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Electronic Arts Reports Q2 FY17 Financial Results

Category:

Tuesday, November 1, 2016 1:01 pm PDT

Dateline:

REDWOOD CITY, Calif.

Public Company Information:

NASDAQ:
EA
US2855121099
"We are in an outstanding position for the quarter ahead, with two of the highest-rated games of this console generation in Battlefield 1 and Titanfall 2, global competitive gaming tournaments underway, and our first virtual reality experiences coming soon. Across all platforms, this holiday season will be a fantastic time to play."

REDWOOD CITY, Calif.--(BUSINESS WIRE)--Electronic Arts Inc. (NASDAQ:EA) today announced preliminary financial results for its second fiscal quarter ended September 30, 2016.

“Q2 was an excellent quarter for Electronic Arts, led by breakthrough new EA SPORTS titles engaging players across console and mobile,” said Chief Executive Officer Andrew Wilson. “We are in an outstanding position for the quarter ahead, with two of the highest-rated games of this console generation in Battlefield 1 and Titanfall 2, global competitive gaming tournaments underway, and our first virtual reality experiences coming soon. Across all platforms, this holiday season will be a fantastic time to play.”

“Net sales in the quarter were better than expected driven by outperformance in FIFA, and supported by strong year-on-year growth in mobile,” said Chief Financial Officer Blake Jorgensen. “We are raising our annual guidance today based on the strength of our holiday slate and FIFA 17’s strong performance to date.”

News and ongoing updates regarding EA and our games are available on EA’s blog at www.ea.com/news.

Selected Operating Highlights and Metrics:

  • Net sales* of $4.507 billion for the trailing twelve-month period are up 8% year-over-year.
  • Battlefield™ 1 total player base for the first week was nearly double that of Battlefield 4™, and it continues to grow.
  • In the first week of FIFA 17, 20% more players were engaged in the game compared to the first week of FIFA 16 last year and nearly 2/3 of all FIFA 17 players have engaged in “The Journey” story mode.
  • Net sales from FIFA, Madden NFL and Hockey Ultimate Team™ are collectively up 15% for the trailing twelve-months compared to last year.
  • FIFA Mobile reached #1 on the App Store Free Games chart in 138 countries.
  • Titanfall™ 2 has been rated 90 or above by more than 40 top outlets.

* Net sales is defined as the net amount of products and services sold digitally or sold-in physically in the period.

Selected Financial Highlights:

All financial measures are presented on a GAAP basis.

  • For the quarter, net revenue was $898 million. Of the total net revenue 63%, or $566 million, was digital. Diluted loss per share of $(0.13) was above guidance of $(0.17).
  • For the quarter, change in deferred net revenue was $200 million, of which $(80) million was digital.
  • Net cash provided by operating activities for the quarter was $109 million. Trailing twelve month operating cash flow was $1.1 billion.
  • EA repurchased 1.6 million shares in Q2 for $127 million.
   
(in millions of $, except per share amounts)

Quarter Ended
9/30/16

Quarter Ended
9/30/15

 
Digital Net Revenue $566 $502
Packaged Goods and Other Net Revenue 332     313  
Total Net Revenue $898     $815  
 
Digital Change in Deferred Net Revenue $(80 ) $(22 )
Packaged Goods and Other Change in Deferred Net Revenue 280     353  
Change in Deferred Net Revenue $200     $331  
 
Net Loss $(38 ) $(140 )
Diluted Loss Per Share $(0.13 ) $(0.45 )
 
Operating Cash Flow $109 $9
 

While EA no longer reports certain non-GAAP financial measures, the following GAAP-based financial data and a long-term tax rate of 21% are used internally by company management to adjust our GAAP results in order to assess EA’s operating results:

Three Months Ended Sep 30, 2016
  GAAP-Based Financial Data

Statement of
Operations

Acquisition-
related
expenses

 

Change in
deferred net
revenue (online-
enabled games)

 

Stock-based
compensation

Net revenue 898 - 200 -
Cost of revenue 401   (12 ) - (1 )
Gross profit 497 12

 

