EA - Earnings call transcript Q4 2022

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Operator

Good afternoon. My name is Charlie, and I will be your conference operator today. At this time, I would like to welcome everyone to the Electronic Arts Fourth Quarter 2022 Earnings Conference Call. Mr. Chris Evenden, Vice President, Investor Relations, you may begin your conference.

Chris Evenden

operator. you, Thank fourth EA's XXXX call. earnings Welcome quarter to fiscal Wilson, and Chris With me our CEO; Andrew are today Suh, our CFO. Please and note ir.ea.com. our filings earnings release that are available our SEC at

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

Lastly, after our an With model replay is audio XXXX regards financial for will to this August our our a scheduled prepared earnings QX call, fiscal remarks, of and call, the we post transcript. X. our Tuesday, calendar, call

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

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

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

Andrew Wilson

want by thanking start to our I Chris. I at you all hope Electronic teams well. Thanks Arts. are of incredible

bookings underlying in Alpha, entertain year, way, to talented XX%. and super-charge We It hundreds engaged we looking connected stay of new in 'XX, one with challenge partnership we people's to exceptionally players and than our are every to delivered natives growth also growth. business. They an of network drive joined Z the year important in He including Chris our welcome who, new friends, global The Gen FY players entertainment bookings, growth our like our and our their live was deeply gaming-first are social, and more players as entertainment more am Officer. March grew underlying Chris is leader, that to IP warm inspire profit of entertainment. see people Apex of highly players, The our and digital our EA day, consumption phase and deeply a qualified express as profit. determination. to in live and our net games to and passion, creative $X.XXX strength our a record engagement grew our across using incredible unique joining teams big network in every our in The to to our power active net network is extend continues to and XXX of SPORTS more services. of talented EA and Total our than in of have profitable Legends in next broad a most Gen fueled number record a choice us services, revenue sport to Financial and titles re-occurring million forward I measure future billion millions players derive as Chief industry the IP; have central players delivered as generations. our to FIFA, by talent; the creativity, Games consumers. rose three themselves. our with for audiences gaming demonstrate from Millennials business. advantages: are players growing younger We and We interactive, engaged in and together structural strength is streams games we talent I'd they and lives, from of and new The acquisitions. portfolio, welcomed Suh. worldwide. of Sims, our now and accounts,

First, IP from to dimension, of our most in invest continue one in strength. entertainment. amazing all of and strength powerful to the Everything every IP. expand portfolios going in begins games, Apex we with Legends will

gameplay grow esports and coming our the launches the service Racing PC is is Global EA new set FY and in Series Apex finale live in 'XX. service; grand globally this the console mobile Legends XXXX to New & July. of month; is for SPORTS to significantly

years in and features We Our the have this with year and of our Star Skate, year, SPORTS Wars, to this IP The for Dead titles for EA we including experience for cannot players that franchises, Bioware Lord development Space, wait Sims, big, more six new beloved Need Speed, pipeline future Rings.

Seattle studios our we unannounced working teams. new our and across title in have underway more in studio Our two an development, studio on Motive projects, new global are has

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from We many scale. proud deliver content for across to and are exceptional more of of EA continuing at our the parts games distinctive talent

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have We powerful built made amazing talented games, incredibly we've by around IP, teams.

a half player of We accounts. than have a network billion more

We by and games engagement our social have and live services, in outstanding shared fueled connection experiences.

of at for Electronic growth, and a Arts. 'XX FY strengths set core, these to our leadership be With is innovation, year

the Now I'll call over hand Chris. to

Chris Suh

and afternoon good Andrew Thanks, everyone.

our $XXX billion. and said, net that more record net by FY the portfolio, and XX% nearly million to durability grew flow services deep original we Andrew founded is player guidance, billion shareholders. profit a 'XX the of on portfolio $XXX games. our bookings engagement. driven live guidance, As cash underlying year, a growing million for speak by diverse broad was Operating above player and power $X.X ahead year. was across year and live almost $X.X to for the results both business These and of of the $X.X bookings consistency We to services billion, This exceeded our original engagement of over than full with returned

than took from Russia to QX bookings fourth cease the well quarter. a activities. QX XX% we our delivered year-over-year. $X.X in of our above For quarter, with of Live Underlying some operating expectations. net came were billion, the net $X.XX net up reaching driven in sales prior and during action expenses and XX% lower expectations was sales the our the over revenue ahead services by grew year-over-year. high, We marketing of the billion, Belarus and and even timing XX% expectations, bookings up year, QX new profit

We are program. our to dividends returned long-term $XXX share to repurchase generated quarter, to opportunities, in remaining and cash our a cost our continuing flow $XXX further into during agile growth appropriate. through prioritize realize We investments efficiencies also the while million ongoing implement where shareholders and best savings million operating and

