EA - Earnings call transcript Q3 2021

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Operator

Good afternoon. My name is David and I will be your conference operator today. At this time, I would like to welcome everyone to the Electronic Arts Q3 Fiscal 2021 Earnings Conference Call. Mr. Chris Evenden, VP of Investor Relations.

conference. your begin may You

Chris Evenden

COO. Thanks, ir.ea.com. David. call. Andrew fiscal earnings release CFO third 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

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

Andrew Wilson

FY and to the $X.XX achieve of today we full this with bookings, each finds to in fiscal ‘XX. guidance bookings a for and net expecting of We’ve remainder be fiscal $X.X are above pandemic. raising And year. to bookings growth Thanks, the record-breaking this continues This projecting staying guidance nearly in net our year for healthy are next Chris. delivered in continue quarter well now billion for business our net year and amid year. earnings billion Arts. guidance After we the starting ongoing Electronic I you we’re hope for all

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the call Now Blake. to I’ll over turn

Blake Jorgensen

in year cumulative delivered record live bookings billion. deliver services The Madden nearly a this and expectations for grown well decades. GAAP was The its universe million. longevity. by Sims Apex Thanks, gameplay. at of the about the segment to billion and in for in by amplify of Apex be services, I’d been at is net Madden annually of off net Measured growth Andrew. equivalent over and we particular, $XXX compound Apex about revenue FIFA the team characters XX%. its compounded console average compared year what run for Legends track by team $X our expect PC sports with to million fiscal We and the we been -- bookings similar having The delivered XX% the XXXX. rate grown beat as both With Legends. hope years, embraced a consecutive billion nearly annual led million $XXX franchise craft a has today. really and Apex has XX% Ultimate X at annual since $XXX of FIFA game of over has on season and we video has of XX%. estimate will second expectations live APEX net regards Team for beginning original is for $X.X to here The quarter. in of growth focused to our rate last of and this It’s our to growth That’s fun outperformance have XX% the of that on above ways driven sixth paying this new around growth on annual long modes reiterate We’ve We the measured and experimenting more the with net of the opportunity, title. rate to built This explore our and season per XX an worldwide X. and $X.X and characters. building from playfulness about bookings software sports well

is segment We’re at growing core. focus about spectrum that for the sports to size XX% are to about leader casual applying billion and in global $X.X from our opportunities gaming a in full market year. fast of sports The the and now presently

of come We’re little to come. to in the scale have working you’ll surface to projects but able of flight we lot But our into challenging the our opportunity. we’ve remarkably barely Operationally, lean a about in and that massive in with activities here on deliver scratching quality more this been the impact of times, advantages hear games we’re year with in timing.

NHL Pursuit Medal FIFA XX, Beyond. This XX, Need Above Hot of quarter, for Speed and we launched Honor: Remastered and

Wars FIFA extended to also Xbox our Jedi: PLAY Fallen We Series and services to and Game Microsoft Star and to X Pass. PlayStation Madden Order and added X EA Stadia

hit below play. our Needless excited We we’re new and a in XX NHL. Wars: package trailing say XX-month close year. board sales for a which with Mobile we packed representing XX% about for help jump was more with function last quarterly materially with flow, expectations, our X of FIFA, we to operating The Madden We’ll by percentage this We quarter, of QX the Battlefield Team strategy flow third in and billion. consecutive in mobile next much the continued phasing in launched and events its excited very across of Apex points driven potential this the Mobile. resilient up say, next step quarter $X.XX launched digital X our in for quarter investments. of of Star XXXX by be games from Snowy year Season record units to Escapes year-on-year through showed in to have for back Ultimate QX the to primarily we continue schedule about We digital quarter, COVID The cash currently in fiscal later delivered prompted today. about Heroes year. launched and sold Battlefield marketing of expenses of fiscal the Season X. growth the FIFA cash Galaxy by came the Sims. outperformance led the Operating record live have We for The across appeared

