Video game company Electronic Arts Inc EA reported third-quarter financial results after the market close Tuesday. Here are the key highlights for investors.
What Happened: Electronic Arts posted third-quarter net revenue of $1.88 billion, up from last year’s $1.79 billion, according to data from Benzinga Pro.
The company reported $622 million in game revenue, up from $616 million in the prior year period. Live services and other revenue was $1.26 billion vs. $1.17 billion on a year-over-year basis.
“In Q3, EA delivered high-quality experiences, driving record engagement across some of our biggest franchises and growing our player network. While our teams delivered for our players, the current macro environment impacted Q3 results,” EA CEO Andrew Wilson said.
Net bookings over the trailing 12 months were $7.15 billion for the company, a 1% decline year-over-year.
Live services and other net bookings made up 75% of total net bookings on a trailing 12-month basis and were up 4% year-over-year.
The company ended the third quarter with 650 million members of the EA player network.
“FIFA 23” is on pace to be the biggest title in the history of the sports game series, with record engagement seen in the third quarter, likely due to the 2022 World Cup.
“The Sims” was also highlighted in the financial results, with over 10 million new players added in the fourth quarter and daily, weekly and monthly user figures all up double digits on a year-over-year basis.
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What’s Next: Electronic Arts is guiding for fourth-quarter revenue to come in a range of $1.7 to $1.8 billion. Diluted earnings per share are expected to be 5 cents to 20 cents in the fourth quarter.
Net bookings for the fourth quarter are expected to be in a range of $1.675 billion to $1.775 billion. The guidance includes a newly announced shift of “Star Wars Jedi: Survivor” to the first quarter of fiscal year 2024 (April 28, 2023).
Fiscal 2023 guidance calls for net revenue in a range of $7.23 billion to $7.35 billion and net bookings in a range of $7.07 billion to $7.17 billion.
“As we navigate the short-term, we’re focused on building for the long-term and remain confident about our future. With amazing talent, proven IP and growing player network, EA is operating from a position of strength,” Wilson said.
EA CFO Chris Suh said the company is prioritizing the player experience and putting investment into what will “have the most positive impact” for players and on the company’s growth.
EA Price Action: Electronic Arts shares are down 6% to $121.03 in after hours trading Tuesday versus a range of $109.24 to $142.79 over the last 52-weeks.
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