EA - Earnings call transcript Q2 2022

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Good afternoon. My name is Ashley and I will be your conference operator today. At this time, I would like to welcome everyone to the Electronic Arts Q2 Fiscal 2022 Earnings Conference Call. Mr. Chris Evenden, VP of Investor Relations.

conference. your begin may You

Chris Evenden

Please Thanks, Ashley. earnings are of XXXX are our second Wilson, and SEC our Earnings to With me EA Release CFO. Jorgensen, call. Blake today at CEO, quarter that on our our filings ir.ea.com. fiscal available and Welcome note the Andrew call

our Earnings year to fiscal And Call scheduled for this the week XXXX, materially lastly, model, remarks, IR calendar, statements reminder, from forward-looking posted results performance the comments post Company. website. Actual future we our regarding entire to XX-Q risks a statements actual materially we disclaims most will that future our differ call, of a Xst. have the differ we our to to an addition, upcoming our is presentation regards schedule and today. Fiscal could financial those This Form November and the replay for duty the refer earnings of you of from discussed QX of slides financial results accompany today, we'll our after that, X, Arts earnings prepared call, our of XXXX any transcript. Tuesday, calls With In include events from makes detailed to as expectations. And a a as prepared and update our audio of Electronic remarks. these our and And them. events may cause recent post and February on discussion

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

Andrew Wilson

Thanks, are healthy. hope of all well Chris. you staying and I

part strongest each leading the want FY thank from things to home have our players. growing unique are beyond our continue and driving you also with We're Let new and teams large We're services Playdemic I for adding to team. launches, welcome a mobile. second Electronic thrilled acquisition everyone more who Electronic performing growth warm board we're big to content. was With connecting strength QX the to our our XXX world in to who amazing history now Ops do players of favorite me quarter to other, to at million 'XX core begin continued with about officially extend on a the quarter all in a our accounts, more than to over work franchises, them sports Arts. all about business. well during our and additional active and the are

raising bookings, a this And fiscal QX now net bookings, were EPS As and our we're above full-year revenue, guidance revenue, year. guidance. the for and net result, EPS net net our second time

aggregated harnessing gains. is strategy aggregation the content around an audience our of business of core geographies. opportunities. across built and to on with the community The the and Our engage deeply and experiences. full and in experiences Tools and for amazing creation The of power models, social more content. distribution platforms, down ecosystems games And to key

that that has highest in quarter net expanding Apex grow hours all for the nearly X Legends, $XXX than industry. in a date. of in sports Legends XX% growing watched IP EA portfolio. the prominent quarter blockbuster talented season to game FIFA, QX to-date, our was previous beyond and up Battlefield, content annually. growing brand-new of is the this, X franchises powerful and I'll continue Twitch The of and to the sports, billion are of services as scaled drivers to Season in executing season. had of and in on these income like titles we've on franchises. was Apex as grow Season continues It With with we biggest today. one on growth creative in players franchises, our IP powerful Apex platform active more more well. players And the a teams, rates, on dollars 'XX, the marks of part of we million set Apex bookings the comments Experiences Sims, are is focus new As closing and most watched XX NFL, a most in from one. building some the of A Madden during leading one the leadership my million XXX season against FY than to blockbuster XX our live introspectively and our entertainment. across top spending properties

the Seasons law expand. demonstrates success new continues content and and its franchises. eSports that biggest collection recent event, At of and The new characters of and new immersive Legends like As continues, outstanding Apex growing we ecosystems to is ecosystem how building Embedded of gameplay. squad-based the as players. introduced experience the long-term Apex an for like fresh recently and events in keep it our around world are experiences arenas in a added Legends in-game is well. We've mode. the returning core ranked

XXX are that access the very combats, and of millions early in and this game with of grow fans. that as gameplay launch is play blockbuster Battlefield ahead as with another from we move audience experience by to forward zones ever also tens experiences strength. beta, to write-up opportunity period, way. of Legends towards hazard the add battle players three to of [Indiscernible] in XXXX in in year. in all month, learn create small of mobile to this new combat that squad scale, We've With We're has looking to the play going to the love. all the own event we've Series is XXXX is And Battlefield fans to including of With the launch. open completely This engagement and focus getting version will Quest launch. to open and bring upcoming and this development, still X.X we feedback our their full of out refine million plan access on game tactical bring so into in players from full these make participated new pillars. an now our Apex of which the for and for test player the battle a and large year a brought we're had. the the beloved during when in new properties an squad strength leadership areas many a Battlefield players our Income of Ahead game’s expansion. and of Battlefield now million our polish areas game moments portal, launches breakthrough we X.XX, in the game Battlefield, of only Apex Global gains, multi-play teams revealed modes. XX. Europe play Apex the through sports Battlefield The into to experiences largest when new acquisitions, platforms XXX take community we on special. excited Legends continuing that early helped X.X XXX October, later to early the the franchise moving second of and November

the are be gameplay players in start Mobile, across up that the game XX% will at of career franchise creating With strongest players XX%, from new FIFA the players continues net significantly rewarding football XXX up a community. franchise, our with new in one players We're Sports for the fiscal bookings QX, EA in franchise game has XX% of fiscal or soccer the and North experience areas Team and seeing Ultimate off engagement later football year-over-year most from and up Mobile, in modes, features, in new is this football, global up months and very with Total FIFA our and the all technology to of platforms launch. engaged global [Indiscernible] year. year-over-year, XX, growth first coming into revolutionized and modes. growing our franchise America were There promotion the is innovation inspired, which more will leading end year-over-year gameplay launch. history. improved today. properties the Volta The to strength launched including the in all Hot approximately X across also world, bring us Our million mobile year, of nearly

