8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d)

of The Securities Exchange Act of 1934

Date of report (Date of earliest event reported) May 9, 2022

ELECTRONIC ARTS INC.

(Exact Name of Registrant as Specified in Its Charter)

Delaware	0-17948	94-2838567
(State or Other Jurisdiction of Incorporation)	(Commission File Number)	(IRS Employer Identification No.)

209 Redwood Shores Parkway, Redwood City, California	94065-1175
(Address of Principal Executive Offices)	(Zip Code)

(650) 628-1500

(Registrant’s Telephone Number, Including Area Code)

(Former Name or Former Address, if Changed Since Last Report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of Each Class	Trading Symbol	Name of Each Exchange on Which Registered
Common Stock, $0.01 par value	EA	NASDAQ Global Select Market

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933(17 CFR §230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR §240.12b-2).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Item 2.02 Results of Operations and Financial Condition.

On May 10, 2022, Electronic Arts Inc. (“Electronic Arts” or “EA”) issued a press release announcing its financial results for the fourth fiscal quarter and fiscal year ended March 31, 2022. A copy of the press release is attached hereto as Exhibit 99.1.

Neither the information in this Form 8-K nor the information in the press release attached hereto as Exhibit 99.1 shall be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing.

Item 8.01 Other Events.

On May 9, 2022, the Audit Committee of EA, on behalf of EA’s full Board of Directors declared a cash dividend of $0.19 per share of EA’s common stock. The dividend is payable on June 22, 2022 to stockholders of record as of the close of business on June 8, 2022.

Item 9.01 Financial Statements and Exhibits.

(d) Exhibits.

Exhibit No.	Description
99.1	Press release dated May 10, 2022, relating to Electronic Arts Inc.’s financial results for its fiscal fourth quarter and full year ended March 31, 2022.
104	Cover Page Interactive Data File (embedded within the Inline XBRL document).

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

		ELECTRONIC ARTS INC.
Dated: May 10, 2022	By:	/s/ Christopher Suh
		Christopher Suh
		Chief Financial Officer

EX-99.1

Exhibit 99.1

Electronic Arts Reports Q4 and FY22 Financial Results

REDWOOD CITY, CA – May 10, 2022 – Electronic Arts Inc. (NASDAQ: EA) today announced preliminary financial results for its fourth quarter and fiscal year ended March 31, 2022.

“FY22 was a record year, with hundreds of millions of players around the world joining in our games to play, watch, and create with one another,” said Andrew Wilson, CEO of Electronic Arts. “With amazing games built around powerful IP, made by incredibly talented teams, and outstanding engagement in our live services, FY23 is set to be a year of innovation and growth for Electronic Arts.”

“We finished the year with another strong quarter of revenue and profit growth, driven by our live services business which was 85% of our net bookings in Q4,” said CFO Chris Suh. “We have a strong foundation of deeply engaged players, rich IP and a resilient business model, which we will continue to invest in to deliver growth in FY23 and beyond.”

Selected Operating Highlights and Metrics

• Net bookings¹ for fiscal 2022 was $7.515 billion, up 21% year-over-year.

• Live services and other net bookings were up 17% year-over-year and represent 71% of total net bookings in fiscal 2022.

• The EA player network grew 16% year-over-year to more than 580 million unique active accounts.

• During FY22, EA SPORTS^™ FIFA had more than 150 million accounts.

• FIFA Mobile just had the biggest quarter ever with new unique players surging nearly 80% year-over-year.

• Apex Legends^™ Season 12 set records for the highest engagement since launch.

• It Takes Two won over 90 awards during FY22.

Selected Financial Highlights and Metrics

• Net cash provided by operating activities was $444 million for the quarter and $1.899 billion for the fiscal year.

• EA repurchased 2.5 million shares for $325 million during the quarter, bringing the total for the fiscal year to 9.5 million shares for $1.300 billion.

• EA paid a cash dividend of $0.17 per share during the quarter, bringing the total for the fiscal year to $193 million.

Dividend

EA has declared a quarterly cash dividend of $0.19 per share of the Company’s common stock, which represents a 12% increase from prior quarter. The dividend is payable on June 22, 2022 to shareholders of record as of the close of business on June 8, 2022.