$X.X sales net XX% over Full Now, total let billion, performance. me billion. to XX% full about bookings our nearly our XX% of grew game Live services up and talk year up made year-over-year $X.X to business. were

to Mobile well year, FIFA to in from successful Two, broad-based similarly game of our the XX XX% XX in ever. ever, lifetime yesterday, year. Apex mostly services the Takes the the Our Full by with and Season last most It was taking was is bookings. sales FIFA. three digits. net important portfolio, past billion-dollar and it is was diverse, Mass FIFA course, most through, in $X.X is billion points net Apex by performing XX, bookings billion Edition all Mobile, represented net digital across Madden year, Legends and nearly notably up over launch tests double is milestone the growth bookings. strength console, of passed launch. Legends Effect this healthy units up we In growth And, date, FX, Legendary FIFA percentage up milestone sold and Legends contributors. NFL, Apex successful game XX% finished for live full Battlefield, driven with On $X close with

where before, to full it spend and of it adapt now 'XX. IDFA million as As before back back to or is to bookings and titles contributed the on a to $XXX we we're was more level the by great that learn net and maintain continue our changes, ROAS spend our return as was looking scale to market Across now roughly XX changes. result to our we level teams, advertising work in FY portfolio,

'XX. to me FY turn Now, let

have services, great the As We're mobile indicators for strength. slate and Andrew second year our we're experiencing sports in for of of console out, strong our early momentum laid live continued titles position annual strong a across engagement see half. scheduled a entering from launches, the titles, have our

$X.X by Apex We the launch XX%. 'XX Legends live up growth of in Three second for X% which 'XX, Mobile; at the fiscal 'XX to points, versus net last our in hedges, Rings: bookings and nearly services, to in of of of mobile, is particularly supported underlying and year, a FY net to be Mobile; year. billion the X% are: key launch net currency driven Heroes puts in the FIFA mobile $X.X in to bookings expect by the constant in net in the to headwind drivers X% half. growth of growth FY guidance strong slate Middle-earth billion, profit, Lord and of FX bookings relative later both of launch three

percentage for impact Adjusted one to illustrates is stoppage portfolio Additionally, Russia to live continue performance, which of of our of durability points healthy of underlying these point bookings, sales services. to the two see underlying profits. and factors, the net we the

in $X.XXX billion, be business. We growth anticipated strong reflecting the part cost our to revenue of expect of mobile to $X.XXX

we 'XX published slates XX% to to launches, rate expect by tax and development We the talent for our tax the title rules live mobile by to note investment increased development to $X.XXX and operating and FY deliver 'XX, two FY This driven management that expenses we've for beyond. to services have in in teams long-term model XX%, Also billion. our $X.XXX our to January. major in be due adding primarily acquisition used is from U.S. user

and in about and We expect billion of around operating QX, non-sports generator free $X.XX to million, rate capital also is continues the strong FY because $X.XX to number coming has to due although deliver as billion primarily of down with cash, flow $XXX to in year-on-year our slightly, 'XX, would be increased. flow of is expenditures collections cash a our The business which launch timing, biggest tax $X.X billion of cash $X.X billion.

cash and be are to increasing $X.XX announced growing We today by $X.XX from share, return XX%, our to quarter. committed our payable we continue to each that program, dividend per

under We revisit repurchase to continue November in we expiration will XXXX. our expect to current and the of stock it to authorization, closer

to net quarter $X.XX We $X.XX expect first billion. $X.X bookings revenue per to anticipate be share fiscal and 'XX billion $X.XX be $X.X GAAP of We to billion to $X.XX. the earnings to for billion

As a this phasing quarter. services, offset growth with reminder, QX bookings some QX launches has year, of very XX QX. of console contrast, the the FIFA, in launching Madden Team launches QX, coming new number In this Ultimate prior with later FX this profile some year's had a last only net into to and we services QX, whereas and plus a live by live on is PC in primarily game similar

For earnings the revenue quarter, to to another million, $XXX $X.XXX expect million original delivered in strong GAAP This results of operating $X.XXX driven diverse cost year, net EA player $X.XX we record and $XXX of ahead to billion approximately across billion. quarter. $X.XXX revenue guidance, titles. of to of of first To $X.XX be billion, our for by expenses engagement of per portfolio the conclude, share first our well

we forward, invest on to our Looking capitalizing this strength future. in are

deliver market, times, live the We portfolio through long-term. expect on to building growth to of and over resilience the our outgrow broad the show to services foundation uncertain

hand the to back Andrew. I'll floor Now

Andrew Wilson

Chris. Thanks,

new are more 'XX, from platforms, a strength. the FY IP, best for of With talent, a off network players, growth to growing we are across and we investing deliver amazing kick geographies. a more experiences, of engaged we position As highly portfolio on of scaling

