Earnings call transcript Q1 2024

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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 2024 Conference Call.

I would now like to turn the conference over to Ms. Katie Burke, Director, Investor Relations. ahead. go Please

Katie Burke

EA to call. Welcome CEO, quarter year President fiscal Canfield, Central Thank me EA’s today earnings of Miele, Laura With CFO, our Technology are XXXX and our Development. you. and first Entertainment, Andrew Stuart Wilson,

that and our our at are earnings filings SEC note release available Please ir.ea.com.

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

and post audio replay Lastly, an a after remarks, transcript. the our call, prepared we this call, will of

is quarter regards Wednesday, scheduled to call our XXXX With for second Xst. fiscal our November earnings calendar:

As for we post our earnings a the reminder, schedule the IR upcoming of on calls fiscal year website.

and discussion refer performance statements regarding of you recent Form to presentation from results future financial Actual comments Company. materially future and to our events them. most the This XX-K Arts include the today. may discussed our We that events August Xst, expectations. disclaims risks forward-looking from differ actual XXXX, and as today, could our Electronic materially differ results of update of and for duty a to those makes statements these cause any

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

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

Andrew Wilson

you Electronic Arts. unlocking multi-year who for be of with Financial excited He you. Stuart begin, To decades. been leader most to long-term know. through worked our of Officer, and Stuart be many driving all a Thanks the has working Katie. value. great new trusted transformations Canfield, as to here of two to It’s I want valuable am I partner nearly at welcome Chief biggest I with already have growth with Stuart and

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updates we titles. while During five business, high-quality quarter across XX across executed our launching new content titles, the XXX over providing

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fandom will legendary numerous few next that our grow deepen of the we and IP. the Over launch years, experiences

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on Now, business. additional I’ll provide hand details the call our over to Stuart to

Stuart Canfield

future Officer. to be I’m honored Thanks at be hello talented by excited our new conviction experiences players. Andrew, that my teams future, and inspired been I and Throughout achieve for my continue entertainment. of EA, our strategy in will am ambitions call entertainment on have help the our Chief by great everyone. I Financial to create as and I our and lead and teams to us first career earnings twenty-year my and our to role they have the

our net year business, bookings player acquisition and are started our and healthy outlook. we reaffirming Today, engagement our have new to Turning to continue portfolio year full we across see strong. the

QX the of SPORTS to a potential and release billion, bookings XX% of XX% or from currency, Jedi: by EA speak SPORTS Wars Star primarily this in FIFA, were quarter accelerating online as driven second up Net now the FIFA I’ll in continued the constant record EA in massive results. our for demonstrate $X.X with year-over-year, QX, year-over-year is growth strategic a to connected This row entire Survivor. community. franchise strength continues

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Survivor will critical bring and to line performance the with to the expectations. long-term new the title deliver IP, Andrew our success, was to of As Wars Based noted, with Star players, Jedi: title the on the engaging gameplay, a strength ways value. continue in

model, with business, constant live acquisition, With Ultimate services, Team strength year, were and with were year demonstrates game, in innovation across XX% services live remains X% up services EA in SPORTS such quarter live currency. total a Even over Our X% re-occurring full growth strength net FIFA, in ongoing a for resilient, in of or business highly engine material a our engagement, monetization. bookings. which

constant year currency, X% lapping net Mobile. in impact Apex or the over sunset In of were X% excluding bookings mobile, the year, up of

player prior, bookings, engagement across We the manage the FIFA continue almost for Lord driven profitability. as launch, although new long-term promising net Mobile our of our of early progress delivered Middle-Earth. QX to and new historic for from player material levels And in are business by metrics our initial portfolio Heroes year of Rings: our we make record title acquisition. doubling

of Legends a Apex IP with EA strong loyal highly community original is a core successful for players.