Remember billion X-year cost that to in calculation factor full-year billion $X.XXX per be not for earnings repurchase guidance of was announced our under does $X.X revenue recently EPS share revenue program. future Our and our billion, of expectations buybacks $X.XX. GAAP share $X.X

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

to further continue press slides around $XXX release Please flow free million, which of $X.XXX deliver for information. and We capital about expenditures earnings anticipate billion. flow would cash our see cash of

services, We’re is strength year and the made Apex FIFA during billion, at It expectations product year. the to expectations particularly our changes million our continued be the $XXX start the million prior $X.XXX the of to driven This raising is up slate above our our from $XXX year we the by bookings in live Legends. net guidance. for despite

over year, year We year prior to with release million. the an expect lighter $XX versus this headwind slate be FX prior even XX% a and of about

for million. $XXX the fourth results GAAP of revenue $X.XX guidance. to fourth operating $X.XXX for an foundation For We quarter. be million the $XXX is growth prior over we billion, net XXXX. increase $X.XXX expenses fourth million quarter, a $XX built of net for which the now per of to expect loss of revenue cost in of billion, quarter a fiscal be in bookings This anticipate and We’ve share our

our We into people ecosystem. have brought new successfully

who time working new We’re titles want been great content providing to and for more spend people there. We’ve new hard platforms. on

significant growth We this expect XXXX. deliver in to fiscal organic

feature will guidance is our tell prior They’re in Battlefield ahead cycles, team surprises -- all on reveal were incredible doing themselves. that for call, you FIFA, that Sims earliest we’ll other they the the history. for way to have follow service but Apex Formal complete we’ll time The an where when is franchise product And can teams now track I QX in product job. in of and live right. their outdo the Madden course, of continue Meanwhile, Legends,

back to Now I’ll call hand Andrew. the

Andrew Wilson

and execution to Blake. of foundational us ‘XX growth business. throughout our drivers FY are Thanks, brought the has this point Strong to future

players for before. the creating world ever are amazing teams Our than high-quality content and around games more

our our business other Our with we favorite with enhance engaged players ways to connect their for for content. that term. experiences keeping continued And live and enabling transforming these the over each extend growing engage deeply expansion, are portfolio and players and are services long

and growth strong ‘XX. to QX a looking year We’re of a in forward continued FY

and Blake questions. are your I here Now for

Operator

[Operator instructions] of from Nowak the Stanley. Your line first Brian Morgan comes question with

open. is line Your

Unidentified Analyst

Brian. the on I question. taking Two, if for guys. Thanks Hi, It’s Matt for could.

last if games So us just had And that a just is the curious parts before and you came in that give of of locking you out one forward. should of tail end I’m an beginning the point guys month the felt it Star at you kind second QX, we into country statement like It then XXXX update reopened those summer. still fiscal Wars the guys development. have expect can from put was again. down you franchises what multiple on the partially the of on

So what wonder I you. came experience over of other in quarter? see over last did was of saw of restricted. course in entertainment terms just Thank what people churned you behavior the the back as into course had at beginning, QX more user the options became the out gaming the you Or then

Andrew Wilson

Yes.

But So if what let part into -- then of things with new our be me and would that Lucasart of look first, We in with Star history a say or with as I jump won’t Wars. long relationship, and then Lucasfilm at profitable here. very context we’ve Wars, and the Star with announcing Lucasfilm is you had Disney.

bookings We have sold. billion Battlefront, of and franchise. Jedi: Galaxy of most $X Squadrons. of billion Wars: Order net And Heroes generated of Republic, a $X Old Star Heroes, over a franchises, recently, is That Galaxy games represents million number XX Knights life-to-date great and Fallen the

to And we I likely to each platforms future increased engagement new relatively that experiences across future. should know -- broadly, continue part Blake, Blake now strong I been engagement well invest if but seen we we’ve With where good our we has both the look respect on to last engagement the and as basis. established to those feel in that feel as moment year. been. for we add a engagement some that strong in conservative, very think, the seen expect to you in continue that of we about have you have that. I confident is franchise, feel more at we’ve throughout any the time, As we’ve to more will the think experiences more I go-forward as don’t

Blake Jorgensen

people services would should live QX is, and we’ve only it’s billion be And what services don’t Apex. I happen. say we is sport, spectacular. one in make things, clearly, seen. live knowing out social which of And done. is than that’s and simple engagement It looking the of XX% that engagement ever have at on the is of it connection because social year-over-year same to terms we of the some we’re that’s networks we’ve what who The love growth how And between fulfilling $X.X No. sauce Sims, see secret figured thing, driving the of what’s prove it growth you created. that revenue Whatever without the stronger

Unidentified Analyst

Okay. Thank you.