Quarterly Financial Highlights

	Three Months Ended March 31,
	2022		2021
(in $ millions, except per share amounts)
Full game		438		250
Live services and other		1,387		1,096
Total net revenue		1,825		1,346
Net income		225		76
Diluted earnings per share		0.80		0.26
Operating cash flow		444		371
Value of shares repurchased		325		325
Number of shares repurchased		2.5		2.4
Cash dividend paid		48		49

The following GAAP-based financial data² and tax rate of 18% was used internally by company management to adjust its GAAP results in order to assess EA’s operating results:

	Three Months Ended March 31, 2022
				GAAP-Based Financial Data
(in $ millions)	Statement of Operations			Acquisition- related expenses			Change in deferred net revenue (online- enabled games)			Stock-based compensation
Total net revenue		1,825			—			(74	)		—
Cost of revenue		419			(45	)		—			(2	)
Gross profit		1,406			45			(74	)		2
Total operating expenses		1,041			(52	)		—			(123	)
Operating income		365			97			(74	)		125
Interest and other income (expense), net		(9	)		—			—			—
Income before provision for income taxes		356			97			(74	)		125
Number of shares used in computation:
Diluted		283

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Fiscal Year Financial Highlights

	Twelve Months Ended March 31,
	2022		2021
(in $ millions)
Full game		1,993		1,613
Live services and other		4,998		4,016
Total net revenue		6,991		5,629
Net income		789		837
Diluted earnings per share		2.76		2.87
Operating cash flow		1,899		1,934
Value of shares repurchased		1,300		729
Number of shares repurchased		9.5		5.6
Cash dividend paid		193		98

The following GAAP-based financial data² and tax rate of 18% was used internally by company management to adjust its GAAP results in order to assess EA’s operating results:

	Twelve Months Ended March 31, 2022
				GAAP-Based Financial Data
(in $ millions)	Statement of Operations			Acquisition- related expenses			Change in deferred net revenue (online- enabled games)		Stock-based compensation
Total net revenue		6,991			—			524		—
Cost of revenue		1,859			(133	)		—		(6	)
Gross profit		5,132			133			524		6
Total operating expenses		4,003			(183	)		—		(522	)
Operating income		1,129			316			524		528
Interest and other income (expense), net		(48	)		—			—		—
Income before provision for income taxes		1,081			316			524		528
Number of shares used in computation:
Diluted		286

Operating Metric

The following is a calculation of our total net bookings¹ for the periods presented:

	Three Months Ended March 31,					Twelve Months Ended March 31,
	2022			2021		2022		2021
(in $ millions)
Total net revenue		1,825			1,346		6,991		5,629
Change in deferred net revenue (online-enabled games)		(74	)		144		524		561
Net bookings		1,751			1,490		7,515		6,190

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Business Outlook as of May 10, 2022

Fiscal Year 2023 Expectations – Ending March 31, 2023

Financial metrics:

• Net revenue is expected to be approximately $7.600 to $7.800 billion.

• Change in deferred net revenue (online-enabled games) is expected to be approximately $300 million.

• Net income is expected to be approximately $793 to $815 million.

• Diluted earnings per share is expected to be approximately $2.79 to $2.87.

• Operating cash flow is expected to be approximately $1.600 to $1.650 billion.

• The Company estimates a share count of 284 million for purposes of calculating fiscal year 2023 diluted earnings per share.

Operational metric:

• Net bookings¹ is expected to be approximately $7.900 to $8.100 billion.

In addition, the following outlook for GAAP-based financial data² and updated long-term tax rate of 19% 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, 2023
					GAAP-Based Financial Data*
	GAAP Guidance Range				Acquisition- related expenses			Change in deferred net revenue (online- enabled games)		Stock-based compensation
(in $ millions)
Total net revenue		7,600	–	7,800		—			300		—
Cost of revenue		2,020	–	2,065		(110	)		—		(5	)
Operating expense		4,200	–	4,315		(140	)		—		(595	)
Income before provision for income taxes		1,321	–	1,358		250			300		600
Net income		793	–	815
Number of shares used in computation:
Diluted shares			284

* The mid-point of the range has been used for purposes of presenting the reconciling items.

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First Quarter Fiscal Year 2023 Expectations – Ending June 30, 2022

Financial metrics:

• Net revenue is expected to be approximately $1.675 to $1.725 billion.

• Change in deferred net revenue (online-enabled games) is expected to be approximately $(475) million.

• Net income is expected to be approximately $216 to $240 million.

• Diluted earnings per share is expected to be approximately $0.76 to $0.85.

• The Company estimates a share count of 283 million for purposes of calculating first quarter fiscal 2023 diluted earnings per share.

