EA - Earnings call transcript Q4 2021

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Operator

Good afternoon. My name is Mike, and I will be your conference operator today. At this time, I would like to welcome everyone to the Electronic Arts Q4 2021 Earnings Conference Call. Mr. Chris Evenden, VP of Investor Relations, you may begin your conference.

Chris Evenden

Mike. Thanks, EA’s XXXX to call. quarter fourth everyone earnings fiscal Welcome Andrew homes CEO, and With their are COO. Wilson, CFO me from our today our Jorgensen, and Blake Please earnings and ir.ea.com. note SEC available are at our that our release filings

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

this call, Once we of again, earnings the contain to historically With August you now quarter. our after I’d scheduled audio the the prepared earnings an Blake’s and to calendar: will color that for like we included metrics remarks. Lastly, have financial They regards our slides our and in model, post remarks, replay QX call, call transcript. this a Wednesday, our to fiscal X. XXXX direct is

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

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

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

Andrew Wilson

by from welcome want you Mobile, staying Metalhead Codemasters, to Software. to all our Chris. Thanks, start and healthy of teammates finds well. this Glu and newest I I saying today hope

a more million record we’re tremendous to through have a creating in unique networks our million social XXXX, forward to new demand generation together. industry for and services more above players years in amazing We looking added expand We games demonstration teams Electronic and across players will games We’re continue of for our family, network FYXXXX forming leading Engagement the welcomed experiences. transformation come. XXX The very of original worldwide, to results is accounts. XX new FY of ahead new to are of and that these was to experiences and year coming million year, Arts. engagement leading net the some than talented a new continues line players from fueling our EA than guidance our of to live drove and achieved incredibly growth XX expectations. excited bookings more than powerful our fiscal bottom our how together for significantly $XXX delivered

of high-quality in Our services, and our and the execution continuing are exceptional, teams continue drive strength more deliver our of our our players, challenges strategies players growth create expand pandemic, reach our business. to through experiences, to the to despite build for long-term leading live to

in growth growth development our layering recent new As accelerating, from we into FYXXXX, by are look in businesses, we existing powered acquisitions. business, of organic and forward

strong FYXXXX. forecasting We’re growth in

of three our to profitability. franchises, Codemasters Glu, growth XX% strength, of and addition business, this are position and the Metalhead future want includes Legends growing and drivers Our From I $X.X our guidance of organic investing our business and in EA today business, spend growth expanding year-over-year reflects also the growth continue net for growth Battlefield us the the bookings expect to in underlying our primary and mobile in billion. on strategy. to acquisitions. we time core SPORTS Apex This FYXXXX: to we grow

more in model that successful, a and business NFL these it businesses best-in-class services the live experiences, The This expansion into new create premium deeply Sims franchises. our growing in how service for built some platforms, blueprint social we strategy most networks to foundational a engaging that geographies. across of applying are models, Madden live games, here: we we’ve have global blockbuster We new and brands applying as and are Legends, Apex the FIFA, is our industry, and

undisputed the sports new our and moving EA include games, SPORTS strength at levels. to players As is EA in record In as together and more brought our current sports FYXXXX, games from we grow SPORTS leader reach strength business audiences.

worldwide. Team more in than matches biggest to Our strength Team than continue EA FIFA FIFA now that and with experiences players incredible FIFA our NFL of last up year an continue games year SPORTS Ultimate were players million its XXX%. XX had More XXX engage expansion. massive and Ultimate to million the across acquire played than more ever players build on and a portfolio ever, Madden We’ll innovation EA SPORTS year, before.

for Tour, set in our that All for golf EA return this are to Madden, games platforms, of of our is FIFA, FYXXXX designed SPORTS new and NHL EA QX year. next-gen including PGA SPORTS console

Glu excited recently-completed from and team. plan the And Mega fans, expertise engaging the from Software, Baseball by on the of the combined SPORTS Codemasters is EA with highest-rated sports FX our EA opportunity also of deliver by sports TapSports to the Baseball we XX% mobile Metalhead for focused Super title MLB very world baseball our with around We’re addition XXXX, acquisition. Glu franchise in with fans grow publishing first the mobile and this the teams world year. business sports on over our to more from the

is We leading position of connect. new premium From watch more for with With see consumption mobile. more we an live to SPORTS Legends unparalleled and interactive, to have the more move to especially ways players platforms, to to play, and Battlefield, growth services opportunity spanning in franchises experiences mobile, category. reach from their EA sports and in major linear sports Apex to two continue representing us a

Apex addition of the of preparing new globally We now We and the are Legends than seen XXX the today. the console in last audience. XX well through continued business FYXXXX games for to are in highest our expand positioned levels one successful with for saw will at over users, million continued expansion the mobile, models season market is launches, that we’ve more most X the growth total million addressable forecasting in have we growing throughout new X engagement PC, player on active XXXX. weekly growth. and year since Season levels unique game incredible in players and

has growth in grown We’re especially for also Apex seeing in last in significantly three where the Japan explosive it quarters. Asia,

experience continues touchscreens, to which regional growing to Apex a Apex of continues every launch Legends later beta Respawn this more specifically we evolve also the to fiscal beginning is in we content Legends designed and worldwide are for deliver tremendous momentum expect and game testing This is As dimension. new year, new this have main year. Mobile.

