Electronic Arts (EA) 9 May 232023 Q4 Earnings call transcript

Good afternoon. 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 Fourth Quarter and Fiscal Year-end 2023 Conference Call. I would now like to turn the conference over to Mr. Stuart Canfield, Senior Vice President, Finance and Investor Relations. ahead. go Please

our to at Earnings Welcome our Quarter Fiscal earnings Laura and and SEC that Thank and filings With EA's me XXXX our Miele, and CFO; Call. Suh, are Wilson, Please today Year-end note Chris our available you. release our Fourth COO. ir.ea.com. are CEO; Andrew

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

audio the we'll transcript. post replay an of call, remarks, a this after Lastly, prepared and call our

quarter first fiscal earnings With regards our to August calendar, scheduled is Tuesday, XXXX for our call X.

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

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

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

Andrew. turn I'll Now call over to the

values. and every and am all year are promise business, you. year of I lived constant I by EA delivered players employee, XXXX, well. inspired the our we and and we hope how To fiscal thank our showed want our macro navigated with you I of the start resilience Stuart. up our of proud to change, teams. strength determination. uncertainty Thanks, for sharing Throughout of the Against to

over at delivered engagement biggest all-time interactive we Consumer with executed high. experiences delivering is our of player across content releases X launching across new to year, high-quality an nearly and franchises. entertainment Over titles. record appetite we some business, our for million, games, network XXX expanding across providing updates fiscal the XX And XXX our

EA industry more where technology entertainment as audiences, for world of evolving. things people and transformations trends sports media is a media are do and leading entertainment our amazing to us. in around and new We the trends is see reshaping future and interactive the dynamic Consumption our immense of new accelerating, new players. opportunities are these

games we're and creating games in that focused As strategies: future, with create social of growth as connect amplifying play, against EA the our storytelling watch, these we building experiences of next on and X Executing and we great tools. power blockbuster and interactive the foundation of the look communities, for online modalities lay story. massive across the to key will chapter long-term strategies write around community the delivering entertain and creative

franchise was producing bookings, for became growth year both amazing entire in FIFA Fiscal history. Console, and double-digit EA SPORTS year and XXXX an in PC and the best-selling incredible the results. premium delivered net XX mobile FIFA title free-to-play, with ecosystem

are Our innovation. heart creativity to experiences fandom and the strategy interactive a global at by passion, and years and a are culture of football XX of sharpened testament

stands year EA another to for SPORTS. XXXX year be Fiscal important

more and we of generating clubs. EA, unveiled momentum reaching for athletes, a are SPORTS EA SPORTS massive media We will of in By with delivering vision FC, In EA players created and brand and building at to fans, global build fan-first expanded days leagues, FC. ecosystem, inspiring was this biggest SPORTS on brand global players and the within enhanced for amongst EA moment support every for partners, future share the hundreds billions federations football, FC. of record potential measure, With we hits we thousands experience in sentiment July. our our positive of ever cannot identity the the wait football April,

experience, Already, title engagement game becoming game the history XXXX, PC. immersive excitement, football world's fiscal will American in even of driving content delivered and in best-selling in and Madden Madden XX fun permanent year this the console build NFL on an deep amount franchise's NFL offering on around play. and the and extraordinary this more

Legends in Season quarter performance. game Apex by new the fourth Our like way saw a system enhancements a massive powered core Legends XX played. transformed class resurgence

a responded entertain Our play, with year player favorably, more resilience the season. to strong they loyalty as reinforces previous watch the experience. to an unique lifting responsibility This Apex position peak players monthly than as The fiscal an is and consistently million users. entertained players Apex of continuously compete XX% its in Throughout engagement by improve community of power of IP from XXXX, player and active expand an average fueled Legends evolving XX world.

diverse No in has and passionate counting. over launch since other community The XXXX, This and industry self-expression individuality champion and fueled million creativity in growing game to like the imagination XX Sims. its worldwide quite celebrates players and

using creation at The new Our and X take to heights. Sims Studios to shape of for Maxis is the experiences to entertainment talented power developing connection team unimaginable culture,

to continually To the focused on we blockbuster inspire world storytelling. are play,

to an global culture-defining powerful build opportunities together deliver. incredible fundamental collaborations. into Our bring history and can to These entertainment only with more power network that our ways leadership are portfolio the of blockbusters IP unrivaled players by interactive bringing through bolstered creates lasting