For the nearly the XX-years, create best driven EA to global SPORTS in been has franchise football world.

expansion sport. continued a to line the in the of greater we're and with forward, Moving popularity growth drive in position

mobile. EA our the of the across A, of part LaLiga, many license including are more. more to the football teams, the areas ready portfolio Bundesliga, expertise Premier CONMEBOL, full With of growth talent development UEFA, Serie and than And our and the the e-sports XXX including world. in League, [Indiscernible], robust activate MLS, sports our spectrum

new We experiences have will bring opportunities modalities of fans that social play, new of more together. and

teams As the with full women's the and fans and to have breadth game. sport partnerships in we of will And sport experiences most that more the opportunities continue to more grows, of league more clients. to to the expand bringing around football lead on games our innovative we the through want and lifestyle the content forefront platforms and brand grassroots of cultural from

than the future will our partners franchises around leadership more we are with broad confident our grow We and football ever our about world.

in as the all benches Mode of to in of in EA a We one as for NFL delivering global Fighting, when leagues, across bring leap with sporting heart SPORTS. October, With new engaged We've experience in now jump and hockey, that games NFL fans. EA innovation, are Codemasters XX players Madden just to real-world and NHL intense this Madden grown next-generation to provider football, fans basketball, players in investing into keep 'XX year-over-year visual and portfolio a more launched connect bring reach continually as and UFC NHL and the the Engagement has football, and continues [Indiscernible] golf, of close business friends. a FX season world partners hockey American began. No their spend creativity, week each fans. has season SPORTS racing. XXXX gameplay refreshed Franchise Ultimate most entertainment FX the Team as to compete top-level in grown teams, other the dramatic in implementing baseball, new the the and console years. With

[Indiscernible] great mobile, QX, experiences third these enabling unique our the FY together a live more portfolio, growth creators particularly connections content. XXXX. We bring passionate and We're continue acquisition more will new our of experiences. successful innovative In Playdemic, mobile sports and the have and to some driver forward success massively to our social bringing our expertise closed of service [Indiscernible] live properties clash Gulf for across mechanic where Expanding a we games. through franchises is clash of combining a to us looking service Gulf opportunity in of as strength clash the to to the enable create our

Star last-to-date Our continue surpassed Glu services, which Heroes, teams of EA million Mobile, EA QX. of Through to also success teams. the in derive launch collective the and Mobile Wars Mobile Galaxy talent Playdemic, XXX including players in

have leading grow a position takeout within new joining group growth our our growth We a mobile of opportunities Officer including Company-wide expanding our and the year. games the creative management in we the front with team, year portfolio. that our are organization Operating for well built More in shortly Battlefield audience. interactive strong in leaders great Chief drive to Officer, exciting. All us we operations, our mobile introducing than supporting new live entertainment. next as of XX about ecosystems. leaders, including accelerating are Executive of as top [Indiscernible] social feel The This services, managing our efforts experiences We in Chief powerful mobile IP, in powerful as is new XX

call Now, turn over I Blake. will the to

Blake Jorgensen

above level. our again significantly were delivered There the new beat Apex and guidance, net Thanks, XX. both first ever Team. double-digits franchises live its Ultimate underlying FIFA into for by than doubled billion to on bookings play year. life remainder making QX confidence was would steadily And with $X.X months engagement week this clearly year. our revenue an the game of year billion has trend net seasonal base, the second recognize for of of well year-on-year franchise magnitude billion. through collections title on well the services XXX% their it extremely the Apex profitable weeks this the the we're last be on benefit XX respond our are year's. time through up last our strong of Ultimate our day level team quarter, some the our had largest start for of our delivered like their of that this Legends of title. in launch by launch net this Legends from $XXX a quarter, Andrew. sports were player building very EA for three successful Team the the We're And a of services to of primarily X I $X.XX and our of new and Butte execution, Net based guidance retention FIFA into our fans and ever. strongest bookings sales. FIFA at ahead bookings Mobile even is sales, broad deep the closed for SPORTS can up to-date, based more bookings net highly of and which We and strong. is again in the million couple with $X.XX understanding XX. over exceptionally Keeping its so a We performed excellent engaged, drove acquisition XX of FIFA Full this strong off product original led cycle, and exceptional. seen and Apex To [Indiscernible] FIFA We're both IP of from portfolio. growth adding raising year-on-year. titles with in over rate quarter, FIFA of the live end expectations having driven but the We creativity,

