EA - Earnings call transcript Q3 2022

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Operator

Good afternoon. My name is Anita, and I will be your conference operator today. At this time, I would like to welcome everyone to the Electronic Arts Q3 2022 Earnings Conference Call. Mr. Chris Evenden, VP of Investor Relations.

conference. your begin may You

Chris Evenden

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

and an earnings our In the post will Tuesday, call, detailed accompany transcript. audio of prepared call, slides a remarks, this replay we model to the May Earnings addition, our posted remarks. regards our financial we Fiscal our to XXth. QX for have Call our And after With prepared lastly, scheduled is calendar, XXXX

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

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

over Andrew. the call turn will to I Now,

Andrew Wilson

are staying of you and Thanks, families Chris. loved your all I ones and healthy. hope

putting doing much Arts, to for our players. amazing energy all say every thank XX,XXX teams talented Let into you at me our things day Electronic so people first

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more QX ambitious an a across was XXXX pushed dimensions to game that underlying and We expectations. teams players for meet as challenge innovate would that preparation, have game, performance experienced massive did not testing to our of believed up this to total and with EA home across stability, game need issues it launched and matches, from ways Our teams modes, our proved net experience was appeal we titles, processes and are challenging. to dynamic we working years more players, Legends, universal Apex nearly two new have engagement, more platforms be business and growing more. Battlefield we in including put and did ready XXXX always more XXX-player strong Sims we and We expand clear launch be full scale profitability. became to our franchises unanticipated like as Battlefield and into to our The our with players’ and are play address. as we hands. models, -- the the however, bookings Through Developing SPORTS many our new the gameplay for ultimately

design did made community. also not with the everyone game in our we with choices of resonate the Some

full We are fully of game potential fans. our committed committed to this fully to realizing the Battlefield and

closely first season meaningful major already Despite shifting the the have and continue the of performance of XXXX. to-date our summer bookings we in with content we can FY guidance the our be a bookings $XXX guidance QX service we XXXX. improve updates core Battlefield’s FY our core are season move to ahead to evolve net we Players with billion, our year We live With XXXX, to implemented game, there can work in early the deliver to of remains focus full are as on to continuing growth series expectations, strength and fiscal done. in adjusted so community record net Battlefield live is XXXX. into Battlefield’s million service above first weeks the of performance business and to decision and more to experience, to expect updates we experience FY against have the for our which our miss original and $X.XXX

full-year of for the strength operational On digital continuing discipline transformation, services, underlying live we’re our and expectations our reaffirming profitability.

FY growth to XXXX. continue strong expect We in

on to and Beginning we total underlying portfolio, games in bookings, network cash flow a players, player our profitability our continues that those year-over-year total of and experiences with saw touch I’ll connect QX. in pieces global players, across engagement, each scale. growth continuing Looking net here.

last our more XX players PC XX from spending are mobile consoles an network and in cloud. active platforms to spanning titles. more services, engagement our standpoint, time Over unique grown more major more all million to and than From has the across live year, than to XXX games accounts,

live EA network are we’ve in business. delivering by year-over-year. growth in XXX SPORTS combined cash now XX our record growth joining a and profitability bookings most engagement net continued FY previous franchises and also as million the strong average to our Apex. year and over to in expect bookings is year-over-year recurring games year in our in in players XXXX Looking across approach is the active well, growing With and in across seasons our QX in-game up underlying year-over-year we FY for all that we we across year last drive new and and have are services XX% with the QX, FY and in player Average FY XXXX. in track proven the strong new full IP. more Legends deeply than the to execution. monthly where expect Engagement continue had is events Apex of built a revenue, franchises the deepening one players to our the is -- anchored Apex to game deliver our new portfolio, time flow Growth and industry yet Legends players our monthly successful discipline With XXXX. grew owned players deliver XX% and $X in experiences monthly our portfolio for strong biggest operational to billion platforms, top net to compared XX% we our Apex and and to bookings for accounts business last the has X.X% on net spending active on community, on more games for million significantly for This nearly than quarter investment QX. in achieve continuing more than biggest for in continue across during portfolio ongoing more active continues year. growth year-over-year the XXXX engaged Performance grown year. project is also growth

a and our be driven year-over-year. of be Mobile unannounced experience hundreds to our we and well We’ve live into viewers, mobile revenue. entertainment community for accelerating. had Mobile we closed and on players across Mobile and services EA leveraged audiences double us, our content net FIFA more of soon top dollars during is growth recurring and reach is continue launch the are as SPORTS portfolio, SPORTS in and acquired mobile than Apex reach more engagement new ecosystem, Legends Legends newly-updated more for grow portfolio XX% expect is to bookings with with will engine to worldwide EA we our a world. Apex expanding millions catalyst expanding XXXX Led with players digits. we’re FY and Legends Mobile, esports new and a rollout. more our to our XX are expertise it Mobile beta in core sports projects, excited major With up and launches Clash soft technologies our Golf Apex by Apex We’ve new of feedback soon. growing nearly into year-to-date, growth way, We original game, strong and which the moving testing powerhouse in growth business