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to our Respawn modes base team invest innovate that and geographies. drive engage broader behind evergreen expansion an the across franchise. introduce we growth is service of continue of play to to different talented live players To at evolving, will on echo continue content long-term Andrew, the and teams a of constantly new to As

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per $X.XX, earnings up XX% year-over-year. result, a share As was

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guidance. to turning Now,

QX. start about me we our sharing as assumptions think Let by

our addition SPORTS momentum in EA football in continuing the a assumes quarter. business in guidance FC our to for late existing strong First, launch global

are teams of XX measured learnings apply Season Apex various the for approach Legends taking from modes Second, as more markets. and new across introduce we a play

the we to year, last Third, of we a heavily fan community invest for the reminder, headwinds. FX finally, ahead EA hedges to And global continue SPORTS the to relative football as launch FC. of of plan platform net expect

to billion up $X.X of these to constant billion, result down $X.X expect QX a net of currency. X% As we X% or to X%, down assumptions, in X% bookings up

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Now, the full-year. turning to

our $X.X bookings We billion, full-year up X% to roughly of flat currency. are constant X% to net billion range $X.X or in reaffirming guidance to X%, up up

We are largely to stock operating driven in to by $X.XX expenses guidance GAAP revising $X.XX based our billion, compensation. range reductions

our $X.XX. $X.XX per now to result, range share earnings a is guidance As

our We are for reaffirming full-year our metrics. other guidance

of would capital deliver billion which cash billion. to operating $XXX $X.X $X.X of free expect about and around $X.X to billion We expenditures flow flow million, $X.X cash of billion

our evergreen millions entertainment of players strong our live brands, ability conclude, quarter to services, to To around to a incredible first the and compelling hundreds testament is deliver our of world. our

our multi-year behind aligning stay we opportunities, long-term biggest to As we growth. disciplined, around teams make to focused, deliver will our agile continue progress and

hand Now, to I’ll Andrew. back it

Andrew Wilson

been celebrated entertainment Stuart. the At set of some fandom, choosing and global is experiences. never shared a growing to our stay their through opportunity form first connected time has of with and games Thanks, of launch interactive when friends and most EA primary world’s creating greater. as the community entertainment and are value anticipated to games way

unrelenting technological to world toward to advancements expand levels will that commitment of With the accelerate is to in and ability building teams, our execution, growth creativity new incredible exceptional years and innovation, our come. deliver class and IP, an EA our

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

Operator

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

open. is line Your

Eric Sheridan

just moved dealt to for get much look at the on out in we taking where some the questions. mobile XXXX broader interested we growth get portfolio. mobile And cycle broadly. wanted you quarter, in struggled changes. so think headwinds perspectives investing When of XXXX calendar, of in and from the of challenges mobile performance mobile mobile with perspective pandemic the of recovery from Thanks and more in the are part into was into Apple's your as and behind I we about IDFA the Thanks. an the have about that privacy as the of your area deeper how as mix changed Obviously, the more we

Andrew Wilson

Eric. Thanks,

Let I'll the of part me that, take then first hand-off Stuart. to and

have a believe mobile that incredibly just generate context what always year, native, later ecosystems our as that be broader ability And we're valuable we also towards see mobile and other platform IP is platform use us, largest for gaming of And but think the we for to ecosystems out mobile our around an the blockbuster I is acquiring new in happen is of you're blockbuster to later also build that year. FIFA being world's FC and play. return starting that from as tool this not in this to FC what users seeing biggest will currently that around our IP. be will what to ability our

and As through we're the time rightsizing a broad for across XX-months, business energy of about and cost profile of the monetization and results driving of of lot QX, last efficiency levels over our I ahead the higher really spent engagement a expectations. very our certainly, broadly, seeing great we of think business and portfolio. And our lot mobile really

going here, do Things mobile longer opportunities take we big, will broad are have certainly, Our scale in we're different launch from that from market to but around sense think is a into. that And size. certainly is the it we biggest growth IP-driven our ecosystems. almost

Stuart Canfield

sunset there on of of side. at QX we add title. talk on be Apex in a quarters as the script. Eric, up lap for which Obviously, we as outside there constant will headwinds, the several the financial the X% currency couple of we the to to points just X% saw we're Obviously, and in

how point of preface on expectations to think we out script, seeing, the our Galaxy we do Heroes. We overperforming I FIFA. Q-over-Q, of talked that to we're the in key titles called some

roll expect through of that We grow Rings: and the continue out of on continue Heroes quarters. Middle-Earth to Lord subsequent to to

expecting are guided We have well. X% a growth in QX and to as

terms levers terms well-positioned behind declines of saw we the year-over-year, acceleration stabilization saw we out. in laid overall, GAAP So Q-over-Q a in just and QX. Andrew We feel in strategy that of the

Eric Sheridan

for on the mobile ran title traditional much And color. upfront so you follow-up my Thank Great. a EA you on and how play integrate FC. might like

much. so So thanks

Katie Burke

Thank you. please. Operator, next question,

Operator

from Our MoffettNathanson. next of question line Clay Griffin comes with the

Your line is open.

