Electronic Arts (EA) 31 Jan 232023 Q3 Earnings call transcript

Hello! And thank you for standing by. My name is Regina, and I will be your conference operator today. At this time, I would like to welcome everyone to the Electronic Arts, Third Quarter 2023 Earnings Conference Call. All lines have been placed on mute to prevent any background noise. After the speakers remarks, there will be a question-and-answer session. Instructions]. [Operator

like President, conference ahead. Investor now Chris to turn Vice Evenden, Relations. to would over the Mr. I Please go

you. Andrew third With EA’s Laura Miele, Suh, Welcome XXXX and Thank call. COO. earnings our quarter CFO; me our Wilson, fiscal are our CEO; Chris today to

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

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

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

With calendar: Tuesday, earnings X. our regards is call XXXX to fiscal QX Our scheduled May for

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

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

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

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measures net impact underlying on softer reduce lessen took proactively our trend, our bookings profitability. and the the the quarter Recognizing we costs to focused during

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how As we our navigate QX like we to market, more set context share I’d guidance. about an uncertain

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investment committed operating our approximately will are $XXX to Next, by we’ve decisions. total taken we excellence actions and QX our million. disciplined being expenses The in operational during HX reduce

our continue best footprint, prioritize, opportunities. investments our evaluate will to to and focus broadly, our real we addition, spend estate growth on work long-term In

our of important bookings, overall note Jedi: timing It’s that expectations lifetime shift QX-FYXX. the guidance player-first of net economics, the around it reported cash for to the or does QX not finally, the reflects Survivor change launch QX decision Star our free changes it to to FYXX. while flow nor And Wars

fourth to on for our guidance the Now, quarter.

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We expect of to net billion revenue GAAP $X.X $X.X billion.

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share fourth expect quarter. As the of a $X.XX $X.XX result, to for we earnings per

year $X.XX net guidance fiscal QX $X.XX in billion to This bookings results of billion.

expenditures of We in of $X.XX billion. billion. are a With $XXX cash about $X.XX billion updated $X.XX result bookings the results to about flow for guidance our capital free net as operating to $X.XX cash million, also flow of guidance revising to that billion

see please guidance, For press details GAAP our further our including fiscal XXXX guidance, release. on our

Andrew, on Before handing early our to XXXX. a fiscal thoughts few to it back provide I’d like

next we portfolio As main durable look the of of being services. to year, drivers live broad our we our business see

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games, Our quality a high is incredible by business player anchored growing brands, network. live services, evergreen and

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Andrew. the Now, to back I’ll hand call

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

are we questions for now. Regina, ready

[Operator Instructions].

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Andrew. Thanks

Your Suisse. Credit ahead. next with the question line Please will of Stephen come go from Ju

thanks. Okay,

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Thank you.

question next come go of from line of Dessouky Bank ahead. Your will Omar Please America. with the

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lot. Thanks a

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Thanks, guys.

of next Your comes question Handler with from ahead. Eric Partners. line go the MKM Please

for the thanks and afternoon, question. Good

pipeline you have going So development very on. deep still a

that So you and as margin I'm get sort bottom made, these cuts, curious, year, cost with what mid-single cuts permanent are the you've for about that cuts. cost early line And of said growth. think temporary flat year-over-year. next a with these read an I cost digit maybe can they cuts, to revenue cost mean Does are about operating you

together I think is Eric! Hey I things. Chris. thematically in on similar it hits This I'll your sort think – take sort of of questions

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Thank you.

will of go Please Hickey Company. ahead. Benchmark The with line come question from next the Mike Your

Hey for guys Thanks Andrew, Laura! taking my questions. Chris,

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that Yeah, certainly could take I one.

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take please. the next We’ll question

question, next Morgan with Cost will go Your you the Stanley. come of ahead. from Matthew line Please

questions. the Hi everyone! taking Thanks

challenges industry terms this Are of a macro some of bit I way, side some in differentiation predictability the mobile and in the you the of players versus on PC weakness your seeing about you and maybe talked game stickiness some real mobile, commentary on the mobile, a headwinds. of year a in market. Just council fair into we're and question the that's you've the about mobile one. at point the know guess

just, you impact Wars can quantify And the is then next delaying Star into fiscal year? second the of guidance Thanks. one the

the as I And say measured certainly varies mobile On we we Matt! Hi mobile it the sickness you would said, by across have. engagement. experiences

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Matt, Great! the in jump me the And on let question about guidance.

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you. Thank Great!

the go Our question from Please come final of ahead. JP David with line will Karnovsky Morgan.

Rings, exit fitting you And you the could launch? any through speak you soft on given in just forward game, of engagement they're on kind call or me anything Thank you. or noted to based if the quarter. third specific Lord the your of you the plan anything news Apex currently the just the there Was fiscal where to and Did player but around wondering trends you Chris, all? on is at change QX, Hey! Thank to could that the Battlefield, you of still for of impact economic monetization say kind holiday see view in. you phasing around launch maybe update know this you period.

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Lord question your about Hi Rings of answer Mobile. David! To the

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today's all conclude you joining. Thank meeting. will That for

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