western global global nearly over the expectations We of sports the the one been U.S. the the exceptional. early above Engagement for in XX continue In number Madden doubling all in the future previous first soccer EA franchise season for was to game of and to update in to and sports last we NFL the continues retention SPORTS is world. launched leadership, growth our biggest selling the XX% is the FIFA up see double. the of period also portfolio, the calendar three holiday our FX the our unit the XXXX was and and world was Under This title was nearly U.S. than holiday Mobile year. has it mobile the number well sales in XXXX. year-over-year version game week one incredible number during the soccer with more game in ever performance top title our perform during latest period. just around

in Playdemic growth continues new deep SPORTS outstanding development, recurring built an pipeline exceptional With on opportunities business, predictable Glu, sports experiences the ahead. a expertise added and of of EA and revenue to be with and

our amplifies further pipeline strength. Our

Jedi a next franchises, building Wars Space enduring titles. our in some is with our including Star our In week Last unannounced the adds announced new action-adventure of Star the This universe, Lucasfilm deep than Wars of Games of BioWare in continuing Dead pipeline addition develop Star and two decade. experiences Respawn Need collaboration more. core Sims, IP, wholly-owned Speed, to as projects & and series, IP well The announced our development new with in biggest to we a our Wars to additional the entertainment. for franchises, game we leading as Disney experiences more Skate, in new our agreement of are

portfolio we build executing against our by advantages strategy. are the accelerating growth structural core to on forward, Looking of continuing and our

new are and for platforms, more creation and content, aggregating experiences, more the tools community experiences our our focused and models, business our games players around distributing never share on and of harnessing providing to on the has with ways amazing and content games. play, engage and power watch, geographies to The create We deeply more stronger. in more been creating games to and for demand and ecosystems social amazing

with of forward and take beyond. one this growth. to most we As FY We largest against delivering industry’s these through well-positioned businesses and strong are revenue, continued opportunities recurring profitable look secular advantage the XXXX of to

hand Blake. the call I’ll to Now over

Blake Jorgensen

to-date FIFA other net quarter, $X.XX over any now XX-month deliver strong $X split in above a me, services, revenue Thanks, for trailing in net below to billion. XXXX full of bookings by bookings our The rate X up and net largest year. Team guidance Operating QX expectation excuse able game strength of a underlying points This double-digits Andrew. that worth within digital strength recent FIFA portfolio. QX Despite pushed Battlefield acquisition are billion we was an last players driven continued by FIFA year. from from history franchises. of the Legends in last continuing came our quarter to cash continued offset of bookings, basis, delivered other in hire they continue were showing and net unit expect strongest Battlefield profitability services than that disappointing, aided to XX% and came ever expectations, billion start earnings be underlying Apex revenue percent mix FIFA for per and a marketing grow teams. revenue a a now couple and it and made continued are and The close and GAAP to the from percentage was we quarter but to strong savings will were include phasing be bookings generation. XXXX $X.XX, XXXX’s game that more $X.XX. Ultimate up by profitability. beat sold this at units people full points launch live QX. for company’s extraordinary $X.XXX through our the in our our our net of original quarter of compensation share expectations $X.XX the Digital We up invest and to from and in to fiscal underlying of has sales, in percentage expenses, to with launch billion launch, launch represented demonstrated X.X sales margin tough Sales engage billion, a into live $X.XXX their of the year, strong measured Apex of invest and growth year. spend. which net history gross in variable It’s We end of net, of from of last teams. cost games for and our costs, our noting on our

for bookings net our billion. taking are $X.XXX the year to We guidance

is our the the by at is the on of both in offset above reduction $XXX The position in it but and Legends. million FIFA guidance reduction by Apex million $XXX Battlefield business, year. driven strength particularly QX end and our rest QX, QX, original in of Although XXXX for the

to one-time still is nearly moving some our full See flow. $XXX if year. into acquisitions $XXX first cash Note for flow related release to taking, portfolio, bookings FY now earnings flow million short-term. the million, billion. tax even cash information. flow and of FY would of $XXX operating committed guidance operating we’re of company’s around billion. cash to for this that expenditures impact close the cash original history, sustainable that largest our strength capital free our the This the of With $X.XXX about flow $X.XXX would like our turning slides year net further live Season deliver cash XXXX, Battlefield and in be in this We’re the building despite million press is payments the XXXX expectations free Reflecting above service, around a actions

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

of we that formally would fiscal be billion. when even report but QX XXXX $X.XXX QX, are we’ve FY to bookings net XXXX if only QX impact next our in that ever, We’ll Battlefield you organic expect we largest performance be We May, guide count concerned the This growth. growth. some heard might year’s

are here emphasize portfolio me that Let a again we company.

franchise X% As year’s have next bookings would originally the Battlefield for accounted XX% less significantly than of forecast, of net this and below well year’s.