as forecasting this potential game. growth to beyond close year XX% and in for are in launch to $XXX the net with million significant Apex mobile upside We bookings year-over-year for FYXXXX, we Legends

moments love are phase experience and in everything in largest-ever power The and with We Battlefield of about Stockholm, through the working unexpected our launching Battlefield takes and for has all fans. two studios, all-out game-changing Criterion vision lock-step experiences definitive warfare, the of FYXXXX. are Gothenburg the deliver to next-gen realizing Battlefield team. world-class our Battlefield, PCs. and next Three DICE our destruction, next it now DICE new fans consoles growth to next-gen epic in scale, the technology level team in They game form development and for LA,

We’re month the throughout reveal game next lot to summer. a the fans about excited to more share and the game

mobile, Industrial their development FYXXXX. game a from we’re now, mobile have Battlefield this at players Battlefield game in the later into also for and Toys, getting up going platforms to innovative with on for early experience Built looking DICE. ground forward hands world is the We close partnership in in around testing the

center Apex, As the mobile I strategy business. best-in-class a our franchises all our with new introduce growth will for mentioned more live like other grow Throughout transforming play ways into to over a we we service, world. FIFA is mobile to continue FYXXXX, to gameplay, experience, Battlefield players more deeply-engaging our blockbuster reach will before, and as that we have and

re-organization live and Sims Wars: Galaxy recent growing player non-western Real acquisition, and by including investment, The hiring mobile into and are EA opportunities to and driving in markets. of position talent new player and services, teams, we engagement deepening of Heroes, Racing, maximize Star mobile leading in the With leadership our our new

mobile sports in the addition portfolio. grow leading sports franchises Madden, and Baseball innovation will in mobile FIFA, including well as with TapSports to our We our of as UFC, MLB

time launch mobile for on expect biggest first demonstration the another FYXXXX, franchises. for multi-platform shooter strategy of We which in our leading is franchises global two to our

three next to growth With within double the plans, onto in our annual bookings the net of expect EA our Glu we than more to business mobile addition billion $X mobile layered years.

more year a continue ahead strong see in opportunities growth we and industry. and have the expansion to in we lead the We as transformation FYXXXX, of of many

very for a models. the long-term clear have and strategy is us blockbuster franchises. major business foundation our grow seeing and business, We all you’re of This our growth platforms biggest

and together and player from many for our Glu games join delight catalysts in to and expect have Codemasters, come. base growth We’re to family, the Arts growing Metalhead years teams be we thrilled Electronic will and our experiences develop the to that

content. of games, focus deep content, that will franchises and pipeline mobile including new and We experiences have new user-generated on into deeper IP, a new lean

and growth growth for and portfolio, today, including our ability where SPORTS in blockbuster continuing also FYXXXX that scope beyond. and subscription year. service, growing shooter and franchises, esports opportunities Arts and and we provide of We’re differentiated transformation significant to drivers to business, EA this content will our on invest mobile competitions growing our reach expanding players have three our upside more clear The I’ve Electronic focused our expand in engage that the in

bring year. new viewers players our to world around excited and games We’re the and this amazing content some to

I’ll Blake. over Now the call turn to

Blake Jorgensen

by an performance billion Thanks, GAAP was primarily, for which $X.XX $X.XX a net and were Andrew Legends. quarter, of gave stats. Apex’s net bookings live Andrew. big We driven Apex services, phenomenal QX. billion engagement by records revenue this delivered new you beat extraordinary

million end delivered also of its the day, best actually above XX-hour We it our million. in-game net that quarter; record. $XXX $XXX the period, the net Apex event. well the it quarter that expectation for $XXX engagement, would Apex year, result best bookings delivered the and of million a $X go. best to the to the Legends billion quarter with best largest week, over best by on As bookings It life-to-date the half original over deliver month delivered of passed of in suggested milestone

Importantly, Apex Legends year. steadily grew through the last

Vancouver, While tailwind, by content the proving was our X is is first benefited the in the they from on franchise. game driven structural. our new a this Apex scale are point, built is, the to season delivering. trajectory teams Season we’ve fastest-growing content ability resources upwards strength That and a this surely stay-at-home put To team together by

two FYXXXX. our Apex for Our a details shooter Codemasters tremendous Battlefield, strength and I’ll accelerates in guidance growth Glu provides major through year-on-year. of moment. go franchises, addition The to Legends foundation revenue in this XX% our and Ultimate Team, growth in of a the ongoing and

more billion. start look and the I’ll We in a with $XXX billion billion $X.X with of services. all-time in ongoing of business $X.XX cash of was delivered expectations. was out live some we XXXX. XX billion of perspective, Underlying an be XX% above that $X.XX revenue. $X.X history, the the our net fiscal was though, $X.XX and console quick is three-quarters bookings, give our net games. billion, To year our of in has in units Digital game XXXX percentage There our net illustration First, way about now of full Of net as year equivalent million points couldn’t $X.XX record, million last sold original our operating represented year. also a profit on to closed evolved, consoles, generating We up engagement fiscal entertainment flow focus what from highest at copies that bookings. around dramatic in billion sale the for achieved full with of XXX bookings the

our and Legends from QX Star specifically, by of driven acquisition-related the also by BuildIt. Apex outperformance quarter, expenses Heroes services, to driven for Wars: by very in beat Mobile Turning above Ultimate came Operating driven live beat Team. FIFA Galaxy our and expectations, SimCity slightly was expenses. expectations the primarily

