news/EA/2023.01.31/Electronic Arts Reports Q3 FY23 Financial Results.txt

Electronic Arts Inc. (NASDAQ:EA) today announced preliminary financial results for its third fiscal quarter ended December 31, 2022.

“In Q3, EA delivered high-quality experiences, driving record engagement across some of our biggest franchises and growing our player network. While our teams delivered for our players, the current macro environment impacted Q3 results,” said Andrew Wilson, CEO of Electronic Arts. “As we navigate the short-term, we're focused on building for the long-term and remain confident about our future. With amazing talent, proven IP and growing player network, EA is operating from a position of strength.”

“As market uncertainty mounted during the quarter, we took measures to protect underlying profitability,” said Chris Suh, CFO. “We are prioritizing the player experience, directing investment to where it can have the most positive impact for our players and on growth.”

Selected Operating Highlights and Metrics

Selected Financial Highlights and Metrics

Dividend

EA has declared a quarterly cash dividend of $0.19 per share of the Company’s common stock. The dividend is payable on March 22, 2023 to shareholders of record as of the close of business on March 1, 2023.

Quarterly Financial Highlights

2022

2021

622

616

1,259

 

1,173

 

1,881

 

1,789

 

204

 

66

 

0.73

 

0.23

 

1,123

 

1,534

 

325

 

325

 

2.6

 

2.4

 

The following GAAP-based financial data2 and tax rate of 19% was used internally by company management to adjust its GAAP results in order to assess EA’s operating results:

Statement of

Operations

Acquisition-

related

expenses

Change in deferred net

revenue (online-

enabled games)

Stock-based

compensation

1,881

 

-

 

461

-

 

568

 

(26

)

-

 

(2

)

1,313

 

26

 

461

 

2

 

1,024

 

(50

)

-

 

(139

)

289

 

76

 

461

 

141

 

(7

)

-

 

-

 

-

 

282

 

76

 

461

 

141

 

278

 

Trailing Twelve Months Financial Highlights

2022

2021

2,003

1,805

5,374

 

4,707

 

7,377

 

6,512

 

1,039

 

640

 

1,377

 

1,826

 

1,295

 

1,300

 

10.2

 

9.4

 

The following GAAP-based financial data2 was used internally by company management to adjust its GAAP results in order to assess EA’s operating results. During fiscal 2022, management used a tax rate of 18% and in fiscal 2023 a tax rate of 19%.

Statement of

Operations

Acquisition-

related

expenses

Change in deferred net

revenue (online-

enabledgames)

Stock-based

compensation

7,377

 

-

 

(231

)

-

 

1,763

 

(140

)

-

 

(7

)

5,614

 

140

 

(231

)

7

 

4,092

 

(184

)

-

 

(524

)

1,522

 

324

 

(231

)

531

 

(21

)

-

 

-

 

-

 

1,501

 

324

 

(231

)

531

 

Operating Metric

The following is a calculation of our total net bookings1 for the periods presented:

 

 

2022

 

2021

 

2022

 

2021

1,881

1,789

7,377

6,512

461

 

788

 

(231

)

742

 

2,342

 

2,577

 

7,146

 

7,254

 

Business Outlook as of January 31, 2023

EA announced a new release date for Star Wars Jedi: Survivor, which will launch globally on April 28th. More information is provided on EA’s blog at www.ea.com/news.

Fourth Quarter Fiscal Year 2023 Expectations – Ending March 31, 2023

Financial metrics:

Operational metric:

In addition, the following outlook for GAAP-based financial data2 and updated long-term tax rate of 19% are used internally by EA to adjust GAAP expectations to assess EA’s operating results and plan for future periods:

GAAP

Guidance

Range

Acquisition-

related

expenses

Change in deferred net

revenue (online-

enabled games)

Stock-based

compensation

-

 

(25

)

-

 

(25

)

-

 

-

 

(35

)

-

 

(140

)

60

 

(25

)

140

 

277

Fiscal Year 2023 Expectations – Ending March 31, 2023

Financial metrics:

Operational metric:

In addition, the following outlook for GAAP-based financial data2 and updated long-term tax rate of 19% are used internally by EA to adjust GAAP expectations to assess EA’s operating results and plan for future periods:

GAAP

Guidance

Range

Acquisition-

related

expenses

Change in deferred net

revenue (online-

enabled games)

Stock-based

compensation

-

 

(182

)

-

 

(120

)

-

 

(5

)

(167

)

-

 

(541

)

287

 

(182

)

546

 

279

Conference Call and Supporting Documents

Electronic Arts will host a conference call on January 31, 2023 at 2:00 pm PT (5:00 pm ET) to review its results for the third quarter ended December 31, 2022 and its outlook for the future. During the course of the call, Electronic Arts may disclose material developments affecting its business and/or financial performance. Listeners may access the conference call live through the following dial-in number (888) 330-2446 (domestic) or (240) 789-2732 (international), using the conference code 5939891 or via webcast at EA’s IR Website at http://ir.ea.com.

EA has posted a slide presentation with a financial model of EA’s historical results and guidance on EA’s IR Website. EA will also post the prepared remarks and a transcript from the conference call on EA’s IR Website.

A dial-in replay of the conference call will be available until February 15, 2023 at (800) 770-2030 (domestic) or (647) 362-9199 (international) using pin code 5939891. An audio webcast replay of the conference call will be available for one year on EA’s IR Website.

Forward-Looking Statements

Some statements set forth in this release, including the information relating to EA’s expectations under the heading “Business Outlook as of January 31, 2023” and other information regarding EA's expectations contain forward-looking statements that are subject to change. Statements including words such as “anticipate,” “believe,” “expect,” “intend,” “estimate,” “plan,” “predict,” “seek,” “goal,” “will,” “may,” “likely,” “should,” “could” (and the negative of any of these terms), “future” and similar expressions also identify forward-looking statements. These forward-looking statements are not guarantees of future performance and reflect management’s current expectations. Our actual results could differ materially from those discussed in the forward-looking statements.

Some of the factors which could cause the Company’s results to differ materially from its expectations include the following: sales of the Company’s products and services; the Company’s ability to develop and support digital products and services, including managing online security and privacy; outages of our products, services and technological infrastructure; the Company’s ability to manage expenses; the competition in the interactive entertainment industry; governmental regulations; the effectiveness of the Company’s sales and marketing programs; timely development and release of the Company’s products and services; the Company’s ability to realize the anticipated benefits of, and integrate, acquisitions; the consumer demand for, and the availability of an adequate supply of console hardware units; the Company’s ability to predict consumer preferences among competing platforms; the Company’s ability to develop and implement new technology; foreign currency exchange rate fluctuations; economic and geopolitical conditions; changes in our tax rates or tax laws; and other factors described in Part II, Item 1A of Electronic Arts’ latest Quarterly Report on Form 10-Q under the heading “Risk Factors”, as well as in other documents we have filed with the Securities and Exchange Commission, including our Annual Report on Form 10-K for the fiscal year ended March 31, 2022.

These forward-looking statements are current as of January 31, 2023. Electronic Arts assumes no obligation to revise or update any forward-looking statement for any reason, except as required by law. In addition, the preliminary financial results set forth in this release are estimates based on information currently available to Electronic Arts.

While Electronic Arts believes these estimates are meaningful, they could differ from the actual amounts that Electronic Arts ultimately reports in its Quarterly Report on Form 10-Q for the fiscal quarter ended December 31, 2022. Electronic Arts assumes no obligation and does not intend to update these estimates prior to filing its Form 10-Q for the fiscal quarter ended December 31, 2022.

About Electronic Arts

Electronic Arts (NASDAQ:EA) is a global leader in digital interactive entertainment. The Company develops and delivers games, content and online services for Internet-connected consoles, mobile devices and personal computers.

In fiscal year 2022, EA posted GAAP net revenue of approximately $7 billion. Headquartered in Redwood City, California, EA is recognized for a portfolio of critically acclaimed, high-quality brands such as EA SPORTS™ FIFA, Battlefield™, Apex Legends™, The Sims™, Madden NFL, Need for Speed™, Titanfall™, Plants vs. Zombies™ and F1®. More information about EA is available at www.ea.com/news.