Our interactive driving secular trends total addressable entertainment. of more market is consumption expanding, are and

future. to will we our strengths invest are Our build with and franchises on players the to deeply social, to biggest as more our grow games continue we connect in

and and a spectacular FY we in a We viewers, to of 'XX strategy, around world. of team the creators clear vision, millions clear deliver have have for hundreds ready players, a

for Now Chris questions. and are here I your

Operator

America. the [Operator of from first Your Dessouky Instructions] Bank comes with go Omar Please ahead. line question of

Omar Dessouky

mid-single on the It had call. guys is, of Russia excluding that looks to you Hi, you my versus the excluding you for the kind taking guidance thank single your question. the digits, high mid- that like increased the versus FX, in high quarter digits FX communicated third

First course become the during more XXXX the seen among during highs case? near user it run COVID the lockdowns remain third is the that call paying since has of And that pandemic all, quarter unfolds? clear second, the its average revenue churn that and as per joined gamers who will has

Chris Suh

well question. he then I'll second and you as for Thank to the part of question. can comment I'll with the it turn first, start Great. Andrew, and first on over your the part

on guide equivalency, the Normalizing we three for in the Russia single bookings the points net we So as from decision dollar, above a was math -- slightly that U.S. of last the strengthening in the which guidance which is is call. perspective, that correct. well your the in the equivalent taken articulated high we digits did impact gave the more of puts effectively impact earnings as signal

So we indicative how feel of quarter finished good player outlook. it the strong is about we and engagement, with the

Andrew Wilson

franchises their some course as the what in not great engaged work and the of to this spend deep returning They COVID very, saw to but to with. cases, that that four social them that strong, a And deal our your throughout to has live stay many five even is and just a we returning connection of What out in player that are school of players means it relates or COVID for really continued as unit have games across of that reasons, seen beginning engagement and friends our value and from they past in time over us of moving you with our atomic beyond as and social levels. entertainment to entertainment. games be are deeply see people friends. returning from we heard record very you've at we is think I sort engagement the And time, is

the continued Given we developing of social be for those given and the for growth delivering, this level to interaction of we're think value driver part is going that experiences, entertainment as of a us.

Omar Dessouky

Thank you very much.

Operator

Thank you.

next Your JPMorgan. the comes with Please from question line David of go Karnovsky ahead.

David Karnovsky

the just to potential more thank that bit Andrew, license. also the frees you discuss if terms in FIFA ending been a but of could risk past kind would kind you. how opportunities then have wondering given of was thinking certain restricted? Hi, just shift, the the about decision you for on how forego and are you little the license than upside brand of in the up I revenue

Andrew Wilson

release affirms have their I Yes. been very will own you of certainly seen about through Great football. some from And today on the We're our as question. press working FIFA and future think excited this. website, we've things

remarks, you the deliver most content the deliver over that's them. got We heard have, across and prepared licenses form that XXX XXX for as We've over accounts. meaningful in that to players million we unique players experience the

beyond that football and want the experience. move digital the telling really us and out move world really, to partners just experience are this they global broad to And They're they decision football. in authentic wanted they play. game see we've the more we about when to wanted so made They on players the They told, being football commercial wanted. this deliver future our experiences told of right of basis more they able that now, think us modalities And of wanted the core fast. they us to representative really to tell of build really

the going through together ensure to this as two delivered, deeply World for we for work the And XX to organizations and nearly we're that's the of closely partners FIFA work biggest And will to of we've that, year we ever. as to to and time to and our partners available that with believe worked with for sit Cup from excited grateful very that again, the to fandom opportunity be our we important Men's experience that have the epicenter at with Cup are this, the believe new all deliver XXX-plus deliver we work deeply we the greatest respectful football And globally. World and digital years relationship we we've Cup World what partnership. the so both ever football because content move Women's our beyond that can featuring fans. do And we're FIFA the first

David Karnovsky

Maybe specifically Okay. in think take and little Thank a bump brand? just And SPORTS how could Or a you but touched lack advertising fee? follow-up, about on EA mostly just that of advantage bit, there I a marketing be the costs? you do initial it you. license FC would of

Andrew Wilson

Yes.

tell to I We're it's and little that. early think yet. being certainly thoughtful a deliberate very about

that The to understand most and you U.K., you really with deeply engaged them thing are around the is our though a the to important travel important game, meet is who in thing player Premier world with as for players League. the the

a do many and we're on the on our fans. go in is the as What our them you've around this league. out Bundesliga for seen now focused in building Germany, partners those ability La most so Liga in the of and support so For is what is experiences And Spain of world. important for forth is very come of of thing to those right unique our to each player today And markets. you each fans

of the confidence and very a certainly to which fans front. that But that next working change marketing And so do we are we as thoughtful most is this gives the product, the name our what time it. move us and partners they growth phase in certainly, about have you be we'll with and must think into love content the you to directly in relate that of any markets

David Karnovsky

Great, thanks.