200 1
Total operating expenses 546   (1 ) - (47 )
Operating income (loss) (49 ) 13 200 48
Interest and other income (expense), net (3 ) -   - -  
Income before provision for (benefit from) income taxes (52 ) 13 200 48
Provision for (benefit from) income taxes (14 ) -   - -  
Net income (loss) (38 ) 13   200 48  
Loss per share
Basic & Diluted (0.13 )
Number of shares used in computation
Basic & Diluted 301
 

EA’s GAAP loss per share for the three months ended September 30, 2016 was calculated off the basic share count of 301 million. Had EA reported a profit, the diluted share count would have been 314 million shares. For additional information on the GAAP-based financial data, please refer to EA’s Form 10-Q for the quarter ended June 30, 2016.

TTM Financial Highlights:

   
(in millions) TTM Ended

9/30/16

TTM Ended

9/30/15

 
Digital Net Revenue $2,539 $2,280
Packaged Goods and Other Net Revenue 2,008     2,049  
Total Net Revenue $4,547     $4,329  
 
Digital Change in Deferred Net Revenue $34 $27
Packaged Goods and Other Change in Deferred Net Revenue (74 )   (193 )
Change in Deferred Net Revenue $(40 )   $(166 )
 
Net Income $1,256 $839
 
Operating Cash Flow $1,146 $818
 
Value of Shares Repurchased $1,016 $450
Number of Shares Repurchased 15.2 8.3
 

Business Outlook as of November 1, 2016

The following forward-looking statements, as well as those made above, reflect expectations as of November 1, 2016. Electronic Arts assumes no obligation to update these statements. Results may be materially different and are affected by many factors detailed in this release and in EA’s annual and quarterly SEC filings.

Fiscal Year 2017 Expectations – Ending March 31, 2017

  • Net revenue is expected to be approximately $4.775 billion.
  • Change in deferred net revenue is expected to be approximately $150 million.
  • Net income is expected to be approximately $848 million.
  • Diluted earnings per share is expected to be approximately $2.69.
  • Operating cash flow is expected to be approximately $1.3 billion.
  • The Company estimates a share count of 315 million for purposes of calculating fiscal year 2017 diluted earnings per share.

In addition, the following outlook for GAAP-based financial data and a long-term tax rate of 21% are used internally by EA to adjust our GAAP expectations to assess EA’s operating results and plan for future periods:

   

GAAP
Guidance

 

Acquisition-
related
expenses

 

Amortization of
debt discount
and loss on
conversion of
notes

 

Change in
deferred net
revenue (online-
enabled games)

 

Shares from
convertible
bond hedge

 

Stock-based
compensation

Digital Net Revenue $ 2,800 - - 100 - -
Packaged Goods & Other Net Revenue   $ 1,975     -       -     50     -       -  
Total Net Revenue   $ 4,775     -       -     150     -       -  
Cost of Revenue $ 1,387 (31 ) - - - (2 )
Operating Expense $ 2,304 (6 ) - - - (198 )
Profit Before Tax $ 1,060 37 2 150 - 200
Diluted Shares 315 - - - (1 ) -
 

Note: In millions

 

Third Quarter Fiscal Year 2017 Expectations – Ending December 31, 2016

  • Net revenue is expected to be approximately $1.125 billion.
  • Change in deferred net revenue is expected to be approximately $910 million.
  • Net loss is expected to be approximately $(53) million.
  • Loss per share is expected to be approximately $(0.17).
  • The Company estimates a share count of 304 million for purposes of calculating third quarter fiscal 2017 loss per share. If EA reports a profit, the diluted share count is expected to be 315 million shares.