Operational metric:

• Net bookings¹ is expected to be approximately $1.200 to $1.250 billion.

In addition, the following outlook for GAAP-based financial data² and updated long-term tax rate of 19% are used internally by EA to adjust our GAAP expectations to assess EA’s operating results and plan for future periods:

	Three Months Ending June 30, 2022
					GAAP-Based Financial Data*
	GAAP Guidance Range				Acquisition- related expenses			Change in deferred net revenue (online- enabled games)			Stock-based compensation
(in $ millions)
Total net revenue		1,675	–	1,725		—			(475	)		—
Cost of revenue		309	–	321		(30	)		—			(2	)
Operating expense			1,013			(40	)		—			(123	)
Income before provision for income taxes		337	–	375		70			(475	)		125
Net income		216	–	240
Number of shares used in computation:
Diluted shares			283

* The mid-point of the range has been used for purposes of presenting the reconciling items.

Conference Call and Supporting Documents

Electronic Arts will host a conference call on May 10, 2022 at 2:00 pm PT (5:00 pm ET) to review its results for the fiscal quarter and year ended March 31, 2022 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 (866) 324-3683 (domestic) or (509) 844-0959 (international), using the conference code 8277667 or via webcast at EA’s IR Website at http://ir.ea.com.

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EA has posted a slide presentation with a financial model of EA’s historical results and guidance 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 May 24, 2022 at 855-859-2056 (domestic) or 404-537-3406 (international) using pin code 8277667. 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 expectations under the heading “Business Outlook as of May 10, 2022” and other information regarding EA’s fiscal 2023 expectations contain forward-looking statements that are subject to change. Statements including words such as “anticipate,” “believe,” “expect,” “intend,” “estimate,” “plan,” “predict,” “seek,” “goal,” “will,” “may,” “likely,” “should,” “could” (and the negative of any of these terms), “future” and similar expressions also identify forward-looking statements. These forward-looking statements are not guarantees of future performance and reflect management’s current expectations. Our actual results could differ materially from those discussed 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 products and services; the Company’s ability to develop and support digital products and services, including managing online security and privacy; outages of our products, services and technological infrastructure; the Company’s ability to manage expenses; the competition in the interactive entertainment industry; governmental regulations; the effectiveness of the Company’s sales and marketing programs; timely development and release of the Company’s products and services; the Company’s ability to realize the anticipated benefits of, and integrate, 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 develop and implement new technology; foreign currency exchange rate fluctuations; economic and geopolitical conditions; changes in our tax rates or tax laws; and other factors described in Part II, Item 1A of Electronic Arts’ latest Quarterly Report on Form 10-Q under the heading “Risk Factors”, as well as in other documents we have filed with the Securities and Exchange Commission, including our Annual Report on Form 10-K for the fiscal year ended March 31, 2021.

These forward-looking statements are current as of May 10, 2022. Electronic Arts assumes no obligation to revise or update any forward-looking statement for any reason, except as required by law. 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 Annual Report on Form 10-K for the fiscal year ended March 31, 2022. Electronic Arts assumes no obligation and does not intend to update these estimates prior to filing its Form 10-K for the fiscal year ended March 31, 2022.

About Electronic Arts

Electronic Arts (NASDAQ: EA) is a global leader in digital interactive entertainment. The Company develops and delivers games, content and online services for Internet-connected consoles, mobile devices and personal computers.

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In fiscal year 2022, EA posted GAAP net revenue of approximately $7 billion. Headquartered in Redwood City, California, EA is recognized for a portfolio of critically acclaimed, high-quality brands such as EA SPORTS^™ FIFA, Battlefield^™, Apex Legends^™, The Sims^™, Madden NFL, Need for Speed^™, Titanfall^™, Plants vs. Zombies^™ and F1^®. More information about EA is available at www.ea.com/news.

EA SPORTS, Battlefield, Need for Speed, Apex Legends, The Sims, Titanfall and Plants vs. Zombies are trademarks of Electronic Arts Inc. STAR WARS ^© & TM 2015 Lucasfilm Ltd. All rights reserved. John Madden, NFL, FIFA and F1 are the property of their respective owners and used with permission.

For additional information, please contact:

Chris Evenden	John Reseburg
Vice President, Investor Relations	Vice President, Global Communications
650-628-0255	650-628-3601
cevenden@ea.com	jreseburg@ea.com

¹ Net bookings is defined as the net amount of products and services sold digitally or sold-in physically in the period. Net bookings is calculated by adding total net revenue to the change in deferred net revenue for online-enabled games.