Now to guidance. now turning

in per be revenue does cost Remember GAAP future that XXXX and to to factor this fiscal share billion, program. two-year, expect earnings billion be $X.XX. EPS under $X.X our repurchase billion, We of $X.X $X.XXX share of calculation buybacks not revenue

year-on-year, around We expect with $X.X level free which billion. flow capital flows operating integration primarily of of $X.XXX around to and down cash associated acquisitions. be these expenditures is Cash of due $XXX billion would flow to CapEx costs the bring cash release deliver See the IP the temporarily, cash The the Orlando press tax to Angeles, strength and Codemasters build flow and for information. with United Bucharest, have outs developed and up earnings reflect EA. office Los Glu and in of costs Kingdom. slides our further is million,

expect XXXX fiscal up We billion, about to fiscal $X.X XX% net XXXX. be bookings over

of and year launch We be with and for FX banner, Battlefield launch expect July developed in golf strong the in took Codemasters to PGA growth the and new will a to new time year. the shooter of sports, XXXX, launch strong we in half conservative franchise a And, posture very Mobile is EA FIFA fiscal holiday we’re those launching the course, expand on to is drive back and Because the platforms the rounding to Madden continue season. in by franchises game. of of XXXX, we businesses. forecasting and first which Apex Codemasters, the the organic we’re net Glu Legends out Apex our this on bookings the now expect In XX. sits from Sports under Tour

In from any addition, the acquisitions. modeling not two yet synergies we’re

to and we’ve simple know-how further with of some We're year and leaning of leverage Codemasters' the investments, and also mobile addition mobile the we costs R&D Meanwhile, biggest synergies franchises, strategy this our Revenue the into by expertise heavily Apex Glu’s implement their new as sports impacted casual XXXX, a our with franchise, in acquisitions. build IP fiscal of with assumed of and existing games. be suite businesses a associated for with increased For FX one-time launches holistic combine marketing will racing our games, Mobile. OpEx ahead EA. will out, Battlefield key come

off in We pay to come. investments to expect these near-term years

of of $XXX per first to now earnings $X.XX billion. $X.XXX quarter, in bookings for be We for of net million. of share quarter. to first the cost million, This GAAP results the billion, we revenue expect $XXX For net be revenue operating $X.XX expenses and first the an anticipate quarter

carry We to expect will Apex XXXX. momentum fiscal through Legends

be to Given may already, financial when model of what of Battlefield seen conservative, our we forward this we’re next reaction month. game believe we’ve we player and game the reveal looking

models. we add very we’re new whole, for a the addition, platforms In and excited business franchise as as

Metalhead. the talented We Arts. by Codemasters this is year, and growth for at exciting expect an that strong It organic accelerated growth the further addition and is time teams Glu of Electronic

back Now I’ll hand to Andrew.

Andrew Wilson

Thanks, Blake.

experience. games. to Peter are As of was ever players milestone team joy heartfelt we Respawn The wrap and Honor: to than our into Beyond up more our and our the remarks gaming here, for before, it the incredible a of documentary I and they share the millions VR players another amazing Vince, short achievement, put Award Medal all Colette, first are Games team, Academy released the the of last a when co-producing want congratulations creativity the our around subject truly to and which Above industry's recognition achieved of Entertainment. entire month, world & Congratulations Dusty, to is passion received experiences bringing outstanding groundbreaking hundreds work together. of that such for teams an bringing within

Our growth. are we accelerating our FYXXXX, business for and growth trajectory catalysts have stronger, has never acquisitions new clear our drivers in been

day. geographies that services come. reach our and delivering for their with for see on building year our in incredible the every live you teams we the more this upside to Thank best-in-class for we franchises players Electronic As significant in years around continue to Arts and players platforms and blockbuster more world, connect work

Now for and your questions. are here I Blake

Operator

from first Baird. comes Your Colin from Sebastian question Instructions] [Operator

Colin Sebastian

everyone. afternoon Good Thanks. Great.

First PC apples QX looks off, console like fiscal increased in on Blake, almost apples right. and if I XX% have services there, the it to numbers

ambitious track curious releases you if pipeline? studio a there secondly, of in new live roadmap to in pretty that with in now ops curious the within order expect that comfortable that to and team Thanks. have year? and are in portion sounds the structure execute have you And Or where EA, So then, like be for the next how you I'm the some resources fiscal in? gaps filled QX core in still Andrew and you're need business in to So place development it