Operator

with line Please go Bank. comes from Benjamin the question of ahead. Deutsche next Soff Your

Benjamin Soff

the Hi, into thanks guys. bit. business to question dig wanted for the I mobile a

doing be Apex rebound out Mobile coming well. seems to FIFA got The Mobile really You've on soon.

doing You side. sports some other new stuff announced the of game Lord the on the and Rings

the mobile the about giving all, you in changed, your general. since if that outlook is growth really, longer-term Thanks. question target opportunity So thinking guys business for how how at last are the growth year? And has

Andrew Wilson

I world be single opportunity great the the billion a Yes, in players. we biggest question. mean very TAM the gaming excited of in about It to remain platform with mobile. X.X continues

as And build that's games a and so from mobile that this test, -- seeing that live And just game of just us who biggest will quarter and now kind Lord fan audience. year. Legends in We're that really XX% ever. around surge later of access type delivering our following. Rings its us TAM an games metrics is right done and the of is launch coming has and have good services Apex users. to in to have extraordinary for strongest makers had FIFA well They these been have so such studio had what capital of avid for

brands you're which three to So incredibly that for we internally Remember, X-plus big long that as think launches really the And our and live behind we for long built the for games, is acquired going when the is they portfolio, mobile term. recent years seeing what we're that that organically these a the expertise last mobile, that services. moving have, we we represents we've opportunity existing us acquisitions year strong, forward you that about in think to strong we've invest this over in through have, addition and launch for us as term.

Benjamin Soff

since acquisition. And first quick the I upcoming it. follow-up able in game fingerprints guys FX. to series put that you the the your Got just a believe is then really title on on were this maybe

can the a of the bringing franchise, types for plans about more game? Thanks. innovation you're bit little your the So talk you to

Andrew Wilson

had, that always as if have into extraordinary the is team portfolio. seen, EA that Verstappen. really incredibly was season brand Yes. an year in last to all-time others And seeing bring game, Verstappen. an follow high-quality and extraordinary We're the pushing with SPORTS the team year you we an Leclerc you Ferrari the high built between Championship and FX, has really and an and incredible impetus this Hamilton Constructor's for in may that fandom leading is an acquisition season the and sport

track our get then high, the core to couple is and where with and record if of history there, high to products and layer then is extraordinary in a in building so place there's world, development strength. you to reach, and opportunity sport and team SPORTS and high-quality go have And you fandom marketing extremely engagement sports global incredible think going strength that you we a power EA we is an think in that who business from

Operator

Thank you.

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

Eric Handler

really, I'm and of Apex relatively on evening, for look and negating the that of revenue spending from marketing mobile in still you're investment in the Rings and in early investment in grow be the the Legends about we to FIFA the going you're you you then with and lot for a about question. 'XX? to about of Good thanks sort stages titles Should that for 'XX Lord then fiscal fiscal curious got base think comes be to and think the expansion you mobile. margin these thinking player the

Andrew Wilson

of it of in very players course, amount in to traditional than a development about of and launch. is console acquisition launch upfront. development In that of of game is that's develop experiences. mobile and that think we and get services. we're the cohort five good of are will five experience, that an the time cost supercharge development three, mobile, of It's years, think at any get of that return early a is is The launch lower on of to cases, higher. launch for is live Traditional proportion a and to at the can different there's beginning on spend of deliver a remember, the doing spend And in to get years. we golden combination what sequencing some it. marketing next to is development critical there cost The is spend then and continue you mass to to driving new I a build marketing a launch, four, way the a time kind exceptional But these that. game, to cost reality plus cohort the spend two, And in course over we're console for much lower. a

compression And early in context of mobile. on, see you so the margin

course you see accretion to expansion play become of Over and long five live margin continue years and the of cases, as players that time, in global as these margin plus decade. a services some communities and for

Chris Suh

could Eric. add I on Maybe that, just Yes. to

we our cost that made, we're represents opportunity chance As you you'll have a -- your -- is It the you the to points pointed opportunity, in model and revenue about get an that excited profit margin that term. implied we see Andrew It is really is as store TAM the gave, Andrew excited great through the guidance excited different year. out, have about guidance profit we for had. about enormous that profile, We're But mobile. and opportunity. see and especially go we the -- this the and structure, in what the opportunity it the in in in that -- points once short to we're scale, a reiterate to