In addition, the following outlook for GAAP-based financial data and a long-term tax rate of 21% are used internally by EA to adjust our GAAP expectations to assess EA’s operating results and plan for future periods:

   

GAAP
Guidance

 

Acquisition-
related
expenses

 

Change in
deferred net
revenue (online-
enabled games)

 

Stock-based
compensation

Total Net Revenue $ 1,125 - 910 -
Cost of Revenue $ 532 (3 ) - -
Operating Expense $ 652 (2 ) - (50 )
Profit / (Loss) Before Tax $ (66 ) 5 910 50
Basic Shares 304
 

Note: In millions

 

Conference Call and Supporting Documents

Electronic Arts will host a conference call on November 1, 2016 at 2:00 pm PT (5:00 pm ET) to review its results for the second quarter ended September 30, 2016 and its outlook for the future. During the course of the call, Electronic Arts may disclose material developments affecting its business and/or financial performance. Listeners may access the conference call live through the following dial-in number 844-215-4106 (domestic) or 918-534-8313 (international), using the password “EA” or via webcast at EA’s IR Website at http://ir.ea.com.

EA has posted a slide presentation and a financial model of EA’s historical results on EA’s IR Website. EA will also post the prepared remarks and a transcript from the conference call on EA’s IR Website.

A dial-in replay of the conference call will be available until November 14, 2016 at 855-859-2056 (domestic) or 404-537-3406 (international). An audio webcast replay of the conference call will be available for one year on EA’s IR Website.

Forward-Looking Statements

Some statements set forth in this release, including the information relating to EA’s fiscal 2017 expectations under the heading “Business Outlook as of November 1, 2016,” contain forward-looking statements that are subject to change. Statements including words such as “anticipate,” “believe,” “estimate” or “expect” and statements in the future tense are forward-looking statements. These forward-looking statements are preliminary estimates and expectations based on current information and are subject to business and economic risks and uncertainties that could cause actual events or actual future results to differ materially from the expectations set forth in the forward-looking statements.

Some of the factors which could cause the Company’s results to differ materially from its expectations include the following: sales of the Company’s titles; the Company’s ability to manage expenses; the competition in the interactive entertainment industry; the effectiveness of the Company’s sales and marketing programs; timely development and release of Electronic Arts’ products; the Company’s ability to realize the anticipated benefits of acquisitions; the consumer demand for, and the availability of an adequate supply of console hardware units; the Company’s ability to predict consumer preferences among competing platforms; the Company’s ability to service and support digital product offerings, including managing online security; general economic conditions; and other factors described in the Company’s Quarterly Report on Form 10-Q for the fiscal quarter ended June 30, 2016.

These forward-looking statements are current as of November 1, 2016. Electronic Arts assumes no obligation and does not intend to update these forward-looking statements. In addition, the preliminary financial results set forth in this release are estimates based on information currently available to Electronic Arts.

While Electronic Arts believes these estimates are meaningful, they could differ from the actual amounts that Electronic Arts ultimately reports in its Quarterly Report on Form 10-Q for the fiscal quarter ended September 30, 2016. Electronic Arts assumes no obligation and does not intend to update these estimates prior to filing its Form 10-Q for the fiscal quarter ended September 30, 2016.

About Electronic Arts

Electronic Arts (NASDAQ:EA) is a global leader in digital interactive entertainment. The Company delivers games, content and online services for Internet-connected consoles, personal computers, mobile phones and tablets. EA has more than 300 million registered players around the world.

In fiscal year 2016, EA posted GAAP net revenue of $4.4 billion. Headquartered in Redwood City, California, EA is recognized for a portfolio of critically acclaimed, high-quality blockbuster brands such as The Sims™, Madden NFL, EA SPORTS™ FIFA, Battlefield™, Dragon Age™ and Plants vs. Zombies™. More information about EA is available at www.ea.com/news.

EA SPORTS, Battlefield, Battlefield 4, The Sims, Dragon Age, Ultimate Team and Plants vs. Zombies are trademarks of Electronic Arts Inc. STAR WARS © & TM 2015 Lucasfilm Ltd. All rights reserved. Titanfall is a trademark of Respawn Entertainment, LLC. John Madden, NFL, NBA and FIFA are the property of their respective owners and used with permission.