Clay Griffin

I title could Yes. Hey, I I an you and perhaps -- suppose? the Football. going wondering if the for context sense of if I wanted There's just lot terms on a Andrew, where wondered is, in Thanks guess, us pipeline. things on question. taking of good in a get to update licensing the that of of College afternoon. terms appreciate give just

to then active the number. ask, on And daily FIFA, I wanted

might if able some Team. drill to at us to in a wanted down Ultimate to Just quarter be impacts monetization you sense sense give of Thanks. the get

Andrew Wilson

Okay. Great.

Game of Stuart the Madden piece, doing very great of Let coming building The college the the really the football, an hand-off our culturally quarter. in me action in College relevant and very, versus context around The I'll progress long the be American team addition we a an team players game the college in what played terms difference future team football. around capturing and franchise. together Football take what meaningful out of and is college incredible to pageantry the and very making legacy in a football. really this part doing. and about football to country. in history in think I football all has the and gameplay have Again, NFL. building incredible this incredible job in always College is famous would feel confident is very, of to FIFA

And -- governing schools' of of that and how now, as not third-party the to we're part continue work many, very them. various closely And most, the we'll sport working athletes of around we'll some themselves license the include country college broadly. licensing work and license we've got if platform. with bodies We've the as our we situation certainly of have the partners the game, into with in to key and when through

the confident I'm schools we'll with that the pageantry driven reemergence But that schools the I in we as in it do football for of where all action with the can the a all will well. inclusion that game. and place this experience and on lockstep goes this the be incredible athletes an capture conduct and our of will college game And by believe that work find

Stuart Canfield

Clay, to your And specifically on up regards just first. with think I'll frame I question FIFA,

with second Mobile net quarter to platforms. growth doubling successive for in growth full our all quarters I across and We franchise, game FOX was the mobile for think all double-digit through the the record us Q-over-Q. bookings successful forms, of one across Team, FIFA. collectively saw Ultimate We almost most alluded

Clay Griffin

just The And daily should player think about drill or down is great. or that? we new increases, again. of that active a growth? to frequency That's function How

Stuart Canfield

We referencing really the as the to drive mobile One team in have a service of in much side, consideration. larger the side, couple live continued daily used On frequency reoccurring particular, spaced-out to a content that's drops. have on pieces.

frequency are performance and also seeing bookings therefore mobile by teams evolve engagement overall SKU. Now greater you're the much through and the bringing that and the greater itself virtue, the of

Clay Griffin

Thanks. Great.

Andrew Wilson

console, at new to includes And on mechanics, events talent how we Golf services across a with to we more incredible drive across and we live build add we both how I We're drive in some basis starting mobile build effectively in game thing broadly these really of of top that live acquisition Glu portfolio core those brought play native how drive with Clash. modalities really reconcile we live that this mobile, and have extraordinary to our of core scale. given there on regular and across game PC mobile how live we that our on services how acquisition, on services broadly is play build would of mechanics, modalities One user broad free-to-play, retention franchises.

new into scale, as learned conduct that change, at you're organization. learnings of our out what to new console, to free-to-play around PC us the to and be in coming embedding football will what and XX, franchise the in had run broadly of we, in Season industry organization, in And we talent the of doing learning brought our And across we're starting this as continues seeing and to operate with had and the mobile we're Apex at we and these strong services even great scale. of mobile, the as as our see tailwind this we've that we've is expectation nature live for an have industry version continue a this really

Clay Griffin

Thank you. Great.