Eric Handler

I us Great. said, Andrew, a can games? as tell And new there? this What year. little if new give wonder on six that. could sports you I you PC these Are color follow-up, mobile believe titles Are titles? then console a just these you

Andrew Wilson

We've now, that that's a FX, think super trying to FX. property. mega from of the would got baseball, new would stretch that's characters caught acquired me it's So and that's so golf you Madden expect us, an was we -- guard plus NFL, cast off our game. which I'm NHL, FIFA product, you've

across So that's and yes, and PC mobile. some so cases, -- console, in

Eric Handler

much. very you Thank Great.

Operator

you. Thank

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

Drew Crum

Hi guys. to on a I Good down drill more want afternoon. little bit Legends. Apex

of You're any you lapping live services across for be the in fiscal will also mobile. net it that And drops What are launching mobile? cadence 'XX? your expectations but bookings make changes comp on franchise a on content Thanks. the will franchise or now XX%-plus to

Chris Suh

the it's Thank a great No, Yes. for you question. question.

As We're but all across year Legends terrific you spoke financial rightly also had pointed out, both metrics, the in Apex to. FY engagement a data 'XX. that Andrew player

coming we're so of planned with do a we business. big lot excited a the really We us. franchise of finished have It's growth a momentum. in FY how for year, again large that profitable And out It's 'XX. about

we'll And the console growth on continued on and that see side. on so HD the

with be we've the that, of to addition had mobile to one the ever. most In on this exciting mobile Apex are anticipating launches launch, we that

And so for or of and mobile that Legends the combination lot of optimism business a the indicates Apex Apex all up. strength

Andrew Wilson

of content and able in and have with of been drops make Apex community. that wants updates plus the demonstrated two out drops to exactly to cadence years over and their experience connection the and the team And extraordinary needs. course an Respawn last the terms and And figure and when how of team things again, the community the events, they've

legends of basis, the world as legend mobile Newcastle I as season have think will today, time, team going into over well. do of the rule back drops is new to continue and the And game a and be franchise We when. is off believe terms But and global experience. deep there to think will season it's work know really which the in to is you and launched a as with the of more expect community. game a on the be to XX, so more the why a launch -- inside on great which and of course we grow new starting that one the content a happen record to we don't grow will and I we fast move hard reasonable continues allow the I

Drew Crum

guys. you, Thank

Chris Suh

Thank you.

Operator

Thank you.

the Your Colin next question comes from with ahead. go Sebastian Baird. line of Please

Colin Sebastian

Thanks everyone. Good be Apex. off. afternoon, forward of going just guess and I last welcome, Legends the Chris. changes quick to follow-up a Maybe question, release there may the to on first some

of other supplies of think factored the impact then from that how on is forward. from consoles has Thanks. chips, might wonder, I and the stories that contributions GPU results, impact you growth the So curious think And -- the short going you outlook et question the And Andrew, or persistent what cetera? been from question what's despite in the these perspective? also each engagement

Andrew Wilson

Yes.

touch each new our the that then that going we new So ability community. two piece. I are team let Again, on drive things and let Chris to growing take releases see me engagement and first extraordinary engagement have I'll for understand the really outlook ongoing events, the time to think an content, the demonstrated

decline quite I that would see the in with content, opposite. expect we engagement any more wouldn't So

audience, engagement platforms as the course model of see think we'll a that growing that been I far. to see over think so build and I experience our I And and go has out we our time, we growing more engagement. we'll think

more we've beat on end very of results measure, even is ease start supply look graphics to supply we're as been PCs shortages, the face to that have just consoles machines, cards even have We that these again, consoles certainly It's up availability may but almost the and had, chain drive more more consoles results and that to will of PC marketplace better, ultimately know terms that graphics imagine us. more more and much graphics every more there almost cards out around have bigger off with chain supply engagement with hard for I and happy in more and issues year. in higher-quality the types and would access record In to we we come games chain and cards our be. forward and a what things. shortages chipsets and of and to how

back of transition, community broadly has go grown. you through time, gaming TAM each gaming each technology platform and evolution, at the at the the If course

only upside And us. for this think represents so I

Chris Suh

composition good sort add a summation. live the resilience on just our over of business from XX% grow with to services standpoint, year it mobile. with -- business -- the will market of our From I'll is which next business I launches FY think of of our especially one the model, share really the in of that of of the or our of things as with Andrew's business business, this 'XX, XX% a illustrates and

be market, to to we the business that you length. to from tailwind at console that. us so the X into be the all units are Specific Gen heard an in all And talk one and also we good guide added that's about feel up about console anticipating all. And embedded that year-on-year, standpoint, will

Colin Sebastian

you. Thank

Operator

you. Thank

question of Jefferies. from me, question your Pardon next Andrew with comes Uerkwitz Uerkwitz Andrew next Your ahead. comes of the line go Please the line from Jefferies. with

Your line is now open.