Blake Jorgensen

amazing XXX%. across board content, huge It's time. up Blake. up continue amazing play, a driven the people Colin. is has people amazing for as services characters, to all things And Apex we've Thanks, fourth done year-over-year, know change and Clearly, and the engaging add you it's We've that the the way live alone seen quarter business. more It's that more year-over-year. to In increases. it's in dramatically

horrible as it people the social sports, we've Sims to we've of they lot able COVID networks because While what gaming been people be playing has it leverage the into time love, around more to and and brought people the do they're social done enjoy and be networks a into our and to shooter enjoy they best stay and game been in bring it The over as game, games try more with. those people be those it that's what is

people like to that we've we'll that for already a like do. to people on ways add new business to opportunities you're so, that they content, our year. a of part but get and across all going the And for The with that deeply the us to we confidence helped to guidance Sims, see with huge all huge see next new of get play, our to for Ultimate continue services, as that Apex, as It's we will our provided of other just going be mobile us Team, new give could to And we seen, part business. the games connected it industry have I what live continue think of to that continue

Andrew Wilson

great structure, same We about and as you very mobile we reorganized knowledge and our Across our and organization, a – we see group the and an the position me the us group. Codemasters great Glu remarks top mobile, for in rest really where organization, really on experience in about throughout growth of know-how, brought I Again, the in our over you've leadership, increased about and last in global we've strong which there. developers the before really in bring and our course, the talent leading also feel puts heard at some who we really in brought that the both racing Mobile really feel and bringing Codemasters, really, on of leadership of question, And the new in organization of bringing creative our opportunity. all year to really, good are good focus heard studio tremendous prepared the expertise of question, studio world. talk

have of You'll talent, recruiting we holistic in racing us this announced, plan feel our have and we amazing FX ahead is announced really, have some industry-leading but to more looking been really over And last for from see really strategy, year. around the the place. we've months, some XX those XX strong some good a but we structure growth very been about ambitious yet, already

always achieve we'll course we things talent the all to the that Of time, we the that blessed but to feel the creative leadership and balancing have do and lucky tuning planned. that and have be I creative

Colin Sebastian

All guys. right. Thanks

Operator

Ju next Credit from Suisse. Your question from comes Stephen

Stephen Ju

you. thank Okay,

larger from franchises. audience been investors comes now, mobile time to for as particularly your have unlock the some I Andrew, So, think Blake for waiting it

be forecasting two the that a plus existing greater get one are Thanks. the by integration on talk plans good your standpoint? these the a going Blake, initial to of from franchise opportunities that's So, straight what EA's you what you can know franchise look results. more that, addition and be guidance you folks parameters like at about Glu forward than might to with just to than one to to so So,

Andrew Wilson

them in is the that would They amplify successful the heard in from we feel creative cultural and to I a of have number orientation Glu protect developing a working our Battlefield the games ensure access organization. we me like philosophical we significant that and combination franchise, on an market, of integrity, integrity we and say the you’ve and S&R team extraordinary have model standpoint, increase around many EA XXX to Sports other our Legends. others. aggressive very, at global But Baseball and our want unique about two the and reach our great to that the been including that our Design relaunch very a protect to our Home of the and technology, represents accounts properties IP, marketing network to give UFC, been Tap million also and organic time on growth The same [indiscernible] opportunity. around of plans and around Apex talk things organic also Madden Sims those of – But

collective expect sense more our mobile, are to with market. making, tremendous have most that in Glu and upside else bringing the kind investment with we the and an we is brands opportunity reorganization plans And breaking that where of through the organization and orientation mobile stronger we’re on in growth than we amplify anything at so focus time a the protect have

Stephen Ju

Thank you.

Operator

Your from comes Wells Brian Fitzgerald next from question Fargo.

Brian Fitzgerald

mobile business, and that follow-on seen Machine you holistic more piece guys the lifetime advertising initiative and but consumer approach? robust Glu just integrated that’s Is the vertically to value the that more to around how to monetize platform also ad for anything question. catalyze the going Adjust yield is on premier and Are missing maybe the a on And kind and of do to cross that’s Zynga and you’ve then approach an approach the kind you of tech side, perspective. side, think with mobile all holistic and you a engagement those of AppLovin mobile you the M&A and they piece piece, Stephen’s then guys Chartboost. bought the with Zone, activity Thanks,

Blake Jorgensen

you to say impact changes guys and know mobile watch the changes is may Yes, We advertising of games. on to as inside a market as ad too of it’s lot closely say tech. how I know would early going we’ll on those there the in

wanted mobile wrong, our advertising always try right gaming that’s also but and other network, keep mobile that is games most to we’ve or focus. for our We to own people know in been

really think in franchises. teams impact that those near-term opportunity is have IP talent the that our own franchises in we that I have the these the could

building more building new sports games. games casual So for example,

and I them. I reason the longer-term, years business that’s Glu couple were really there, might bought building more we new changes, we aggressive about And the the think with as think where how is we over most franchises this ad see excited next about be of we but great talent.

Brian Fitzgerald

Got it. Thanks Blake, appreciate it.