Katie Burke

next question, please. Thank you. Operator,

Operator

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

open. is line Your

Andrew Uerkwitz

Thanks question. I long-term one question. short-term, one have for taking the just

you up out the the just comments just and Is full around Apex how comment it? the on that the not something you here short-term yearly called Or bad? But reconcile but weakness Apex any for On making guide. side, prepared guide. year in of your quite kind remarks, to kept there is else substantially your weakness

Andrew Wilson

Yes.

that this Apex our has and and a flows. previous this even nearly grow we've little the again, has XXXX, around services And if in now FIFA our comment, at services. can live live these with Laura more franchise of extraordinary and is franchise, and detail. back has and its go ebbs live decades, now, talk for I probably scale its first my and we've is one me Apex. to a about some and that running right in service two flows, the which launched great company continued let as certainly, context And we ebbs Online been Again, to back we've seen ebbs seen flows industry seen -- in first, of our and in bit, So provide

XX, Season expectations. didn't so we changes And XX. made really some in and interesting and creative off the come team a record-level our innovative meet That

performance to also of -- and quarter. feedback momentum that It's we organization, Season almost relevant to very by at a see very Many of respond edge things reaction note entertainment. is day things as starting faster some about ebbs the community quarter. But We of to in worked work. our XX, of already make we industry. now. certainly team few to we that will cutting and And happening the into a factor will we're current our But think those and go learning the virtue that flows. to continue won't franchise, that community are diligently that than business has others our doesn't the the and One of through in. as nature this will went there And learn the the is changes the we collective very innovate mean of competitive quick and be we is we today long-term of

Andrew Uerkwitz

helpful. That's it. Got

Laura Miele

Thank you, Andrew, question. the for

Just Andrew think he to live what well, covered services, how on and about experimentation, we to think to as players. I responding learning saying, it was as far add

have we premier optimizing shooter and as accessibility base. huge think the their also we the the in one we provided shooter audience. in also -- and ability in we broader as game strength in player most opening a Respawn for opportunity strength about us about significant a That developers We for new for more pretty have our statement, has of talked and modes

the team being more such help modes, things players, bringing in So around player strong as bots first-time XX core player more XX% over incredibly and monthly retention, and us as experience thinks to shooter think experiences. players. a the accessible we have about players active runway with world million with new Again, about

big a on focus there's that. So

is I would area, team second Apex on geographic the expansion. The focused just on that the say, really is

other there focus our areas to of and culturalization, growth. continue our marketing the America and success were strong in evolve going we parts strength to look in continue North of had to we've Asia, world So at and

success good then again, So to that more come and in area.

we then of -- the third game still. the and in play converting part And within opportunity have monetization and

So we're the though as legends partnerships, to monetization specific seasons individual and heirlooms IP legends even opportunity these we see to all areas creating still artifacts broader players. to in, these some in in of heirlooms are X.X we we are and opportunities integration, years for looking and brand to span XX on such have at appeal for across legends evolving

see still the we and where we're grasp is. around franchise. in growth significant has and So, their opportunity their And really a head prioritizing I have what think team good the focus and

Andrew Uerkwitz

super Got Yes, ahead. it. go helpful. That's

Stuart Canfield

just you And across us. and Andrew, and I'm think off quarters for on as performance just I perspective, QX. you know stronger thinking we QX measured the is the mobile got approach HX, financial-specific everything expectations. well. upfront obviously, QX to franchise a if Laura our should for record we've more window the obviously, about a about, as is the well. the And ahead obviously, QX FIFA Inside just We a Andrew being with year of split entered cover given and And seasonality Apex one year competitive of of we back question prior noted, natural how our from

how range in terms guide. balances of on that's So back it ultimately the the

Andrew Uerkwitz

where the and post-COVID enough to pipeline, safe a of And a say did stand think -- then Where job it's That's I deep of long-term for on Andrew world outlining in we Stuart. and maybe maybe do development super kind of just that? question Laura we're it. helpful. normal. a kind is back getting Is to Got great

that's Are of single-digit was double-digit high home bottom expect kind of whatnot? game think going normal work year, And getting to -- where the impacts you. and goal delays and I the point was be to back should guidance, Thank as about soft you growth, we and -- old, growth. Or there COVID is still every line from the kind think, lingering we again? some from

