Electronic Arts' latest earnings report showed decreased revenue
Electronic Arts (EA) recently released its earnings result for the third fiscal quarter that ended December 31, 2022, which showed a reduction in full-year revenue guidance.
The Star Wars, Madden, and Battlefield publisher now projects its revenue to be between $7.25 billion to $7.35 billion, down from the previous estimate of $7.8 billion. This decrease is partly due to the delay of Star Wars Jedi: Survivor, which will now be accounted for in the 2023 fiscal year.
Trailing Twelve Months Financial Highlights
| Twelve Months Ended | ||||||
| December 31, | ||||||
2022 | 2021 | |||||
| (in $ millions) | ||||||
| Full game | 2,003 | 1,805 | ||||
| Live services and other | 5,374 |
| 4,707 |
| ||
| Total net revenue | 7,377 |
| 6,512 |
| ||
| Net income | 1,039 |
| 640 |
| ||
| Operating cash flow | 1,377 |
| 1,826 |
| ||
| Value of shares repurchased | 1,295 |
| 1,300 |
| ||
| Number of shares repurchased | 10.2 |
| 9.4 |
| ||
Quarterly Financial Highlights
| Three Months Ended | ||||||
| December 31, | ||||||
2022 | 2021 | |||||
| (in $ millions, except per share amounts) | ||||||
| Full game | 622 | 616 | ||||
| Live services and other | 1,259 |
| 1,173 |
| ||
| Total net revenue | 1,881 |
| 1,789 |
| ||
| Net income | 204 |
| 66 |
| ||
| Diluted earnings per share | 0.73 |
| 0.23 |
| ||
| Operating cash flow | 1,123 |
| 1,534 |
| ||
| Value of shares repurchased | 325 |
| 325 |
| ||
| Number of shares repurchased | 2.6 |
| 2.4 |
| ||
In its Q3 2023 earnings results, EA missed revenue expectations by reaching $1.88 billion, compared to the expected $2.5 billion. Additionally, the company announced that the free-to-play mobile version of Apex Legends, Apex Legends Mobile, will be sunset in May 2023 due to a lack of response from players.
Overall, it was a difficult quarter for Electronic Arts and the outlook for the next quarter remains uncertain based on the company's guidance.