Operator

comes Morgan. Your from Alexia from next question Quadrani JP

Alexia Quadrani

Hi, notably Apex success, group thank more of seen season? mean core tremendous you. a Can Apex bases you update playing elaborate have the you’ve more the in for season timeline Legends? players China? any Or is player And well? I success on on you the it expanded after game the of and

Andrew Wilson

as the the Apex every of metric business. players Legends, I The pretty amount generation able season amount is that Apex been and to look players, time touch on the have have the connections would of point Legends of data much seen we player of have amount from grow the spend, growing we players course season, revenue meaningful do say amount from base. around of players the at game, the to have team the in what

projecting that game protect forward, around play we charts launching comment the appropriately delivering of to is wants, what community gotten day since has nature the ensure of around and beginning what sure they free series launches future listen base closed on that. in day that tests and later franchise, and forward, every year and to is metric we launch that the tests, the plan that’s Mobile. event let’s to more of as done is the think are we what community, we very beta is sure numbers what course beta then releasing always around team year off same this every and strategy to but for then grow as done we’ve this confident the Apex want We’ve sure and right, let’s close a Mobile in treating they’re both they is project apply Apex from offering we existing players our in is very gaming what the talked are is growth or is also I we why the games, to retention And open mobile have ensure gaming the season the the about we’re the play have core not of make players growing But soft big community of the make we’ll get at the can let’s really experience. game which in on make way our expectation Apex That Legends Blake be looking play get that we had orientation game mobile. the right single able and out that meaningful same metrics. soft

Blake Jorgensen

in remarks, Mobile in mentioned little the really mobile you we’ve for relatively we’ve exactly put know – prepared as game. year because coming you think put this when I his revenue Yes, Andrew in Apex will release and don’t

and Andrew our of that’s there mentioned, make are largest We sure one you and Apex time huge right for You the the for and want console including believe markets and mobile, also is as it it to then tune game. test switch at globally, PC China. it, some markets Japan the game release

would unknowns. of of of have believe those I people for be game trust for world, market that will prioritize we mobile, markets, some more the all the just so some those Apex large put we a to a but in come we forecast so, on so not also around our we that. number And will love yet, huge because it know mobile

Alexia Quadrani

you. Thank

Operator

question from comes next from Mike Sachs. Your Ng Goldman

Michael Ng

was separately, I just for does comment next-gen, elaborate think, a on as very a the new similar SPORTS perspective. question. pricing I enable EA around little what from comments or the Hi, then could much how thank made bit you design for if wondering you the Battlefield And about that you well.

Battlefield, For you. available current gen and for next-gen? Thank be that both will specifically,

Andrew Wilson

processing our play, from game, well and remarks So with nature game. the do next-gen we of have of new current of in output nature do both we can the that of consoles. the we the available destruction game prepared for titles. of of and of Battlefield respect yes, and are sports Battlefield, that case of the power can be do because And the intelligence next-gen amount the Battlefield artificial context plays gen to we moments that in to can specifically what what nature we’re in our do the increased as game reference of fidelity and immersive physics, what next-gen those the with the able as around will truly only in can in is of franchises, with opportunities The memory the

about We’re for products. excited means what really our that that

If transitions, generation able to you for the will dramatically. and immersive a And around like fidelity, games meaningfully products time of the leaders processing and the increased our every shift. able we go deliver result specifically have And next-gen Battlefield that we’re sports grow EA history as platform of on more players. we’ve features high every platform been market industry, powered back to portfolio SPORTS to developed our entire Battlefield by were been be excited fact

Michael Ng

wondering Team in I And just the about you. did much. talk but more sorry for Ultimate outlook if in you’ll talk Thank notable content was rolling if be you little there growth any events that and services out? it, you Team any Ultimate the And a have you missed about quarter? I a I may. you quarter thank just year. Are bit very could live follow-up Great, if the if

Blake Jorgensen

all about year-over-year in Ultimate growth out call the typically up was didn’t we we to to we just Team don’t amazing do. and and an on better to has always years new them. Teams innovate to coming around The many talked and growth all And innovate to for last ways quarter, year coming new sports we the to that’s and done what’s we’ve Ultimate Ultimate drives which drives, in brings come gotten that continue those across continue Ultimate and find We people which Team because product events. to Team in the Team the sports look for XX%. optimism that play job and it quarter, ways life we’ll add will the team Ultimate better do Yes, have and people to of continue for over people and to play

Michael Ng

Blake. Great, thank Thanks, you, Andrew.

Operator

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

Mario Lu

and thanks I on for one one questions. on Great, Battlefield. have taking the Apex

I know of on And been the since you first the but players or permanent do more existing? second can to versus comment kind just launch, increasing is arena engagement one it’s new expectations. on bring mode of this the in week your you performing a only Apex. So, the expect how mode

Andrew Wilson

than other tell It’s incredible. early of in still was demand too terms macro numbers, pretty the to

in First, we extraordinary. where we're had the the so the add just of demand stability to nature we few community, can to those a issues was point quickly resolve very able

engagement grown of players season both those new maps, every investment the believe and engage expect launching season just players we we player I players? each of seen that both and the do those of has you base things think, bringing to that whether new it’s will Apex of team two the terms every In player things. from What more existing or have characters existing are and modalities comes from play, new happen. the new

modes bigger as will And And X XXXX so, new since it’s to early X excited what X many do. say you and going Season Apex Season Season be biggest still in coming we’re the X looks And like modes more expect now I’m should meaningfully will it the to Season of over tell. right than years. from very about so. these new is

Mario Lu

that’s on mobile the one it’s Battlefield, the XXXX, Industrial then title coming Toys. And by believe I fiscal thanks. new late developed Okay, in

can on that Tencent or NetEase. choose Thanks. to provide some like the how of versus partnering you Chinese with So you studio one companies decided background

