Andrew Linden
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EA earnings

EA beats the estimates and skyrocket after hours. Here is what they reported:

Q4 EPS $0.50 Adj. vs. $0.42 Est.; Q4 Revs. $924M vs. $889M Est.

Selected Operating Highlights and Metrics:

  • EA was the #1 publisher on PlayStation®4 and Xbox One consoles in the Western World for fiscal year 2016 based on available sources and EA estimates.
  • EA was also the #1 most downloaded mobile game publisher in calendar year 2015, according to App Annie.
  • More than 54 million unique players engaged with our EA SPORTS™ console titles during fiscal year 2016, up 65% from last year.
  • Star Wars™ Battlefront expanded our player base as more than 15% of Star Wars™ Battlefront players were new to the EA ecosystem.
  • In Q4, there were 9.4 million unique players across EA’s Battlefield™ titles.
  • The Sims™ 4 player base grew by nearly two-thirds throughout the fiscal year, and The Sims FreePlay on mobile reached 200 million installs life-to-date.
  • Madden NFL Mobile monthly active players grew 30% in Q4 over the same quarter last year.
  • Star Wars™ Battlefront, a successful new franchise, sold in more than 14 million units in fiscal year 2016.

Selected Financial Highlights:

  • For fiscal year 2016, GAAP net revenue was $4.396 billion of which 55% or $2.409 billion was digital, gross margin was 69.2%, operating margin was 20.4%, and GAAP diluted earnings per share was $3.50. During fiscal 2016, EA recorded a $453 million credit related to the reversal of a valuation allowance reserve on certain deferred tax assets. This credit increased our diluted GAAP earnings per share for fiscal 2016 by $1.37 per share to $3.50, but had no effect on non-GAAP earnings or cash flow.
  • For fiscal year 2016, non-GAAP net revenue was $4.566 billion of which 55% or $2.531 billion was digital, non-GAAP gross margin was 71.4%, non-GAAP operating margin was 28.5%, non-GAAP diluted earnings per share was $3.14 and operating cash flow was $1.223 billion. All of these are fiscal year records.
  • For the quarter, non-GAAP net revenue of $924 million was above guidance of $875 million. Diluted non-GAAP earnings per share of $0.50 was above guidance of $0.40.
  • EA’s FIFA, Madden NFL and Hockey Ultimate Team™ live services continued to perform well in Q4 as measured by non-GAAP net revenue, collectively up 26% year-over-year and up 33% on a constant currency basis.
  • EA repurchased 15.7 million shares in FY16 for $1.0 billion which includes 9.9 million shares in Q4 for $634 million.

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