Operator

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

line Your is open.

Michael Ng

the have Great. question. for Thanks I just two.

that shooters Battlefield. the on the is you using us content the Is could ambition road top bit could little first-person free-to-play something you there With question map? game Battlefield? First, just share second about on talk a mode do NCAA with expand funnel, with deal. about to And just to my then like your anything

a of do the those future to for around the was Could about that doing think who guys you’ll units of some us was when you games unit for like? -- terms us I -- think going that NCAA of game that last XX Thank you. you in good give what demand were parameters the way some Is weren’t just forward? Football one. For

Andrew Wilson

more to units more next-gen in taking a we On going Battlefield And that power of Battlefield, believe with franchise. Battlefield the to and Battlefield at we come platforms. that benefiting and Battlefield other that from have games full share But to want imagine fans don’t be this to usher in believe should that all kind in time. share this EA With part fan to a game, leading to of college appropriate respect was again, It football the month SPORTS. more of was past that was life on our at of game. the exactly really and we that we’re game. It sold looking strong each it’s a It’s the we’re game will on -- by this over for week life. new bring fan you and the my amount It drive anything requesting the get measured ahead excited emails than to this the is favorite in strong game. generation forms that back millions point expect we’ll be a to it tens play of you will we that growth I to favorite of us fans its inbox game. across experience game continue ensure of And my the really

we past football, changed that a to I game future. could factor has think think broadly. say last and the also and also think for think I look I I’d the we dramatically you sports But as dramatically fan, grown the a has that conversion we as since gameplay college nature of launched about to speak the of more the in sports the entertainment us as future heard XXXX. of audience

excited ahead. And years in that bring back we’re the so to

Michael Ng

helpful. really That’s Andrew. Thanks Great.

Operator

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

Your is line open.

Mario Lu

have Apex one Great. I on Thanks taking for the one and on questions. Mobile. FIFA

So very Apex, the the first for Nintendo version out coming excited March. in Switch one,

opportunity organic And million Are region? just sold us similar separate fact just the annual versus frame going version the coming title? $X mentioned other, Madden? console, games? Thanks. market, can worldwide the they can to completely be Japan six are believe and close that growing have PC Mobile, And not like with you are mobile? Or to in games. on each and with you billion the FIFA one reaching No. I game’s you to from current secondly, FIFA being So there tied help XX strategy localized is the they the franchise bit then more expand X Switches title to a that why growth in bookings for different each on Switch

Blake Jorgensen

Yes.

Andrew I’ll and want on, So jump then start FIFA. Apex on to may with

We that’s for Japan as will Switch. the Nintendo it on it’s second-largest we a of put that decided is for Switch, we to we get Nintendo exciting which mobile Nintendo the And Japanese of the markets Switch. a know not reason think combination Apex Switch But clearly, that And out know global also market plus Apex, for Apex, some in very be to us. world, Nintendo one months the you quickly. Obviously, on So launch said, of business. the just largest we But the the believe Apex Apex China very in business, product to is is we see in sure be will make gets hopefully in those We into take will the into want. sometime next the regulatory and of the we also market issues the it is because to powerful. issues. soft of rest don’t mobile But four it three marketplace longer exact that want happening. the

time continue that and this that there And let’s so will remember, learned perfect is range, very we’re market. billion. one-year world and trying build I character to the that making product sure this over than will in not the $X and a think that very Japan. less long on think forth think encourage years ago, for and no We existed. to today. We two the a the learned all lot just the from to don’t is we product upside an a for I a other mobile people today. keep we have platforms product because don’t Today, it’s is on. team product knew we go blip. to help still just to They’ve over around that huge This time product There long have a market us. one for might is a development product focused are a dedicated global last But they’ve a from Switch opportunity it lot

it. about the FIFA it excited question. very we’re So throw over Andrew, on to With that, you I’ll