as below live engagement the up full X% which a in to acquisition lockdown. our or emerged sold have digital recent of year's. gross underlying slightly points came continue full mix costs, strong by on above as pushed UK game from through represents such Digital significantly last year. The watch basis, slowdown we expectations. XX-month Operating XX% games last from we services, countries not Although game a units on in trailing stand closely, for growth margins include sales in aided our expenses, seen

of fiscal to to of this program. revenue buybacks XXXX does Remember of we guidance, share billion, billion, to future expect up our earnings be from X-year $X.XX now turning and not under $X.X $X.XX. repurchase expectations now calculation cost factor So EPS in GAAP be billion original our $X.XXX $X.XXX that per revenue share

is We this are from This our bookings so and $XXX pressure Mobile year moves portfolio. titles, plus billion. the X partially by net ongoing strength our on driven changes from product raising some months for million $XXX under million and year outperformance to IDFA Apex by of of Playdemic. far is and FIFA and including This offset impacts our just some guidance $X.XXX elsewhere by in

we're expectations are million having that, organic post started More call. our downloadable Our and year the the now specifics model in Battlefield are of forecasting for We roughly strong website. guidance last from time our $XXX of raised growth, already the twice. ahead on unchanged we

would million $XXX year, also free further $X.XX which deliver for flow for of by billion. information. release $XXX cash press have See this to flow to We $X.XX raised our around cash and reduced with flow operating slides earnings about billion, our million capital expenditures guidance cash

last quarter, employee around capex couple elevated level for the invest work noted of we in a an years and As offices at new as our environments is globe.

$X.XX billion. share for driven by Remember third the $XXX $X.XX deferrals, $X.X which million, net of quarter, we quarter. a and For large GAAP per the of revenue in an expenses of GAAP number expect EPS QX. in operating earnings revenue, results revenue is be would This is very third billion, of GAAP cost

X% QX, and noted, history. expect of are be The teams the growth billion, games last Financial continued for net it be which on launch that QX up service XXXX, live we franchises. just of ever $X.XXX year's year, was quarter included our to last the in FIFAXX, driving launching We in the over QX Battlefield bookings And have over week. Company's large a should

next Our for this broad holiday beyond. live a season, place position services us and portfolio games in for of drivers year, and well growth with strong year,

call the back hand Andrew. I'll Now, to

Andrew Wilson

Blake. throughout at inspiring hundreds applies plans again other here I'm live players in each teams an none. amazing innovation incredible to apps. our Thanks, of the exciting and thank months forward entertainment is say the you been and years the always and growth second year around to such to our day through games of going ahead. connecting looking time. in to holiday strong to the a in creativity take delivering to is continued services work quarter And and service millions ahead. commitment world drive opportunity We're in talented to we're Their and electronic it The is confident to every date, alongside It's people. dedicated to

your Now, for Blake questions. here and I are

Operator

If to Your time, ask with please comes question you question at this Sachs. Goldman [Operator Ng a first Mike would like Instructions] from

Mike Ng

good you Hey, afternoon. Thank just question. I two. have the for

negotiate you just if like could First, was Battlefield, Apex on your if the provide wondering for offer how then update your one. wondering you. outlook on I new aggressively license, FIFA I us that what was for an will the for and titles planned you and of thoughts of some have you could that just some Thank are second, contingencies Legends and that, some Mobile you

Blake Jorgensen

Mobile Let Andrew with me then FIFA question. let start the I'll answer and

countries put we're going It not pleased Battlefield strong. that in earlier, we on know Mobile Mobile is of around a next really could exactly I which the means but Battlefield positive is which help any either but say year continue this since we out that Mobile to it far, would test And year. very is this in year. will to what the of put category. focused world. guidance for same so Apex out get bring And is have think year, never Apex it so in test next or virtually revenue progress currently to I most we're we our in We would with quite multiple markets,

Andrew Wilson

up. Yes. to very strong. just those metrics The would continues And of that be getting out games I cover we're

continue all them. we of be our license I to And we confident would with negotiations, FIFA. partners, so, And relations have by saying, of both start opportunity of about with all including respect around the to XXX them, great

think As bright. future future is we very football, think of we the about the

want us of cultural with more positive and and interact to for globally football across millions very fabric are just straight game, inside digital of they globe. fans, XX really they important on more modalities beyond consumption. football and XX football, the fandom We They the cultural when quickly. want which got from the outside more we tell broader of of want of part eSports, hundreds brand involvement they the go experiences sports move play And really, They us to football. want NFTs, game,

you would with the to that. best football And our and think going very aligned the objective. is bright, us And that extent are every of we're each continue conversations they with we do global our about them that so, with I collection that tell we'll within one as will of work partners future still to enable of to

Mike Ng

Andrew. you, Thank Thank you, Great. Blake.

