EA - Earnings call transcript Q1 2023

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Operator

Good afternoon. My name is Josh, and I will be your conference operator today. At this time, I would like to welcome everyone to the Electronic Arts First Quarter Fiscal Year 2023 Earnings Conference Call. Mr. Chris Evenden, Vice President, Investor Relations, you may begin your conference.

Chris Evenden

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

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

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

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

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

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

Andrew Wilson

you here We in performance be Chris. a with our all. QX. It’s to great Thanks business across delivered strong

as fluidity macro advantages, as broad network all in our live of structural growing portfolio, players especially talent, serve engaged amazing the our environment. of and navigate Our deeply services we the IP our unique

focused engaged, the is they our teams and recognize to on players inspired best, services we our amazing that next more market, delivering connected, and level. the entertainment play uncertainty in there and games what as take we keep do While are

& longevity as is sports franchises EA in are Our the FX to-date, to how growth interactive. center, especially younger the with and franchises increasingly resilience up are boom, that IP power SPORTS continues sales our to fans. sport fandom Racing portfolio of becoming is sports business. at continues of with XX launch double-digits and a heart owned

exceptionally basis, business EA in mobile a with SPORTS is engagement strong growing year-over-year, significant with up on and over industry which the record is growth well for Asia, last global FUT franchise FIFA DAUs QX another XX% XX% nearly Our above quarter, in average.

the in and just the LaLiga this media, strength-to-strength cross-media from we going innovate EA coming and NFL expansive and how away, our of forefront fall. We’re Sports Madden ultimate weeks is most ever form illustrates including partnership evergreen continue interactive content. at of to XX FIFA perfectly game with entertainment, new sport, SPORTS, our

and experiences fans expand platforms, multi-faceted models, most able new collaborations, connect create, bring to in and the are these authentic to watch, With into -- compete, business across geographies. participate ways and we sport

driving relevant engagement multi-platform are Our IP in a for new that and expectations. owned our a live PC console on franchise, of culturally Apex franchises service world. with is most Legends deeply properties and entertainment in engaging leading and the and the a franchise early game our audience. broad our on that Engagement diverse ongoing content resonates outperforming massive also mobile delivering with market is the Sims is some

for what understand our want where are how next. go they data, forging we of Every where, new all social players and nearly connections. resiliency, to our and lifetime grow with our value our of scale the portfolio our We across Through business. these reoccurring have experiences, large our million. network has long-term services and And to are our engagement $XXX a friendships team's ability and proven with our playing and to can audiences day, revenue ability live grown drives ongoing global successful to network that today utilize

with and and like strong is games and connections unleash they themselves, whether feel We players to any creativity they next compete of immersive networks lever family we play exciting diversify portfolio competition each primary the than are characters power connected games Star other Art, creative meaningful building experiences past. an their of growth Games their the new a in continue Jedi, their stories Leading more of form from continue games fully enjoy highly focus experience, Alpha autonomy, creating and build seek to more turn, geographies. Apex intensity interact communities with content through their entertainment, fuel to our They content online the of with fandom, to SPORTS belong. and market more Z Gen friends. their the they around the they're every and consuming where games as such stay friends and fuel in Gen the on that generation and as where with they people. global the play games EA use Sims consumers to Wars both using they competitive expansive Delivering generations at build and with to or social and spanning identify and immerse entire join, our love and in for express can communities of Legends, portfolio turning the adventure see future. to deeper, They're expand gaming playing social requires with of Electronic as personal this

continue talent inspires we collaboration strive our and artists, their very development of to will entertainment culture grow. players, our winning value Even our and data that to technology engineers long-term award short-term level designers, evolve talent and studios. are uncertainties, career franchises all strong business. talent to best place and in growing pipeline. with creators workplace we in wellness experiences a and to in position. character and and great to programs to scientists, fueling and adding Through innovation, Electronic continue many and more grow, The careers make we to and a our and invest are Arts our IP, with interactive our work From our network strength animators, up graphic joining We team are

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

Chris Suh

Thanks, Andrew.