been delivered and incredible Game of we This ago, Star Metacritic with on Jedi: press by widespread priority Year called earned of Wars this contender multiple days outlets. positive the Survivor. on a XX has launch received reviews an the game console XX has Just score

with are strong beyond been And launch. around it the teams PC working this, specs. some has a dev community high-end Our

of Walt empire. Within the first is is a IP The central with an in storytelling of Star to the and Wars interactive great central its as our creative and success grow the of few games how Kestis Jedi: the our of saga, weeks, game and blockbuster a Disney universe. finest, demonstrating part Cal and Lucasfilm. players have Star incredibly joined pure entertainment at Company BD-X The the Wars powerful deepen millions have fandom rebellion can against to Jedi collaboration game's and the is fans Survivor entertainment embraced which story

Games of social in are our around the are across power social community, the we and tools amplify the a To future. creative innovating of networks set of and games.

FIFA new social are Our is set, make players in-game help feature strategy interacting Among out players community. that with XX. to These a network and were social over build create friends, in XXX%. experiences rolled new increased engagement their

more be results and leads confirm in and innovations and these driving our what true: business stronger friendships network friends more building time connecting. shows having in spent data are to our Our know we to playing

across tools pipeline. business portfolio. As close With for results year and priorities our cornerstone of strong XXXX, content and continue services by capturing core are executing remain we a our a amazing to focused biggest communities. in doing growth, across to implement drive we fiscal more will strategies, delivering on investments of to to positioned our our our these players our and things are and We opportunities value committed our our long-term

our provide over to the business. hand details on additional to call I Chris Now

Thanks, Andrew. hello, And everyone.

our resiliency and took finished decisive very results demonstrated uneven our quarter a the a our manner. in again of to year again focus ability and We disciplined strong fiscal fundamental business actions sharpen to the XXXX market, model the Our our portfolio, execute of outgrew with live services fourth year strength an performance.

in players around following decision continued year and Legends Our the historic The tens to of highs In players X FIFA hit launch, of community. since Apex the significant SPORTS to the SPORTS XX. enter has milestones by surpassed millions the in across make sales was to FIFA portfolio. fiscal highlighted game world engagement EA months our XX October, free our of EA lifetime engage with new Sims base

year, more priorities company align the to estate to the portfolio deliberate our take that Andrew Throughout to late and footprint. with our actions culminating strategic focus actions continue March closely we outlined, real in business with we optimize games our announced and rationalize our the

the the in of first remaining quarter, be result, fourth XXXX. a half the to $XXX fiscal of we recognized a recognized charges during million, As with charge

fourth were quarter, or billion, currency. up in $X.X the For XX% constant net bookings XX%

expectations performance XX delivered also a outperformed record net game. and as year-over-year a significantly results as or reached new than Legends a by quarter services FIFA driven our up strength stronger collection SPORTS XX% EA grew full high, anticipated Apex Our bookings fourth in anniversary live Season and currency. event. exceeded for XX% quarter fourth returned in constant in our players

performance resonated its triple up quarter, was digits or Mobile delivered in a $XXX or outperforming saw in free XX% quarter new record a bookings $X.X live and Apex expansion first the FIFA community. Our million significantly game saw low And constant reached in FIFA Ultimate currency, engagement. as our Online net and EA grew expectations FIFA services improved all-time up a XX% and pack with currency, The net constant year-over-year bookings high services XX% currency. competitive quarter. bookings Team in net or up rebounding Sims quarter. billion, following growth to live single-digit year-over-year constant SPORTS X grew FIFA X% exceeded XX% X constant as third a and year-over-year currency Legends growing base updates were expectations XX%

mobile delivered mobile stabilized expectations. Our our business, and strong with FIFA line in the excluding results,

growth. largest fourth Operating brands and blockbuster player portfolio optimizing connecting year-over-year. X% delivering focused excluding is profitable expenses X%, our long-term up quarter up enhancing our experiences charge. of revenue We were quarter delivered restructuring net fourth $X.X strategy Our for on experiences by across mobile platforms, billion, our

behind we other to These marketing people offset to spend. support of saw prudent Our as invest increases costs higher portfolio, we increased by continue and partially were our management new spend variable also releases.