see XXXX is expect numbers, the the time. Legends, quarter XXXX, We’re FIFA closer Legends console, more remain services titles the largest year. new revising extraordinary has to growth. will little that next you delivered In Apex FIFA slate history. mid-to-high Playdemic the on FY games we Mobile Clash and acquired strength-to-strength. to of To the next total, growth we company’s Apex title. summarize, insulates we’ll just any impact of halfway announce show through year growth for launches can in from single-digit and contribute goes Mobile. With in we but main Golf Battlefield also growth, and the on continues impact disappointed, FIFA those The but our broad from one us to year-on-year portfolio growth. still live regards of it FY to Apex year. drivers we’ve since disclosed Speed Need on

as continue portfolio for to organic the cash we Our to future. deliver foundation enables deliver approaches us a year double-digit strong and this flow, provides look growth -- approach to strong and growth

we had the that CFO, company new ever CFO and have to to will better Andrew, entire the before thank, going Chris may fabulous than for new and all enjoyable be a a over a the think have probably, executive, partners the Now with Green team, have career. their much I Chris side addition and interaction. I Fabiola been analysts of the as our support call my least, [ph] and half EA. amazing and most job, but do performance years side the I here years and that I their have done. of company as experience a you. all partnership for And for entire of not been I that I for amazing thank sell and notice and Eric interacts Evenden, is last has also the at IR yesterday the It wonderful you the Andrew nine buying for well hand

to So, Andrew. back now, I’ll the hand

Andrew Wilson

entertainment, of is times center major diversifying, the connect have at exciting Interactive industry. our These communities. world power in and grow Thanks, our to are are global entertainment continues how audiences every and culture the Blake. franchises are and games by measure and expanding recognizing to the

Our people, at are growth opportunities our in players, of of delivering our incredibly to focus enduring we most to continues of content people the and amazing entertainment Electronic to be the services, portfolio and on them some future. world of connecting around Thanks millions on and and extraordinary our our the hundreds powerful through teams games, Arts, franchises. talented

With our delivering our players. and are expand deepen for net continue we and -- engagement, and to profitability, success of building well-positioned on in growth our the depth our our strategically and drive strategically bookings business to breadth continues well-positioned ongoing that and network, recurring

Suh he cloud-first success Cloud President Chris is just excited look transformation AI XX years he the more than we after and a and next us ahead group, to Microsoft’s where at Corporate Financial announce that to Electronic Microsoft, referenced, Chief to which our we incredible and is led Arts Officer Blake company. coming during as served Chris As were Vice of joining yesterday as CFO. with

driving leadership partner achieve our us and as him I experience help future, goals. and the growth a look to organization, forward scale in with addition of for vision Chris’ big having our strategic a financial have to extensive We to

As leaving has has after expertise been importantly, His is instrumental will summer your and feel thank with our and we the transition built and EA. you’ve in our until again, team at he and will to done you, well announced a do he and nearly Blake Blake special with assist and our achievements, deeply of Blake, But partner advisor. for time continued a been and for growth together. previously, have financial and an our working Thank remain team everything decade most be leader, you projects. us I the us friend Blake for incredible grateful for the leadership positioned for dear success. to friendship. continue company, have

here are for we Now, your questions.

Operator

[Operator the Instructions] comes Your Deutsche from Benjamin line first of from Soff question Bank.

Your line is now open.

Benjamin Soff

guys. Hey,

Just a quick to meeting thank forward looking great a and Chris. for Blake being Two questions. you to partner

just first, particular, for guys expanding you So, and the I’ve that about sort future can for us just got think around And how that over time? you about and franchise Battlefield, franchise, question. for frame you of vision adapting how a in the new second the of Battlefield leadership thinking are the

Andrew Wilson

a Yeah. the to coming led as This Great this creativity, question. go. we scale, has always Again, again, where franchise for we And had category game. community. launch, franchise are bold very for vision bold this very a gameplay, innovation, in vision have we

the provide is turns and challenges, As really that sure least from home, to we’ve experience our to core now this game and community’s all, out, trying not this it of build focus up fans, expectations. lives our so making had game some

with and going course grow from with kind the I do we’re great have Byron, that other leading great over and in really this to leadership game of tremendous the continue that and we see the shooters believe the we’ll others, industry, well time. to background invest future. of franchise, Beyond Vince

think I to we’ll mobile. expand

pause is we other just new the can all to But a we expand moment core and for do game interesting to will ways and this take play. core a the where community. We certainly

Benjamin Soff

And in then, working that bit of talk strategy? pros for it. that Can just guys of those like say that Got Thanks. towards forward, investing Star you your IP? are to own little And vision of more it lean your games. potential and that light fair so, what planning cons is Wars IP? if the a on to three in the going announcement are about some more And new a you as you’re the

Andrew Wilson

Yeah. is portfolio. balanced The very strength of our our business

really various teams, a franchise, again, revisiting over opportunities fans this the players Wars years the sports And new time, IP And And well we Battlefield, a great Space on the following Need many, that working to Combined our that love. both and course the We this leagues, true more years industries own our is in think deliver a we powerhouse the And they a the way, have extraordinary both other are over XXX BioWare development have enduring connection with but is content. part or franchises future. do now, demonstrated long-term Speed, Wars Star than have our, portfolio. doing universe XX the And content. broad Sims, is not continue with Wars and IP, partners true that a to adding over Star about had across for will Disney the experience has like building Legends, of best This The simply to the develop the about Wars sports decade. so Star an we’ve Dead IP evergreen now for what franchises. for the to incredible for exist to Star many franchises, just XX Skate sports, we’ve years with the already really with that Apex that portfolio of that I in delivering the universe, deep industry. long-term the things about own not been our and we’ve in is an we really and things of licensing over fans for relationship across that