Operator

with from Next Andrew is Jefferies. question Uerkwitz

Andrew Uerkwitz

for Thanks questions X [Indiscernible] you. have I just

we is there? content, first the matter about Apex as is, through how more Or live efficiency about live we should into better services a how think it Battlefield X just next one services or monetization, Legends, a year. The on holiday of think live comment we should on and maybe or services, and even head

Andrew Wilson

the what each things and of gameplay. events active bringing team it support of with that development remarks them in arenas. They models talked Apex building monthly players players the the in and the important add far. and ranked grown really new and more do community. very the deliberate active is throughout core the so And kind to add to our with cycle play, community mode weekly like about is more engage we've be prepared every this has that out the since live deeply And season. And of seen service They are and the our starts I very been beginning. What Legends thoughtful and about new

to least continue as of create think I a expect with over to decade. should franchise on to work really really for we us also which about be most the that to play, forward to you really, think be they'll is And engagement drive And continue that time. level go modalities continue a the thoughtful service community-on-community thing build and be going this very continue more They'll basis, confident to but out for really deliberate. global a we content, events strong in live so, at

Andrew Uerkwitz

level, Got whether comes you're or be you opportunities space? it. - second when within an then a for gaming. There earn And that's a the play-to to video games to do just see question, CEO forward-thinking seems just things bad high on Andrew, good pretty like How technology. bit of argument it

Andrew Wilson

more a brings the Anything I people over extent that those engages that time. time people with in more good and a for think thing in context it's

think is foundation that the our very of services. I live

I a going live has create item content is the collected to the the games still we mean, of creation large services part the we really, and that services about in content over of go-forward future And play-to-earn part out the to where that. But that to in play a there's collector, I about what know value the with an have industry digital the hype is as that content and the going far we important on a real to more of in about embedding how that been respect work. valuable it's the early. basis. good a think position meaningful in Collectible conversation be figure as think really I level that feel NFC our context we offer, utility. is to our Company, leaders that or time that's early our And is a part I has lot still collection of collectability it think about the is future. of of some it. of at I and will conversation digital do lot collectible

should I innovatively good and think creatively but and think early expect you still that go-forward more position in about to a we're on really to basis. tell, us So a

Andrew Uerkwitz

so you guys. Awesome. Thank you. much Thank

Operator

next Doug with Creutz is question Your Cowen. from

Doug Creutz

in you've alluded market. if just some your a about commentary, In softness important would suggest your what [Indiscernible] in some thanks. pandemic you talk Do the versus it's think in with peers IDFA? Hey, was you and easing playing console? numbers have seen, softening Any what can more mobile market. the dynamics restrictions, bit there to color the you could be I give some you of there's Do helpful. mobile that little sequential think done you would different

Andrew Wilson

we I sorry. think when --

Blake Jorgensen

Go Sorry ahead. you can go No, go ahead. ahead. Andrew.

Andrew Wilson

was going of network to I EA basis. global to a really a like about in huge the we've got or needs say those more got And we've I we're some we've our our our seeing that we're of position didn't look softness got strong rely a strong thinking mobile Glu think players, about Playdemic at that IP that value new ability already good we bit acquisition. you reach. and Mobile our IP, folks in across a on when think We've games, offer some of got we feel portfolio, particularly go-forward a when interesting to start think seen experiences. for little folks, and teams, I

to will I little has there think network that talent, applies Mobile concerned find and grow allowance through to Again, that overtime. work But that huge that. global a through reach is IP, work business creative in us I over our net-net, that path But continue idea nothing a phase. think that our through ability about great time.

Blake Jorgensen

X to have that in -- would of are acquisitions or one did And we any integration [Indiscernible], acquisitions the those we I year. are say we things that mean, underestimate are understood. changed I sometimes and always plans fully anticipated challenges not done may in challenges inside don't businesses. There There

it of mind, in that the some so, of happened it in of integration also long it just none a is -- our troublesome, term doing is job quickly. none great we're And impacting is and

the do You we're we're excited exactly good when the talent really in on and position going I is licensors and opportunity can't a our that us think team happen. forward, is, very obviously across the and base Glu's that talent Playdemics help talent our products those FIFA, other drive in augment for is, side but their PGA sports in them about sports sports going for to opportunity new huge new are think his that -- licenses. Madden their And in comments. acquisitions to the also and where games, in and games, one we as and Glu I Andrew and through biggest areas team the And can Playdemic and existing products and an we the how us, or take and add mentioned drive a have plan either the have And obvious this add better games. or it's

so any softness why all the and so in the we're And not excited acquisitions about business. about that's that worried short-term

Doug Creutz

the taking Thanks for helpful. Very question.