EA SPORTS, Battlefield, Need for Speed, Apex Legends, The Sims, Titanfall and Plants vs. Zombies are trademarks of Electronic Arts Inc. STAR WARS © & TM 2015 Lucasfilm Ltd. All rights reserved. John Madden, NFL, FIFA and F1 are the property of their respective owners and used with permission.

1 Net bookings is defined as the net amount of products and services sold digitally or sold-in physically in the period. Net bookings is calculated by adding total net revenue to the change in deferred net revenue for online-enabled games.
2 For more information about the nature of the GAAP-based financial data, please refer to EA’s Form 10-K for the fiscal year ended March 31, 2022.

ELECTRONIC ARTS INC. AND SUBSIDIARIES

Unaudited Condensed Consolidated Statements of Operations

(in $ millions, except per share data)

 

 

 

 

 

 

 

 

 

Three Months Ended

December 31,

 

Nine Months Ended

December 31,

 

 

 

2022

 

2021

 

2022

 

2021

Net revenue

1,881

 

 

1,789

 

 

5,552

 

 

5,166

 

Cost of revenue

568

 

 

631

 

 

1,344

 

 

1,440

 

Gross profit

1,313

 

 

1,158

 

 

4,208

 

 

3,726

 

Operating expenses:

 

 

 

 

 

 

 

Research and development

556

 

 

539

 

 

1,693

 

 

1,607

 

Marketing and sales

256

 

 

293

 

 

723

 

 

716

 

General and administrative

162

 

 

163

 

 

503

 

 

508

 

Amortization and impairment of intangibles

50

 

 

61

 

 

132

 

 

131

 

Total operating expenses

1,024

 

 

1,056

 

 

3,051

 

 

2,962

 

Operating income

289

 

 

102

 

 

1,157

 

 

764

 

Interest and other income (expense), net

(7

)

 

(11

)

 

(12

)

 

(39

)

Income before provision for income taxes

282

 

 

91

 

 

1,145

 

 

725

 

Provision for income taxes

78

 

 

25

 

 

331

 

 

161

 

Net income

204

 

 

66

 

 

814

 

 

564

 

Earnings per share

 

 

 

 

 

 

 

Basic

0.74

 

 

0.23

 

 

2.93

 

 

1.99

 

Diluted

0.73

 

 

0.23

 

 

2.92

 

 

1.97

 

Number of shares used in computation

 

 

 

 

 

 

 

Basic

276

 

 

283

 

 

278

 

 

284

 

Diluted

278

 

 

285

 

 

279

 

 

287

 

Results (in $ millions, except per share data)

The following table reports the variance of the actuals versus our guidance provided on November 1, 2022 for the three months ended December 31, 2022 plus a comparison to the actuals for the three months ended December 31, 2021.

 

Three Months Ended December 31,

 

2022 Guidance

(Mid-Point)

 

 

 

2022

Actuals

 

2021

Actuals

 

 

Variance

 

 

Net revenue

 

 

 

 

 

 

 

Net revenue

1,875

 

 

6

 

 

1,881

 

 

1,789

 

GAAP-based financial data

 

 

 

 

 

 

 

Change in deferred net revenue (online-enabled games)1

600

 

 

(139

)

 

461

 

 

788

 

Cost of revenue

 

 

 

 

 

 

 

Cost of revenue

570

 

 

(2

)

 

568

 

 

631

 

GAAP-based financial data

 

 

 

 

 

 

 

Acquisition-related expenses

(30

)

 

4

 

 

(26

)

 

(44

)

Stock-based compensation

—

 

 

(2

)

 

(2

)

 

(1

)

Operating expenses

 

 

 

 

 

 

 

Operating expenses

1,085

 

 

(61

)

 

1,024

 

 

1,056

 

GAAP-based financial data

 

 

 

 

 

 

 

Acquisition-related expenses

(35

)