As we quarter driven player by bookings quarter from healthy Mobile. launches acquisition Playdemic portfolio Compared constant and our one first compared to XXXX live in year, our FIFA strength down launch. this Andrew year the two engagement were the coming FIFA to had in Legends our year, games. launch of last strong X% in X% for said, of network offset FX the expectations, of the services broad $X.X driven Net net bookings franchise prior driven exceeded by our across and the vast currency, game franchise, by another and by or billion, at the Apex continued

expectations. growth, largest units the demonstrating our entire also Online of Our revenue the engagement a profit net to grew FIFA hit materially Operating services sales four of XX% year. accounted Legends of X ever. And bookings net our with Apex up billion, revenue during QX. FIFA net regard were reoccurring expenses in above with with ever, the of through through, new FX double-digit to QX our bookings new successful FIFA of trailing in to full invest its teams biggest date XX% franchise. repurchase delivered dividends and basis, underlying in sold business. Online Mobile live points XX-month game become Apex FIFA highly also year, FIFA delivered bookings is saw having cash for our development and Andrew regard with highlighted our we live percentage on Apex global last stream. revenue, $X.XX has million as launches. across flow year-on-year from franchise Operating margins share the constant XX% Legends and multi-platform net million, high $XXX launch the currency, continue for or We above driver sales, quarter On again growth returned quarter, ongoing digital bookings. last was XX% were $XX to to the of quarter, to of services in and X% our line up each quarter resiliency leading outperformed success FIFA further gross four the shareholders games, and of franchise dependable We particularly a XXXX Mobile. in delivered bookings again, by were the with and we the FIFA X console-based last also product mix negative well during double-digit our higher expectations, program. expectations, strength making and expectations. Mobile had years. life our exemplified which Legends, growth And the saw net owned-IP the a XX net a

guidance. Turning now to

XX% We $X.X year-on-year, billion, are full currency. of or to year guidance $X.X maintaining up X% X% to bookings to net in constant our X% billion

within me a bit color give more this range. Let

of about our of million $XXX year nearly see headwind growth, we impacts rates, our or second net exchange year. the current point within which guidance, of half full on based mostly First, incremental bookings one

provide quite remain earnings in volatile, more our QX update rates call the impact. half expected As two about will we current a

some within we’re Second, shifts business. our seeing

We of a mobile the offsetting expect This increased therefore impact continue, and the overall anticipated FX SPORTS Racing an profitability. to the our results market. impact QX gross has underlying our to strong portfolio shift margins, minimizes EA likely and on in softer of positive mix benefit

revenue $X.XX revenue GAAP be billion. $X.X to XXXX be $X.X and billion fiscal $X.XXX expect to to of cost We to

billion per we to share $X.XX for operating and at $X.XX. expectations Our of earnings unchanged, $X.X to expenses are $X.XXX anticipate billion,

slides cash operating billion. remains of information. also $XXX billion. $X.X free further flow would $X.XX flow billion cash to With cash unchanged, for at our $X.XX flow earnings deliver million, to expenditures release Our capital $X.X that guidance about for of billion See press and about

September these sports FIFA Turning launch XX XX and $X.XXX benefit momentum having net to to from Both titles. billion, to the of decades-long the with ecosystems, on strong XX. we’re and relationships their fiscal seeing Madden driven bookings expect reliably pre-launch built August $X.XXX well-performing XX on QX passionate communities Madden broader and FIFA for quarter, we player be and XXXX by

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

Our robust durable slate, continued uneven growth continued navigating ability for vast in services in through healthy player a XXXX. discipline, a power to our with more strong the our We're live first our confident and fiscal quarter execute deliver model our to with reflects engagement the two half of market across broad portfolio. network

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

Andrew Wilson

It's year. Thanks, to good the a been Chris. start

and of macro world. the share of for love the the pipeline building company. entertainment. to With experiences history. to one connect primary every people next at poised This do games our to things with Leveraging amidst central more we around people strongest they our uncertainty, talent the is the can reach of choice want turning we as broad how than Even remains it's market outlook more today, focused are this chapter value to they continue our best Electronic uniquely portfolio well positioned and else, with and of While than ever entertainment what EA Arts a are lead before to is fluid, lives us the is in control. on content gaming anything so industry, and long-term the demographic in teams the our to in