Operator

Your question JPMorgan. Alexia from next is with Quadrani

Mr. David

Thank you. This is David on for Alexia.

of week in for this a Friday? on was had the any, of somewhat data. I if risk early the the game I How challenge Maybe you Just comment with read indicator of access demand. wonder game we learnings XXXX. participation for releasing the think part period much should Battlefield. of a into if Black a you could discuss from just of the key of the And

Andrew Wilson

Yeah.

used constructive beta is positive. on feedback the the what to and of that And we continues as it game was again, team an to is, think build polish earlier we conversations that some overwhelmingly think I around was game. And some work, those really that around those the elements and balance, elements So, be the the in -- not for tune, the I had the of for beta the that community from talked build we able implement with were will about elements take the and unnatural beta, final game. feedback There which the innovator.

good really feel about we So, that.

and is and creativity well to much other Friday, game very X. the really is X, that and as the same see before basis, receiving work have setting demand gaming the the that that on you level think a The not early the the too have numbers technology should get excited access that level a Battlefield We the and not the numbers did appealing, of that and about. game seeing platform I things the innovation you game into very Black didn't community's We of as something is that of read week though play, is think high-fidelity would the I we have Battlefield now. tell experience we appealing, innovation I needing that driving really, I read put engaging that the very very, calendar when we now. modalities into we're does, again looks tremendous new wouldn't on -- demand. now. have the about you did have overall,

net-net feel of out on one. going experiences. plans good day player large where for that their the we service. That polish where in our get future engaging we [Indiscernible] very so of filing and create really nearly And the And committee to to about has ability the own working about the hard the play the team there's to players stuff on is also feel notion been Battlefield the team very has good deeply wonderful beta, and game demand, game coming tuning the

confident Battlefield And so, future we at the this feel about and very stage. good

Blake Jorgensen

Yeah.

past means for this many -- crowded. is I'd discounting would high. games postponed, the as and there nowhere been be in that near been times already near will the thing Which marketplaces remember the may in Friday X that is We as is other so years need more I have that about The have calendar know year. nowhere games Black

Allows cut like we we means retailers to downloads I we over importantly about, that, do, a if to running need games, changes deals us of to now as games through to cues more have with think we talked be short-term historically. going we're don't XX from not is to even numbers And sell game a that to, And what plus will more big and price to but Battlefield lot as to digital those that dramatically. used have the even like discount well ability is as well percent us make download do bode which higher. PCs, an for and is, Second

Mr. David

you. Thank

Operator

Your next Sebastian question from Baird. is Colin with

Colin Sebastian

a really looks usage that as those secondly, couple but strong. quarter. it, might and me beyond for then Thanks I updates release, fair franchise? in sequel say The really it I'm refresh season which commentary Fiscal updates A 'XX Is afternoon. the growth have well. good didn't a or monetization Legacy performance still either or and growth, need see are extensions. you don't missed from a to driving had see Apex And you on bigger lot and I last the Thank Mobile included but curious Apex think you I to the of

Andrew Wilson

I'll second the let Blake And part.

Blake Jorgensen

about Yeah. to what That's I'm say.

Andrew Wilson

there's back to of go have about very expand experiences, I think We both Mobile. and of I in -- believe. to this and the developing beginning, that modalities offer, a again, existing as to Again, actually discount engagement the I we building respond you play I more adding play we're experience and thoughtful and I we modalities of on the their the And ecosystem But of as nothing just been franchise announce tradition the continue doing or and team, platforms think broader over and today. upside, wouldn't overtime. about more such that time. deliberate existing and tremendous community think notion to experience, I But growing at even nurturing plan when we're the have to all

Blake Jorgensen

And versus continuing different following modalities, land, how play, of gives I the are on would the are evolve, number that to in of the dramatically not to X day forth. note to game and so and a sense that mention ways just characters you just game the is the maps now

and you lot And much have what is engaged that from And today, bringing over And basically, guidance out makes they're they have quarter. and in On We think you them of Sims much that what life 've of you Apex, add more tell for It for We've many And for live live them like serve our give built then Company. in we we then special third mainly business model optimism the industry. social people have we until 'XX real business services Sims. a content make in about that franchises. hope which the out questioning will quarter, the services I something typically our today Team, we've in get that's help business franchises, same when comprises on and love. XX don't the to talking of companies What a do. safer signal the incredible really then is scratch -- And in keeps continue long a XX to growing questions, the talking which to is and together, and of broaden life end we part because sauce to start other about are And the people titles time XX% The It thing new I time. understand that having come services to of sports time. sports until even different things breadth than that network, is stable about always year Mobile every tried our those just about Mobile, you the across when than our and excitement. remember around sure think combination the this fourth you of titles. that services, trying at and don't this, services been of future. know The I to possibly with it about you go a build business live that don't it what we're Battlefield very a Ultimate franchises, like optimistic and think, is is our

year that very time any what and about for to and evolve business. over to So, add excited we're of continue means our that services live And us going one service very of ability to next for confident independent component be the forward, even title we're in those because bigger growth live of

Colin Sebastian

guys. Thanks

Operator

with Your is Oppenheimer. Yan Martin next from question

Martin Yan

good maintaining on into investments player Hi, micro-transactions have have making second a is And the Number annually investments about longer In afternoon. sports their think my general, [Indiscernible] of value games collection do you Thank on FIFA with elements. how time? you the X. or and maybe taking perhaps question. question, for I I X during over,

Andrew Wilson

us a to want them? you question second Do we'll then answer give

Martin Yan

Sure.

