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Electronic Arts Inc. (EA+1.00%) has submitted its 10-Q filing for the quarterly period ended December 31, 2024.
The filing reports total net revenue of $1,883 million, a 3% decrease from the same period the previous year. This decrease is attributed to a reduction in sales of extra content for Apex Legends and other titles.
Gross margin for the quarter was 75.8%, an increase of 3 percentage points year-over-year. Operating expenses remained flat at $1,050 million.
Operating income increased by 3% to $377 million compared to the same period the previous year. Net income for the quarter was $293 million, with diluted earnings per share of $1.11.
Net cash provided by operating activities was $1,176 million, a 7% decrease from the previous year. Total cash, cash equivalents, and short-term investments amounted to $3,155 million.
The company repurchased 2.4 million shares of its common stock for $375 million and paid cash dividends of $50 million during the quarter.
The report highlights that live services and other net revenue was $1,284 million, down 3% year-over-year. This segment remains a significant part of EA's business.
EA continues to focus on digital delivery of games, with full game downloads contributing $446 million to net revenue, a 3% increase from the previous year.
Research and development expenses increased by 4% to $606 million for the quarter, driven by increased investment in studios and stock-based compensation.
The company announced a restructuring plan in fiscal year 2024, with expected charges of $125 million to $165 million, aimed at aligning resources with strategic priorities.
EA entered into an accelerated share repurchase agreement on February 5, 2025, to purchase $1.0 billion of its common stock as part of its May 2024 $5.0 billion stock repurchase program.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the Electronic Arts Inc. quarterly 10-Q report dated February 5, 2025. To report an error, please email earnings@qz.com.