 

(15

)

 

(50

)

 

(61

)

Stock-based compensation

(150

)

 

11

 

 

(139

)

 

(128

)

Income before tax

 

 

 

 

 

 

 

Income before tax

219

 

 

63

 

 

282

 

 

91

 

GAAP-based financial data

 

 

 

 

 

 

 

Acquisition-related expenses

65

 

 

11

 

 

76

 

 

105

 

Change in deferred net revenue (online-enabled games)1

600

 

 

(139

)

 

461

 

 

788

 

Stock-based compensation

150

 

 

(9

)

 

141

 

 

129

 

Tax rate used for management reporting

19

%

 

 

 

19

%

 

18

%

Earnings per share

 

 

 

 

 

 

 

Basic

0.51

 

 

0.23

 

 

0.74

 

 

0.23

 

Diluted

0.51

 

 

0.22

 

 

0.73

 

 

0.23

 

Number of shares used in computation

 

 

 

 

 

 

 

Basic

277

 

 

(1

)

 

276

 

 

283

 

Diluted

279

 

 

(1

)

 

278

 

 

285

 

1

 

The change in deferred net revenue (online-enabled games) in the unaudited condensed consolidated statements of cash flows does not necessarily equal the change in deferred net revenue (online-enabled games) in the unaudited condensed consolidated statements of operations primarily due to the impact of unrecognized gains/losses on cash flow hedges.

ELECTRONIC ARTS INC. AND SUBSIDIARIES

Unaudited Condensed Consolidated Balance Sheets

(in $ millions)

 

 

 

 

 

December 31, 2022

 

March 31, 20222

ASSETS

 

 

 

Current assets:

 

 

 

Cash and cash equivalents

2,202

 

 

2,732

Short-term investments

351

 

 

330

 

Receivables, net

836

 

 

650

 

Other current assets

453

 

 

439

 

Total current assets

3,842

 

 

4,151

 

Property and equipment, net

553

 

 

550

 

Goodwill

5,380

 

 

5,387

 

Acquisition-related intangibles, net

735

 

 

962

 

Deferred income taxes, net

2,443

 

 

2,243

 

Other assets

517

 

 

507

 

TOTAL ASSETS

13,470

 

 

13,800

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

 

 

 

Current liabilities:

 

 

 

Accounts payable

62

 

 

101

 

Accrued and other current liabilities

1,243

 

 

1,388

 

Deferred net revenue (online-enabled games)

1,808

 

 

2,024

 

Total current liabilities

3,113

 

 

3,513

 

Senior notes, net

1,879

 

 

1,878

 

Income tax obligations

525

 

 

386

 

Deferred income taxes, net

1

 

 

1

 

Other liabilities

401

 

 

397

 

Total liabilities

5,919

 

 

6,175

 

 

 

 

 

Stockholders’ equity:

 

 

 

Common stock

3

 

 

3

 

Retained earnings

7,585

 

 

7,607

 

Accumulated other comprehensive income (loss)

(37

)

 

15

 

Total stockholders’ equity

7,551

 

 

7,625

 

TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY

13,470

 

 

13,800

 

2

 

Derived from audited consolidated financial statements.

ELECTRONIC ARTS INC. AND SUBSIDIARIES

Unaudited Condensed Consolidated Statements of Cash Flows

(in $ millions)

 

 

 

 

 

 

 

 

 

Three Months Ended

December 31,

 

Nine Months Ended

December 31,

 

2022

 

2021

 

2022

 

2021

OPERATING ACTIVITIES

 

 

 

 

 

 

 

Net income

204

 

 

66

 

 

814

 

 

564

 

Adjustments to reconcile net income to net cash provided by operating activities:

 

 

 

 

 

 

 

Depreciation, amortization, accretion and impairment

122

 

 

146

 

 

363

 

 

345

 

Stock-based compensation

141

 

 

129

 

 

406

 

 

403

 

Change in assets and liabilities

 

 

 

 

 

 

 

Receivables, net

90

 

 

56

 

 

(186

)

 