Andrew Wilson

he line. Charlie, the I off dropped think

So the one. we can next to move

Operator

problem, Sure. sir. No

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

Matthew Thornton

of headwinds. to different of A interrelated Chris. good guys about you going a asked couple there's as of single-digit in a if incremental earlier alluded could. Andrew that afternoon, you've I Since a mid- question quarter, ones, to growth bit little last and a to, bookings Hi, lot way. talked but ask I'm high was

to might talk XQ. little the that's few IP. Andrew, just Any finally playing you maybe these you including the in question could do were my into how if two, I'm ago? a to a a versus Question you opposed of So of put half question work-from-home talked have of and is, IP there thoughts productivity a fiscal thinking there's the just then about kind that's XQ you piece -- titles about maybe, anything a to as about in three one. And just the think fit traditional year, months the could that major big kind the better what bit transition That's fiscal changed back quite that you you gives on fleet first office, slate as the 'XX where number XQ how typically is would in that quarter. in curious release why in fourth holiday in confidence quarter because you there? reason of back

with the your Thanks on you're So I'm just in of guys. curious that productivity seeing trends. level based what comfort

Andrew Wilson

Okay.

was there So a lot in there.

Chris Suh

Three parts.

Andrew Wilson

quarter. think the answer quarter as got of as I additional we element third is anticipate slight one do short kind through first The no. we an have fourth from was change

our We continue slate believe is strong. to

that. that, a we the say games we've question would that the is fourth to I IP want the quality in to the think major two second got in was holiday I things quarter we do get quarter. and One highest And to the not We're giving those that I'd all to great need We're nature build the they time committed our business Underlying quality. a teams to games and committed our through can. changing. of is to also though, possibly highlight, deliver global development audience. why

is Chris business live pointed As our of XX% coming out, from services.

launch our a relevant month are time world in day that day where in, And in, longest these the traditional have been so as week out, for out. playing month now our so aren't out, games in in, players windows industry important week

give the last waves and And numbers COVID. of into so nature I say, your looking, is, really And the still from and infections are engagement more lower out news And more combination than work-from-home then it's there, infection experience our game the launch. need of in that part QX phase best our COVID the I some symptoms waves teams or much they what's be certain deep of would desire We're rising the all changing of geographies. is to and seeing of of driving early. is we're of to severity get consumption offices is people and to back of the our the initial games time and seems was how possible think question around to and that severity there good Again, still the seeing

office seeing good And certainly, its general a that's broadly. think of I humanity to kind moving we're through for iteration. just So return

our have through this to I unbelievable unbelievable even tenacity while that games have of through because from And confidence of working having platform time. we demonstrated And really confidence launching teams largely done our terms for other continue the launched power games than deliver years, and in two any more video games the this wherewithal. publisher year, have we've In strong home. harnessed content the and developer technology I to

come together, see we people collaboration. to back as get more So

think a in ends even the we our full our little of slower given get I still slate titles if strong have than ingenuity launch things But I high-quality would our teams, to of this that easier. ability up year. being confidence hope,

all of think I them. was that

Chris Suh

you I got think them.

Operator

you. Thank

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

Mike Hickey

taking result, great Chris, Andrew, Chris, and and guys. guys. my Thanks for question. Hi,

a question, First the here. sort been while, I recession. on Andrew, captured has guess, I of been just with think, our has It's the economy been business

how sort fee if mix service guess you free-to-play? then of do of that pullback whether premium you And difficulty] knows? not we sort Just follow-up. shift, guidance? have have recession difficulty]. think digital here I spend How up do and into guys. that the or player versus puts your going much takes So closing you clarity now you, towards a then on or factor about we a versus who and [technical recession, discretionary pretty [technical in your Thank Would imagine

Andrew Wilson

thinking but Yes. we and There How was specifically we with gist that mentioned how a about around and Mike. the sorry, was do do recession, plan I out about think little jumble, building probably think notion that? you're I'm the of you there, the our think climate OpEx. the I macroeconomic question of think