And enduring forward it partners Sports industry-leading our to of our fan work favorites bases, decades build like, develop publish and franchises really and to our our deliver like comes ability with long fan think Disney. strength and about company, to strategy you IP, truly over also going so and the with owned down as but and

Operator

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

open. now is line Your

Andrew Uerkwitz

taking Thanks I Thanks. great doing Hey. for from a it. guess up. and run. question. No had is Blake really enjoyed positive Blake. follow just call reiterate just the I the sentiment one Really

You’re bigger was competitors -- one of out. just your taken

portfolio look years a quite have five the will four years? approach the guys Do over three industry of have guys shaking portfolio consolidator next think in you taken see You this and potential yourself a good see or do years years. to three for years? How How a you seller? do out industry you as Thanks.

Andrew Wilson

Yeah. into well turns to industry of fans, is of power global in over interactive Great our we question. do And now and great we player you in power just in should what company the X.X because search and some bring why the believe and of for entertainment gone reason the built it of strength our we imagine deep we in build time the them entertainment. base, billion We best read the our is entertainment. believe have teams this have as the part out broad and for out in why portfolio

I think in of now of value we in particular. seeing the what we’re launching is the what do the marketplace

broadcasts, and music talk of the think I than about they and together, coming sports when the things. as players linear more some our other in, things think consume seeing any games But they so, media And that also attainment and we this. we play but form think they our other about entertainment entertainment, and and you’re other scripted engage about about companies

building we them expecting live whole so, we will to our continue to interactive And interesting to and in at think the ability time. well experience X future, entertainment also are our aware that for our we of new billion strength grow to ways entertainment. fans, fans find us north are a fans look which over as But we’re to

and creating And future, so, social think play, when you of look the creep, they that watch, I board -- deeply, about IP around that engagement think brings to so content ecosystem [Technical community what center think aggregation engage and into it out around more entertainment, of we tools, that great what ecosystem Difficulty] about at engagement and now across social models, the should the across games, the love. really And building world distribution our can as our as in you doing our the strategy with we’re the across around geographies, around leaning -- great at you should look business platforms, in imagine that’s of

Andrew Uerkwitz

Got so it. Thanks much.

Operator

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

Your line open. now is

Mike Hickey

Hey, guess, I’m that or thinking about quarter? audience. I then And for the Thanks. so, ideas curious Battlefield is Question to is, didn’t been you you some beta taking questions, of can been curious you with a of you’ve about getting I’m sold around guys. skin XX size Thanks feeling sort got you us sort my But delayed? Chris. in great I for mobile, Battlefield, then you or buddy. for think miss am Andrew, play, so. working and you give And you, ended Blake, Blake, guided I so have be possibility? re-engage -- lot it’s obviously, that but Can for the There’s sorry you. on units And just going sure of where would not you up I disappointed. hear you mobile the how expectations? just versus

Blake Jorgensen

Sure.

Let so me benefits let analysts in and [Technical -- what other there. XXXX FY this refrain these But we Unfortunately, Remember, since hoped Mike, units it as well. that, is Andrew new I and to of stretch part the excitement would. our so we I’ll address I to we skin give we’re to ways, future. less of strong XXXX as nice add we’ve FY to the XX% is would had out. the remember your less would goal second thanks is our than sold going question. But for a comment say won’t some Battlefield Difficulty] revenue. from it And helps like. pretty I’m than updates your I We thought us in get much trying sure to as

Andrew Wilson

Yeah.

high it. So, has game high, think decisions, some -- some around as were with. demand performance influence for but the I PC we machines And stability, core for measures the on that, the you mentioned, and around underlying I coming agreed The particularly were launch, there into really still and challenges not all created design had us. the we end really demand remember very community strong

so in number stuff so to times right get what and back as studio hate conjunction that a studio to and go that the And and this as reengage we able has is at I we been as really that make And doing. a our That’s admit great community, it, focus much was core DICE’s rebuild and in right. now really back sure at the that do long as of to go do the with committee. now

So the launch and leadership I time. the DICE community new really will will reengage combination that and saw developing, strong. manifest we up the the with strong of a that is Mobile build future, vision will the still core, for we over into demand of the coming are metrics showing out we we the think course

test a in how of with modes for this to vision think, to as as very need franchise. at I to it I’m ways while leader and been to expect free-to-play right case and and new the you franchise excited And inception launched, we course is looking time. at that was the since we deliver play, now delivered. other relates with played it disappointed end this the of and how has environment. the for the over we’re a should in work going choose game its will again engage still the how innovation continue big to future. mobile, and creativity interesting of I’m And bold it’s it’s we closed have next this of and This into then beta month, And

Operator

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

Your open. line is now

Eric Handler

buy once of there’s a seeing you thanks to question. your when within? industry that channels start in to if the venture that’s eventually mindset afternoon Good better content lot I NFT about could established the last it thinking wondering proliferate. you’re on or games into the so to platforms Just wondered want bit build those year you from about a capital We’ve Andrew, gaming, seen there. for in about around we’re some to there? and user-generated and funding and players get and Is it’s of video just talk going think and little lot the how blockchain easier expansion a

Andrew Wilson

Great point the time industry planet ago. that Yeah. over growing tell it a by I fastest wide years you, will started was I entertainment the XX At on industry in question. this margin.