Laura Miele

growth sports, as focus and we leading, of Man is our a Thanks, We the Black entertainment potential in divisions And segments well. of growth action and talked we our as Yeah. with Wars and both Andrew company ecosystems, entertainment into think outlined, currently potential -- which still and reorganized Iron see development our there am I with about in connected into Star in recently we in game Andrew. significant that business, Panther two areas. blockbuster these vertical significant games Marvel as titles just

strong a combination our we see a connected that our new So action these would strategy around blockbuster this games. And evolution and these games of I in really is say strategy.

structure back forward and reinvent that to that opportunity, based and development would based think our on to strategy, it, looking continue evolve and are So based say development new on knew we as on once the and I we to we our our go of approach the organization. practices new

Stuart Canfield

back Andrew, And just to thinking. kind of look on the long-term financial

investment referenced the in obviously, cycle that and been we've build out multi-year as Andrew know, script. capitalized, we think, his we you versus as in an I expensed pipeline

of, sort both I it to sort of in timing map of I normalized, releases. for think terms is through we'll think to continue sequencing be going and those

give that really that in us clear to pipe the should with year back-end And that the multi-year into get know we we We year. are with development expect calendar You start us the to levels sort early to we'll more credence want quarter of calendar our ultimately the to next to But make sort you sure more timing. change to to functional teams talk should step get of into towards expect. future. of we and the expect

Andrew Uerkwitz

both. helpful. really Thank Got it. That's you,

Katie Burke

question, please. next Operator,

Operator

the Our comes question from Morgan Cost of next Stanley. Matthew with line

is open. line Your

Matthew Cost

decision talk do and studios you Laura. couldn't little the with what And the sports I Hi, everybody. Can segments detail Thanks. be about Thanks guess that you'll one you entertainment to able for differently the do a have to maybe now taking a into follow-up. -- Andrew better then the question. more little and I and in reorganize the and starting before?

Andrew Wilson

Yes.

in start we've as Let this company. there, and entertainment thinking me can of about about are our come and plays. -- the then Laura a foremost, a part share how had in of we little kind the she's Again, first around company, and

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as I are future and the will we're think company clearly. We interactive. large-scale conduct believe benefits their interactive form. that very develop first understand starting to of outlined to already strategy and what do of the believe We that. of able in audiences any is that need choosing for appreciate our entertainment these entertainment see that entertainment We've be the we to

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what's to things Apex happening about things, that as really the which And organization what's and Laura's excited, towards has think better move things, happening Apex respond that what's Season around for the for over XX as The Sims, I think been organization mean we of in higher-quality more is increase. and sense Respawn time. clock will we're I'm what's already able the because our the team entertain in world XX, think more speed about my build seeing I at Battlefield people of Season that in we happening speed context As happening we the will

Laura Miele

talent-centric incredible oftentimes, we Yes, look at at how how it that outlined Electronic at remove Arts, leaders we evaluate they show develop very are which speed and our for can we're leadership do, well and what And a Andrew are we to talent the has and they such we help that have as said. about barriers, lucky think players. to you have when on the that to -- we company. layer And development is

lifting So our can show players friction they every we up are incredibly our removing for day. talent so and for up focused on

about using And the vertical game as That learning about vertical requires on players, tweaking company little connection and turning design, and live and show requires how a service in to and optimize for a go-to-market And it having and talked as go-to-market show thinking much well up being technology. content as updates for this and as a organization. our ideas, friction and call commercial as -- our it well more we've as that. players lot to levers up around strategies, we

more experience the and it's far that, faster and gratifying for integrate our our the more we untethered a So And can talent of can accelerate more growth. candidly, potential feels, the them, we the believe. unleashed we

entertainment on side, incredibly I the will focused you, execution. we just just too, tell lasers And on were like

know incredible have product We have skate, makings know we these incredible Wars. in have we talent. Marvel, of Apex, know We the great brands we Sims, Star so Battlefield, And we experiences.