full Now let talk about me performance. year our

constant X% in market Our mobile. uneven X% industry or headwinds billion, currency, up $X.X bookings were in net outperforming conditions and down

the and operating over to We billion was in net billion diluted year, cash $X.X EPS revenue for flow generated shareholders. was $X.X Our billion $X.X and $X.XX. returned

to Now the let turn outlook. me

in XXXX year year fiscal of many saw outlook we the XXXX. fiscal reflects Our trends

services resilience expect show again. remain to reoccurring We business healthy great the engagement highly our very to live and across portfolio

such, as be conditions. market priorities. continue execute we to a against and to continue operate we in We our deliberate competitive And disciplined focused, changing will strategic with macro as

points rates profit X net bookings and of relative FX, we last a unchanged, year. nearly expect remain growth, For if for headwind for points X underlying of to hedges net

to through communities, flat $X.X roughly to be X% services, of story currency, our massive up live online Star We and expect to in in up fiscal X% Survivor. Jedi: net or EA evergreen strong Wars FC our point XXXX X% foundation to a introduction blockbuster built year-over-year on billion growth the $X.X of billion, constant bookings SPORTS

SPORTS XXXX. year a fiscal on low growing on again bookings record FC EA net of expect momentum single-digit to growth, its building deliver We top

across revenue royalty-bearing of margin cost platform expansion, billion expect to by $X.X and mix revenue digital. We licenses, gross be reflecting billion, driven of $X.X a to

operating expect billion billion our be $X.X We continued long-term to expenses focused with in growth. investments business to to $X.X drive

net result, expect As grow faster profitability a underlying bookings. than we to

We of be a generator $X.X expect of The $X.X operating billion of to about cash. million, business $XXX flow $X.X flow around which free and capital to to continues cash expenditures would billion billion deliver billion. $X.X strong of cash

We authorization, to expires expect November continue under repurchase our which current stock XXXX. to in

earnings We be revenue $X.XX to to XXXX $X.X of per share $X.XX. fiscal to net expect and billion $X.X billion

XX% moving XX% of our Wars primarily XX% QX XX% Jedi: full billion, net quarter. sales driven by to We for Survivor. for currency, Now $X.X constant in the to billion or be Star to to to outlook first $X.X bookings game anticipate up up

billion, revenue of to $XXX cost billion, expect $X.XX. billion share of million the $X.XX $X.X operating billion approximately per For earnings we of expenses $X.XX $X.X of revenue and $XXX to to resulting to $X.XX to net in million first be quarter,

brands, online is Our a massive strong and evergreen business storytelling blockbuster live strong propelled in communities, services. by position

align on the deliver efforts help Our has closely key our growth will scope our last our more year focused to work, led of aspirations. multiyear a more with over which to priorities teams us

hand back Andrew. the I'll Now call to

Engaging the devices becoming years. Chris. diverse through technologies. is base on generational is point. more consumption. trends entertainment expanding Interactive number grow coming The inflection content and significantly everywhere players industry the reaching them Thanks, cultural accelerating with at means of to this The is an player audience over expanding, expect disruptive

For today and EA, represent to long these term. over the transformations opportunities grow

our to our deliver against the creativity We through have to passion their continue mission play. we strategy. will and the talent best to It's execute in the world inspire on industry to that long-term

fandom entertainment better more amazing of build on the The this people more celebrate inspiring is world, and focused is lead shared them transformation bringing are joyful around interactive, games experiences. equipped to EA. We have to to than no community, and team future

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

[Operator Instructions].

Uerkwitz Andrew with the Our come question line Jefferies. first from will of

got have I've me then the kind the strong year a one in a help little then there's could services. think big June guidance? you you quarter, time. ago, one had this Chris, picture of reconcile X on kind of I bit momentum a and In some you June June clearly, title. live And question.

So cautious be live Just bit down? the on Is in you there something that would June great. can this is more is slows guide? this service -- give color a momentum little

Andrew, you're our guide the for so talking QX? about --

Yes, QX, sir. yes.

Right. Yes.

guide by the is So live that that And some specifically, driving launches of really our in performance. QX as new we year-over-year you business. are driven our out, services things pointed performance on have

right? dollars, is of like Or a it seems than games X go my -- should math if hundred million couple in It doing drive just more right, I'm ahead.