I think us smarter what macroeconomic embarking will year this be outcome about there were on are certainly, -- and And thoughtful people the as than time. as ahead. predicting Chris can of kind very weigh who course over we're in been way the We've well. here the of

we're our record interaction see connection. we're We coming but seeing for of seeing network confidence social underlying We're see. games not so dramatically engagement -- business fundamentals the and that with performance. term. the a us grow used social we for our And gives grow and of just what Here's in also over year We our long out dramatically. entertainment,

two really done of human back entertainment games. engagement our form industry very well our One, deliver of consumer when very, times have entertainment there where now hours reasons. we challenged of spending, look the one for high is extremely get you we consumers, two, have thousands a fundamental that of is may play And given over been As need. to games actually that specifically you value previous

that games expectation so in to that our continue And industry will macro now is environment our challenge of do an well. even

a as invest position you from this, of One the that environment one of benefit can that is it, that into like of companies the back -- we've really you that. things you actually going and strength have seemingly and gone into where though, moving disproportionately discover looked out we're we an other come study at

titles growing think our history, record both interaction if in we look like entertainment engagement, at that fact And industry games very said, like performance, year, when social that so as business back the a into really titles and performed even macro plan. if flexibility for network, we the this. put going challenging headwind. in take you I we our out this you of growing the to we've feel our we new invest we built strength have ourselves times take being has With our in if you well position well the against years, fulfill were ability have a and developed than as a And in strong

is adjust. will should disciplined as we that we But that that know a will of through this. to there be invest be extraordinarily go around do strength as of us move market. this something model into unforeseen believe us, that levers should to And we it our costs allow You us from to we we position in have behest

Mike Hickey

Thank you.

Chris Suh

everything, but good. think, well, that was Well, I

Mike Hickey

day, Whole okay.

Sounds good.

sort me. you advertisements least game. hear the flirting Sony was flirting the and into -- at with were can idea that rumor free-to-play adding a of hope Second as of Microsoft experiences game question, Paradise Microsoft, maybe impetus way community. player the guys back monetize -- help sort for in way sort developers And the trying their to idea you billboards that on Burnout course, to of go to of you of

lot of this just games you balance the be guys. on a sort monetization Thanks, meaningful thoughts obviously, player So think But and player or sort not free-to-play within ad with can something debate the how whether experience. then you idea of has that curious is created that of your and community.

Andrew Wilson

Yes.

experience it we various seen continued can provide. we stopped player And there And to over time, for where on that's the We the we have entertainment place advertising want And now, test experience. start, is of you've player which the is some advertising experience experience. can. some that the you the so upholding best player of generally best mobile media gameplay done right choice I we particularly games and that basis and course of there possible that in seen when possible that though finish player of when the given participate kind their in models have why portion us, the think for benefits the there in a you see us where What ensure is a experience even community right. is really we've in will games,

learned we've we've industry. the this Glu this think some brought seen and across of from I as we Glu organization,

But continue them. ability possible And kind to to we is they there and but of so the you would with should different ensuring player do we'd choice uphold best like available advertising, where the to expect given to an make we experience. want that -- foremost, test things, first that that so, have the audience engage to we

Mike Hickey

you. Thank

Andrew Wilson

Thank you.

Operator

Barclays. the ahead. next with question line from Thank you. go The Lu of Mario comes Please

Mario Lu

taking Thanks question. Great. the for

year. I the FIFA is this first The testing title support you FIFA guys believe cross-play XX. are one on already

presume that next I 'XX. the year So

a mode what of actually you what player Cup And similarly, profit can impact us magnitude of from the of remind uplift the World then So including is within FIFA? was engagement?

Andrew Wilson

of service, balancing players football and be events of in on might provide for world and always opportunity. the based in context or the of new will and And monetization case, investment it Let of to the either new things mode Cup look to FIFA. investment at And we're experiences dollars me the live this the engagement we leverage with the new the on do in time to a what's drive time, new and start interesting any going gameplay community. again, greater and community, in point given game content world in World of that of the from on and

drove game the continue through ongoing have through You people the had of remember And engagement we the over opportunity. into grow the course, game or the brought World incredible fingers. extraordinary the event as time. the the million of was last Cup, part out and back my we I engagement to might it then, the tip XX content of of recall the XX don't did an Cup business rightly, at of course million who and World lapsed live But time if service, I numbers

thinking about investment it this the of balance and and of positive year investment between We're immersive more context. and always a in player the of in our about more think always thinking a about dollars, entertaining same all the experience. more player will We service the time community and

of has more each franchise yet of data But in terms don't I good console In can people driver million PC, want devices. has liquidity player to for to liquid But as to enough out the be of FIFA. XX-plus we the across friends we future a which remember, the of certainly, and any other get players. playing as we experience, the other every thing you can community players it's ongoing That's all of on value sustain together, move think play get a forward. we and specific is will that always a already highly In entire our in already with of our certainly franchises platform and greater where part across have think experience. about FIFA play where and the our franchises, cross-play, place community that

