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SOCIAL MEDIA

 

Electronic Arts Reports Q3 FY17 Financial Results

Category:

Tuesday, January 31, 2017 1:01 pm PST

Dateline:

REDWOOD CITY, Calif.

Public Company Information:

NASDAQ:
EA
US2855121099
"This is a true testament to the innovation we built into Battlefield 1 and FIFA 17 and the continued strength of our digital live services."

REDWOOD CITY, Calif.--(BUSINESS WIRE)--Electronic Arts Inc. (NASDAQ: EA) today announced preliminary financial results for its third fiscal quarter ended December 31, 2016.

“With the top console games and most-downloaded mobile portfolio in the industry for Q3, Electronic Arts is growing, engaging and exciting a global community of players,” said Chief Executive Officer Andrew Wilson. “We will continue to push the boundaries of play, with stunning new titles like Mass Effect: Andromeda, global competitive gaming tournaments and more amazing experiences coming in the year ahead.”

“For the first time ever, we generated over $1 billion in operating cash flow in a quarter,” said Chief Financial Officer Blake Jorgensen. “This is a true testament to the innovation we built into Battlefield 1 and FIFA 17 and the continued strength of our digital live services.”

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:

  • Digital net sales* of $2.861 billion for the trailing-twelve-month period represents 60% of total net sales, up 18% year-over-year.
  • FIFA 17 was the best-selling console title in the world in 2016.
  • Battlefield™ 1 was our biggest Battlefield launch ever and has a player base more than 50% larger than that of Battlefield 4™ in its comparable launch quarter.
  • To date, more than 10 million fans have played “The Journey”, the new single-player mode in FIFA 17.
  • In Q3, average gameplay time per player in Star Wars™: Galaxy of Heroes reached a new high of 155 minutes per day.

* 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.

  • Net cash provided by operating activities for the quarter was a record $1.115 billion. Trailing twelve month operating cash flow was also a record $1.372 billion.
  • For the quarter, net revenue was $1.149 billion. Of the total net revenue 60%, or $685 million, was digital. Diluted loss per share of $(0.00) was above guidance of $(0.17).
  • EA repurchased 1.5 million shares in Q3 for $127 million.
     
(in millions of $, except per share amounts)

Quarter Ended
12/31/16

Quarter Ended
12/31/15

Digital Net Revenue $ 685 $ 569
Packaged Goods and Other Net Revenue   464     501
Total Net Revenue $ 1,149 $ 1,070

Net Loss

$

(1)

$

(45)

Diluted Loss Per Share $ (0.00) $ (0.14)
 
Operating Cash Flow $ 1,115 $ 889
 

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 Dec 31, 2016
$ in millions

GAAP-Based Financial Data

Statement of
Operations

 

Acquisition-related
expenses

 

Change in deferred
net revenue
(online-enabled games)

 

Stock-based
compensation

 
Net revenue 1,149 - 921 -
Cost of revenue 516   (18 ) - -  
Gross profit 633 18

 

921 -

 

 
Total operating expenses 637   (2 ) - (48 )
 
Operating loss (4 ) 20 921 48
 
Interest and other income (expense), net (2 ) -   - -  
 
Loss before benefit from income taxes (6 ) 20 921 48
 
Number of shares used in computation
Basic & Diluted 303
 

EA’s GAAP loss per share for the three months ended December 31, 2016 was calculated off the basic share count of 303 million. Had EA reported a profit, the diluted share count would have been 313 million shares. For additional information on the GAAP-based financial data, please refer to EA’s Form 10-Q for the quarter ended September 30, 2016.

TTM Financial Highlights:

     

(in millions)

TTM Ended
12/31/16

 

TTM Ended
12/31/15

 

Digital Net Revenue $ 2,655 $ 2,308
Packaged Goods and Other Net Revenue   1,971     1,965
Total Net Revenue $ 4,626   $ 4,273

Net Income

$

1,300

$

652

 
Operating Cash Flow $ 1,372 $ 1,025
 
Value of Shares Repurchased $ 1,017 $ 479
Number of Shares Repurchased 14.9 7.6
 

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:

         
Trailing Twelve Months Ended Dec 31, 2016
$ in millions GAAP-Based Financial Data

Statement of
Operations

 

Acquisition-related
expenses

 

Amortization of debt
discount and loss on
conversion of notes

 

Change in deferred
net revenue
(online-enabled games)

 