Andrew Wilson

on led acquired number work ago Great to helped years in now. It’s of companies. mobile who committed to had a we number the we kind mechanics. really truly on original building team just were when about create we And work by of Toys, and some innovative a really And Battlefield, experience gone we're to then them question. as shooter to team. an as it'd Industrial opportunity Halo with as a unbelievable excited franchise feel They we design talked around ideas. When incredible first-person the we met that the they were. team,

years kind We the from Legends. very we’re both with two coming a Apex are a working speak mechanics. upside They’ve number of our really really different shooting studios. through It’s cycles. will where got very a different and us to tremendous they And and mechanic company of which have believe that ago markets place a games opportunity both brought and we number talented for tremendous – now. number team while excited the a to about the a so, of And of been we

Mario Lu

Great. Thanks, Andrew.

Operator

comes Benchmark from Company. Mike Your next question from Hickey

Mike Hickey

quarter Blake. Congrats guys. taking Thanks Hi, my Andrew, for the on questions.

if the Royale. premium with had opportunity if year the the experience on for again am some done seeing curious you've forward. still a for obviously, that sports. with And Battlefield here, well moving prior think, experience, Battle I consideration Battlefield, the curious, that’s you you're I in and to Just annualize franchise

Andrew Wilson

a in week with last either next-generation epic terms of at in the player talk incredible. a the it’s unbelievable and chance months of game, the to a innovative to accounts, progress context seeing franchise. and and/or team mode of destruction very able the month incredible, have been What which for and work announce in next scale annualized the do to is the nature an in of modes reveal battles, starting and to it Battlefield in creative upcoming has lot Nothing of the those Battlefield really consoles is I our moment the we’re about on the the come trailer, going which around that future

and long-term at across then with penetration in innovative and remarks how think build and do to our is business that truly thing know our out start live we is about across extend that models models. how prepared basis about is other you we reach talked do engagement platforms, geographies, and global do how in a which do AAA across game business experience we premium further modalities the The we a blueprint, for play its service should of on category, have that I

in from an Battlefield, be live and in the about year amazing would it’s game for will lot us seen excited hear into spectacular. us franchise to finish And an the but months ahead, service everything lead you’ll that relaunch a so more saying And I’ve future. I is I I of we're would the this going really think by – incredible just

Blake Jorgensen

even do talk I’d the that I many believe it we love such ways that won't it you give you’ll what saw but to be play I Andrew’s an know would for but the I just Battlefield you it’s that get the to and to for people fans going engaged week, I point, when we’ll the to them what trailer can’t emphasize I think really is because are I Mike a and play you console, but would exciting, blown to said let away. see – Yes, censored, future, last long because great about very will it on an gen-five, time. either And opportunity people think. I it’s experience it I’ll tell Battlefield be be community. tell on is to is in it And spectacular, going extend more but think

Mike Hickey

additional it view on work for maybe for we Criterion do of time am building, that you obviously last me, same I do Nice, and Thanks future? curious but development what you’ve noted looks for excited guys. to Speed to the question base. think Battlefield ahead to at it call of I exciting, buzz are studio that the decision expectations, play in. Last seen just And with the in Need the your that is plans like

Andrew Wilson

delivered up here. DICE course, at Stockholm, things of of Codemasters our incredible and our but had that experiences it possible us. And be who number which absolutely this team amazing actually two closely Battlefield. really us we to tremendous us truly the Gothenburg. at technology no Need got franchise, together past best is come year. can opportunity was Codemasters, strong We've ambition really to is and two those have be on be. together work have games, We’ve future. with the realize are the we there with help brainer worked this to Criterion really new of for holistic think ambition having The which expand racing unbelievable teams focused for LA, in and quite our this and franchise, about year is more can DICE having an broadly have and think honestly, of our fullness history DICE the play is entire acquired And racing in also meant shaping progress. has in experience. Frostbite of our strategy. have Battlefield Criterion we team, things for for making some be creative there and the Criterion What And to One most a on extend as the actually made Yes, this will around innovative the Battlefield absolutely enhance We an combination happened, including the Speed was part it choice right meaningful year. that EA FX of interesting a ambition,

Blake Jorgensen

closely that Criterion experts are really they that flying things They’ve with – driving, hard long are II. Battlefront worked much And to in associated and delivered very with I do. flying with actually know Battlefront time. you or the associated DICE – Mike, Yes, for a

culture pulled And work a first Criterion are continue together. opportunity now to of right not so, the that opportunities said, a tried create what it. plethora we’ve is at we no. Codemasters, put that’s addition work might into love that be time that that be where the some able will idea forward. I they They we can well must them on future and love with want going seeing to here the to and after. time have driving of game it’s other an in and But always talent as And measuring to we impact go to we how schedules. projects No, you’re This something those think wrong. versus people And right Andrew

Mike Hickey

Thanks guys.