I think fastest people But surprised growing industry still by then. to every be since the planet been it this. on has entertainment year the seem

ways in has engage surprised it I with we just engagement to all, social are to been not networks seen we’re ecosystem, continued out and think, fun able powerful our interesting content. have what as is we’ve So social And games truly how and bought recently new by of deliver more and to amazing. technology evolve, the the at

do or Now -- same ingesting about the friends about way unbelievably that’s music. traditional it’s and entertainment not we powerful. usual traditional with now your scripted just is media This experiencing broadcasters, entertainment

time. the I think that has in has been the that really fuel recent growth driven

we of at Sims the design create a into our very like to our The is and Again, the to ability and that Madden this that, what players offers fans. has to traditional media of that the center and center of true. be the really own industry soon. mode your our of, FIFA part of Ultimate ecosystem become course, for center Ultimate the long content it The very It’s and it’s of valuable just put of we’ll which Skate, Team, very part hold launching time. doesn’t at Team of a As something been

concept that this just in my interaction extension planet. and anytime UGC have of the so to And the with is on what an best I’m experiencing around user-generated friends is social the really content of able or

going I of to really that’s future. be a so our believe part important And

industry we was to an I value at it’s that at is people extent part believe around real and build industry a We building of seen. to of And a Now, I that is that, around looking about number anything assets we’re the possible it’s the that some around uptake group always seeing whether to I key not a but of we’re our scarcity, the we There’s AR/VR, certainly there the way want out we’re find opportunity And happened are building, our that this acquisition be and to in in way the Around happen player XD, that industry. around The we openly NFT that over we’ve now important quality to where proof-of-authenticity that will around offering see in that lot our and investing, -- the start for experiences VCs we’re out that virtual we’ve We’ve we’re right with we’re we’re that years. we at to in best in we communities continue around It’s our is, that building juncture. technology, blockchain? look players. metrics. look content, or seen games and we out start credit, content. this Whether collectability seen of four really buy don’t our world the now building happen the and it’s experience that. seen collectability would world world. think built we offer on If NFT future, can. happen that’s we and seeing great time, the think something we it, high around this with with deliver the with investment. of is part again be we games remains and And in external MCs. Well, an also want and at are of driving and

time. to But over going will we’re we’re so audience. now, -- right it’s we not And something that evaluate driving that

Eric Handler

much. Thank you very

Operator

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

now is line open. Your

Matthew Thornton

and guess afternoon, It’s to of endeavors I pleasure. Good Andrew and a here. two luck best you questions. absolute your Blake been Hey. future

or component curious year, Team about back partially me, question. of particular, I’m about just That’s talked to first the and live your Battlefield in about you in unit Ultimate you guess, guess, fiscal kind First and for year? missed. services the of year-on-year? lot FIFA, feeling the Apex strengthen felt of are I got a talk kind of about how obviously, you half With others. I FIFA, the strength offset into in the it’s half back by

that curious, are about some from advertising, curious Thanks then I thinking if of to almost a And how acquisitions, Super little we recent Glu plans back you start could the Mega know, about I Metalhead when maybe capabilities, their about some coming year bookings you’re hear you might baseball? companies up advertising, about to what little come mobile, guys. you the also, a have a brings XX% I kind how other and bit of curious deal. more am get new bit, you might you’re Second and about talk thinking mobile Glu curious thinking am am I how it’s advertising, your with of pipeline, question, into a to of kind are XX% are

Blake Jorgensen

So then was the on and piece services. in Andrew growth trailing live let our all Live XX%, the quarter the across me start service that’s XX -- I of live X% will I’ll is hit second and question. let service months and

and cores north reoccurring we’ve our those clearly networks we or so, networks the every games, particularly, on continue is it is dependent they’re on business, And feel and continue highly at if to it feel FIFA, And that of because that. sports, like our in well social created the year. of of Apex that you one something evergreen are look --

the metrics are exceptional we over up And see well so last year.

they improvement at with reported, the people the to engagement ways and to a for of or try to players players large game number new come unique that and year-over-year look up we Apex is amazing If obtained with as everything do ideas continue continuing dramatic play. to numbers, brought drive you into the and

do excited forward. we looking more going across and our more that that as we’re very games all and continues how sports, we’re it do and So across about continues of to how

So a let little talk about Glu Andrew bit. I’ll

Andrew Wilson

about revenue but it’s to taking yet are well services seeing we we’re the portfolio the applying Mobile are represents with next year Yeah. FIFA and industry, new acquisition little ones. ongoing them advertising and across what our Mobile, renewed both growth to out some closely with Glu the expect respect And Clash Again, bolstering And working into year that Golf and and we exactly and my that. and includes XX early we’re games. excited specifically, working With know Glu. the on a and we early will and growth across existing as there also. that based we across relatively It Playdemic, Apex our for are is stack of prepared still we on how full projecting days per and growth remarks, just double-digit both that building manifest, are it advertising, that live

now the existing of business, drive So, growth launches with in important overall, part of is the our in mobile advertising really and how mobile the potential games, a It’s a our both of across ours. we strength portfolio. very new in

Operator

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

Your line is now open.