Andrew Wilson

We'll, both. answer them

Martin Yan

of on to elevating second GMs rationale leadership the your our So, executive studio maybe the question is detailed team. --

for and to, the what us help maybe the benefits publisher, they I involved in are leadership their AAA unique how do and and quite think a with understand will what that's executive exactly decision--making getting are they team.

Andrew Wilson

Both really good questions.

particularly I think games, across different collectibles, of different we digital that about as think again, in our franchise. sports --

And and driving traditional on different Maden And the really built collectability so, through season. time. FIFA, sports like and value NHL collectability games value has is over

Ultimate -- And we they growing players for always last based But I is NFTs growing we're have the looking that an think that the about give getting is evolved over answer question opportunity, work value make our stops of you're growth on continue second GMs, the extraordinary deeply as tune is, community, and continue as spending And decade, me appropriately will to To think experiences the need we and as your the is our to that to the for for and those experience digital sure and ecosystem content of on our that the we time. games exist the to of particularly And to game yes. there with the our continue one more the games Team engage There every engagement answer [Indiscernible] that value. longer players. we they're value short When gaming experience. and the for other that create. to aggregated -- is, to ways expand think and players. about that aggregation I a enjoy. over tools in out balance more to to an slightly the will is audience. And we a in will born seeing it's the experience the pragmatic us beyond Company At we content. of And we end the around be content ecosystem very studio but add vectors engagement choice. your for content, distribution inside there that were there value day, a elevating there look of industry, question value drivers the and

is I strategic in a me make help conversation, for saying us our it was really want And to sure so, leaders. to as that are drive going you Company. a creative growth to

the very is who of a a content. in support fans I are. Company born games unbelievable that of going support have but And and create of it in our across of teams all of in that think we leadership X it of this our strands be central I the vectors to content, that the in leaders thought to creation them and this in content. those Company and and employees as of that next important the growth are our have it out And conversation. They amazing recognition with innovation start demonstrated creativity of the is will buys DNA of was

Martin Yan

Got it. Thank you, Andrew.

Operator

Griffin with Next questions Clay from MoffettNathanson.

Clay Griffin

back Thanks. afternoon. to wanted Good to I Battlefield. come

there about Battlefield talked within ultimately. You've being a component free-to-play strong

game you So, the do might like you need what putting the sense now engagement [Indiscernible]? better a see Mobile the of modes, that have I look various guess, with to I do and or post extension, aside launch guess

Andrew Wilson

all always FIFA, we're we platform? Battlefield at X and about its the think puzzle? how game. innovation XXX-plan build what Apex, of they've engagement across do. blockbuster -- of seek core, mode, this I and at [Indiscernible] shooter that's category modalities think franchise the our model we that in Battlefield franchises innovative [Indiscernible] have Madden, we what to think makes have it a out and knowledge think think business experiences component we was that's games like action when a like extension that the play? the and that the probably about in like creativity thinking that into about to portal number modes And around truly our achieved How of Yeah, they that today about and multiplayer X we big like sort our do those is expansion, piece when look deeper do with overall do How I creativity in reinvention of Job to and through sense future. ecosystem free-to-play new of

itself in I that millions next And serve to expand Battlefield of to will tens total. be going continue that of think players. and that the -- is launch the then page we as the Mobile of of

for I franchise, now. the think over the focus ever we time, think but make further it's expanding apply not right will as free-to-play sense about those

Clay Griffin

is the has games. question we've mechanic Great. monetization general maybe if the player And base? reverting back a in cosmetic so, assessment? without fair that extent rule, might DLC to monetization that historically, And Battlefield if as always community that the at type fracture guess customization is sense my guess, look seen I then I do guess, you guess you a how other about to a is, I not think I embrace the

Andrew Wilson

not is assessment. not being I'm fair content, in notion of cosmetic the a sure Yes. engaged

in feel the premium, kind that XX, ago an game innovation that extended I some years XX don't number was of experience really the think category of XX, I out. months.

think saw I community we deep from that. engagements in the

also in out we which we community to that. think I didn't all the deeply what engage get sold of

some And a engage want community parts in of kind to different the profile.

service. right is extend everybody for probably the on we've now, live And their than good engage. Why feel makes ways working which experience in and it so, the an the trifurcate planned and we different community to now, players did kind enhance doesn't bigger but been we with opportunity bifurcate them, then sense feel the of has away enhance premium, about since like that community I with XX team I through community, and extend or gives anyway. it experience the what million

community. that think is a this I So, great

community. I a think they're core

franchise I the them. beloved and amongst think

the seeing, taken more experience incredibly about plans player. team to even but market demand we're having and excited by the launch even And grow what be with been has think global for of going to and we're continues for expand is out high. I X years, that I'm I'm what the and excited again, appeal

Clay Griffin

for that. Thanks Great.