Mario Lu

term. previously changed I you mentioned to the long resurgence given from kind Great. just lack has invest last curious one of was on And then Battlefield, updates past the of there's you're the into the any few if the just Thanks, you. more update? guys franchise. in But that Thank in mindset that know on willing Andrew. weeks franchise I

Andrew Wilson

over Vince as possible. get of game really right. the quality leadership Zampella/Respawn as of development and really for kind of one team franchises thousands long now. our part that great portfolio They've up great community we They're the industry, life really the for one process be years a that continue and ground a is This getting to model rethinking our the expectation on our built to quickly of doing again, teams core working got to incredible many, the grow And in from in of many using No. come. And fun important view and the the been of the is updates here. our take We've we'll of by industry.

and work core game, grow more beyond still committed do core us place us the once and there, right is the invest we there's then think I feel that, to community. with the beyond for expect And today. a team we we're place with you in get for to doing work the the to to and is where the game at should like experience where that

Mario Lu

Okay, thank you.

Operator

you. Thank

line with question comes Creutz Cowen. of Doug the Please from next Your go ahead.

Doug Creutz

Hi, thanks.

at fiscal a on on Battlefield think that feeling it at where Can the is, to at game I And point, kind last going Beta go? launch. just point? of might into the you Closed title that seem call, indicated one timing you're indicate for you'd And close the Closed least update to mobile be Beta. you this how about how 'XX the was

Andrew Wilson

they and seen the think to the Beta FY we've looking the then at 'XX May Remember, have Right title. going and mobile, testing tuning really the phase. toward year end once Closed engagement go that money we for of might of Yes. we next to in subject now I now, We comes that data beginning this further launch. we're end and the a the year, into of in any into see, balancing it at against all global of down that kind right look don't metrics and

if ensure an that to think can the that has to launch opportunity year, tell for I game us. would I tune in it we're played soft the And we the was needs all to -- upside that the excited But launch to having and order we be Beta that potential for in the Closed game, and ourselves potential. balance. give it So the want you,

Doug Creutz

Thank you.

Operator

you. Thank

Berenberg. Your ahead. with Jamie Bass next from comes of Please the question go line

Jamie Bass

my Hello guys, I and that's taking for just thanks if couple okay. questions. got a

to about back Firstly, levels positive you Two that. pre-IDFA. things the coming sort within that metrics were talking were the on of mobile

you you second you. how for Firstly, And already sort of you year mobile key expecting outlook in are on cost had you're franchise. developer of of could core of give much bring of certain boring to terms the new inflation, on bringing you and as developers? for an to Do question indication wage inflation. whether percentage this the have within hires, on pay what a in more franchises is in mobile an expectations topics need new terms sort expecting Thank you're in not Apex the then us your actually what

Andrew Wilson

it We a try talk been Maybe make that's and very competition back we a no then I'll of those start talent think with, the great always and FY and the our with were what high of hiring, When conversation; think what has going now. their create culture 'XX, new able to are as one. really to hire competitive all we record decisions based we first is amidst the learn opportunity going vectors move four we'll numbers great we're who this to the to was to do; different incredibly even second is the they grow. to on into a really games. marketplace. to and be employment what and industry, I going do four where already people that course, leaning hiring in place and and for work to in a about make lean to key candidates, And talent is one, vectors: Certainly, they're they're

of our That really great a and doesn't extraordinary a work create as to are be we the and ensuring surveys We to by and we've marketplace. that number in continue won't an expect culture mean I we've on come we focused company been challenged think place that of to hiring., place recognized the games.

through more hiring in we quite and 'XX. incredible new brought so our people creators think I had talent, But we challenged. be FY far, it's frankly, more amazing and and going not have business, to across trouble some

Chris Suh

on And remarks I it working changes, in question we're something about as specifically, still is the my your my in IDFA through. comments commented prepared

reaching outlook here. toward we and the optimistic some and sort part levels have through of pre-IDFA, about We feel tougher we're the related it, feel from seen good we that positive movement of

Chris Evenden

And the that to us brings end of…

Andrew Wilson

Okay. Could I just?

Chris Evenden

ahead, sorry. Go Okay.

Andrew Wilson

you catch I'll with up afterwards.

So that end to going that just the the today. say call was us to brings of

and speaking for in next everyone, your we you look thanks, the quarter. to time, forward to So

Chris Suh

Thank much. you so

Chris Evenden

Thank you, all.

Operator

today's conference this participating. And Thank call. all you concludes for

You may disconnect. now

Electronic Arts (EA) 11 May 222022 Q4 Earnings call transcript