Stock-based
compensation

Net revenue 4,626 - - 148 -
Cost of revenue 1,322   (55 ) - - (3 )
Gross profit 3,304 55

-

148 3
 
Total operating expenses 2,261   (6 ) - - (188 )
 
Operating income 1,043 61 - 148 191
 
Interest and other income (expense), net (23 ) -   7 - -  
 
Income before benefit from income taxes 1,020 61 7 148 191
 

Business Outlook as of January 31, 2017

The following forward-looking statements reflect expectations as of January 31, 2017. 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 $4.800 billion.
  • Change in deferred net revenue is expected to be approximately $125 million.
  • Net income is expected to be approximately $914 million.
  • Diluted earnings per share is expected to be approximately $2.91.
  • Operating cash flow is expected to be approximately $1.35 billion.
  • The Company estimates a share count of 314 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:

Twelve Months Ending March 31, 2017
GAAP-Based Financial Data
$ in millions

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 2,825 - - 125 -   -
Packaged Goods & Other Net Revenue 1,975   -       -     -     -     -  
Total Net Revenue 4,800   -       -     125     -     -  
Cost of Revenue 1,338 (43 ) - - - (2 )
Operating Expenses 2,306 (6 ) - - - (192 )
Income Before Taxes 1,135 49 2 125 - 194
Diluted Shares 314 - - - (1 ) -
 

Fourth Quarter Fiscal Year 2017 Expectations – Ending March 31, 2017

  • Net revenue is expected to be approximately $1.482 billion.
  • Change in deferred net revenue is expected to be approximately $(407) million.
  • Net income is expected to be approximately $513 million.
  • Earnings per share is expected to be approximately $1.64.
  • The Company estimates a share count of 313 million for purposes of calculating fourth quarter fiscal 2017 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:

    Three Months Ending March 31, 2017
GAAP-Based Financial Data
$ in millions

GAAP
Guidance

 

Acquisition-related
expenses

 

Change in
deferred net revenue
(online-enabled games)

 

Stock-based
compensation

Net Revenue 1,482 - (407 ) -
Cost of Revenue 242 - - -
Operating Expenses 591 (1 ) - (50 )
Income Before Taxes 641 1 (407 ) 50
Diluted Shares 313
 

Conference Call and Supporting Documents

Electronic Arts will host a conference call on January 31, 2017 at 2:00 pm PT (5:00 pm ET) to review its results for the third quarter ended December 31, 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 February 13, 2017 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 January 31, 2017,” 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 September 30, 2016.

These forward-looking statements are current as of January 31, 2017. 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 December 31, 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 December 31, 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, and Plants vs. Zombies are trademarks of Electronic Arts Inc. STAR WARS © & TM 2015 Lucasfilm Ltd. All rights reserved. John Madden, NFL 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
December 31,

Nine Months Ended
December 31,
2016 2015 2016 2015
Net revenue
Product 649 625 1,753 1,802
Service and other 500   445   1,565   1,286  
Total net revenue 1,149 1,070 3,318 3,088
Cost of revenue
Product 389 439 796 868
Service and other 127   107   300   260  
Total cost of revenue 516   546   1,096   1,128  
Gross profit 633 524 2,222 1,960
Operating expenses:
Research and development 285 266 870 827
Marketing and sales 240 190 511 469
General and administrative 110 97 329 296
Amortization of intangibles 2   2   5   6  
Total operating expenses 637   555   1,715   1,598  
Operating income (loss) (4 ) (31 ) 507 362
Interest and other income (expense), net (2 )   1   (13 ) (11 )
Income (loss) before provision for (benefit from) income taxes (6 ) (30 ) 494 351
Provision for (benefit from) income taxes (5 )   15   93   94  
Net income (loss) (1 )   (45 ) 401   257  
Earnings (loss) per share
Basic (0.00 ) (0.14 ) 1.33 0.83
Diluted (0.00 ) (0.14 ) 1.28 0.77
Number of shares used in computation
Basic 303 311 302 311
Diluted 303 311 314 333
 

Results (in $ millions, except per share data)

The following table reports the variance of the actuals versus our guidance for the three months ended December 31, 2016 plus a comparison to the actuals for the three months ended December 31, 2015.