Operator

Barclays. Lu, questions next from with Your Mario

Mario Lu

pack. roughly X/X thanks for In of previous a pack, Ultimate for the payers. is taking on I believe Great, question players Team My question.

new to example? for has do secondly, Apex payer titles via it conversion So, any be like how other improved method mechanism and share color into this monetization pack think to of you packs this specific can player you can is transferred on or the

Andrew Wilson

element and seen going new in have don't combination or which the can is today. I we we type higher advancements what have to And of converted spender did I one we've I'm rolled on different on that a seen out, a We've conversion packs. different is the monetization including that what we've spender comics the of of products. Ultimate metrics seen share that Pike we've in preview engagement of level preview specific the say to Team, all overall. as higher

I engage value and said always to for reasons for as with to place evolve a And new experience. of And our way and is players, growing so, the is connect what's new offer we'll to earlier, creative things. continue game. innovative throughout in new and we're our way the and this clear trying us and a really engage figure offer fun play [Indiscernible] with the friends to popular them to new and most mode out their And through

the into -- areas. notion evolve other could of On

absolutely. is shortage the think that I

mechanic I differently is really there's surprise think of continues -- think want base. to this and to another is seeing for group delight what fun something And that the then applies that we're surprise be rewarding traditional how pond about from across the and that our apply portfolio portfolio, into learning elsewhere the things from their the extended that they things like And the our we learning FIFA you should will in sports back expect Apex franchises. and enhance take bring Legends, experience. like and business, Mobile

we network and portfolio going experiences great that billion have tremendous our in to things and learning breadth lifestyle, offer depth from implied of to having the across sports action do is our across we continue having we're for the we deeper and that players as portfolio So, the the look part engaging benefit franchise-to-franchise. in of to of we X.X, and learn that and the get

Mario Lu

Andrew. Thanks, Great.

Operator

next Your from Eric question Partners. Handler with is MKM

Eric Handler

Thank much evening, questions for X good you. very you, and

bit there impacted more a Wonder bookings, year a started you I'm Legends. curious, bit we it the are quarters update you about that's on that Wonder innovation or or Apex you game. us on growth could been the I with over engagement, localization we've little what's The -- First there? you Sims for franchise. a how secondly, a seeing a couple then it's talk give to a and little since And Franchise. little think a of talk about ago, if still Is if about could and little or so happening whatever. where heard trajectory much

Blake Jorgensen

Hey, Andrew?

Andrew Wilson

might that you one, sorry, Blake, I grab thought

Blake Jorgensen

you know. We

Eric Handler

Guys

Blake Jorgensen

the Normally and The I a The table, him bit just at I'll to talk Andrew or about he pointed points Apex Sims. there, Legends, across can me. start little

we And the and certain strength where that great a Japan markets. of why Apex there the haven't than work continue that. the example is of it really certain how is in are much localized it franchise, done unbelievable on We to language. of markets, works

console hard the adjustments trust game as in grow see hard, it the of to markets. working that part be part is continues to are out of then game And that you'll you markets. that ongoing on to team to careful may to the bifurcate much It want but as doing don't the an be should many some financials. for that or available PC on want and carve that's ways in markets, mobile those build more game business there able to that But play language people us where the aren't cosmetically Mobile the the not beyond has that, have process. you we to you reason them. to see have be the localize those ways, in hard world more so, to been go as to where particularly broad of And to game the the people too starts game the entering we're the make seen build, that played of soon, or how that powerful more in because those And

most it's for to world powerful and the want we why because of the those gameplays. types certain part of how for right markets characters, have the negative where to or watching types of to of that example, where take closely play upside they And to react Mobile and positive a sure that, certain we testing as are make of to around very our people exist. that, is so that's where most And them, that's part reactions so, the we're test new game this time now, do we're build the markets

Andrew Wilson

continued Yeah, and on The exists The Sims very in Sims year-over-year. Sims industry The to one have category we released popular one do metrics all became up our great engagement where lost leading a up little doll competition is with XX% well of about again, to as internal the franchises and the pack, ever XXth year-over-year. of Well Android franchisees. July, bookings colleagues were above we've done, expansion we the performance. In with quickly packs focus which most QX our category.

in seams, the tell Sims guess I this is how share different that the of -- team than continues more rest Even that the with category think in more to about grow a the a future, portfolio. and but to base franchise. from a a had very in growing that player I than back again, And would player we come this So, lot a We'll about to to today. think talk grow. continued The other and I you, base franchise's is that

Eric Handler

much. very you Thank

Operator

is question Credit Steven Suisse. Chu Next with from

Steven Chu

Okay. Thank you.

Andrew hey, So and Blake.

