Electronic Arts Inc. (NASDAQ:EA) Q3 2023 Earnings Call Transcript

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Operator: Your next question, you will come from the line of Matthew Cost with Morgan Stanley. Please go ahead.

Matthew Cost: Hi everyone! Thanks taking the questions. Just on some of the commentary about mobile, you’ve talked about some challenges in the mobile game industry and some macro headwinds. I guess you know at this point we’re a fair bit of the way, maybe a year into weakness in the mobile market. Are you seeing a real differentiation in terms of the stickiness and the predictability of your players on the PC and council side versus mobile, that’s question one. And then the second one is just, can you quantify the guidance impact of delaying Star Wars into the next fiscal year? Thanks.

Laura Miele : Hi Matt! On the mobile sickness as you said, we measured certainly by engagement. And I would say it varies across the mobile experiences we have. As we’ve discussed our strategy and how we are thinking about the future, it’s really around how the mobile platform can contribute to the overall connected ecosystems of franchises and what we’re seeing, as in Andrew mentioned, as players play on the go, as Gen Z and Gen Alpha market, you know addressable market expands as every year goes by, it’s going to be very important for us to show up on the right platforms for the right moments and right experiences. So we’re seeing in some of our, as we discussed on FIFA Mobile is we’ve had we have significant engagement and significant acquisitions into this franchise, because of the mobile game that we have.

And that’s how we’re really looking at the incredible assets that we have around casual creator games for our Sims products, our sports games and really dial that up to connect into the ecosystems, because they can be a meaningful contributor of new players, engagement and connection into a high def experience.

Andrew Wilson : Great! And Matt, let me jump in on the question about the guidance. So as we talked about in some form in some of the other questions, the move of Jedi to Q1 is the most material driver of the Q4 guidance revision, And it’s a significant part of the full year revision as well, depending on which wins that you’re taking a looking at the at the guidance numbers. Again, just again reiterating that from a lifetime economic standpoint, the move to Q1 is better for the overall game, the ecosystem and for the brand, and again importantly, given the timing of the original launch in March versus now in April, it doesn’t change our cash flow forecast for Q4 nor for FY’24.

Matthew Cost: Great! Thank you.

Operator: Our final question will come from the line of David Karnovsky with JP Morgan. Please go ahead.

David Karnovsky : Hey! Thank you for fitting me in. Chris, you noted your forward view is based on trends currently or where you exit in Q3, but wondering if maybe you could speak just to the phasing of kind of the economic impact through the fiscal third quarter. Did you see player engagement or monetization kind of change at all? Was there anything specific to call on the holiday period. And they’re just given the news around Apex and Battlefield, any update on Lord of the Rings, that you still plan to launch this game, you know anything you could say around the soft launch? Thank you.

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