 
  Three Months Ended December 31,
2016     2016   2015
Guidance Variance Actuals Actuals
Net revenue
Net revenue 1,125 24 1,149 1,070
GAAP-based financial data
Change in deferred net revenue (online-enabled games) 910 11 921 733
Cost of revenue
Cost of revenue 532 (16 ) 516 546
GAAP-based financial data
Acquisition-related expenses (3 ) (15 ) (18 ) (12 )
Operating expenses
Operating expenses 652 (15 ) 637 555
GAAP-based financial data
Acquisition-related expenses (2 ) (2 ) (2 )
Stock-based compensation (50 ) 2 (48 ) (42 )
Loss before tax
Loss before tax (66 ) 60 (6 ) (30 )
GAAP-based financial data
Acquisition-related expenses 5 15 20 14
Amortization of debt discount and loss on conversion of notes 5
Change in deferred net revenue (online-enabled games) 910 11 921 733
Stock-based compensation 50 (2 ) 48 42
Tax rate used for management reporting 21 % 21 % 22 %
Loss per share
Basic (0.17 ) 0.17 (0.00 ) (0.14 )
Diluted 1 (0.17 ) 0.17 (0.00 ) (0.14 )
Number of shares
Basic 304 (1 ) 303 311
Diluted 1 304 (1 ) 303 311
 
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 March 31, 2017 and the twelve months ended March 31, 2017.

 
 

Three
Months
Ended

 

Twelve
Months
Ended

Mar 31, 2017 Mar 31, 2017
Net revenue
Net revenue 1,482 4,800
GAAP-based financial data
Change in deferred net revenue (online-enabled games) (407 ) 125
Cost of revenue
Cost of revenue 242 1,338
GAAP-based financial data
Acquisition-related expenses (43 )
Stock-based compensation (2 )
Operating expenses
Operating expenses 591 2,306
GAAP-based financial data
Acquisition-related expenses (1 ) (6 )
Stock-based compensation (50 ) (192 )
Income before tax
Income before tax 641 1,135
GAAP-based financial data
Acquisition-related expenses 1 49
Amortization of debt discount and loss on conversion of notes 2
Change in deferred net revenue (online-enabled games) (407 ) 125
Stock-based compensation 50 194
Tax rate used for management reporting 21 % 21 %
Earnings per share
Basic 1.66 3.02
Diluted 1.64 2.91
Number of shares
Basic 309 303
Diluted 313

314

2

2 Excludes the benefit of 1 million shares from convertible bond hedge.
 
 
ELECTRONIC ARTS INC. AND SUBSIDIARIES
Unaudited Condensed Consolidated Balance Sheets
(in $ millions)
   

December 31,
2016

March 31,
2016 3

ASSETS
Current assets:
Cash and cash equivalents 2,483 2,493
Short-term investments 1,736 1,341
Receivables, net of allowances of $196 and $159, respectively 587 233
Inventories 35 33
Other current assets 260   254  
Total current assets 5,101 4,354
Property and equipment, net 424 439
Goodwill 1,704 1,710
Acquisition-related intangibles, net 9 57
Deferred income taxes, net 386 387
Other assets 95   103  
TOTAL ASSETS 7,719   7,050  
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable 65 89
Accrued and other current liabilities 901 710
0.75% convertible senior notes due 2016, net 161
Deferred net revenue (online-enabled games) 1,971   1,458  
Total current liabilities 2,937 2,418
Senior notes, net 990 989
Income tax obligations 87 80
Deferred income taxes, net 2 2
Other liabilities 154   163  
Total liabilities 4,170 3,652
0.75% convertible senior notes due 2016 2
 
