Quarterly performance
Franchise strength and opportunity
During the third quarter, Electronic Arts recorded a 5% growth in live services and other revenue, which makes up the majority of its top line. The company saw strong performances from EA SPORTS FC and EA SPORTS Madden NFL in terms of engagement. FC Mobile saw a 29% growth in daily active users while FC Online witnessed a 20% rise in new players versus the year-ago quarter.
On its quarterly conference call, EA said it expects to drive compounding growth across its core franchises, fueled by player acquisition, engagement and retention. It believes the strength in live services will enable this growth on franchises through the future. The company also sees meaningful opportunity for growth through new releases.
EA plans to keep on investing meaningfully in new IP to grow its future pipeline and it believes there is significant opportunity to be unlocked in subscription going forward. The company also believes there is an opportunity to harness the power of its collective sports communities through its most popular EA SPORTS brand to create a ‘metaverse’ at some point in the future.
Outlook
For the fourth quarter of 2024, Electronic Arts expects net revenue of $1.62-1.92 billion. Net income is expected to be $54-183 million and EPS is expected to be $0.20-$0.68. Net bookings are projected to be $1.62-1.92 billion.
For the full year of 2024, the company expects net revenues to range between $7.40-7.70 billion. Net income is estimated to be $1.14-1.27 billion while EPS is projected to be $4.21-4.68. Net bookings is expected to be $7.38-7.68 billion.