 
ELECTRONIC ARTS INC. AND SUBSIDIARIES
Unaudited Condensed Consolidated Statement of Operations
(in $ millions, except share per data)
 
   

Three Months Ended

    Six Months Ended

September 30,

September 30,
2016     2015 2016     2015
Net revenue
Product 420 434 1,104 1,177
Service and other 478   381   1,065   841  

Total net revenue

898 815 2,169 2,018
Cost of revenue
Product 317 335 407 429
Service and other 84   74   173   153  

Total cost of revenue

401   409   580   582  
Gross profit 497 406 1,589 1,436
Operating expenses:
Research and development 291 265 585 561
Marketing and sales 143 156 271 279
General and administrative 111 101 219 199
Amortization of intangibles 1   3   3   4  
Total operating expenses 546   525   1,078   1,043  
Operating income (loss) (49 ) (119 ) 511 393
Interest and other income (expense), net (3 ) (9 ) (11 ) (12 )
Income before provision for (benefit from) income taxes (52 ) (128 ) 500 381
Provision for (benefit from) income taxes (14 ) 12   98   79  
Net income (loss) (38 ) (140 ) 402   302  
Earnings (loss) per share

Basic

(0.13 ) (0.45 ) 1.34 0.97
Diluted (0.13 ) (0.45 ) 1.28 0.90
Number of shares used in computation
Basic 301 312 301 311

Diluted

301 312 315 334
 

Results (in $ millions, except per share data)

The following table reports the variance of the actuals versus our guidance for the three months ended September 30, 2016 plus a comparison to the actuals for the three months ended September 30, 2015.

 
    Three Months Ended September 30,
2016         2016     2015
Guidance Variance Actuals Actuals
Net revenue
Net revenue 915 (17 ) 898 815
GAAP-based financial data
Change in deferred net revenue (online-enabled games) 160 40 200 331
Cost of revenue
Cost of revenue 405 (4 ) 401 409
GAAP-based financial data
Acquisition-related expenses (13

)

1 (12 ) (11 )
Stock-based compensation (1 ) (1 ) (1 )
Operating expenses
Operating expenses 566 (20 ) 546 525
GAAP-based financial data
Acquisition-related expenses (1 ) (1 ) (3 )
Stock-based compensation (50 ) 3 (47 ) (43 )
Loss before tax
Loss before tax (65 ) 13 (52 ) (128 )
GAAP-based financial data
Acquisition-related expenses 14 (1 ) 13 14
Amortization of debt discount and loss on conversion of notes

11

 

Change in deferred net revenue (online-enabled games) 160 40 200 331
Stock-based compensation 50 (2 ) 48 44

Tax rate used for management reporting

21

%

  21 % 22 %
Loss per share
Basic (0.17 ) 0.04 (0.13 ) (0.45 )
Diluted 1 (0.17 ) 0.04 (0.13 ) (0.45 )
Number of shares
Basic 302 (1 ) 301 312
Diluted 1 302 (1 ) 301 312
 
 
1 Diluted earnings per share reflects the potential dilution from common shares (calculated using the treasury stock method), issuable through stock-based compensation plans. When the company incurs a loss, shares issuable through stock-based compensation plans are excluded from the diluted loss per share calculation as inclusion would be anti-dilutive.
 

Guidance (in $ millions, except per share data)

The following tables provide the Company’s guidance for the three months ended December 31, 2016 and the twelve months ended March 31, 2017.

 
    Three       Twelve
Months Months
Ended Ended
Dec 31, 2016 Mar 31, 2017
Net revenue
Net revenue 1,125 4,775
GAAP-based financial data
Change in deferred net revenue (online-enabled games) 910 150
Cost of revenue
Cost of revenue 532 1,387
GAAP-based financial data
Acquisition-related expenses (3 ) (31 )
Stock-based compensation (2

)

Operating expenses
Operating expenses 652 2,304
GAAP-based financial data
Acquisition-related expenses (2 ) (6 )
Stock-based compensation (50 ) (198 )
Income before tax
Income (loss) before tax (66 ) 1,060
GAAP-based financial data
Acquisition-related expenses 5 37
Amortization of debt discount and loss on conversion of notes 2
Change in deferred net revenue (online-enabled games) 910 150
Stock-based compensation 50 200