As of into I Miele. moment Q&A the to we a move take Laura want call, to the welcome portion

the perspective deep Officer, organization. strategic creation game revenue our Laura our As and and generation us insights to commercial connection from will and a has business join to Chief add on Operating studios Laura her business. to our

Chris, Laura for are questions. Now your I and here

Operator

Eric Sachs. [Operator with comes Instructions] question of the Sheridan first line from Your Goldman

is line open. Your

Eric Sheridan

Thanks if two questions, picture can, is Hope Maybe question. Andrew. I the everyone well. team the so for much big taking in

to a console we so side, building plan of of console and challenges mobile cycle still love monetization. and your your to And for realign win organization side content First, the talk on this think the of on to lot low there's years? and on with the next-generation cycle how order about gaming sort mass you go-to-market a Thanks when first. consoles? precedents the you we for you where much. obviously, and little of efforts We in historical this that versus the and bit Can then to your supply on a view to about Can deployment distribution get of current and we the of be capitalizing talk chain about are see continue how logistic a thinking next you of globally. couple challenges on little organization sort over on how bit the opportunity new on world that mobile sort

Andrew Wilson

a that little very the I'm bunch questions. hand about closely on get we're to thinking off a how Yeah. mobile on working Thanks, I'm She's bit Eric. future. going Two been going to team great with Laura to structure.

In we're really console early in still this terms console first, of cycle, cycle.

horizon. typically, cycles our expectation, our console a think console about time So on XX-year partners

pick that think the we demand. expectation is our And as heard position some to console thing up ease ever chain I And back And consoles the so half know I from Microsoft more we're really that that while been that constraints, early. our console. console to as they've off And into say terms feel of also we still deep demand. hearing that sales what good they're the as think and people going we're is supply year. we are demand partners we're they're next is ease, in up in Sony a important there certainly starts next are in and charts. their is and And most towards the seeing supply like But chain more their

So deliver should SPORTS of as are this cycle the X the we cycle, deeper continue And in time invest that long about of we our every down back gamers have but is better we'll is slate for to expect through have to we you think our portfolio, for the experience also able of pipeline news in to this that and years you we deeply a should get good and into IP the invest to software cycle, as next investing we're that a single the what gets year. half our that existing EA stronger that able expect owned on the we're horizon, this when cycle. quality the nature goes the about of

the way in And in so, the this have past. we're at same we looking

part, play cloud think gaming part. cycles because your these really one, what I continues as Now big is we part. play on a mobile question big will big to a is is also also next time, play PC know, important mobile continue, also a Over a

so, people. for we're provide. any world's level, interact largest platform, It's a reach. content with platform layering who to mobile this gaming be continues billion currently global X.X other to people And kind imagine games hard mechanisms other At we of services billion of community play the X.X having macro that the and to

in strong. on we FIFA mobile also us, it see haven't given we've markets that been we And in about, not limited in happened the typically For seen where have in as growth where that that typically gives premium actually able talked reach the we've been or us our those of as majority the of growing mobile, markets we to experience monetize the model markets. business way, consoles same penetration

the basis, our is opportunity it's strong term, of for believe So for mobile that us, about XX% to long on continue to going we an incredibly global a -- of XX% gaming represent about industry, business.

So represents us. for upside that tremendous

we organization a build that's really to really has can where network how incredible at recent most future, what really is been And matters Laura detail. matter, teams off with single future working really I'd hand to matter. one the brands a Laura more and add really so targeted team little the And our bit on, acquisitions, particularly with mobile

Laura Miele

Yes. Thanks, Andrew, the Eric, thanks, question. for and

continue have integrated organization year-over-year, successfully in is the into one we coming and We into years. see Glu Playdemic growth to that expect that actually business seeing to and mobile

strategic significant our brings value our the contribution outside an to there's mentioned, of Andrew on It big ecosystems has portfolio. franchises. a As that impact mobile and

of player America HD to of at one the located mobile our and players players. were just Mobile. So Pacific profile, Asia we XX% discussed we've our And for when XX% compared FIFA our example, Latin success in FIFA look

franchises. of an a for we It's as brands expansion big also that significant ecosystem And one Gen we emerging entry So this for also for point as the mentioned, for play of platform drivers us these with as cross-platform for amazing our growth overall of have. it's a largest see the players. Z And dominant and Alpha we Gen about engagement Andrew think markets. course, then

that for strategic have So just mobile we individual brings the our business, future. are optimistic, not the growth but overall impact plans we to about mobile the