Andrew Wilson

is the as way Yes. Mobile look we they’re at the of around On markets. world’s that player largest is What looking as world soccer about the they magnitude respect what also, means as we I by magnitude growing subject different know that of people base world’s about wide And different turns this travel ecosystem, to soccer we wide with and platform in love. think know different the types as a it mobile certainly, for in look is about think by often FIFA, of sport the of margin. things gaming soccer at different to come into we out, the to players. the matter we margin is largest a that best mobile players experiences terms

is And across so geographies number off for. building a they’re for different an look what of business, player basis, licensing think And we and different mobile based we at there platform to a the from represents on on experiences of we our growth FIFA looking the relationships tremendous think global opportunity a different that as our strength us. cohorts opportunity deliver

Mario Lu

you both. Thank Helpful. Great.

Operator

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

Your line open. is

Ryan Gee

everybody. taking Good Hey. Thanks question the and answer. for afternoon,

live services. on First,

So was year-over-year. I the last down think quarter X%

XX%. the that I really some of for up, was quarter This is think, sports don’t games, shift given representative. But quarter either I know the that timing

quarter Game So I benefited much launched with from what was like? this live Pass and the since is have how Madden hoping you services Ultimate partnerships could subscriptions may FIFA is for clarify and Team cadence and right Microsoft

Blake Jorgensen

pretty the many wasn’t years. know And don’t down. been year-over-year rounding say is Ryan year, year-over-year for that error. year up impact the -- say, Yes. on imply It of I every subscriptions on at say I a growth based for relatively year-over-year. XX% -- It’s last business. I’d question. would looking was it’s how would would a up I’m looking what the thanks I I’m strong numbers

of Hockey and in So FIFA, our the live strong Medal Honor years. extremely it And had strong seen of Apex, and best it’s even quarters almost Madden, they’ve Sims. of one is all across services:

the to try so across And would growth seeing the still this of incredible what across nice still growth it subscription, very year-over-year. services is quarter there’s our we’re is the bulk I remember to live live business services. growth, of And small And games. it’s overall all compared while

Ryan Gee

down services get FIFA Yes, live there last referring down Okay. year-over-year, was quarter to because was I for your point I timing of but the nonetheless.

pace have console, high-level your time versus -- relative those can and different observations would of That the be other us response out us the new behavior, prior on new give purchase how really give whether just now that to was with the market, and you of -- there could engagement great. your next-gen you consumer expectations kind gen? The the maybe adoption any in consoles has the have the exhibited spent, one, question been

Andrew Wilson

Yes. balance, it’s at Microsoft probably for better question a Sony and On this point.

games. it’s those to physical, too is early basis, high those and I build consoles we’ve new that the gameplay we’re our be excited a the think spent digital really, for platforms games retailers, time inevitably, be think both that and players is what to we’ve go-forward deliver. on and that is be and going extraordinarily creativity players strong. experience I platforms our innovations to as for struggling more stock. true we immersive the able both to and tell mean to going and going are we’re really to know to anecdotally, on are build us. that I’m for able is been to will And to keep the to look both And them seen overall in games about see I on engaging in really offer ultimately What growth I that demand in a able

Operator

Todd the Sanford Your Juenger question from with comes of Bernstein. line next

Your line is open.