Tax rate used for management reporting

21 % 21 %
Earnings (loss) per share

Basic

(0.17 ) 2.79

Diluted

(0.17 ) 2.69
Number of shares

Basic

304 304

Diluted 2

304 315
 
 
2 If the Company reports net income instead of a net loss for the 3 months ended December 31, 2016, GAAP expected diluted share count for calculating diluted earnings per share would be 315 million shares
 
 
ELECTRONIC ARTS INC. AND SUBSIDIARIES
Unaudited Condensed Consolidated Balance Sheets
(in $ millions)
 
    September 30,     March 31,
2016

2016 3

ASSETS
Current assets:
Cash and cash equivalents 1,746 2,493
Short-term investments 1,520 1,341
Receivables, net of allowances of $105 and $159, respectively 723 233
Inventories 50 33
Other current assets 221   254  
Total current assets 4,260 4,354
Property and equipment, net 431 439
Goodwill 1,709 1,710
Acquisition-related intangibles, net 28 57
Deferred income taxes, net 366 387
Other assets 98   103  
TOTAL ASSETS 6,892   7,050  
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable 206 89
Accrued and other current liabilities 777 710
0.75% convertible senior notes due 2016, net 161
Deferred net revenue (online-enabled games) 1,067   1,458  
Total current liabilities 2,050 2,418
Senior notes, net 990 989
Income tax obligations 86 80
Deferred income taxes, net 2 2
Other liabilities 156   163  
Total liabilities 3,284 3,652
0.75% convertible senior notes due 2016 2
 
Common stock 3 3
Additional paid-in capital 1,153 1,349
Retained earnings 2,462 2,060
Accumulated other comprehensive loss (10 ) (16 )
Total stockholders’ equity 3,608   3,396  
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY 6,892   7,050  
 
 
3 Derived from audited consolidated financial statements.
 
 
ELECTRONIC ARTS INC. AND SUBSIDIARIES
Unaudited Condensed Consolidated Statements of Cash Flows
(in $ millions)
 
    Three Months Ended     Six Months Ended
September 30,     September 30,
2016     2015 2016     2015
OPERATING ACTIVITIES
Net income (loss) (38 ) (140 ) 402 302
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Depreciation, amortization and accretion 45 50 91 99
Stock-based compensation 48 44 96 89
Loss on conversion of convertible notes 6 6
Change in assets and liabilities:
Receivables, net (481 ) (598 ) (493 ) (379 )
Inventories (24 ) (29 ) (17 ) (26 )
Other assets 55 13 54 39
Accounts payable 165 142 133 126
Accrued and other liabilities 168 182 (34 ) (149 )
Deferred income taxes, net (23 ) 1 20 1
Deferred net revenue (online-enabled games) 194   338   (391 ) (170 )
Net cash provided by (used in) operating activities 109   9   (139 ) (62 )
INVESTING ACTIVITIES
Capital expenditures (29 ) (18 ) (69 ) (42 )
Proceeds from maturities and sales of short-term investments 368 264 644 513
Purchase of short-term investments (507 ) (186 ) (824 ) (551 )
Net cash provided by (used in) investing activities (168 ) 60   (249 ) (80 )
FINANCING ACTIVITIES
Payment of convertible notes (136 ) (198 ) (163 ) (198 )
Proceeds from issuance of common stock 27 39 31 84
Excess tax benefit from stock-based compensation 4 25 37 65
Repurchase and retirement of common stock (127 ) (126 ) (256 ) (258 )
Net cash used in financing activities (232 ) (260 ) (351 ) (307 )
Effect of foreign exchange on cash and cash equivalents (5 ) (21 ) (8 ) (21 )
Decrease in cash and cash equivalents (296 ) (212 ) (747 ) (470 )
Beginning cash and cash equivalents 2,042   1,810   2,493   2,068  
Ending cash and cash equivalents 1,746   1,598   1,746   1,598  
 