Operator

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

line open. Your is

David Karnovsky

for Hi. question. Thanks the taking

up on a mobile half. market Chris' to commentary back Just for softer follow the in

heard Can of drivers of that? pipeline or the I or factors of think maybe through at in is something it. that I some just how that to economy broader you more platforms? that's walk your the specifically Is UA challenges related the like some

Andrew Wilson

Yes.

hearing slowdown, we're seeing least think at macro I mobile about. what we're some that's

of built inside balance on very is that basis market. establishes model mobile slowdown -- a doing our we'll see Again, the this. well Our is on in macro business mobile some

in our franchises. are in business. seeing kind slowdown. And macro confident so we're confident we core of core But a we're And our

we're technology. navigate different that One think and well. vacation. matter traveled working that. the the a players that all we're that there's, that Two, very I you've reasons tough over we in on still if I benefited network the an is We is for dealing three, Again, how probably I brands a think some mobile IDFA And a able is COVID. to world few incredible and of through market comps, it through deal I COVID summer, to with strong greatly that. think with feel think like world have

unprecedented across platforms. does our future We big to overall think that be the And and entertainment way the if they the itself exist speak to of it we we though, back when access to players Long-term, think for tell It impact. represents represents they're will us strong. have I travel. you ecosystem that lend to players. a important some going might travel also so will that come markets billion levels And is X.X any not. this, seeing think in And companies, to of you that brands traditional brands

in go second But confident. business. as want want use plan we in about move half to we as we for to the market, hear to we market. discipline year. never just with for the that strong so, want even a of And market into into we confident We while the how account overly We're always softness some the our

David Karnovsky

up I more Maybe risk broadly. Okay. follow can about one with just also economic

of the we've on just today, content. PC increasing cup how holds towards Thanks. hour I given also so engagement think per of historically but much a of the basis things subscription. up think recession kind wondering, But kind games just you like console services, think shifted live then given cost the player is to dynamic tended that industry for has resistant

Andrew Wilson

Yeah.

a with and has Two, many top the to entertainment it's challenges past even that. its great else think fundamental industry around has is for challenges, humanity done I extraordinary interactive it's and that's need. for value going engaging to few it, money. is of relative highly as something There's, question. deeply risen through is other brought macro entertainment always forms it's looked together. through on Typically, has even dealt to us relative course, we've entertainment. kind a represents reasons And everything of extremely our a well human as One, that

business our time As that now with the the is in good live to may more news connected we versus games the I for deeply people think more engaging more that each have we about last other. have think faced, and macro challenges we services

service in All the we things today. the business think, nature to, that of speak live operate strength I of those of real

the world question said deep we're we can What and which we our will to prepared is if what the experience. driving there our engage business, really because portfolio is $XXX spending in engagement, about protected connects that is, the in engagement deeply have I spending, of think If I strong through over particularly of the the drive where is remarks our which in a to focused is overtime. continue know period, without the control, engagement is lifetime we that how an the lifetime in of you we strong million we live context services, what we things were community, in really open services. but see can, live across can this across one on one

David Karnovsky

Thanks much. so

Operator

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

line open. Your is

Andrew Uerkwitz

for ask questions me Hey, couple a great. here. letting Thanks of

probably where games lot The for being but impacted how think delays greatly obviously just made. the in how one, a at? in you games ton it you but first we're impacted today generally, fewer? Laura, become environment? Are the of to COVID were of also -- played a will feel way Like fewer delays current about Where industry. do gains, point We've the seen and do people we making a

Laura Miele

Andrew, a question. how many so we our really for I've But disruptions teams productive away blown and and of get how by of great more they're Yes, in have will the some just teams things. Hi creative place see initially I A did a make but the creativity our and not thanks games. adapted and am they I highly ingenuity said times, say, creating games. place to how to question, couple only