² For more information about the nature of the GAAP-based financial data, please refer to EA’s Form 10-K for the fiscal year ended March 31, 2021.

7

ELECTRONIC ARTS INC. AND SUBSIDIARIES

Unaudited Condensed Consolidated Statements of Operations

(in $ millions, except per share data)

	Three Months Ended March 31,						Twelve Months Ended March 31,
	2022			2021			2022			2021
Net revenue		1,825			1,346			6,991			5,629
Cost of revenue		419			319			1,859			1,494
Gross profit		1,406			1,027			5,132			4,135
Operating expenses:
Research and development		579			468			2,186			1,778
Marketing and sales		245			196			961			689
General and administrative		165			174			673			592
Amortization and impairment of intangibles		52			14			183			30
Total operating expenses		1,041			852			4,003			3,089
Operating income		365			175			1,129			1,046
Interest and other income (expense), net		(9	)		(10	)		(48	)		(29	)
Income before provision for income taxes		356			165			1,081			1,017
Provision for income taxes		131			89			292			180
Net income		225			76			789			837
Earnings per share
Basic		0.80			0.26			2.78			2.90
Diluted		0.80			0.26			2.76			2.87
Number of shares used in computation
Basic		281			288			284			289
Diluted		283			290			286			292

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Results (in $ millions, except per share data)

The following table reports the variance of the actuals versus our guidance provided on February 1, 2022 for the three months ended March 31, 2022 plus a comparison to the actuals for the three months ended March 31, 2021.

	Three Months Ended March 31,
	2022						2022			2021
	Guidance			Variance			Actuals			Actuals
Net revenue
Net revenue		1,759			66			1,825			1,346
GAAP-based financial data
Change in deferred net revenue (online-enabled games)1		2			(76	)		(74	)		144
Cost of revenue
Cost of revenue		404			15			419			319
GAAP-based financial data
Acquisition-related expenses		(42	)		(3	)		(45	)		(4	)
Stock-based compensation		(1	)		(1	)		(2	)		(1	)
Operating expenses
Operating expenses		1,086			(45	)		1,041			852
GAAP-based financial data
Acquisition-related expenses		(49	)		(3	)		(52	)		(14	)
Stock-based compensation		(126	)		3			(123	)		(108	)
Income before tax
Income before tax		259			97			356			165
GAAP-based financial data
Acquisition-related expenses		91			6			97			18
Change in deferred net revenue (online-enabled games)1		2			(76	)		(74	)		144
Stock-based compensation		127			(2	)		125			109
Tax rate used for management reporting		18	%					18	%		18	%
Earnings per share
Basic		0.46			0.34			0.80			0.26
Diluted		0.46			0.34			0.80			0.26
Number of shares used in computation
Basic		282			(1	)		281			288
Diluted		284			(1	)		283			290

¹ The change in deferred net revenue (online-enabled games) in the unaudited condensed consolidated statements of cash flows does not necessarily equal the change in deferred net revenue (online-enabled games) in the unaudited condensed consolidated statements of operations primarily due to the impact of unrecognized gains/losses on cash flow hedges.

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ELECTRONIC ARTS INC. AND SUBSIDIARIES

Unaudited Condensed Consolidated Balance Sheets

(in $ millions)

	March 31, 2022		March 31, 20212
ASSETS
Current assets:
Cash and cash equivalents		2,732		5,260
Short-term investments		330		1,106
Receivables, net		650		521
Other current assets		439		326
Total current assets		4,151		7,213
Property and equipment, net		550		491
Goodwill		5,387		2,868
Acquisition-related intangibles, net		962		309
Deferred income taxes, net		2,243		2,045
Other assets		507		362
TOTAL ASSETS		13,800		13,288
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable		101		96
Accrued and other current liabilities		1,388		1,341
Deferred net revenue (online-enabled games)		2,024		1,527
Total current liabilities		3,513		2,964
Senior notes, net		1,878		1,876
Income tax obligations		386		315
Deferred income taxes, net		1		43
Other liabilities		397		250
Total liabilities		6,175		5,448
Stockholders’ equity:
Common stock		3		3
Retained earnings		7,607		7,887
Accumulated other comprehensive income (loss)		15		(50	)
Total stockholders’ equity		7,625		7,840
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY		13,800		13,288

² Derived from audited consolidated financial statements.