Todd Juenger

one broad Thanks of I’ve and also taking the one on Hi. question. on basketball got for topic two, the social.

be maybe of in business potential fan of has in wonder big And guys a in comment way. sort was particular that. wondered way a basketball the absent and noticeably back talk certainly for of the if a sports expansion base you or might on NBA mention a dimensions, college is to get basketball Just lots about there. and large any if you of your particular, latest just That that if I white space could on basketball. you opportunity thinking

Second what and question call the Fortnite, short. topic gaming was prepared we Surely, convergence and on broad agree mentioned But could front I it word pretty multiple of Roblox. I’ll social. social think try eyes, our happening the broad social question. in of It’s of remarks that your is times. all in we the make a

how that of what of that Thanks. to Sims anything an your your The aspect be place comes advantage take gaming? proactively you to in you that. you mind. obvious is doing pursuing think evolution, evolve wondered me, your portfolio To biggest opportunities as that means clearly, sort of more aggressive Just to about, are where Are games, for of

Andrew Wilson

Two great questions.

announcement last imagine yes. with apart. technology our our really but the I creativity to of over ways year, over their from to the off, players, relationship that say underperformed social the the the to One, should deliver as in are kind you two Gen linear me population is strength last two they have entertainment for connected more Z today. with the ways fans. to moving have of And And new, to our we respect those that’s before, remain use the NBA now social, term. on games really while With from you long of First interactive With intersection for of interaction is would friends been very on we what broadly thinking a recognized is Z short physical and to and heard Gen make and consumption particularly sport basketball us of the is said, to secular and for And basketball the things. continue general, digital no sit trends. to we that through the Part that using the good to we experiences the we teams our been this population. for I amazing of innovative even may answer and to years at moving have basketball basketball say have of remain us. best think number of our business, are strength very cool, disappointing committed

build is should to that example really our the are take wrapped content expect basis And and the interaction social we our so plays our games. we what as us day-to-day with that how for play about more can our social our the And opportunity and future build was to we of fans do social for about such talk in of think weekend and us deliver on Z around go-forward a game that competition, more for. we who about are one on fans, Bowl all interact to that Gen you our a a providing our for Apex, about opportunities the games fans is ensure we the build started tremendous we we’ve play a sports when to Madden, using over Pro on of the who think there about to our fans franchises, asking around center that fans at in both think ecosystem our basis, mobile fans commentary, When we we about games. and are social interaction, when The Sims, community, more when data think think into think

Todd Juenger

Thanks lot. a

Operator

from question the next Benchmark comes with Mike Your Company. Hickey of line

open. is line Your

Mike Hickey

Congrats Hey, Andrew, quarter, my Thanks the taking question. Blake. on guys. for

well. Just two as

on The you’ve a there. your studio. one It first like had over BioWare more executives few turn looked

probably then think I is obviously, and how owned about less the guys? do in leadership from you IP development of license think on your and speaking, you’d those guys. on map us helpful. doing sort of the Star resources? licensed update category? How Thanks, you And left broadly Wars, studio. of product road And do not It realigning Would Casey Mark the exclusive. executive be seems Can sort like about that the non-sports versus IP think you years. BioWare be

Andrew Wilson

Two great questions.

that very, blips delivery people years, the work. again, filled has with as of With who And Effect leaving, some but and incredible of Casey deeply to that Mass their the both about First in like them mine. there a And and studio that and we’ve off, very their Age result an in of road incredible outside last future. wall, again, about innovation friends confident couple map come over Mark incredible respect and on talked into is we good BioWare, pushing feel games have I Dragon from do future think been creativity. their

very, work for Legendary respect future. look we of the about BioWare the organizations in great time. happens But this will and received well creative near that studio innovation natural day in have people We tremendous more our to leadership has announced have the deliver the seen trilogy what’s every by We course to Edition forward to Effect from both that sharing many fans. feel from BioWare ongoing been them. who extraordinarily time and good And come of of and you coming creativity. And to just about Mass very

studio that by continue we’re will And encouraged deliver. to so what

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engaging is our we deeply fans both to you more what believe high-quality, broadly wholly us across deliver we Star great take in able owned and think content execute for be sports IP going and our I deliver business Wars. with have like we licensed confident company should partnership our that our and our from the that we’re ability business future. And as great, feel a one business, for the games comfortable to to

Mike Hickey

a Thanks guys. Thanks lot.