Operator

from Your Stifel. next Drew from Crum question comes

Drew Crum

new afternoon. bookings Good to the what’s release Blake, Glu you’re XX% you’re you’d in Thanks. it game if to disconnect wondering if & be embedded to Deer then growth Are or the guys. I’m contemplated XX% non-GAAP that forecasting? non-cash? and is previously that between and bookings cash the net I a And forecasting? [ph] the planned that in willing EPS and net Hunter some related one-time pipeline those XXXX growth And separately, Taste? and think you And Glu Table Hi, guidance. mentioned what’s for Codemasters thanks. They've fiscal Okay, discuss acquisitions. not, expenses the

Blake Jorgensen

did pretty we basically consistent which over had in to We for past. the when inflate wanted make done to wanted were – want we were what how consistent talked didn’t forecast there with we acquisition, we have took used we the about their sure that they those. with We We didn’t sure Yes. to fairly make they past.

historically. So similar assume what seen pretty you they’re should you’ve to

for They fees, GAAP collection they EPS. that a fees, cases, fees But terms the day, things IP. There But are will acquisitions there first costs. because the In those term they might mainly capitalization the cost year. right are of impact will occurs or be some and closing OpEx quarter have P&L. our legal on in great R&D like the of go one-time the accounting positive cash buying tax integration IP, will that deal and there not in full some that longer be is the which our be in – are core costs, most at end of fees, or of into

of one-time flow. So the impact related and charges and some acquisition to taxes cash tax the intangibles cash that amortization may cash the

was mentioned cash I will flow. that most two impact other The likely not

in past. worry associated put about of yet. but any returns did to come said, because next sure that. into to couple I couple the of of have More continue I think and that quarters. we able transparent I on would generate synergies will the wanted – we not they those And we grow the our forecast with as acquisitions were be in about businesses businesses make off to higher So to we for it than not these

few Just ago. and we Glu a Codemasters month weeks closed literally ago just what a

would the side. everyone It’s look swing on just acquisition. works the a GAAP and cash EPS what say non-GAAP it way like, a a going So are we’re just look we understand integrations big what to a we because I the swing in charges only the getting accounting like, will is to not keep on informed. a side, year for truly non-cash will where point

Drew Crum

Okay. Thanks, Blake.

Operator

next Your Jefferies. Andrew comes question from from Uerkwitz

Andrew Uerkwitz

ones. quick Hi, thanks gentlemen, two just

we we in titles. and how of could July move first for reasons The future guys. like your we curious sports how into too have think that of the previous next-gen that How franchises sounds being are EA different to some for into should why back, June? just about consoles? really that And marketing Play ambitious. secondly, should Battlefield on should trying you’re to be think of one, of moving games future that read the generation were consoles. obviously those about take advantage doing then consoles tried Thanks How Lots your titles struggled two thinking from about relative it

Andrew Wilson

typically on the govern timeframe Yes, EX marketing things. these COVID I of and EA in Play, the June that think key and virtual industry happened most promotional given nature the across of

time most guidance been I say to right for able of talked about. launch kind feel our given is time appropriate but that, as what’s like the the at I’d July what is also we from about frame thinking the we schedules we’ve us line and think

from in and lot hear You’ll after – July. a of that up us we'll ramp kind June

out maybe current have of teams is have team, of out what’s the around getting more next for generation titles in greater have best as the flexibility multiple company I and that this who generation platform had for current whole experience that us the when infrastructure well games generation we until getting a decades. business. past you on respect now while our we our or generation teams anything exceptionally at our title hear relevant Frostbite launches mean the inform we’re more July. generation the generation to suits generation, ensure platforms. consoles should even more for And it’s this with July June and think I The to we growing in building world up great in past we done just generations. move our about optimally and live the say up we our game in showed won’t to versus because industry the to versus think I So has With time, digital like timeframe you old unbelievable time fortunate better not titles, our next past We’ve services the very us. that do

be those look on making that our platform we’ve from that that going come with FIFA with the with advances new power, again so next launched When we’re with And digital advances to are think those generation design we Frostbite about games going a the gains already unlocks level ecosystem then the the in are Madden And to making generations, future on the we’re platforms. we’re making and advances great. in that at new consoles extraordinary. and

the year two And gain and as of so, second franchises year we learning other lot with of we’re the going we those into of platform. a move into our

Andrew Uerkwitz

you. Awesome, thank

Blake Jorgensen

Yes, a would love are the to that add is I going they into with people that only franchise approaching it and network that they may means getting is do once our that to importantly means for do is spend, other XX% is business because live plus or thing becomes the holds they remember time, they network engage critical it services that other most is will them a same they’re the if but what a social in thing in that together. people a which long stay service, franchise because they something longer, live in

the it football in you all the to might thing that the engage If same with same you the league, love you football, whatever team, be. want love same people do,

we of part love vehicles live people over time people bring to will is a logic we’re sure services, platform to making the continuing building on know out subscription play. So the around multiple to which

Andrew Uerkwitz

thank Got it, you.

