Electronic Arts Q3 Earnings Highlights: Stocks fall on cautious…

Electronic Arts Q3 Earnings Highlights: Stocks fall on cautious…

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Video game company Electronic Arts Inc EA released third quarter financial results after market close Tuesday. Here are the key highlights for investors.

What happened: According to data, Electronic Arts posted net sales of $1.88 billion in the third quarter, up from $1.79 billion a year earlier by Benzinga Pro.

The company reported $622 million in gaming revenue, up from $616 million in the same period last year. Live services and other revenue was $1.26 billion versus $1.17 billion year-over-year.

“In Q3, EA delivered high-quality experiences, led to record-breaking engagements in some of our largest franchises, and expanded our player network. While our teams delivered for our players, the current macro environment impacted our third quarter results,” said EA CEO Andrew Wilson said.

Net bookings for the company in the trailing 12 months were $7.15 billion, down 1% year over year.

Live services and other net bookings accounted for 75% of total net bookings on a trailing 12-month basis and were up 4% year-on-year.

The company ended the third quarter with 650 million members of the EA player network.

“FIFA 23” is on track to become the biggest title in the history of the sports games series, with record third quarter engagement, likely due to the 2022 World Cup.

The Sims was also highlighted in financial results, with over 10 million new players added in the fourth quarter and daily, weekly and monthly user counts growing at double digits year over year.

Related link: Do you want to know who will win the 2022 World Cup, this country says a vidoe game that predicted the last two winners

What’s next: Electronic Arts expects fourth-quarter revenue to be between $1.7 billion and $1.8 billion. Diluted earnings per share are expected to be 5 to 20 cents in the fourth quarter.

Net bookings for the fourth quarter are expected to be between $1.675 billion and $1.775 billion. The guidance includes a newly announced postponement of “Star Wars Jedi: Survivor”

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