And rhythm lot And so and a actually people the how processes have to seeing office. come back to and around created games. of how create teams more are our that in how the we operating we've seen said, systems progress

here headquarters in and now right office are our person. We in our

was been Racing so Andrew week there. and visiting our -- UK studios. visiting And in the traveling around last teams we've

to meaningful and back. more people productivity creativity. for also and adapt we're we're are So more come and that seeing their seeing for environments them And people productive

we've then as would of beginning they having that say has our them become we that what for development. people and sometimes well the the cycle more is more in end final incredibly and to from usually, in a in home. adapted side, productive have sometimes be critical. office are it's the teams And production at So production place And I learned for the teams on meaningful together

adaptation a developing. teams seeing the how really are we're to So strong

believe are continuing rhythm, to goes and evolve our on. as time we're we in new we So that

strong to strong as really have personal company. in want as companies choose connection emotional they and we've a that our demand moral where are. attachments desire people and really is work to a seen to And to with really demand work clearly but here. seen important, really have they have a well People joining connection to people also a and strong We value compensation

in, seeing us bring we're environment. and really and a new to to seeing teams talent we're our a So new infrastructure good adapt options for work

Andrew Uerkwitz

to No, Switching thinking Laura. color, I about it. over long-term really Got growth. appreciate to that medium

speculated You where or few get player there's is these coming. our launch growth bigger I comping we've think years? the mean, we as about quantity it comp kind so a Thanks. couple think they'll I in nicely, quite each player or a single going that a should you games from of guys, believe, game Should one after build scale, How big we you've one after be over vector? announced we another single one, that about we games and that then couple How should the forward models next that. of

Andrew Wilson

detail add the this think which about game way these is Chris and fulfill. maybe And could less The games on to really some about, model. about, which Yeah. we more motivations

that us stories have those social motivations, escape, self-improvement, competition, and on really And as about important motivations. some of is our inspiration, bring of call these we telling of building they balance, these know creation worlds in the the fulfillment the games. connection, together things the characters and is players of creation, So of of players

and things One, So think bring tell two and incredible online do how build we we it building how two, and when about we our can communities then together. about we vectors. key about it tremendous really two think we on those portfolio think we stories how out, can

what deliver we motivations. at we're you grow we we time network portfolio, spend new should in be and the communities way of together and looking that of how the motivations. they're And see that? how way community games, we're we may you are of their amount overall fulfilled time it's multi-player really, is when our and just for two is core we that of the addition games. we we think developing part with one, how may in and new looking about that in it really and How motivations what not and games, time portfolio looking games fulfillment plan look how to think supplement when fulfillment our in the looking we'll where important online -- the our be stories, global build online around we'll of new until we the or a And telling bringing grow spending look that our single-player single-player these for for games. as worlds those at those at is And doing things at really we get new network the plays over and So

Chris Suh

Yes, reoccurring I as well. Andrew impact here revenue and top and still that think is keep proven could a always of very basis, highly our first mind add I that. P&L I of thing on on Andrew, stream, services if live in think has that Andrew. that. that And will predominant long term. in it encompasses the still a our business. maybe And just financial But the to explained the reliable, we about driver be trailing our XX-month over the model XX% impact been of mean,

launches live that's the some Second, in single as of the as we've talked a making, service you've we're title the investment well that of that and areas both lot about seen.

time, continue to of live business, over we'll performance there'll along course our continue way. be the the to our so takes We'll And invest the invest in and long-term some puts services of ongoing growth. and in stable

Andrew Uerkwitz

so Thanks much. it. Got

Operator

Your Bank with line next Omar of question comes of America. from Dessouky the

Your line is open.

Omar Dessouky

much so Thanks for my taking question. Hi.

think And And By those that launched on the Apex advertising consider mentioned measures? Mobile measures then you on successful? compared Apex that. your double-click you we the should Mobile I expectations. Mobile how I have to all wanted Legends environment we've so to especially Legends follow-up. Legends your And Apex in one half. far, have what versus weaker in intended? would And successful comments then mobile And in you've that intensity geographies of Legends the was half of launch Mobile light of Apex what a seen about You a is bookings second second