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ELECTRONIC ARTS INC. AND SUBSIDIARIES

Unaudited Condensed Consolidated Statements of Cash Flows

(in $ millions)

	Three Months Ended March 31,						Twelve Months Ended March 31,
	2022			2021			2022			2021
OPERATING ACTIVITIES
Net income		225			76			789			837
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation, amortization, accretion, and impairment		141			58			486			181
Stock-based compensation		125			109			528			435
Change in assets and liabilities
Receivables, net		313			268			(77	)		(41	)
Other assets		(82	)		(42	)		(157	)		(70	)
Accounts payable		2			(11	)		(7	)		18
Accrued and other liabilities		(14	)		(109	)		169			136
Deferred income taxes, net		(189	)		(125	)		(329	)		(143	)
Deferred net revenue (online-enabled games)		(77	)		147			497			581
Net cash provided by operating activities		444			371			1,899			1,934
INVESTING ACTIVITIES
Capital expenditures		(53	)		(31	)		(188	)		(124	)
Proceeds from maturities and sales of short-term investments		136			1,598			1,329			3,686
Purchase of short-term investments		(116	)		(772	)		(554	)		(2,828	)
Acquisitions, net of cash acquired		—			(1,239	)		(3,391	)		(1,239	)
Net cash used in investing activities		(33	)		(444	)		(2,804	)		(505	)
FINANCING ACTIVITIES
Proceeds from issuance of senior notes, net of issuance costs		—			1,478			—			1,478
Payment of senior notes		—			(600	)		—			(600	)
Proceeds from issuance of common stock		33			30			77			86
Cash dividends paid		(48	)		(49	)		(193	)		(98	)
Cash paid to taxing authorities for shares withheld from employees		(11	)		(8	)		(204	)		(152	)
Repurchase and retirement of common stock		(325	)		(325	)		(1,300	)		(729	)
Net cash provided by (used in) financing activities		(351	)		526			(1,620	)		(15	)
Effect of foreign exchange on cash and cash equivalents		2			35			(3	)		78
Change in cash and cash equivalents		62			488			(2,528	)		1,492
Beginning cash and cash equivalents		2,670			4,772			5,260			3,768
Ending cash and cash equivalents		2,732			5,260			2,732			5,260

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ELECTRONIC ARTS INC. AND SUBSIDIARIES

Unaudited Supplemental Financial Information and Business Metrics

(in $ millions, except per share data)

	Q4			Q1			Q2			Q3			Q4			YOY %
	FY21			FY22			FY22			FY22			FY22			Change
Net revenue
Net revenue		1,346			1,551			1,826			1,789			1,825			36	%
GAAP-based financial data
Change in deferred net revenue (online-enabled games)1		144			(215	)		25			788			(74	)
Gross profit
Gross profit		1,027			1,236			1,332			1,158			1,406			37	%
Gross profit (as a % of net revenue)		76	%		80	%		73	%		65	%		77	%
GAAP-based financial data
Acquisition-related expenses		4			22			22			44			45
Change in deferred net revenue (online-enabled games)1		144			(215	)		25			788			(74	)
Stock-based compensation		1			1			2			1			2
Operating income
Operating income		175			322			340			102			365			109	%
Operating income (as a % of net revenue)		13	%		21	%		19	%		6	%		20	%
GAAP-based financial data
Acquisition-related expenses		18			62			52			105			97
Change in deferred net revenue (online-enabled games)1		144			(215	)		25			788			(74	)
Stock-based compensation		109			125			149			129			125
Net income
Net income		76			204			294			66			225			196	%
Net income (as a % of net revenue)		6	%		13	%		16	%		4	%		12	%
GAAP-based financial data
Acquisition-related expenses		18			62			52			105			97
Change in deferred net revenue (online-enabled games)1		144			(215	)		25			788			(74	)
Stock-based compensation		109			125			149			129			125
Tax rate used for management reporting		18	%		18	%		18	%		18	%		18	%
Diluted earnings per share		0.26			0.71			1.02			0.23			0.80			208	%
Number of shares used in computation
Basic		288			286			285			283			281
Diluted		290			289			287			285			283

¹ The change in deferred net revenue (online-enabled games) in the unaudited condensed consolidated statements of cash flows does not necessarily equal the change in deferred net revenue (online-enabled games) in the unaudited condensed consolidated statements of operations primarily due to the impact of unrecognized gains/losses on cash flow hedges.