Now that we we they to so execute, know of get years. can the have coming the this and are run, to in heads help can, accelerate them through technology and support we down, have growth we teams as move as that capable let quickly

Matthew Cost

come restarting for time mobile And that more? feel a news then opportunity? two? like deal see first in there maybe radar acquisitions Or M&A and the on in more potential to I Playdemic -- things what Great. to is And gaming Glu of like feel which Thank and while. small been something you've has do the over paused today, you year just kind the Is are There you in with in across Are bring the in Codemasters, a M&A. you. quickly now? was terms that or have you conversations brought opportunity do that past need of like

Andrew Wilson

But being IP a opportunities for that I and and to think we'll an games are great and we capabilities very and people the even pipeline feel course we of it's great we we And clear always at experiences talent and as now to more across in IP And about the we're for right who and not something growth teams the platforms. company drive I time. right looking continue organization. even think over have and very good strategy across have and said, now, and clearer IP. across entertain actively in. a that That even we're engaged growth through more work look

Matthew Cost

you. Thank

Katie Burke

question, please. next Operator, you. Thank

Operator

Our next question comes from Baird. the line Sebastian of Colin with

Your is open. line

Colin Sebastian

Good on we'll you the Thanks. game. see and Stuart. first, the given up about of Season just talked Andrew Laura, game Great. in and finer Apex. Is Laura improvement and guess, that the with Maybe a the XX congrats following mechanics some to I there? to monetization of some changes, afternoon point on that in engagement and put again the expectation

franchise just we look to the about expectations services. Star And terms as to the of that as lifetime of kind more then see live just Wars, well the of as the secondly, learn and extend curious plan on in

there be detail well. might more useful think Thank I you. as

Laura Miele

I'll piece Star and laid question, these addressable take services you the geographic Thanks, and about conversion over development short, out about I the -- the and live Apex, think about mechanics is monetization live long-term. and at Apex when way new evolve Wars and players, the services, expansion, of expansion of candidly, have Colin. On then think look next. as areas to cycles we Apex the can audiences when then we it most broader time, we will that and mid and cycle talk

see will year. you -- see into And in even adjustments will changes for more we future in and the XX Season XX. the some changes and XX So we impactful expect bigger, to some and see following

So as mechanics, longer things, there's on. or develop. team modes have some take And and levers are in they again, such runway the a that do a changes there what to lot can just then

Andrew Wilson

as Jedi about Star Wars? Wars Galaxy stories ability the to future my IP Wars, our Star Wars tell or Star and Star these the we the then And in clarity, were you of referring think of broadly incredible just on blockbuster franchise the for to

Colin Sebastian

Wars that ongoing well into as how with Yes, a Jedi, and over franchise and engagement. live as strength services leveraging you guess, of mobile foresee games, Andrew, I the the broader recent turning time, Star

Andrew Wilson

anything don't Wars Disney in have Star and Lucas. Galaxy across the announce an We've Yes. but Jedi partnership incredible franchise have absolutely Heroes. and today, and partnership that we Star had We of incredible with the Battlefront Wars: with to success

be we would that that time. the Jedi Certainly, more in see thinking extraordinary create. franchise extraordinary to what about over are always tells teams I just to us Our able love story. this are new might game It's experiences

Xbox And the certainly, it's that biased, a great this that of little our feedback Galaxy quality product, the community and on our for the think the Star part X but Galaxy Wars come. many we And and the year again, and may that to based be be as will we're of we for there'll from there likely of to sense PlayStation in beats a bump getting one to very another continue certainly, meaningful be franchise. we One, it bring years little

against success live experiences, to opportunities partnership, new them. nothing extent so part had have today including find with we announce that incredible far incredible explore that an will the other And so we that relationship in And execute services Disney. we We've of to than partnership. can new as to

Colin Sebastian

Great. Thank you.