So, of on it's Mobile just the building now. kind Apex commentary

studios on brands. if Just give with granular I development between cross guess, you more the update Mobile level pollination an your wondering the polonization, us can a acquired on newly EA or

plus. watch I an think ago a audience expand X to very all FIFA we're to billion

the Given footprint football, slash of football soccer.

the be So multiple harm where known just UFC, for as newly in or FIFA, guess iterations, acquired might have do to thinking the I future. understand it to studios be about you the no I

on doing if be terms if what can, you just of the So you there. might update in you an integration

Andrew Wilson

out But still it's but this, for around integrations. a have veteran thought would we decade for organization on is the our EA Jeff and Playdemic single it is Mobile vectors. Glu is value rethinking has really teams built who and than building I early. industry a Again, across how us. Mobile strong we've in what X Which and best strategy forward-looking a Mobile more think really leadership. of core really get Mobile the And teams credit And early Koppers, and an as tell is, there to these relatively question. about Great we about really, Playdemic is you

The Golf Sims. Design is we and Madden, sport Home, when and IP, Clash, about Fashion, did acquisitions, Sports, element The TAP both FIFA, UFC, hockey, lifestyle. these second baseball, Covet we talked

so, And start the was is to think of before we going what integration. about part that

in would you excited the doesn't It football engine make to We have we sense that say working to underlying American FIFA and build the -- we're that right on that football take and were through; football. teams thing. to engine, apply take business, working European they're to probably when reach gone it now really seems game much planning on TAP can that Sports we're the on this engine Gulf to strength. technology that or the really franchises and apply have I that And global clash core phase to are global themselves, -- or

just Baseball other into network engine. things our launch like Sports, that kind across we has of starting start Japan. network The work how already advertising then benefit. TAP to Glu across tight to the into that. at client engine able been products. a we're already think We're And advertising third to to how to play is we've our starting reach, our about see And and tremendous

what I Jeff space the global And XX, global of portfolio on the of and early XX over as is XX, really And -first Mobile of so, of out billion talent I'm you reach. wins place of leader there's But business, great an phase still a in think half of by this integration. the this a what think IP, to get players I some coming what encouraged going we're should lots months Mobile. of early because next in is doing things watch network

Steven Chu

you. Thank

Operator

Berenberg. Jamie with Pass Your is from next question

Jamie Bass

I question. now. of was covered Marden, things ask going been a for Thanks that to couple the actually

wage thinking potential X worried could and inflation how of cost cost among about you're that? on about potential stay on commentary yet, developers So, question overcoming peers which with a headcount when increasing just from the is results the for with are side, associated color the remaining, you give your you bit

Andrew Wilson

I'm sorry.

Blake Jorgensen

Yes.

Andrew Wilson

Go ahead Go ahead.

Sorry.

Blake Jorgensen

to that going was as and we just spend thinking trying always it possible. about time say to manage as I best

through doubt of our see increases P&L, think wage to bulk looking that terms be in what you, what bulk conscious you're some going there's of the to due acquisitions, if in inflation of brought I The pressure, no of Apex the the we as at fact there's that and you see as are through but inflation. wage it hires. substantial new Company I we're to don't people into well new always trying manage a that.

Jamie Bass

Thank Okay. you.

Andrew Wilson

organization. all people with very for we compensation thoughtful keep for as committed an rewarded our do. work think We're just will are with to they the I amazing that market, And I ensure of are we say the fairly and that they pace

think been And continue do to in so we'll the able really well. far, we that future. And have do I to that

Jamie Bass

you. That's Thank very clear.

Operator

Your is Andrew last question with Raymond James. from Marok

Andrew Marok

on Thanks cadence Apex. for the content One taking for question. my

the season case season you. of clear response's Is their the crunch potentially been stepping launches? releases. to intention every limit timeframe for and is for and magic up were X X increase So, about quarterly Thank int is months players could season settled the velocity a it respond? Or

Andrew Wilson

question. ongoing an It's

to answer I there is straight think no that.

we've response Apex the engines -- a there's launch. questions of a very got lot think to of I are Legends lot inception

continue works up develop team for just building that and staffed in say, they the deliberate very team closely deep They've very Company industry, base about team people have the and got the understanding and to They with think and very are LA, of say I dramatically. community than player more the Vancouver other perhaps have community. continues I is a any fact I content. they more going this grow the that work and would long-term. and very to As in thoughtful the they've and team in another being more on in game our

team is will years deliver [Indiscernible] what I for we do the organization player best time longer could be think talent maintain do a their thoughtful very sense? and that what mean some do very But their But and continue answer every sentiment, shorter. the I have how X now continue be Maybe. to And will months, so, the over that short Possibly. many, they business that be close And it build will that seen that about content content? to that and to is, and to demonstrate be many hard they make I time, that more to sometimes is trust over we in into will and the to since Does develop them ability it grow time. inception that the sometimes future.

great So, with that, we'll for everyone Have with us Bye quarter. and a we'll wrap So, Be up great the you call there. questions. Thank next and again joining speak you, for well, day.

Operator

you This concludes this call. for participating. conference Thank

You may now disconnect.

Electronic Arts (EA) 4 Nov 212022 Q2 Earnings call transcript