Drew Crum

is is Good Is XXXX? to engagement the this in the behind anticipate on Curious you Thanks. Thanks. once about should thinking fiscal guys. anniversary acquisitions we growth calendar be XX% where forecast? going see your of normalizing? separately, am you year-to-date Hey, OpEx Blake, afternoon, OpEx And forward? how terms that your headwind their bookings Okay. as or businesses to or in I thoughts we XXXX of in reopening Should contemplated luck. and best net approaching slow something materially it then, year-on-year? start Is we should

Blake Jorgensen

that the question our Drew. been of that to hire acquisitions, talent clearly, some the by the is, things; was used the and we’ve in to take I second community biggest our about of most which mean, Yeah. be by quickly, that this stability. which of we’ve and aren’t, it; opportunity of driven able two amazing gamer driver but I can probably, is, around because OpEx during going some driven fact questions are companies one

sorry. so one-time acquisition And on is growth forever. a component, that doesn’t Obviously, continue the

on we’re things, marketing and remember think, So, comes -- two down I OpEx is headcount our expense. really

good we I number. QX But EPS growth to in plan. see, one So revenue year. at we’ve expense good And the mean, we’re in managing the see are to look even the marketing we’ve we’re think downdraft the a I originally manage at you you’re a and with so the year, $XX will that don’t been clearly, seen with any million managing also of that didn’t past that jump going like that even pretty this at titles swing able headcount that. very OpEx but by remember,

we’re I you’ll a and going to so to so think keep that forward. pretty try manage going be organization to see And flexible able margins to that

Andrew Wilson

though, they’re think they’re parks, engagement and back or how On theme events, at down of go world dinner. a the been movies, depending the think much they’re they around back. out of little watching shaved situation going post-COVID, and Broadly coming sporting to coming about into on is speaking, you rolling through kind about, we’ve on of a it, I and world

calculation. to So at the returned juncture our normal of world this by mostly has much

social entertainment, number of by also just Even on of not we’ve we’ve interaction. about network, in as part I our games, games players And that as million seen not of but people it grow over time seen only over our amazing again, now kind look creating grow, XX%. XXX to is the spent that

those not continue friends and that we And we I and our us what for are with our connections the of but added expect is now, remain discovery of I has the long-term of effect believe, growth. fans we’re most terms connected that think value care actually taught just COVID and rivals. what our great value to the seeing do a deeply we would a in what get to actually create to just with flywheel games and is entertainment the fixed, maintaining not about of of entertainment, also in way

Operator

comes question from Jason from of next Citi. Your the Bazinet line

now is line open. Your

Jason Bazinet

Thanks.

shares just you and that But sort is change just your to it’s about early of it material? is sort the engage and becomes real. thinking I relates fans? to curious span? to it industry, about focus view rev strategies engagement IP a battle non-event Is or time think you’re of opportunity it you Thanks. sort be for your you and you that how metaverse that Is this. of it’s I and to really more sort a about something think can a sort little as of that continue talk guys another on not potentially of about would Is bit business your very

Andrew Wilson

things these Yeah. it the are metaverse of in different three friends. of I your the a contexts, space day, another to question frankly. the where is talking a about you mean kind gives a is come you and certainly moment with one dimensional together people end many the great that experience social and topic At at of quite things

world other And the happens inside happens in our seeing the in that a of in XX games, And these and look What time, beyond the more extend continue I over we tell and around us we the experiences two we’re you the at game. expect of XD much consider for lot the expand of years deliver should as that the that our what nature now internet that around be. course you, will so engagement I and worlds. of dimensional our And social the But been to to see. networks context might last that and sports have with see I you a games. core look is creating that spaces we metaverse the the of industry of beginnings create at the

leading almost it’s be we create are great will players an beyond And and the do what is with course of know edge becomes you Need over creation will as build just becoming evolution play out in more as together become. you what were might What Speed continue the you important social that our for in role to beyond metaverse your become. entertainment game? games friends important and football? can beyond do enjoy us that it the to whatever ultimately evolve The know certainty the the they you will a playing of that continue what will So we the don’t come to FIFA I content? you’ll I very as doing in spaces and the spaces see as the these on what But time. And for as of of Sims places driving do What metaverse we those experiences are

Jason Bazinet

helpful. you. super That’s Thank

Operator

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

Your line is now open.