Common stock 3 3
Additional paid-in capital 1,086 1,349
Retained earnings 2,461 2,060
Accumulated other comprehensive loss (1 ) (16 )
Total stockholders’ equity 3,549   3,396  
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY 7,719   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
December 31,
  Nine Months Ended
December 31,
2016 2015 2016 2015
OPERATING ACTIVITIES
Net income (loss) (1 ) (45 ) 401 257
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation, amortization and accretion 49 50 140 149
Stock-based compensation 48 42 144 131
Loss on conversion of convertible notes 2 8
Change in assets and liabilities:
Receivables, net 126 111 (367 ) (268 )
Inventories 15 20 (2 ) (6 )
Other assets (12 ) 3 42 42
Accounts payable (139 ) (56 ) (6 ) 70
Accrued and other liabilities 145 25 111 (124 )
Deferred income taxes, net (20 ) 5 6
Deferred net revenue (online-enabled games) 904   732   513   562  
Net cash provided by operating activities 1,115   889   976   827  
INVESTING ACTIVITIES
Capital expenditures (25 ) (21 ) (94 ) (63 )
Proceeds from maturities and sales of short-term investments 324 194 968 707
Purchase of short-term investments (548 ) (176 ) (1,372 ) (727 )
Net cash used in investing activities (249 ) (3 ) (498 ) (83 )
FINANCING ACTIVITIES
Payment of convertible notes (95 ) (163 ) (293 )
Proceeds from issuance of common stock 2 2 33 86
Excess tax benefit from stock-based compensation 16 8 53 73
Repurchase and retirement of common stock (127 ) (126 ) (383 ) (384 )
Net cash used in financing activities (109 ) (211 ) (460 ) (518 )
Effect of foreign exchange on cash and cash equivalents (20 ) (10 ) (28 ) (31 )
Increase (decrease) in cash and cash equivalents 737 665 (10 ) 195
Beginning cash and cash equivalents 1,746   1,598   2,493   2,068  
Ending cash and cash equivalents 2,483   2,263   2,483   2,263  
 
 
ELECTRONIC ARTS INC. AND SUBSIDIARIES
Unaudited Supplemental Financial Information and Business Metrics
(in $ millions, except per share data)
           
Q3 Q4 Q1 Q2 Q3 YOY %
FY16 FY16 FY17 FY17 FY17 Change
Net revenue
Net revenue 1,070 1,308 1,271 898 1,149 7 %
GAAP-based financial data

Change in deferred net revenue (online-enabled games)4

733 (384 ) (589 ) 200 921
Gross profit
Gross profit 524 1,082 1,092 497 633 21 %
GAAP-based financial data
Acquisition-related expenses 12 12 13 12 18

Change in deferred net revenue (online-enabled games)4

733 (384 ) (589 ) 200 921
Stock-based compensation 1 1 1
Gross profit % (as a % of net revenue) 49 % 83 % 86 % 55 % 55 %
Operating income
Operating income (loss) (31 ) 536 560 (49 ) (4 ) 87 %
GAAP-based financial data
Acquisition-related expenses 14 13 15 13 20

Change in deferred net revenue (online-enabled games)4

733 (384 ) (589 ) 200 921
Stock-based compensation 42 47 48 48 48
Operating income (loss) % (as a % of net revenue) (3 %) 41 % 44 % (5 %)
Net income
Net income (loss) (45 ) 899 440 (38 ) (1 ) 98 %
GAAP-based financial data
Acquisition-related expenses 14 13 15 13 20
Amortization of debt discount and loss on conversion of notes 5 5 2

Change in deferred net revenue (online-enabled games)4

733 (384 ) (589 ) 200 921
Stock-based compensation 42 47 48 48 48
Tax rate used for management reporting 22 % 22 % 21 % 21 % 21 %
Net income (loss) % (as a % of net revenue) (4 %) 69 % 35 % (4 %)
Diluted earnings (loss) per share
Earnings (loss) per share (0.14 ) 2.79 1.40 (0.13 ) (0.00 ) 100 %
Number of diluted shares used in computation
Basic 311 307 301 301 303
Diluted 311 322 315 301 303
Anti-dilutive shares excluded for loss position1 20 13 10
Shares from convertible bond hedge (6 ) (3 ) (2 )
 
4The difference between the balances of deferred net revenue (online-enabled games) does not necessarily equal the change in deferred net revenue (online-enabled games) in the consolidated statements of cash flows due to the impact of unrecognized gains/losses on cash flow hedges.
 
 
ELECTRONIC ARTS INC. AND SUBSIDIARIES
Unaudited Supplemental Financial Information and Business Metrics
(in $ millions, except per share data)
           
Q3 Q4 Q1 Q2 Q3 YOY %
FY16 FY16 FY17 FY17 FY17 Change
QUARTERLY NET REVENUE PRESENTATIONS
Net revenue by geography
North America 448 572 525 389 561 25 %
International 622   736   746   509   588   (5 %)
Total net revenue

  1,070

 

  1,308

 

  1,271

 

   898

 

  1,149

  7 %
North America 403 (147 ) (245 ) 58 370
International 330   (237 ) (344 ) 142   551  
Change in deferred net revenue (online-enabled games) 733   (384 ) (589 ) 200   921  
North America 42 % 44 % 41 % 43 % 49 %
International 58 % 56 % 59 % 57 % 51 %
Total net revenue % 100 % 100 % 100 % 100 % 100 %
 
