can COVID That's on the buyback quarter. read present so what most but incredibly focused individual the in our and me. value very don't so and around first What There months capital business any in one same that what's being is acquisition. different because going are planning business. when it over be to with what very, the big. growth that's it confidence dividend call if things and to are many or of as anyone now we also business. that inside

ahead So out anyone and want to negative -- anyone remember don't but we get that in want message is guidance don't next sending I told of million that themselves any think again haven't raised by because people we to to we're I guidance, $XXX just going way we've year. I guidance we're raised the grow on

So like it a is. keep our that's you asked, into read share why and where I a I It's a in gets it are in is we're so question all things not confidence don't that's think industry so exciting the context the exciting. repurchase or and it's know opportunity where anything in positive. where that -- exciting dividend That's and that that's They're negative. going commitment but I forward. business Andrew as the

are as indexed on real a too this people they And get we going. short-term over to to I than think to we're everyone wanted we actually and but I read about don't opportunity. little the much want I hear, is more what people the and sure really Andrew both passionate -- sorry think So make telling where just

Andrew Uerkwitz

great think that's I that's I think appreciate color. No I -- that.

dinner can't been tonight. think so for a mixed even that's I Had but questions of lot tonight. feeling, what getting predict having far a I the I've I'm

to we'll and you quarter talk next great month. So

Blake Jorgensen

in any the queue? Thank you. Chris more questions

Operator

certainly is. There

comes line question Alex from of final Your Jefferies. the from Giaimo

is line open Your

Alex Giaimo

game delays Thanks, the in side. the hop Thanks on. for We've even lot guys. and AAA me recently of space let a on seen back

next that's theme in So, think for a XXXX. big just you curious Battlefield towards obviously fiscal year as

can doesn't on development get now risk game helpful process? feeling from any It you update about year there. an you're to there's that the that just update And So if an launch provide maybe time? curious you. how be if about a Thank would

Andrew Wilson

We're able seen launch as you've in the talent. this in of as a.m. since leverage talent that we year ability We're out scale in project-to-project. high-quality move from we're Working can allows to greater as largest process. our development prepared of And today, it's doubt our some doing There of fluidity in our to morning, from to Again, track even first the launch XX:XX all organizational question. strong. structure support time. remarks conversation extraordinarily able there's content services games extremely And is during that and that having the we can. to product. to no our have. hard of kind any are having benefits if much launched is and on teams launch season our the performance live home be our eight our rolled and way XXX and come of Legends -- look we've we've us has out day we Great Apex over had Yes. seven Apex season our of this from been scale this Steam at and Legends the play you seven

edition Our Twitch three a the minutes is the product. bestseller launch on the new on of top since had champion watched most Steam. already We've

unbelievable, of these of and our another experiences the So content capabilities games inspirational the testament to our to ongoing challenges. and just teams to ability amazing face continue deliver in

As we to our to starting product think about doing part talk internal get review year the We're last about out play week. go I heard feedback. of and we're Battlefield was testing. next me community again you

an the year rallied development. Battlefield development extra We of given entire them studio We've that have of around specifically.

planet understands can to from and the in studios You'll our is most who leadership services vision our and one of around talent our next-gen the from development. DICE We've game. and the Rutter ability remember in live EA able that confidence been industry rigor our bolstered game launch David brought on fact year. a across build true add and of we've that belief really next to who that both the business have to SPORTS in talented they ensure

have to year in face ability is we an our games and talent, to are the that And think our launch because us unbelievably really amazing why feel and in I grow amazing next year. FY confidence and scale we're But content. we've of be the XXXX an content deliver demonstrated months. coming have about the good our we for So to which is next couple coming part to off in lots more together challenges really this year. content of come record going structure even of really, amazing extraordinary organizational the I year our amazing people next to

Alex Giaimo

Thank you.

Blake Jorgensen

spending and any the myself with time following back couple it Andrew. back do of I us. So thank Aaron, with it for to remarks. that to turn Andrew questions, I'll you always Chris, turn you obviously I'll and the on others commitment connect to a know can everybody closing but on just And

Andrew Wilson

content great had Apex We've major this XX% of And and new our you in growth be is The where year stay XXXX. today Yes. we're Sims and in year healthy everyone world. and where you've to right confidence the business. Legends, we've FIFA, year-over-year beyond. me in for think surge What and forecasting appears you Madden, joining of and parts now all our us from further expansion extremely for thank in we're in drivers earn do we continue We've going growth and second FY games opportunities COVID what at safe I for launched growth business already a hope strength be to this got

We console are for excited upcoming launches. the

and extension another with portfolio hardware next-gen continued New expansion has market our the our projecting we're an sports to and in fiscal course, of year franchises grow with of opportunity in us historically always new services a a and and FY beyond and games our of Madden live XXXX Battlefield double FIFA mobile grown offers down growth game.

questions. well. today. being much. for So Be for thank Thanks here you so your Thank you

Operator

today. That today's you joining concludes call. conference for everyone Thank

may You disconnect. now

Electronic Arts (EA) 5 Nov 202021 Q2 Earnings call transcript