on you to line that. of launches, referring. the of sort to sorry. I through think, by size sort the it we're No, of line that relative you're But happy is And take

it. Got

kind great. around trends the Okay. biggest kind titles? quarters kind called still of coalescing the future big where of the has that of more maybe you then invest or think you weakness importantly, gamers guys I you your that then in seeing of impacted secondarily, and And of smaller how this around picture, some Yes. you And titles, think Are previous saw I that? that how peers just and out some That's in idea are titles. in

you, Andrew. Yes. Thank

I great question. think it's a

both is has things kind think As right longer us one which the term, look in But one One, -- as think and place. we short I marketplace and there's at much end we -- more look X longer-term same consumer of at trends, ramifications. now. and the I term happening as more

towards uncertainty. that our through of most softness is is brands any there macroeconomic time history see typically any biggest consumers or What and spending And that also recognizable around The we biggest consumer industry, experiences. titles general really things And the trepidation move or the consumer like kind things is performed our the the first and to new have that they comes FIFA, have kind like Sims like willing they're at less is Madden, down of these very behavior, against typically, things. which money that consumer to times. unknown The well risk brands smaller or of

to and don't over is be ecosystems as outweigh time. company, broader new we however, and the opportunities that definition game. of the -- particular movement but are think At And our brands. spending consumer of what That, move as expectation this is games titles evolution a we are that is but new moment we that time, this will as platforms. a is phase will very we these to continues What in social through strengthen there that are a games what call, games, seeing the for

parts platform as content in our and piece, And Battlefield the businesses coming think FC we a really connect. of us other where the talk last properties hear about be investing building future our play, that platform and the context And Skate in resources think climate. the we're we play, future, games the a in and watch, macroeconomic as drive you watch, portfolio, driving that it's time, across meaningful the create, Apex of We of long-term or than create, certainly, and The Sims about connect. and these money as think to of future that kind present And piece, for over longer-lasting connection will that's years. this about as really our building building business. for think is that we And about

world communities. become of we've take to Wars. Jedi, meaningful That's incredible stories we IP like these and part our brand bigger not to But an unbelievable like and stories, opportunity which balance for just into and online portion our these blockbuster a in some investment in there in we massive see over certainly, experience beyond over that, telling extension credit with have out both done, think And more of a deliberate the of interactive as experience a of in-game the for the We'll more up EA a tools, great Star coming building investment and with year. the that particularly the social that we broadly. you'll will entertain time, then experiences opportunity with of tell time do SPORTS us interactive game against be the focused, world launch away investment and which from go follow investment games will things

[Operator Instructions].

Soff with Bank. the Our line from Benjamin of next comes Deutsche question

wanted a dig in Obviously, year. bit low Just to growth expecting the you're a in had year record guys franchise, on the single-digit you the FC. for and for upcoming little expectations

just understand you go execution if and there drivers or any I challenges the through risks So see the rebrand. to wanted better you that

I'll touch and bit and on more on broadly, forecasting how let we're of Chris the talk little details of a kind this I'll planning.

coming First and sport. sport globally. the the did Cup the and think a as grow fan continuing great the Football World sport we're broadly ecosystem off things to foremost, is an for We year. growing extraordinary around

what I become demonstrative is seeing of think play and culture. that we've is able with football that our in that importance to really to the football fan of fabric that do are franchise we central football really the been you results culture,

years. about most through launch of has seen history and the moment the energy particularly energy belief nature, all prepared successful We've this been for was that business single kind my a fairly consumer in and kind by and this XX certainly the a around that move never of rebrand the we this along been a the certainly in consumer of positive in margin. almost wide as for this rebrand we've and we this belief My remarks, of biggest rebrand, probably talked company as

connect, a how extraordinary actually growth, this we player believe this over what the presents I we think that are us I And for relationships equally year, bullish through and confident we have going broadly, the we that for opportunities what we're as around can continue doing before feel I've the context the talked and talk you it's time. and so year, thinking experience, so Chris we of can opportunities extend football to with create, kind moving a and that we're But move on the game context big around And growth about how can rebrand very do extend through you this of off valuable hand of pretty the of very about experience we business. see our that. to coming play, off how and brands and in in football we're comp, and big that to culture pretty fan watch, that, what's commercial through I'll

Andrew Exactly Actually, the constant grew FIFA. currency, FIFA also seeing on about incredible talked it this Yes. grew full extensively that that's of 'XX we're in for off an Thanks, Andrew. the across as and We double said, all digits. call. year year platforms year XX% for

business And the been has so momentum in the fantastic.

look we be to said, great as focused consecutive really double-digit experience. on of a launch we're Andrew to pleased forward experience As the the years able FC, We're making this X and off business growth. again player into of of the grow

the And Okay. guidance. then just one Great. on

doing income I think my mid-single-digit you midpoint think single-digit your talked growth rate. last if of quarter, right, low growth. math a operating of more the I implies about guide I'm And

it And else? that something all, maybe FX of changed? is And So is what first correct? or