Net revenue by composition
Full game downloads 112 152 137 94 169 51 %
Extra content 241 317 300 240 267 11 %
Subscriptions, advertising and other 89 94 87 83 102 15 %
Mobile 127   152   165   149   147   16 %
Total digital 569   715   689   566   685   20 %
Packaged goods and other 501   593   582   332   464   (7 %)
Total net revenue 1,070   1,308   1,271   898   1,149   7 %
Full game downloads 83 (18 ) (53 ) (1 ) 186
Extra content 119 (7 ) (42 ) (68 ) 195
Subscriptions, advertising and other 1 1 (2 ) 2
Mobile 35   21   (24 ) (11 ) 27  
Total digital 238   (3 ) (121 ) (80 ) 410  
Packaged goods and other 495   (381 ) (468 ) 280   511  
Change in deferred net revenue (online-enabled games) 733   (384 ) (589 ) 200   921  
Full game downloads 10 % 12 % 11 % 10 % 15 %
Extra content 23 % 24 % 23 % 27 % 23 %
Subscriptions, advertising and other 8 % 7 % 7 % 9 % 9 %
Mobile 12 % 12 % 13 % 17 % 13 %
Total digital 53 % 55 % 54 % 63 % 60 %
Packaged goods and other 47 % 45 % 46 % 37 % 40 %
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)
           
Q3 Q4 Q1 Q2 Q3 YOY %
FY16 FY16 FY17 FY17 FY17 Change
QUARTERLY NET REVENUE PRESENTATIONS
Net revenue by platform
Xbox One, PLAYSTATION 4 571 793 776 513 728 27 %
Xbox 360, PLAYSTATION 3 157 147 133 64 65 (59 %)
Other consoles 3   1   1   1     (100 %)
Total consoles 731 941 910 578 793 8 %
PC / Browser 182 195 179 158 190 4 %
Mobile 128 151 165 149 148 16 %
Other 29   21   17   13   18   (38 %)
Total net revenue

  1,070

 

  1,308

 

  1,271

 

   898

 

  1,149

  7 %
Xbox One, PLAYSTATION 4 626 (287 ) (441 ) 177 762
Xbox 360, PLAYSTATION 3 16 (93 ) (92 ) 43 3
Other consoles (1 ) (1 )      
Total consoles 641 (381 ) (533 ) 220 765
PC / Browser 55 (27 ) (30 ) (9 ) 127
Mobile 35 23 (24 ) (11 ) 27
Other 2   1   (2 )   2  
Change in deferred net revenue (online-enabled games) 733   (384 ) (589 ) 200   921  
Xbox One, PLAYSTATION 4 53 % 61 % 61 % 57 % 63 %
Xbox 360, PLAYSTATION 3 15 % 11 % 11 % 7 % 6 %
Other consoles          
Total consoles 68 % 72 % 72 % 64 % 69 %
PC / Browser 17 % 15 % 14 % 18 % 17 %
Mobile 12 % 11 % 13 % 17 % 13 %
Other 3 % 2 % 1 % 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)
                         
Q3 Q4 Q1 Q2 Q3 YOY %

  FY16  

  FY16  

  FY17  

  FY17  

  FY17  

 Change 

CASH FLOW DATA
Operating cash flow 889 396 (248 ) 109 1,115 25 %
Operating cash flow - TTM 1,025 1,223 1,046 1,146 1,372 34 %
Capital expenditures 21 30 40 29 25 19 %
Capital expenditures - TTM 95 93 109 120 124 31 %
Repurchase and retirement of common stock 126 634 129 127 127 1 %
DEPRECIATION
Depreciation expense 31 28 29 28 29 (6 %)
BALANCE SHEET DATA
Cash and cash equivalents 2,263 2,493 2,042 1,746 2,483
Short-term investments 966 1,341   1,385   1,520 1,736

Cash and cash equivalents, and short-term investments

3,229 3,834 3,427 3,266 4,219 31 %
Receivables, net 621 233 246 723 587 (5 %)
STOCK-BASED COMPENSATION
Cost of revenue 1 1 1
Research and development 26 26 27 27 27
Marketing and sales 5 7 7 8 8
General and administrative 11 13   13   12 13
Total stock-based compensation 42 47   48   48 48

Contact:

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