12

ELECTRONIC ARTS INC. AND SUBSIDIARIES

Unaudited Supplemental Financial Information and Business Metrics

(in $ millions)

	Q4 FY21			Q1 FY22			Q2 FY22			Q3 FY22			Q4 FY22			YOY% Change
QUARTERLY NET REVENUE PRESENTATIONS
Net revenue by composition
Full game downloads		185			233			337			400			312			69	%
Packaged goods		65			89			280			216			126			94	%
Full game		250			322			617			616			438			75	%
Live services and other		1,096			1,229			1,209			1,173			1,387			27	%
Total net revenue		1,346			1,551			1,826			1,789			1,825			36	%
Full game		19	%		21	%		34	%		34	%		24	%
Live services and other		81	%		79	%		66	%		66	%		76	%
Total net revenue %		100	%		100	%		100	%		100	%		100	%
GAAP-based financial data
Full game downloads		(19	)		(5	)		35			179			(103	)
Packaged goods		(44	)		(35	)		44			105			(68	)
Full game		(63	)		(40	)		79			284			(171	)
Live services and other		207			(175	)		(54	)		504			97
Total change in deferred net revenue (online-enabled games) by composition1		144			(215	)		25			788			(74	)
Net revenue by platform
Console		879			972			1,198			1,138			1,092			24	%
PC & Other		295			361			377			374			420			42	%
Mobile		172			218			251			277			313			82	%
Total net revenue		1,346			1,551			1,826			1,789			1,825			36	%
GAAP-based financial data
Console		71			(278	)		(29	)		608			(86	)
PC & Other		51			9			26			137			3
Mobile		22			54			28			43			9
Total change in deferred net revenue (online-enabled games) by platform1		144			(215	)		25			788			(74	)

¹ The change in deferred net revenue (online-enabled games) in the unaudited condensed consolidated statements of cash flows does not necessarily equal the change in deferred net revenue (online-enabled games) in the unaudited condensed consolidated statements of operations primarily due to the impact of unrecognized gains/losses on cash flow hedges.

13

ELECTRONIC ARTS INC. AND SUBSIDIARIES

Unaudited Supplemental Financial Information and Business Metrics

(in $ millions)

	Q4 FY21		Q1 FY22			Q2 FY22		Q3 FY22		Q4 FY22		YOY % Change
CASH FLOW DATA
Operating cash flow		371		(143	)		64		1,534		444		20	%
Operating cash flow - TTM		1,934		1,413			1,416		1,826		1,899		(2	%)
Capital expenditures		31		44			43		48		53		71	%
Capital expenditures - TTM		124		130			148		166		188		52	%
Repurchase and retirement of common stock		325		325			325		325		325		—
Cash dividends paid		49		49			48		48		48		(2	%)
DEPRECIATION
Depreciation expense		38		40			39		41		42		11	%
BALANCE SHEET DATA
Cash and cash equivalents		5,260		2,838			1,630		2,670		2,732
Short-term investments		1,106		881			342		346		330
Cash and cash equivalents, and short-term investments		6,366		3,719			1,972		3,016		3,062		(52	%)
Receivables, net		521		557			1,031		965		650		25	%
STOCK-BASED COMPENSATION
Cost of revenue		1		1			2		1		2
Research and development		71		85			101		86		84
Marketing and sales		12		12			15		14		13
General and administrative		25		27			31		28		26
Total stock-based compensation		109		125			149		129		125

14

XML

Document and Entity Information	May 09, 2022
Cover [Abstract]
Amendment Flag	false
Entity Central Index Key	0000712515
Document Type	8-K
Document Period End Date	May 09, 2022
Entity Registrant Name	ELECTRONIC ARTS INC.
Entity Incorporation State Country Code	DE
Entity File Number	0-17948
Entity Tax Identification Number	94-2838567
Entity Address, Address Line One	209 Redwood Shores Parkway
Entity Address, City or Town	Redwood City
Entity Address, State or Province	CA
Entity Address, Postal Zip Code	94065-1175
City Area Code	(650)
Local Phone Number	628-1500
Written Communications	false
Soliciting Material	false
Pre Commencement Tender Offer	false
Pre Commencement Issuer Tender Offer	false
Security 12b Title	Common Stock, $0.01 par value
Trading Symbol	EA
Security Exchange Name	NASDAQ
Entity Emerging Growth Company	false