 
ELECTRONIC ARTS INC. AND SUBSIDIARIES
Unaudited Supplemental Financial Information and Business Metrics
(in $ millions, except per share data)
 
    Q2     Q3     Q4     Q1     Q2     YOY %
FY16 FY16 FY16 FY17 FY17

Change

Net revenue
Net revenue 815 1,070 1,308 1,271 898 10%
GAAP-based financial data
Change in deferred net revenue (online-enabled games) 331 733 (384) (589) 200
Gross Profit
Gross profit 406 524 1,082 1,092 497 22%
GAAP-based financial data
Acquisition-related expenses 11 12 12 13 12
Change in deferred net revenue (online-enabled games) 331 733 (384) (589) 200
Stock-based compensation 1 1 1 1
Gross profit % (as a % of net revenue) 50% 49% 83% 86% 55%
Operating income
Operating income (loss) (119) (31) 536 560 (49) 59%
GAAP-based financial data
Acquisition-related expenses 14 14 13 15 13
Change in deferred net revenue (online-enabled games) 331 733 (384) (589) 200
Stock-based compensation 44 42 47 48 48
Operating income (loss) % (as a % of net revenue) (15%) (3%) 41% 44% (5%)
Net income
Net income (loss) (140) (45) 899 440 (38) 73%
GAAP-based financial data
Acquisition-related expenses 14 14 13 15 13
Amortization of debt discount and loss on conversion of notes 11 5 5 2
Change in deferred net revenue (online-enabled games) 331 733 (384) (589) 200
Stock-based compensation 44 42 47 48 48
Management tax rate used for reporting 22% 22% 22% 21% 21%
Net income (loss) % (as a % of net revenue) (17%) (4%) 69% 35% (4%)
Diluted earnings (loss) per share
Earnings (loss) per share (0.45) (0.14) 2.79 1.40 (0.13) 71%
Number of diluted shares used in computation
Basic 312 311 307 301 301
Diluted 312 311 322 315 301
Anti-dilutive shares excluded for loss position1 21 20 13
Shares from convertible bond hedge (7) (6) (3) (2)
 
 
ELECTRONIC ARTS INC. AND SUBSIDIARIES
Unaudited Supplemental Financial Information and Business Metrics
(in $ millions, except per share data)
 
    Q2     Q3     Q4     Q1     Q2    

YOY %

FY16 FY16 FY16 FY17 FY17 Change
QUARTERLY NET REVENUE PRESENTATIONS
Net revenue by geography
North America 381 448 572 525 389 2%
International 434 622 736 746 509 17%
Total net revenue 815 1,070 1,308 1,271 898 10%
North America 91 403 (147) (245) 58
International 240 330 (237) (344) 142
Change in deferred net revenue (online-enabled games) 331 733 (384) (589) 200
North America 47% 42% 44% 41% 43%
International 53% 58% 56% 59% 57%
Total net revenue % 100% 100% 100% 100% 100%
 
Net revenue by composition
Full game downloads 82 112 152 137 94 15%
Extra content 213 241 317 300 240 13%
Subscriptions, advertising and other 84 89 94 87 83 (1%)
Mobile 123 127 152 165 149 21%
Total Digital 502 569 715 689 566 13%
Packaged goods and other 313 501 593 582 332 6%
Total net revenue 815 1,070 1,308 1,271 898 10%
Full game downloads 7 83 (18) (53) (1)
Extra content (18) 119 (7) (42) (68)
Subscriptions, advertising and other (1) 1 1 (2)
Mobile (10) 35 21 (24) (11)
Total Digital (22) 238 (3) (121) (80)
Packaged goods and other 353 495 (381) (468) 280
Change in deferred net revenue (online-enabled games) 331 733 (384) (589) 200
Full game downloads 10% 10% 12% 11% 10%
Extra content 26% 23% 24% 23% 27%
Subscriptions, advertising and other 11% 8% 7% 7% 9%
Mobile 15% 12% 12% 13% 17%
Total Digital 62% 53% 55% 54% 63%
Packaged goods and other 38% 47% 45% 46% 37%
Total net revenue % 100% 100% 100% 100% 100%
 