Laura Miele

expectations seen our uptake stabilization first, with then yes, over pleased we the really game, of mobile. as many in week be the steady mobile. of met mobile the we console, particularly generation all was mind, in on the Hi, same beginning is And the to launch the look that by shooter on it Apex eight. many keep what And expect is expect category a when and shooters. return we are followed and by we of we for and massive revenue Mark. growth you title be the same pattern with saw in know, and years fact, Apex the Well, at are There the of this had, quarter. cycle thing are And the Legends currently to and we game life in true this for

ahead, eight, on required incredible started. how we we're needs to we is getting of and well, community, are then respond. good the listening we years week to many players to know this. keep One and very and have So our are know thing the at dynamics mind game team in just an as respond that we to And in

is just business Respawn, the in best-in-class for shooters. have We who

also with have and now to the have we Playdemic execute mobile and with partnership exceptional additions our Tencent. We an a mobile globally meaningful organization. infrastructure And of Glu

on we we've met and this also have -- encouraged So we we We're significant us our of a runway are ahead know title. expectations.

it game the our monetization. our the to in optimization investment on on return mobile that again, primarily Apex. of to is advertising, at relates we're business, going looking of advertising be is one that's dimension a And at though internal how this looking As we focused are as

Omar Dessouky

same in half, of expense stable context mobile less or macro kind more Okay. expense your stable I assume guess of guide. the or weakening the this the environment and in for user acquisition? investment Does guide mobile second a

Laura Miele

For it -- is Apex, steady. -- are we're it we holding

or changing are our on not the our investment we outlook So return.

and aren't for our this that. we about So we're to thing return to holding relates changes, seeing. evaluate again, use is -- that quite we're and changing game our revenue the the now. that engagement able that as But from return as levers we evaluate get on mobile dynamic, we or investment time, But it's at multiple great it outlook we're the the business

Omar Dessouky

that competition on again include this kind quickie Legends a fall. of from this your of launching full guide effect Does Apex Okay. new console any be for PC the year time. And may just shooters

Andrew Wilson

into in on from that, Legends had No. all guidance about that The overall an conditions, what you it well and view the execution and does growth full market think continue we conditions, as to both standpoint very to anticipating important market as franchise, QX. grow takes control account as what our things we Omar, We're the that way as double-digit into that that's guide factored we I take year the view account again the Apex is heard. the into that would

Omar Dessouky

so you much. Thank Wonderful.

Operator

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

Your line is open.

Mario Lu

Great. Thanks taking questions. for

on Just a follow-up Apex.

any console out any, impact, did words, other bookings the With kind launch? game terms if it In and users? mobile of pickup post version the the slowdown growth have on coming or mid-quarter, PC the in of mobile

Laura Miele

players the millions seeing coming of we so candid. Mario, to we of seeing a Apex, question. into is new But tens we're early for are thanks seeing be significant and Hi, geographies that It's the and what in high the growth brand necessarily. as in Apex of experience and didn't expanding the far impact that places def and brand as the console PC are penetration geographies in are

of how to play for will optimistic a see emerging brand more into lot things new about. to it's, we're players out. So But into markets. it's and early that again, us the coming expansion days understand

season new few def a the and have high PC a game on about We weeks here. in coming

and had And impact understand that so on mobile we will study has the that.

the earnings context on next overall in potentially So our around impact more the to the business. come on

Mario Lu

helpful. one That's just And FIFA. Great. on

was Online anything to that drove rolls in of once these you guys can the license work? Thank FIFA off, going the remind like FIFA it strong just mentioned strength and then, what particular Online? there persistent games kind FIFA franchise the You that in kind the Was quarter. simple like happens is us, FIFA during how guys of you. And rename or Is a mobile? whole to

Andrew Wilson

Yes.

I'll then So we I'll on the quarter more just bit performance have a Laura broadly think in forward. going talk franchise little take the the part about and how first about, the

Laura Miele

Yes.