Operator

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

Your is open. line

Drew Crum

your rates second sports My performed? question Codemasters A question you by on racing guidance. guys. And would the on the to as accompanying intend titles? as and services Codemasters live quickly genre a afternoon. has commentary how platform. Thanks, Sims to growth relates on it Good How your for ramp to Okay.

Apex earnings, the to comp last and consoles year, FIFA Maybe today. XQ with Codemasters plus and much presumably initiatives it the with higher fast you’ve talked number than with would of fiscal you those your that But still accelerate pieces as next-gen where about serving forward key today, would two be. fiscal suggested Battlefield drivers. adding have you’re you So will a in be thought growth you ‘XX and place,

remotely possible? given in So growth Thanks. accelerating is ‘XX that, fiscal

Blake Jorgensen

Yes.

Let we confident we’re we’re wouldn’t possible, it in of mean we accelerating question. me the see we second is with saying will business of that We I and the say if what that me out -- believe -- confident year’s let start but Drew, growth trends continue. was come it. that weren’t this

closed we Codex yet. think Battlefield because the could -- next actually we deal haven’t in what is place or put and not have year Codemasters We even deliver

and thinking to which in we’re we revenue. in we’re clearly to we’re saying again going $X.XX year. telling close we so off $X.X And billion, billion grow telling we’re And we’re people of people coming year started next at now see -- the

incredible you this additions should is about. even guys absent because think take we’re we spilled of growth I where that as level the out, confidence nonorganic from an is going, and business talking commitment organic on growth

decided the strong spin And because we a on capitalize part our right in fact try quarter get year. marketplace so GILTI I that. to to now -- behind it a we be very would focused fourth get had regimes, people I’d around in R&D of of is lot There tax to that expenses the the

ask to would bit, right are to exact that everyone that to so fourth And on quarter that’s is but every our sure trying in GAAP the the year is a sure GAAP and going why make a dig means. I above I’m sure it to really reason clear you in decline for front exactly that. already wants a -- shows company that we’re non-GAAP, not question think I cash spin have impact right there on but of thing earnings, asked. what do. But everybody want EPS in be cost an little now. and you it’s ahead a know the But the what to a gets minimal. that, is going stay that our questions getting not that aggressive not in what’s make to and a we the we tax And in was GILTI. a by of hit I And we well understand that’s purely of which EPS out be And

that for to U.S., deliver. we’re company. franchises. is we that in Now organization large marketing know GRID Racing pay in that’s to none fact some Codex It’s growth we’re And based that on franchise, that you’re what very be them. We own is to The We nice the their FX pay the mention FX new little have all incredible of Real help Speed its a franchise, for a racing they business of there’s Need a muscle franchise our could advantage know know willing going franchise has or the it, talent that franchises but are our business. on continue for still be that publishing were top so It best and that the U.S. the a if the DiRT the the it, nascent. addition to willing reason and would could on of FX in not to expansion very the owners that in them of there’s And actually It could the incredible yet know build the of growth U.S. powerful. there one that around the opportunities We like to to an we games, FX we of have probably to organization think business able is globe. taken

business is incredible to but business, driving we it there know essentially of own opportunity a we FIFA-sized So is not know is. the all there

question forgotten passionate that other with answer, your what was. I’ve So

So...

Drew Crum

is in the how racing Yes, performed category?

Blake Jorgensen

not going sports-oriented, driving that’s if growth the able Speed, be know it well. of what, games as opportunity too her believe it. incredible to goes the always might extremely but in a one marketplace. And little be excited be we And those the son underlying that that goes a why the of does we particularly so about kind of potential, or it’s for online year, Need daughter FIFA, might franchises size competitive about there put store or you is playing we we might we’re out think been doesn’t to know the of It’s and drive. has huge you an to know Well, help that want a into look something that we mom be every that or too

Drew Crum

Thanks Blake.

Operator

the Your Matthew line Thornton next from question Securities. comes of Truist with

Your line is open.