 
ELECTRONIC ARTS INC. AND SUBSIDIARIES
Unaudited Supplemental Financial Information and Business Metrics
(in $ millions, except per share data)
                       
Q2 Q3 Q4 Q1 Q2

YOY %

FY16 FY16 FY16 FY17 FY17 Change
QUARTERLY NET REVENUE PRESENTATIONS
Net revenue by platform
Xbox One, PLAYSTATION 4 332 571 793 776 513 55%
Xbox 360, PLAYSTATION 3 155 157 147 133 64 (59%)
Other consoles 1 3 1 1 1
Total consoles 488 731 941 910 578 18%
PC / Browser 184 182 195 179 158 (14%)
Mobile 124 128 151 165 149 20%
Other 19 29 21 17 13 (32%)
Total net revenue 815 1,070 1,308 1,271 898 10%
Xbox One, PLAYSTATION 4 310 626 (287) (441) 177
Xbox 360, PLAYSTATION 3 55 16 (93) (92) 43
Other consoles 1 (1) (1)
Total consoles 366 641 (381) (533) 220
PC / Browser (19) 55 (27) (30) (9)
Mobile (12) 35 23 (24) (11)
Other (4) 2 1 (2)
Change in deferred net revenue (online-enabled games) 331 733 (384) (589) 200
Xbox One, PLAYSTATION 4 41% 53% 61% 61% 57%
Xbox 360, PLAYSTATION 3 19% 15% 11% 11% 7%
Other consoles
Total consoles 60% 68% 72% 72% 64%
PC / Browser 23% 17% 15% 14% 18%
Mobile 15% 12% 11% 13% 17%
Other 2% 3% 2% 1% 1%
Total net revenue % 100% 100% 100% 100% 100%
 
 
ELECTRONIC ARTS INC. AND SUBSIDIARIES
Unaudited Supplemental Financial Information and Business Metrics
(in $ millions, except per share data)
                       
Q2 Q3 Q4 Q1 Q2 YOY %
FY16 FY16 FY16 FY17 FY17 Change
CASH FLOW DATA
Operating cash flow 9 889 396 (248 ) 109 1,111 %
Operating cash flow - TTM 818 1,025 1,223 1,046 1,146 40 %
Capital expenditures 18 21 30 40 29 61 %
Capital expenditures - TTM 89 95 93 109 120 35 %
Repurchase and retirement of common stock 126 126 634 129 127 1 %
BALANCE SHEET DATA
Cash and cash equivalents 1,598 2,263 2,493 2,042 1,746
Short-term investments 990 966 1,341   1,385   1,520
Cash and cash equivalents, and short-term investments 2,588 3,229 3,834 3,427 3,266 26 %
Receivables, net 737 621 233 246 723 (2 %)
Deferred net revenue (online-enabled games)
End of the quarter 1,113 1,844 1,458 873 1,067 (4 %)
Less: Beginning of the quarter 775 1,113 1,844   1,458   873
Change in deferred net revenue (online-enabled games)4 338 731 (386 ) (585 ) 194
STOCK-BASED COMPENSATION
Cost of revenue 1 1 1 1
Research and development 25 26 26 27 27
Marketing and sales 7 5 7 7 8
General and administrative 11 11 13   13   12
Total stock-based compensation 44 42 47   48   48
 
 
4 The difference between the balances of deferred net revenue (online-enabled games) does not always equal the change in deferred net revenue (online-enabled games) in the consolidated statement of operations due to the impact of unrecognized gains/losses on cash flow hedges.
 

Contact:

Electronic Arts Inc.
Chris Evenden, 650-628-0255
Vice President, Investor Relations
cevenden@ea.com
John Reseburg, 650-628-3601
Vice President, Corporate Communications
jreseburg@ea.com