Operator

from next Matthew Securities. comes question Your Truist from Thornton

Matthew Thornton

the couple Hi, Thanks Maybe for quick Hi, ones question. taking from a Andrew. me. Blake. of

if First maybe layering game driven this the launch the about, game full I year we obviously, in growth. talked in on do you mobile by base any think on about base just color Apex, Apex, growth the year, just the you guess expect there. of

relates maybe thinking in it relates relative that prior if to guidance, lastly, the then maybe disclosed you'd in precedent as titles if in sure the that don’t any any just or you it the to buy maybe on several Battlefield, it, out-year how again for the fiscal And game, but discussed there. willing about and about guys. talk not to you’ve context as us I’m color be any you’re can XXXX I to the pipeline you’d willing as progress Secondly, know to developments of past. Thanks to be give

Blake Jorgensen

What in conservative. I’ll would say start. is Well, guidance I we're traditionally our

Battlefield, lot our guidance a of is that have we expectations, a would of tell for excitement, in there. So unachievable we I a lot you, don’t number but have

continue year it can is we year achieve the we’ve have because don’t this going basically said the as have seen we clearly it’s before when it mobile a obviously high can hard growth the Battlefield or we even started exactly do team accelerate that don’t we I and monetizes. it think live I number in that for we be title because confidence to mobile that out will quarter-over-quarter and comes mobile there product to strong. that. to know and since And – exceed think, to we very hope and it earlier, giant Apex we predict goes

we look would titles on than but Battlefield biggest conservatism forecast focused a to is was, can’t forecast, you question if all are around mobile, probably grow. at – so forecast, there we apologize. think, I trying where large remember in that your ever the it’s both So, we’ve other I I and third our done, still what's say

Matthew Thornton

content out buy do It was from year what around we and that?

Andrew Wilson

new think mobile good Asia. the we’ve recruiting Motive, Asia. across our we talked into we FIFA in have HD they strong about from our I titles about growing organization the you’ve and skate BioWare. from the good we feel that college that would mobile – us talked we from in game, believe ways We’ve new about of talent new Apex. we of mobile industry football better talked been you still really of had is also talked and game, group tracking both really So game seen those what about context I strength context talked feel tell talked and really number I including a new in and offer what of that in would of are titles the a about amazing our really game a about earlier we’ve about a title we as all really, We’ve good coming out was organization a new and about

that out-year things So also very that will that portfolio. still nothing we our in beyond are to to to further you of new give we some outgoing we them And have other the in or incubating add than feel think confident year kind other come. we

Operator

Your next question comes from from Sanford Bernstein. Todd Juenger

Todd Juenger

been forward. that where calendar this given giving me discussed, you’re here thanks, year squeezing a year and the this consumers the Hi, I Appreciate fact you beyond you how us you’re here barely guess through think, – struck I’m that listening perfect a move afternoon. will is at for the good question, for on thank having been next sitting which end, as we in behave position has the especially for issue I

to lives should however observed wanted it to assumptions just that wanted be for you’ve guidance just do us consumers thinking I as and your about during appreciate success? that much their underlying what own you – guess have you through you Or we – concluded this? how given in doesn’t your matter going to learned share visit to your I briefly move are I basically this change that? it. And with we So that in have everything are

Blake Jorgensen

Yes, we sorry – ahead, go Andrew.

Andrew Wilson

was from seen consumption was and Sorry. but get Blake to interaction things say interactive. sport of two kind had I digital we I’ll digital of entertainment around moving and linear from pre-pandemic, secular to some fundamental social these, would of let sort the moving trends,

two So done to of COVID all and much that digitally and secular was through all [indiscernible]. trends happened almost those and were exponentially sold What sport interaction happening. almost happen entertainment of was accelerated was consumption already we

don’t in backwards way. As forward, we we any project meaningful that going see

of inside in may to will and really our leads the think connect we and as network. entertainment we’ve grow really love. out we're a it fact, networks with our games and teams stronger offering way In sports social And players established mean continue content to of I and more inside

think sport So post-pandemic will, this various anything we stages, interactive. ever strength to going think of think digital course, some be linear that we consumption the our business, from changes to we of entertainment continues. We the think social back ongoing is that to that the it world interaction forward. and we where digital to our notion was there – There before. through, growth and but moving the don’t underpinned goes goes the growth it’s of And that business think of don’t We think as foundational parts from moves moves of of back. and

Blake Jorgensen

Yes, many I extremely that was that. right. QX people was even when everyone just obviously that and last strong, our year because add We went didn’t to know essentially home work,

and want going believe we which to continue that they and trend if they for across strength quarter, able games people we to in Apex that, that and being And in is clearly, quarter, into So at unbelievable we’ll strength we Andrew’s steer every go lot networks normal beating people because still saw – you social QX forward. benefited And through they and And plan. if them, networks around. social and we new still but every and someday but we of Team, from to look brought very guidance you not that stayed even all QX into year, to were QX others. of seeing we’re life, all back were Ultimate strength maybe enjoy be strength into last point games hope, we what a of

very never it that anticipated year, the last is advantage people that something love long-term. we’re COVID how we confident love. going will think – our at we start So us And but but quite forward, we networks and work they of to one into help that to no that knows games they to have we predict done that bring

Blake Jorgensen

and but to I not, help in-person We by attention everybody’s that, question. seeing appreciate constant was with and So Zoom. people our one hopefully last think look if forward day, that

taking for So, everybody time your today. thank you

Andrew Wilson

Thank you all.

Operator

call. for you conference today's concludes participating. This Thank

disconnect. now may You

Electronic Arts (EA) 12 May 212021 Q4 Earnings call transcript