Katie Burke

Operator, you. please. next Thank question,

Operator

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

is open. Your line

Matthew Thornton

FC or indicators the just Hey, good I question. you anything a say have in of still still Obviously, Maybe could. afternoon, the I telling you the us. for taking Thanks if lot are first, talk I of front marketing of early the two everyone. around terms can what about know launch. guess, we in

it this the last year. kind telling are you? access anything just think did But more a that couple of early has indicators early days quarter I the title than

we and about you call ebbs curious any think as back flows And then secondly, out. just that the the just like half of year, would

and the the some needing really were comments year. around in prepared helpful you Apex throughout work strength think I FIFA

of things, So you've out called I I'm Jedi But think Star or not Wars consoles. prior-gen that's to also out. a pretty if well further this year other that's sure understood. coming bunch

You talked Sims The about experience. parallel

year. coming I think we've update this a got FIFA Mobile later major

frontline So any I of we Thanks, the the ebbs like should year? back everyone. of just flows cognizant be guess other the half that outside for release, and

Andrew Wilson

Yes, think this three I would question. probably great about buckets. in

partners some a and working our with The incredibly mobile, building way connected FC. talked across about first global is with the across community very been PC, We've certainly, directly console, first this for we towards the And geographies. time closely that well. in across our was across incredibly launch went moment

itself launch So launch and of FIFA XX, awareness access. the launch double terms its achieved positive launch of was incredibly of in had records versus performance the some nearly went the well in and its which and

sure to game that console, very with plus a at the strong is expectation partners very we innovating symbol, our we've a that that We've all it tone. change make front-line Everything but not symbol there of built have got PC is, the more. is incredible that are mobile We've this of right right all fact, of in So across just change. hit teams and very, license the so relationships content. had we before,

feel launch what in feedback about the happening at and so happened And we the with good the with combine -- we're and if I element. game, that what doing very of that what's performance

you The towards element many times is the I this highlighted of would franchise We've point second the broadly. before. just performance

both in existing success record One strong not the for going there's at on we're is both -- was doing well. Women's to of we New had you not of said even on fronts, typically script starting community. this and in cup in but would wane wane just would as its typically from continues of of franchise the Australia, greatest a recency future great at and which see And to seeing row. in quarter second engagement. regular much what football the those things the start predictors the still that we Zealand, to exceptionally of football And we're depth it perform world Again, as really right World is point. Cup, And our engagement see business least the now, engagement

and itself the probably greatest is success. that of And predictors of so one future in of

as a highlighted the then we've budget got script, in giant marketing we And against third, this.

experience free-to-play, new will on benefits more console, going ever on the meaningful we a spending all done money. you you're to you're And we're If have and be will before. of will mobile now and existing your than get of that. you of or up if PC be FC, amount wake Certainly,

understands front and that them it football We in is, on to world September. sure FC make the are taking in no everybody applies risk to that it's coming how that loves what

you have it. very the good rallying literally of I we're and if plus take than that this take history you that are games launch, into account the we into the any account account and all the you across regularity that that engagement ever we platforms, the around quality we company that, our feel launch, And about of behind making of engagement, of current launch into so company's of in more entire take recency the XX-years and net think

Stuart Canfield

on just to add Matt, Andrew. to

Just a couple of things to think about.

later I hence between obviously, investment guide, QX heavily think Note, about dynamics prelaunch-focused. guidance. around think FC, important particularly in you timing as QX, obviously, financial will the in the the the have we to and year, are

on versus of nuance the launch Also, year. to QX you noting the timing will the should and Worth year. the point front start had we how last licensing of in obviously, slate recognition revenue to heavier a the FC, structure of year back and think half your that half about, transition between year QX. half back And of we the

just the we QX, put and can we at look timing, note that all with point to particular, you out in but ebbs downs, that in So and particularly you there's call that work definitely through flows the year-on-year. and EPS as in resonates how

Katie Burke

we're question. for the next Operator, ready

Operator

Benjamin Deutsche from line with Our Bank. the comes of question next Soff

line open. Your is

Benjamin Soff

the Thanks question. guys. for Hey,

And long-term little margins You of guys and just your are could reflective a better investments a you maybe might look projects. steady understand referenced in there us in like impact the state? more margins what some of bit help guys today wondering I'm if that

changes spending anticipate to student in resume scale? then payments were And any would at you debt consumer Thanks. secondly, if

Stuart Canfield

first one. maybe the -- Ben, second I'll the tackle

going create margin on direction structure steady on any think, not I guidance we're obviously, to a or go-forward. state

prior back get a we continued I We've point that years depressed to expensed just to to as had that, think fact do the We invest obviously, margins. margin to I'd to through. of go. you and we step ago we've as couple levels expect

with will down level be skate, that you Sims in around a should and the margin titles models we and accretive bring IP of and think as and of the some of scale about the titles think from owned you we Battlefield those perspective an future, about future business to from expect other as some both bear to years. As in we the flow come through step that