Mike Ng

Hi. I question. two. Good for just the Thanks have afternoon.

if that just do are drivers. are consolidation? some we driving hear where EA was mid-to-high And trends for unannounced was next description with a you Play around a What changing of subscriber single-digit little could FIFA if and Thank or embedded of Play, EA you do I to talk for was could the very games the you the second, see reiteration how detail some new titles I services with about much. First, in wondering bit today and of then, games outlook? outlook you growth video it wondering encouraging bit little topline in more recent year? particularly see there go the you the

Andrew Wilson

Yeah.

What across scripted to able its -- a in entertainment. entertainment continues it Blake talk ongoing a Let quickly getting we Pay mid-to-high access Play to for some is about engagement, to the be the growth. grow perhaps, traditional me even to experience, in core do content then broadly component is linear to the hit drive industry. see EA really, And single-digit It or we’re us. of be on way, driver. EA more let really positive than I’ll greatest a stronger the continues continues subscription what and consumer the

more think see we and our more way provide I I will think subscription through that start to to content platform. will that engage consumers you’ll in we -- across and continue continue see our content to and growth we’ll

with platforms might drive going point my about we’re games course breadth we just the service time. depth might excited our entertainment, do believe for continue We our provider things we’re gaming broader that back leading of the more of to growth. have subscription We industry, and to over pretty beyond over and what course time in clients to a you that new become earlier of around subscription around context us expect And that the the of the and coming. be continue the portfolio in experiences to a and our to across of

Blake Jorgensen

hints. the XXXX are live growth. keys and And services to ready like we driving did question, the bat give don’t which amazing other some FIFA, we’re Apex the associated not as guidance, on time it, this core yet at obviously And with example, of is portfolio, our an sports. growth continued give obviously, things said, hockey Legends, and obviously, do but normally show and for evolve we and year, to has to we

Legends an a build a We be going working for don’t Apex We know as that And in we’re well will major the with partner Chinese time Mobile in game, as build as exactly will have and the that market. what about but things global test, that we’re very there’ll excited game. game a that and for driver. growth well be there are

which mean through doesn’t the game we Speed but ways imagine more have we new three that had game four mode, at where of trying a a find coming Playdemic the working put portfolio of think always we are right well, a Mobile remember expansion. half then Clash with Golf the next We’ll market. into we’ve on they have we’re we’re we Clash how event game. keep looking for already. And you there And now in that things as and Need to sports that year going mechanic IP full take titles, can year. other areas new announced And can licenses but yet, digest we got We really we or just acquisitions, grow year book, everything are only year-over-year that will our to And we won’t have Playdemic more FIFA forward. growth that the to into and out haven’t of

So until the to greatest really is know gets like one the the what this come. we’re vehicles we us excited about a looks about world in in it. Andrew said, next that’s year year. entertainment strong excited It that and now we’re And spot sweet right as of

Mike Ng

both. you Thank Great.

your Sounds best incredibly luck next of Blake, chapter. in helpful. And

Blake Jorgensen

you. Thank

Operator

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

open. now is line Your

Mario Lu

interacting you Blake, years. pleasure Great. Thanks a with for it’s questions, taking over the the and been

Blake Jorgensen

I appreciate that.

Mario Lu

guess the is I first more Yeah. level. high question

know that of XX% quarter You driver increased -- guys compared your in was the largest What as the on the slides. don’t playing and I to year Spending secondly, time you if And typical have this and really is prior? said growth this between much lag span did this about and not what’s historically then, call. data, talk but Madden you guys monetization? time

anything that Thanks. growth wondering out performance Madden what’s just like, FIFA. you between versus something like the is it kind what things, a maybe Are about? can of here, talk of the So delta unpack driving

Andrew Wilson

Yeah.

and is So also let having a Madden great tremendous start growth. me with Madden. year we’re seeing

then and follow who season As been this unbelievably exciting what of for an know… know and you all you football season, the of has we

Blake Jorgensen

XXers. Yeah.

Andrew Wilson

been for let’s strong …and second, it a NFL around has through and game. and for season games and have continues exciting an exciting ratings really well, playoff -- Madden strong franchise that’s been strength-to-strength. the the in the The driving the unbelievably and and to extremely from year engagement go overall our what’s

Blake Jorgensen

Legends, respect saw saw again, and portfolio great growth growth while this in Apex to we extraordinary drove With what FIFA. engagement, we great a certainly have in we

what FIFA seen was And the big We -- Apex But our that on also we’ve very depth of on our growth portfolio to speaks and the across is saw across was growth XX% up the number. portfolio portfolio. portfolios. the the XX%, was value breadth of esports a

a that. to of build all always want which interesting there. about the the what time. invest the I strength closely of very with teams services between think speaks new your And exact engagement ensure have part that is experience more they question that communities know the growth, of to would providing on to In choice terms it’s do ecosystem over monetization one invest of money or and work really time of you they we more live What for they content. ability numbers and to do in communities I they and was and our that and our make our balanced lag they’re say play don’t I want

our money a course of of become And teams the between it. their communities very work so experience and investment symbiotic drive at very that very, time very, and relationship with have over that the investment to it’s the very happens good closely and

Andrew Wilson

year just delayed I weeks we to pandemic. it this and quarter. I’ll it the one this, remind And into third We last everybody, said Yeah. move second We it already the and the say three year [Tech order due but thing, Difficulty] again. to may have shipped

of include the third shift to didn’t business. the strength that that the growth in hard at knowing So it’s almost of when the you FIFA, a initial look the quarter, believe

situation just exactly, that are impressive. Difficulty] [Technical I back just we the the around And know or provide so want numbers going that pretty people to that to our we’re second not to quarter. not but forget moved having details and It’s

Mario Lu

Great.