Yes, sure.

through QX, number the we of assumptions terms expectations number QX. planning the a is, we in would and what incredibly of in prepared player all things terms As quite say would QX, I guide delivery our on, unchanged. 'XX that biggest our consistent exceeding is of quite comments. that for own then cases difference we the execution now remain the we engagement a that beginning gave shared and sense we a between in comp of of that And into quality the you had say the we talked in on we games as execution. performance went look fronts an that just is forward remain our with quality assumptions I of and We the about strong had at saw that the we those outlook our live focus in bit higher. and in unchanged And many of 'XX, stable and resilient games, which and services, of planning honestly, and

the comes next from of with Your Securities. question line Thornton Matthew Truist

you of the its of maybe on to Star if Wars Survivor, one, just wondering a that's and the year. color bit little maybe meat relative how Jedi: to that us give title for how faring or a about first more think Andrew Maybe just Chris, can predecessor -- little balance put bone, the

to we've then to quarter. a perk And first seeing up secondly, Lord more bit of you can we what be it Curious year. Rings as And into little looks the head material color a The in mobile on got just like here just it's fiscal Maybe little that think on bit. title broadly, mobile, the how that little full in or starting you're more a stabilize the market 'XX.

Yes.

opportunity certainly, they has it Rings, very, give speaking maybe the On incredible heard weeks piece, strong, very our the going launch title in to games let the of it overjoyed. on I'll playing to and move on the are storytelling get what the On playing of quality of the expect. touch a really team and And as that the we're the to quality it, and to year the in wanted. give a more you proclaiming the you universe. to contender. prepared who course, many be are Star bit people And to of little is again, and made game been Wars bold remarks, Jedi, represents The can X Jedi We color decision Laura we Lord of Chris

think early. It And strong a been Order. certainly launch very Jedi: we're was -- building Fallen and where were we're And we us. for on very I with it's so

I We're would Fallen our against I this in point. market Order. tell in very think expectations days Jedi: you against pacing dynamic, we're at a different and XX but strongly kind it's of

to very that about Star exactly as Andrew performance excited The we're is incredibly said is a a long expect Great. time. title our what add said, to for contribute as thing the This we to we Wars that I'd about launch. financial only

we're in days. so And early

terms the In of title in the game terms at quality the mobile and Lord very again, The we're expectations the it. Rings launch, of of another pleased of around

modest of in implied within launches terms some the our financial consistent our terms what performance of of couple about being the prudent other are of last underlying over guide, we've quarters. with of talked and We titles in

Our the next line Clay of Griffin will from MoffettNathanson. with question come

I had a question lever on Apex. I of not you. just -- kind have I I'm first it noted Correct me that a Overwatch been IP Apex if is experimenting wrong, with its pulled. what collaboration, has has that really crossover

just broader of what those do it going I'm that get maybe the of cons your activities. of as types it with sense to is point guys engagement of and monetization better if pros want to kind you Apex the of just makes but trying I don't kind understand to strategically to of know Apex, relates So terms curious or in road. for just down

Yes.

as heard I think and franchise our in we center testament a a about content as game certainly certainly when industry what think to our us, and business about you've is franchise and model. platform, strongest one Apex this, the in platform, Apex one is we front certainly our QX talk from strongest a of as is of the experience is performance

free-to-play those ability these substantial its and to is is flows. have to unique I engage what nature as and base ebbs flows. a the environment, player are retention. Apex ebbs with there We and think incredible And reengage of And through is

from the what to to I extending don't going in a extending invest the We're IP is it's table. worth, broadly, think platform, And anything both play, continue for off geographically story.

opportunities game of with, IP is kind book identify comic of I that think XX Gen and nature perhaps is to and XX think offer like us player able and it's unfettered. next Z of This and continue grow experiences beyond ago. IP to global to Alpha years stretch that or decade IP over mostly the base expand the the as about we think I today, to the the for that our Gen we're and

of comes Lu Mario Barclays. question Our next from line the with

[indiscernible] if can. is I Mario. on This for Two,

anticipates your you So on that's provide the that flow appreciate fiscal I bottom the that 'XX SPORTS bookings fiscal any is margin FIFA license expecting the mobile down in now embedded on there low color the separately, growth for outlook Are gone? single-digit you within call-out And the benefit slides FC, will has 'XX for can to then EA line title. any that revenue the guide?