Andrew Wilson

of been What and fundamental As I on has beginning student this, though. would can time. debt is don't since might need, human know there. or comment what is Entertainment a it happen specifically the say that I I

first of students, There's their interactive As for of couple the at as we choosing generations entertainment consumers, a including look they're reasons that. emerging form entertainment. of

what entertainment connected stay One, traditional you than it is maybe and helps friends friends. it more Two, connect with with way engaging was.

through the significantly And rewarding So build a movie consumption entertainment these nature more love relationships watching that was. your is properties the of of personal movies. than I ever you a basis on

it most the the thing value important entertainment. three, But represents is best

as on planet Even the of the and scale incredible it our value have basis consumer entertainment. still an and think of financial best you performance level, about on us, the represents we a per-hour incredible that ahead at growth entertainment individual

what will student debt. I'm so with not And sure happen

what we as and grow, and we nature continue continue to is that area, that our we sense we continue happens experiences continue see for to we scale of and will to regardless my our connection be in of the our choice entertainment. level of deliver them, entertainment consumers as industry that see the provides But to that first their to company grow

Benjamin Soff

Okay. That's helpful. Thanks, guys.

Katie Burke

Thank you. question. And operator, we'll our last take

Operator

the Karnovsky from comes question line last David with Our of JPMorgan.

Your line is open.

David Karnovsky

their players Thank major on you. was spend Last quarter, it noted that franchises. were concentrating

wanted that? there any was see first Just if update to to

mobile goal you And Apex an then as that Andrew, across platforms. assuming a highlighted for in your experience includes well. as commentary, I'm

title and So you can the Thank on to you could that how approach differ you. prior to potentially envision, relaunching the game? phones how speak

Andrew Wilson

Yes.

live bigger. of do large-scale part. certainly, I titles services, that live portfolio context the touch a the of we we beneficiaries services won't told be So company of that to first time. We do getting titles broad And the IP a over bigger think believe trend. and with doesn't we be on let course we of see in as stories that build these continue me getting large-scale big incredible believe should entertainment. long-term are we that that will There -- smaller mean and

can about us. that's is be getting for base our also these online strategy experiences opportunities. investments and entertain our a a that as biggest expectation cost really growth we've build our that And appropriate, talked will those driver are building behind we our communities, massive but we're focusing We so that around large-scale

category when and truly and But, about like thought games tell into that the Age break top can Dragon right really stories games. way, of Jedi blockbuster

against of the games lower is well. future, we that to lot big and the expect and opportunities of that COVID, maybe mid-tier will believe these should pretty the our well resources And think through we as doing because because spare time, did do what parts our continue focus had our you energy really aren't that they're the is people where is today we think as our and trending. industry investments performing see about a I and we industry

Laura Miele

Apex David, I'll the Hi, take mobile question.

in potential look the Vince further and the demand genre modalities see again, As play. the There's is world. universe. storytelling, that and runway and of really outlined Titanfall potential we that lot Apex strong this in in at, on Remember, of a evaluate interest the today, the and additional short team set have beyond franchise we mid-term in I've in

evaluate are, we mentioned -- are and they are the look earlier, I as at genres, we opportunities and at, as looking So at potential at geographic looking we looking we as we're platforms, where the expansion. new new

consideration, but are things of under only part all future the not brand. today, meaningful announce So but our nothing a for to of strategy the

Andrew Wilson

highly X incredible SPORTS and anticipated after including forward biggest much. be XX look is next of season Have very Thank Sports EA Once a Thank Madden for day. quarter want on course, so November our express for I teams EA XX. to much record to launch great today, your you what think to updating you Okay. all QX. FC questions. our our and of a my us ever, going with I being you thank you appreciation of delivering We for to deepest again,

Operator

you concludes meeting. Thank all That today's for joining.

You may now disconnect.

Electronic Arts (EA) 1 Aug 232024 Q1 Earnings call transcript