Okay. Thank you.

Operator

comes question the of line next Your Marok James. Raymond from Andrew from

Your line open. is now

Andrew Marok

as questions wishes content taking best like season so for drop seems on wanted On to XX the my Thanks typical pass Apex Blake my season. well. and substantial a Legends, than to more

engagement, So anything maybe or that XXXX is there out things saw particularly a I who year-over-year? this driver it’s whether you. modes, in for Are stands any at as acquisition FIFA, sales FIFA that in wasn’t whether content content, markets amount new And game like there or around FIFA of Thank the new then segments growth? interested it’s unit growth maps particular of and customer type or XXXX? unit guess, was that? player in that second solid point, on

Andrew Wilson

some great questions question. detailed and Well, the

we So play, to well clients. content, these the now On as content over to that they Apex Apex, XXX teams thank put -- million seasons you. Remember, about new a again, together new is as new of and think modality a ways connect.

fits size players broad deeply. engages really attracts group no new component or there’s of all any one players So that

to their of and them work for able to community the and these interesting the things calculated continued in really content, new work of been asking to team think is apply continue way play launch what to close deeply the beginning part of to are Apex new we’ve in the with and engagement. investment has the new base, base a grow maps, very with esports the a very they very seen of with experience season the community those are on able demonstrate they players applying the engage have is They modalities, particular as I what engagement the their grow that community. really team and models content that season making that since experience, the continue their being the overall are game by this speak player grow and overall delivery has around maps delivering what to basis

about very we’re so that. And excited

Blake Jorgensen

again, grow respect very then, And from service. Football, this continues working another as in FIFA, to we community going with of players has a demonstrated is to the strength-to-strength team leagues, call country and this teams, in around that popularity. the power closely live are in the it the with the soccer,

are drive the fan provision have our deepening most work if sport do meaningful we or the for in answering you it’s gameplay and in their ability to world player most fan our reason that experience football as over deeply with fan -- is of most love their the that have fans continued of plays again, about always and product partners league, is and broadening, base, game our with that’s around the very of connects interesting we work love in largest them, a them we service, our close football and franchise community again, we their the way and a And we with and And around XXX because around closely of and around growth them, delivering our growing, the global we the with most love. in content club grows, teams, fans play they what to them base the to they the football fans that it base digital exciting that modalities think very are base. to well and million we with XXX as around with. As work in over world we licenses is the the build for experience

Andrew Marok

Thank you.

Operator

Your next -- okay.

of next Your Doug line Cowen. Creutz question comes from from the

open. Your line is now

Doug Creutz

content has Cloud+ success Thank so where streaming within There’s has transmedia you halo some right game of particularly dropped at services. Hey. dozen their pretty guys Netflix show. on over a good IP than had for or you. streaming And service. X.X Witcher a League we Are do and looking BioWare a weekend that would think opportunities reality? that’s pretty Legends ravenous some a absolutely trailer the finally and as demand The think or for still now video meaningful from expensive I basis be point have IP more some theory you with

Andrew Wilson

No.

you -- video When of what relevant what just the grow. for based all interactive not some -- on and game like and you hundreds fans there Space, experienced, our I Skate. is around Dead a that’s Sims, think franchises, like, the a is Apex, in that and Speed, of create, now The what entertainment to think I going we of IP exactly most engaging entertainment or to think like, entertainment IP IP natural said element. scripted culturally spawn IP BioWare to like, about of we’ve to It’s Need kind like, of like, continue in millions

quality, been more a lifted traditionally, franchise think have scripted that the growth I the drives where elements have deeply, business. entertainment they’ve But a our themselves. in the in overall industry the one, kind big revenue two of high drivers been not there’s there engagement so punch

on think we the all scripted is we should that fan a as do of our aspects are our in that nature. any be as to and us that to very it we’re And profitably. of and more that entertainment all becoming our daily that things, and again, we’re expand at important doing it I more entertainment to and going doing thing that strategy experience our modalities way believe for we But base. is thoughtfully, might think expand expect and fans part that brands about you to in do different some many future, want interactive basis our this that looking allow and

Doug Creutz

Blake. Great. wishes, Andrew, Thanks, best and

Blake Jorgensen

be the much he around than think, for I’ll I our I fully on us said, support and CFO Thanks, get better while last appreciate I question. that’s new Doug. will that we as be sure make board, Look, [Technical a everyone’s and me. Difficulty] and

forward to healthy we and So you to next everyone talking stay look quarter.

Operator

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

You disconnect. may now

Electronic Arts (EA) 2 Feb 222022 Q3 Earnings call transcript