question? won't for repeat that big business mobile the go that and part that's revenue the comparable Let piece me address your of in there could of that first you for sort second. I to But that of year-on-year related comparable the for 'XX, can a 'XX, FY a to I'll mobile expectation obviously first first expectations large so so ahead down question, It and in after repeat title, 'XX. then the And here I you be the start will of business missed the next 'XX. if decision our sunset growth the second missed in of Apex the in are is part second a in and terms your performance part question. it. mobile for mobile be and your aggregate year, of

yes. it. Yes, Got

of So are guys license any benefit you EA the to SPORTS line down just expecting FIFA margin that the bottom FC? sort flow for without will

Got it.

which you're part FC. to. Okay. I game missed referring It's the

you So for thank that clarification.

the for about one really we around making our this As transition, and to a we fans player the world. think focused are experience FC, great the on transition

launching that invest our across to well. rebrand going brand, are We behind as

you And year-on-year. being of materially think economics about so it different anticipate total the as the business, I not would

things mobile about from we've $XXX past add decade billion But -- we'd future And how to any we're on wrong thinking like now context focused is is seen some focused I for and like and little just kind the looking development the this which bit matter $XX sense, context I'd beyond the acquisition that make a to didn't have globally, philosophy billion all era on is or with coming massive the in that our were at user industry maybe to of on and clearly, growth cost. things. how grow that is The the we that really over. Mario, at growth -- share mean even was that, -- mobile of year. more mobile our economics significant. what pursued we're industry

a looking our and at and growth. profitable new it we of is we -- How approach management prioritizing around how we're what are kind refined

attention and at focus market So It's But look equal our to in 'XX to profitability our growth to dynamics. Glu, to FY our line in at X area. when FY we and years that we've 'XX on the increased when bottom at business the management our mobile from this profitability. line clearly, approach, means across we business our top just increase. seen top new have easy, look X and look and last and we And specifically, line Xx portfolio

the So we're we're profitable how management things that focused and thinking really in pleased that we under business growing about overall are on our still a way.

one generate to it's contributor meaningful revenue only mobile it's than the so who is connected players on lot higher our our FIFA play and players this play Now just call and such a been outlined already, success, Mobile we FIFA connected which that. meaningful and well in to ecosystem, and look average a a in platform. play things. we've about this talked far HD but strong about communities. When that incredibly mentioned going overall couple FIFA of just a have a daily Andrew role at ecosystem

we overall contribution mobile can that So a in ecosystem. play there's meaningful the that know

time in area our that spending a we're existing The is lot live services. second of

what's which Heroes the that about at when in Rings quite So XX When Galaxy the working, the a Wars: has evaluate that there else over top we Everything last And about The market mobile, generated nearly modeled entrants been in game, really look our we Lord come top of in the long time. X X billion Star and chart at years. $X.X launched we talked has look we after of clearly. has have only earlier lifetime. game you the for the mobile, charts

and growth potential our significant services. we see existing pretty runway a So continued in life

We vs. have Plants Zombies.

Sims. We have

FIFA. we Clearly, Home. Design have We have

Sports. Tap have We

that profitable business growing in really service have We way. strong a a runway that we still, meaningful live see and a again, really and

Sachs. of line next question the from Your with Eric Sheridan comes Goldman

get maybe And deeper possible the longer-term distribution in and into over vertical of XXXX obviously, thinking be go I continues there for in standpoint and back that content even horizontal your distribution factors and big from another how Andrew, against picture. a as from scale, about know the standpoint debate content creation I company some both we of medium the a into back to industry. capital if versus want and are industry thoughts, and lot ask to to scale could a companies the how One, allocation term. about you

Great question.

imagine, As thinking you of a deal might puzzle. spent through energy we this great

have I our modalities as that live disc continue over and to various last digital, disk to years evolve, a digital is disc, done that, to our services disk balance cartridge live you company about we cartridge as forefront expectation from think distribution what at think And -- floppy think the that on the cartridge, service. particularly to navigated to has XX business. of we'll we to we're

core each we to are players in people amount represents about just interact think scale as elements amount talked scale the each which broadly, and our One is there hit scale year an And month. think of our of scale. the with greatest we of we X When million, the industry. the is network, around that remarks, XXX we've in and prepared about and of extraordinary some I

this time and FC brands them course, our don't Sims Speed And our certainly in more of. and ownership The take that bigger of and as is continue over of and level get for invest our so scale, broadly, Battlefield just IP. our we a Need over second with FC, that discovered brands the meaningful football benefit but entertainment that there's portfolio great many optionality of and gives have brand future in area an for The or we've that and most the year industry we Apex biggest scale us is as of what to simply