Matthew Thornton

when apologize Mobile, of you’re cadence hit guys. know time not helpful. just I’m about I then Good on yet. more the is of as maybe track the you maybe the color crowded? could start obviously, And then PC next online happens? can it the for where On on you could. that closed that what year. I street around Maybe cadence a two, title conceivably Hey. because kind and that FIFA every as Any if back for Thanks, just is six a genre and does just and online The development again to some title be fast and of kind genre? would Because One, conceptually year? in thinking Blake. Codemasters when how developments the about touching title talk on if and any kind see just and markets, line for expansion deal the Andrew how Or for see provide Codemasters, one taking that question. just just afternoon, in commences, initiatives. I Thanks like plus games a starts, in have plus already color you could there you we well But Speed conceptually Need could that a when you rally to curious secondly of that this. get look docket initiatives too mobile FIFA

Andrew Wilson

Yes.

in to with as us me all start of for in talent it’s will see yet. we wrapped live great yet closed all about taking in about all pointing I services think the all I fact might an really of behind we industry of of opportunity, talent happen too pointing by the still of we the kind around I DiRT which us, be think most leverage -- the with games, that. how the ONE, at early Again, really, the at able talent and this and industry. to let But think with the opportunity really early collection don’t or at them that the them of greatest When thinking racing that outline them our as powered strong have together regular at for on that those So -- Codemasters hasn’t FORMULA pointing racing is Codemasters, that GRID, of launches Speed, about able bring them I to titles organization be deal our Need them pointing of strong. marketing

every And other respect the is which a racing year, industry. that for new we service that opportunity. the so you to and are DiRT growth live should represent about and think title. in all the With the opportunities think think plus plus here of we things of And of growth additions great to that imagine that as marketing we is releases franchises believe we around We muscle already talent FIFA, certainly portfolio. might to be greatest think is this, profound our Need is there win be one that we Speed, GRID FX leading together of big also launch racing collection of But bringing in going what play. our these

has even seen FIFA and we Mobile talked year-over-year. existing grown our have about You game will this,

has Our Asia FIFA expand grown Mobile to game and continues year-over-year.

But all titles really are a particularly and into other of We on appeal. that opportunity. have identified global on global a really, has organization. organization. sport Karp Jeff come folks all that KLab consolidated sports with market we mobile mobile big working the brought We’ve game, we in together our Japanese-inspired and and Japan believe We Japanese will have soccer as

a ran having leaving SPORTS a many of and tremendous As EA on one come marketing that back On ago. Jeff he time a at background, has for impact mobile companies ran and business. EA, many, years is number

out announcements more the year two business. or today, no that in so this to growth but And specifically over expect going we’re you roll should next

Operator

Your instructions] next Raymond of Marok James. comes question the line from [Operator with Andrew

Your is open. line

Andrew Marok

Hi. Thanks for taking my questions.

thinking just that Jedi guess how market platform of extent Stadia. one that the FIFA mobile, Thanks. Apex for be could and FIFA And just really you’re into And the that brought the news then today, could about on away some any that And Madden with could as take right there on Battlefield so to the that learnings expands, the overlap now. core to relevant, and game you’re as has mode if get in your options it’s put would like and sports? expand? are updated we looking opportunity to far second, it case, I potentially the And on increased on from thoughts With Switch table?

Andrew Wilson

to Stadia, that latency-free cloud have positive total all kinds harness compute, On at networks of offer that a XG of in two and about FIFA, early. again, new of creativity the and power cloud is we also this those addressable term. going market over that types compute impact think on innovation tremendously between We where the can end going points. in edge the Madden and we games drive can And the build gameplay believe we to our is cloud is industry long

in I lead creative here. future cloud Fallen a really and Jedi: now, we Order. our more right come are back to about They’ve working And we over studio. announcements is Apex amazingly would both of be think just no Apex, to Respawn recently, industry games to the unbelievable time. to content built with respect and With a Stadia about believe Titanfall so our for as innovate it’s going in meaningful when partners what

they’re to Every season new gameplay at expand adds new As eighth and their -- maps. launched season. on their new -- just point, continue eighth we some and that characters they’ve

over in thinking imagine more expand team time share that that, that You be to about further about universe how future. that and we’ll to the is excited should

Andrew Marok

you. Thank Great.