X last off for strongly few the has pay really Online, this the studied performance, sentiment. to and in started So efforts focused gameplay player feel. to has on years FIFA studio And improve the on

market relationship has big marketing players, seeing the deepen development. and and factoring in Asia continue improved Global go business. we with partners to in our of as have Football We're which we had the and a strong to also the game popularity into So we we're growth the our Korea, on of feedback impact

Andrew Wilson

more this broadly, And most expensive as FIFA we year. going said, the we're launch ever to

into just I extraordinary demand that young was already FIFA, I I I kids, find which and was preordered out bumping in doing they'd was I extraordinary. Europe, is in think was strong. but was it's really

sport. growth think I we're the in seeing

a Of World here. got course, we've Cup

brand all that and out most and brand market our many what this FIFA our have for we world. as what is the community and we a partners, that of will in strong we and begin And in -- And XXX is and that millions of broadly FIFA more nearly that. earlier the then, the broadly FC had do own, be brand we or expect deliberately players what hundreds will came with very you, the that of continue we to our the going you is sell then EA ability without to way will again, we XXX beyond, business. market, expansive partners to where the going SPORTS the should have continue to belief ever, Arts so launch FC SPORTS more relationship collectively into the this mechanics promoted that XXX we our of What the did Electronic of contracts FIFA year a year, -- around the launching EA our

nature and change of game, while the they what on that football that and football with into LaLiga play that of and we've experience will future as things this hundreds and what continue truly watch grateful blurring about things to that context first We'll But of name of been the announced together. what men the in game so, play a global we the they the between SPORTS you And to had LaLiga what types the to with remember, tremendous together, existed partners what with very going we which able our in step excited the been be built leagues EA build the for in going of which lines to you interactive, the that's and to our new of strong. that players imagine this we're what the of through, for linear None with announced has to we should all bring strongly the we expand partnership business do partnership game again, we've community we real in in just the opportunity to FIFA, brand invest television, excited and every world, in changes. experience will of of love virtual is players bring. and and years, community, together our can a do own connection fandom the we're and of that. is around on teams the the to and we've deeply do nature nearly conversation about have that the we we've is community And largest And against FC. do. world, talked and we'll our for very what the And expand we on about we XX have we've the many

Mario Lu

Very you. helpful. Thank

Operator

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

is open. line Your

Eric Handler

for about wondering, afternoon franchises. if the question. Good am and thanks two could I talk Yes. you

I with FX been expansion from in now then there? on to on the with is you're drive a maybe title. the doing just secondly, improved with to showing year, what's second Anything think about differently a you going a had And your regards perspective numbers -- Sims, a perspective there? your marketing first pack talk game about or growth basis, year year-over-year the just First, to this

Laura Miele

they've Eric. incredibly we've divisions, seeing Thanks, actually Sorry. mean, with commercial bullish developers certainly, the teams teams to reach and note there. marketing have muted been was FX our look our development of just I a and when integrated well globally. say been comment haven't of think and and marketing There's I impact some commercial had able presence to Electronic that that our and I able have at I would through excited about question And from they're have benefit the scale you And of remain global partnerships commercial we business. Arts. into the benefits And the before. We that that they footprint teams, and our the some

-- game development have market business packs the the and teams we really of my things Sims marketing and are it the favorite so to strong very year's probably to about and ahead. we're strong we And question, the the going we leadership expansion in the content and EA that a for years just and strength you in Sims strong several dimensions game release, the year. actually commercial that impact bring packs, healthy then SPORTS released seeing from here have. of about we mentioned, brand of We mostly some is this So how one optimistic the is. we're And

the in X about XX So strong of are We've about out. had business players after how and years. connected we community. brand pretty to excited that we And Sims our size are persistently this the

continue we years that player do content we'll So the put the community, come. to this into to is that something and persistently for

Eric Handler

Thank you.

Operator

from comes The Company. question Benchmark Mike next Hickey Your with

Your line is open.

Mike Hickey

Hi, Andrew, for Laura, on questions. Chris, Thanks my taking Chris, congrats quarter. the

Chris Suh

Thanks Mike.