dramatic The turns But and changes is and content strengths. succeeded other has greatest element our ebbs that as entertainment it And see out. one distribution scale I that and trend a we of that our changes year consumer changes. scale the live that is of look more many the that year and there's we as through out becoming have people. in, through tried. Many our actually our is another part the think we of Not platform as the that's have deliver companies that interactive future to team our continue have of most industry and can important titles more flows to and broadly, do teams of services entertainment I and think business and important, and and

the updates connection ability million around every Sims ability back the XX reinvent way SPORTS as number bring culture. to to ability a Skate Battlefield to what entirely an and platform to million our Apex people, be EA take in our rethink year, take our Skate to ability might new people, of in The launch to XXX games future Our consumer and and

embark for combination gives our that network, are entertainment what There be do I the in really in we of competitive move we that that of entertainment that as the the in who new companies, in a teams IP means invest have very our in as growth that it. organization scale can in are it's do for in forward supporting company. And deeply certainly and more we think inherent a few importantly, opportunities culture can at the of more our we us and, industry marketplace. we success if or as will scale creators. unbelievable that our opportunities kind our it, any, We in And broadly that

Crédit line Stephen with from question Ju next Your comes Suisse. of the

Okay.

seems I to as well. these ecosystem it projects higher. is Andrew, franchises, risk connected really the like hear well about as there you as hence, So is only And as a successful talk develop the a of all around complexity ratcheting franchise level blockbuster higher probably

games, the damage is the think So high and quality in, will not teams times the risk to development lead franchise do you nonsports longer sure make is say, allow to you minimal?

Yes.

I some of is notion think we is it's a the we pretty the of great question, and I which comments definition made as about dramatically. go evolving to a earlier, the think game, back

And development growing live investing in that business our we're XX-plus drives as period. long-term time our we about story. not really or a world build think I service And development of a or think capabilities, the and meaningfully. capabilities, creation of telling supporting for creating where really platform of and characters just so studio the it's that's this It's a development, our a the over year we we investing do think about about how as when capabilities,

time. And really let give on will that more how we them nature the building, long evolve over and just development they yes, build of about time, not the balance, what more their changing will the games. how is but they and really games we But term. it's them launch we're from what and derive build how complexity over we of nature about of changing they the It's it that importantly, value

platform X are but monetize so months, And X games benefits once where exponentially them in are as built taking we over or a longer, weeks X now X years year or the and greater. then games

over launched up our the ourselves do of we how we again FC; invest going what long and is and seeing meaningful in and content out in we set we of provide invest cycle. company, XXXX, And the a what how to players what how our development that. out as future, which that's we're in Apex; part And out decade's a of for to we're be life that of seeing support meaningful teams The to service we return we're Sims, seeing

next line come from Mike the will Hickey of Your with question Benchmark.

me. Just for two

deal It First losers. starting step-up to Second and curious the about you thinking question see how softball Andrew? today, the what AI here, challenges, finding, about industry just one, about consolidation, been you're here. like Already long consolidation, here, think but are development, learnings AI gets over on question, very what think growth intended on the thinking development, winners, brought success you early on the you're doing but opportunities, be implications opportunity have for of you're term. assuming and just acquisition to broader and you guys industry seems proactive the how a curious not success

Yes, great questions.

I'll to hand AI first and on then provide part the of touch over we're a Laura detail to in part, on me doing. the what bit little Let more terms

going continue consolidation, to be turns as happen relates with Microsoft's don't What we first, to and to is So asked question never I that I partner. to Activision get question what's I'm Microsoft. out. you is it almost I am lot. this answer allowed biggest a would recognize sure a it say I as Again, know

I think #X their platform. we're on the publisher

really IP We goes to talent through think compete is in us whether of of our a or scale, deal not So broadly. and the that have and navigate entertainment our to not that to whether continue we future deal through the lead goes to or and our back network, the marketplace future material again, regardless not.

would future a be to If say industry space. love I almost some consolidator have Longer there level. there the scale be meaningful I that's predicting the consolidation? was entertainment in term, at over term, I consolidation? the will broader that long certainty be would Will for an us to

tremendous respect But number the have entertainment. We goes indifferent We incredible not. assets like stands future or as goes we have as whether I through Microsoft it it we we opportunity. feel to platform. incredible with think that to And think strategy. or publisher an have whether I today, of that feel continue an like on we're not, to one the will the we through be that