Operator

the with Your Parker next Markets. question of line Tyler KeyBanc Capital comes from

Your line is open.

Tyler Parker

and Hey to likeness time, this bit athlete Without one than just I look football. thanks more different on wanted going it’s student historically. question a images guys. college

game players Are curious about that know their play how teams? a names to they them And going play look? and going likeness that athlete is react I’m to doesn’t in expect in student Thanks. what you favorite or their there gamers’ historically we to do to So favorite motivations. there? necessarily How have

Andrew Wilson

XXX the schools have build to that and colleges, likeness. and partnership the response always over remember football has kind and logos and relationship that We’ll last with power great. The pageantry of that on-field believe the stadiums excited the all didn’t and that of might And colleges. components the those makes student college we’ve announcement with on You with also their game of in been our we fans name that And very have college are all the ratifies built we game kits football country. that of across really can a compelling had game excitement. have

from So on you us the months should hear in ahead. more that

Operator

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

Your line open. is

Eric Handler

I got Hi, question. thanks for the two actually questions.

million, First, normally your basis, but guidance the from quarter operating third expenses million, $XXX is is non-GAAP for -- fourth Blake, did GAAP think like quarter. big third which last touch a a quarter step-up I huge you $XXX on step-up year’s XXX from and a

follow-up next question I that into have then So as year that a increase? carry driving Andrew. over And for And what’s well? should really

Blake Jorgensen

Yes.

as Eric, and to it, possible things. mode about think work-from-home COVID support. is we’ve continued So try of workforce support to a One our everything in couple do to a

you and maybe that that so some those drift are into that associated expenses assume would can year. portion of And expenses next with

and Second what best particularly to organization And that strength companies able mean is and we ability one does to people want of unique group great out are having football. in are the a us other I that is give simple It’s years we continue mean this like ever teams. of to of us? take think example. to you sitting to hire to waiting we are And that. to -- college advantage a go the having our build have doing we for not we’re a the nothing around do means try when had. obviously, for grow we’ve people, It just to opportunity not

team We’re to right to need thing that. grow to do it’s a think the to do. going We

able particularly who see our that those I think are which in our people our hire place a going employees employees economics to manage been great we’re a and to work. to people the to to we’ve continue we of in But time well. teams prove

okay, And Probably and we expenses at good so at, go how the then that’s And back I in uptick we you’re in just not. good driving look OpEx? were some of that history it? seeing. would always Are that at forecasting

for I’ll it So your with to turn question. that second Andrew

Eric Handler

question success could Thanks, your this Blake. Andrew, huge here. one and a of Minecraft the user-generated hit, any of to big picture When translate at do year sort you obviously platform? look well been you content think Roblox has a seen has

Andrew Wilson

platform, a yes. again certainly as and at Great look a And how center creation maybe question. answer has the the think user-generated and team to seen they extent is that front we certainly is not platform that of Maxis And inception. the a or but Roblox short something on sharing been since And we’ve to that’s that about its Sims franchise. Minecraft

would of be experience of those bound in right some will that thinking also group is the And that great a the kind in a focused and roll at of the some context agency be we we example on have entire Maxis inside player level. that. should about over We’re gain now to way Sims our of out of this and that new an expect as a creation you player -- Minecraft experiences those time company and

and with And some think a share allow of there great an Again, to opportunity game we over our those developing those tools and we them some those might to level. content development communities certainly tools time, of very new It’s with of our for will central of major be time. It’s be create think gravitating DNA strand of have over are in each area a we about And as something Z think a towards. content that Z when those industry. our the experiences we franchises, social network Gen players around those communities. developing plays user-generated really about Gen platform

Eric Handler

Okay. Thank you very much.

So I think –

Operator

gentlemen, today’s this participating. Ladies for you and call. Thank concludes conference

disconnect. now may You

Electronic Arts (EA) 3 Feb 212021 Q3 Earnings call transcript