Mike Hickey

questions. problem. Two No

of, your and sort it play release a on live free ranging question, for here, at from to service. me. pure least I move plus And think First community what premium to really but decision, team's broad live decision like news, the service exciting your looks a state

think, launch level genres, highly MMA in there market other the that kind qualitative free-to-play to process if expectation pure or premium decision-making tier million it's whether services to premium? there's to anticipated sports this a in those is of follow-up. unit quality free-to-play. this lower units, move was, maybe to And that pure maybe seeing games the a curious, then five Thanks this is or better racing beginning So auto a of guys. live versus from process I have the million move three or what to part a just I of quantitative,

Andrew Wilson

over to who's working with hand I'll then Laura, the and start, I'll been deeply team. question. great Yeah,

build key The create communities. saying was and continued global is worlds happened When one, stories first I built to really see large vectors; grow. ability to at have our our and really what's and we Skate, think I future as two online in growth was look thing, earlier, to ambitions the tell that we on characters

certainly through has to you've cultural and a been bring global as what of about one more skateboarding. see in both for opportunities the think opportunity. experiencing many almost and able experience, team community to have geography represents ability so out kind generations. language global continue It engaged online skateboarding cultural biggest deeply creativity the them that certainly world together of what a a we many a transcends youth of the the reaches to things, I we As of community, build deeply sensibilities us involves a as this seen is do think think strongest Skateboarding We starts of to around from and from into generation. we and language that the

they've thought thought So been puzzle. the best on through teams with took has about really we working evaluated that, Laura as back that how And we that. step we deliver a and how

Laura Miele

the potential show up have content. Gen as important company Z how is players, growth most one how So, we a Alpha and that consume Gen how for they of connect, we socially they

significant from I'll minute. And the a this. about for focus a been there's team team talk the So on

leaders some franchise. Skate of from the have We the original original creative

in the someone that we team. McCulloch, platform. Xbox much people exists Daniel of about DNA goodness who also the in skate loved ran then, and at So, Live the And brought

in nurture around understands self-expression engagement a can. our possibly experience even we biggest motivation Skate, the social Skate to way was core a It life we was of ahead in its in creative back I And that and are around lot and the nuance deeply bringing how social and of bit And to day Skate he connection was connection, art competition. that a time. the community. So of think third, social

to more this. on So, come

how in are We pretty be soon. optimistic to community we're this and very market we're now, going to coming get feedback, community about to we're skate close to testing

Mike Hickey

out with but you here, your Laura. A there Nice. a call, awkward sort was of that consolidation Thanks, of and sort persistently second and somewhat least bit a Andrew, it. to of think, of subsequent a of at Andrew, last or media me. bear questions article which kind a on was, question, related came our The frame sort lot puzzling as to get I unsettling clients investment community, you sale, the pursuing

that So, motivation or or provide a framework just curious, sort around if company you of of some Thanks. your or can clarification sort run otherwise? to stand-alone

Andrew Wilson

and rumors interactive to I sure position. tell expect and incredible entertainment I don't would it may. We're to think independent from you, on as be media I'm speculation you developer the but the be small soon largest First, comment me some we outlets, red are that publisher of in an stand-alone in world.

earlier. think creative spoke I the teams as we have attracting and more plan, and most incredible industry more incredible We're our talent. Laura to in the

growing and a a in is of community strong people play planet. billion that the able way to $XXX aspirations being we're engage have million well on to certainly, that's We across our

Gen where could of stand-alone I who is and think We're and a in to Alpha, in be terms world across entertainment stronger of company. a don't leading growing lives business Gen we're in across position the growing future, the we're across the models, And be I a important growing geographies. becoming gaming will generation Z more think we consumption, platforms. for as

a confident our open do to always care I the should to ever of CEO very, and this there to But shareholders. tell today, our as our excited feel our that. I, objective we be be today, of to of take future. for Our course, always my we're you would objective way us differently that have and company And players, for people, very way and it doing is

Mike Hickey

Thank you.

Operator

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

is line open. Your

Doug Creutz

Wars Star conference you Hey Jedi: last Since call, thanks. the guys announced Survivor.

not game if the therefore, Your you've still Wars we wondering Wars, do -- in assume fiscal assume unspecified or current isn't that I'm guidance. QX announced since Star we that, Star anything? IP title should is your big just

Andrew Wilson

be anything. the think assume not I would advice do

at We blanks and the the will fill the in titles name appropriate time.

Doug Creutz

Okay. Thank you.

Andrew Wilson

Doug. Okay. Thanks

Operator

you time for is This for the we today's joining does have conference That questions. Thank call. us. conclude all

You now disconnect. may

Electronic Arts (EA) 2 Aug 222023 Q1 Earnings call transcript