As that, an we're the beneficiaries be it industry, I greatest one relates think broadly. of probably again, going AI to to AI, of as

create think to AI fans an AI even being our to and I ability It for has incredible what us. teams insatiable currently efficiently. an opportunity think represents audience create players do us doing. to do creators, more for to help that our as in our allow allow actually to And will then do content we're ultimately, to our we more use augment we that world for and entertainment appetite what our it significant about us will things more allow

One of the we that AI. fears things also is cognizant are there are of around very also

think And on, the as of hope we workforce that workforce lot company about and in Of been the we're ensure very people our way the same inside our opportunities the workforce benefit then revolution that And displacement from fear AI the is facilitate the and is of of read the a over has in the we closely talk and to there every term. we industrial in of about. longer that revolution things. agriculture do time a more and increases to near term our meaningful course course, them that represents over opportunity, through and working actually of lot revolution displacement the about something

Of course, from then XX a AI years of and Laura the output little being have there we data owns use, of benefit models. is notion around who having which extraordinary for and of amounts ownership more And the these can the we and data of about that. talk bit will

in keep the and and industry. aren't notion a laws then result of course, what as work of that others our what using and think it's of governments regulators is help in bad be actors bad behavior so technology consumers, about in this to entertainment, fraudulent And our AI AI. pace industry, others the over players, I time help our of will others fans to subjected people in to in -- And lastly, with our our plan with AI actors others up

I we a to areas advantage about scale, Andrew this and technology, given look key can be given in optimistic as with we innovation great at rich have incredibly things been add. business. few years, Mike, actually it at accelerator mean AI. our history next EA unique cornerstone Andrew, incredibly of innovation powerful questions. well. a mentioned, for Yes. framed data. we And you the and are has it, wave I a Clearly, And a competitive framed our as AI AI of our picture see our we There's for

that our differentiation, Inputs from. into models create protecting protected content we create will can data IP for having AI generative

library of We have a rich and assets. history

mind talked And we're keep great have we and that partnerships, how in positioned. about today. also So we really FC like a lot we

who did we really advantage use in data available partnership Again, we marketplace. have open we in able history we going to Hawkeye to our -- -- with and are. our game that not -- open like that there's we're the our that and an are We is a given La be Liga, and public position

next about technology services development And and scale. experience accelerator live player advantage then this truly game as the and in the also think at about players we're for wave thinking we of as of

and you creator game imagine Andrew advantaged the will in development, velocity mentioned So having that and the content would really smart players experiences by greatly text going of is mean them real-time tools. be life-like for content, speech animation, what the they to iteration creative content to have. for

really As we issue we detection, economic to be apply think about going connected ecosystem. as imagery continue these scale, support modeling some be live great detection, to at game to able to that there's grow we're going

excited So about inspired wave and business. it we our and very ahead it, and to years and rich are about pretty history what means optimistic this we're optimistic have new a AI. of the we of Again,

the from come TD line will of Doug question Creutz final Our Cowen. with

Just they that about when how some with you to so the earlier wondered out. time you said that Battlefield and of are come gestate associated big IP great the the could an on they're plays progressing things into giving projects are maybe various franchises that how update if your give

I this very on together we with that's Sweden. think team have had actually the Yes. team. how future in mean of time. date we've leadership, the extraordinary some an this if progressing. announcements, announcements creative say put morning I call I and know don't got or gathering any they're that's What I'd week is we've question, this the bullish to I certainly leadership

extraordinary in franchise. making against in confidence progress the the got that and of confidence that I they're think extraordinary future team we've

I content game. to a not a come platform, we're the just We're live back as building a to decades to come. services And drive platform, building over

first that models, as and across share going we'll communities about part appropriate, And of is progresses. entertain becomes that we move firmly more games the and of this our online to Battlefield. and Battlefield process implanted pillar through be our is more across future. experiences platforms, think share meaningful we to building and And But it as attract that so continue strategy: business And we'll of time massive share a future geographies. across more in time

very, strong of launched question. you the who our And us. an quarter. a biggest having FY course, of IPs all some of one just team And 'XX. we've with on again congratulations was Thank That extraordinary planet. up delivered you you Jedi next an of to to See macro our very in being set uncertainty. for Thank last the blockbuster inside the extraordinary teams face QX us the all for unbelievable

Thank And today's joining. you concludes meeting. all for that

disconnect. now You may