Electronic Arts boosts profits despite expected bookings slowdown
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Electronic Arts (NASDAQ:EA) is 0.9% lower after fiscal fourth-quarter earnings where it narrowly missed bookings forecasts but wrapped up a record year where it grew them at 20%-plus.
For Q4, net bookings rose 17.5% to $1.75 billion, about $20 million lighter than expected.
Live services made up 85% of Q4's net bookings, notes Chief Financial Officer Chris Suh: âWe 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.â
In fiscal 2022, live services and other net bookings rose 17% and made up 71% of the total.
Gross profit rose nearly 37%, to $1.41 billion. With slower growth in operating expenses, operating income rose to $365 million from $175 million - and improved provisions for income taxes meant net income rose to $225 million from $76 million.
Net cash from operations was $44 million; that brought the full-year total to $1.899 billion.
The company has raised its quarterly dividend 12%, to $0.19/share.
For its fiscal first quarter, ending June 30, it's guiding to net bookings of $1.2 billion-$1.25 billion, light of expectations for $1.42 billion, and net income of $216 million-$240 million - marking EPS of 76-85 cents per share.
For fiscal 2023, it's expecting net bookings of $7.9 billion-$8.1 billion, vs. expectations for $8.05 billion, and EPS of $2.79-$2.87. It sees operating cash flow for the year of $1.6 billion-$1.65 billion.
Conference call to come at 5 p.m. ET.