(390

)

Other assets

(28

)

 

(24

)

 

(53

)

 

(75

)

Accounts payable

(74

)

 

(51

)

 

(21

)

 

(9

)

Accrued and other liabilities

297

 

 

433

 

 

28

 

 

183

 

Deferred income taxes, net

(47

)

 

—

 

 

(203

)

 

(140

)

Deferred net revenue (online-enabled games)

418

 

 

779

 

 

(215

)

 

574

 

Net cash provided by operating activities

1,123

 

 

1,534

 

 

933

 

 

1,455

 

 

 

 

 

 

 

 

 

INVESTING ACTIVITIES

 

 

 

 

 

 

 

Capital expenditures

(48

)

 

(48

)

 

(160

)

 

(135

)

Proceeds from maturities and sales of short-term investments

77

 

 

65

 

 

243

 

 

1,193

 

Purchase of short-term investments

(90

)

 

(69

)

 

(263

)

 

(438

)

Acquisitions, net of cash acquired

—

 

 

3

 

 

—

 

 

(3,391

)

Net cash used in investing activities

(61

)

 

(49

)

 

(180

)

 

(2,771

)

 

 

 

 

 

 

 

 

FINANCING ACTIVITIES

 

 

 

 

 

 

 

Proceeds from issuance of common stock

3

 

 

3

 

 

47

 

 

44

 

Cash dividends paid

(52

)

 

(48

)

 

(158

)

 

(145

)

Cash paid to taxing authorities for shares withheld from employees

(44

)

 

(72

)

 

(161

)

 

(193

)

Repurchase and retirement of common stock

(325

)

 

(325

)

 

(970

)

 

(975

)

Net cash used in financing activities

(418

)

 

(442

)

 

(1,242

)

 

(1,269

)

 

 

 

 

 

 

 

 

Effect of foreign exchange on cash and cash equivalents

19

 

 

(3

)

 

(41

)

 

(5

)

Change in cash and cash equivalents

663

 

 

1,040

 

 

(530

)

 

(2,590

)

Beginning cash and cash equivalents

1,539

 

 

1,630

 

 

2,732

 

 

5,260

 

Ending cash and cash equivalents

2,202

 

 

2,670

 

 

2,202

 

 

2,670

 

ELECTRONIC ARTS INC. AND SUBSIDIARIES

Unaudited Supplemental Financial Information and Business Metrics

(in $ millions, except per share data)

 

 

 

 

 

 

 

 

 

 

 

 

 

Q3

 

Q4

 

Q1

 

Q2

 

Q3

 

YOY %

 

FY22

 

FY22

 

FY23

 

FY23

 

FY23

 

Change

Net revenue

 

 

 

 

 

 

 

 

 

 

 

Net revenue

1,789

 

 

1,825

 

 

1,767

 

 

1,904

 

 

1,881

 

 

5

%

GAAP-based financial data

 

 

 

 

 

 

 

 

 

 

 

Change in deferred net revenue (online-enabled games)1

788

 

 

(74

)

 

(468

)

 

(150

)

 

461

 

 

 

Gross profit

 

 

 

 

 

 

 

 

 

 

 

Gross profit

1,158

 

 

1,406

 

 

1,453

 

 

1,442

 

 

1,313

 

 

13

%

Gross profit (as a % of net revenue)

65

%

 

77

%

 

82

%

 

76

%

 

70

%

 

 

GAAP-based financial data

 

 

 

 

 

 

 

 

 

 

 

Acquisition-related expenses

44

 

 

45

 

 

30

 

 

39

 

 

26

 

 

 

Change in deferred net revenue (online-enabled games)1

788

 

 

(74

)

 

(468

)

 

(150

)

 

461

 

 

 

Stock-based compensation

1

 

 

2

 

 

2

 

 

1

 

 

2

 

 

 

Operating income

 

 

 

 

 

 

 

 

 

 

 

Operating income

102

 

 

365

 

 

441

 

 

427

 

 

289

 

 

183

%

Operating income (as a % of net revenue)

6

%

 

20

%

 

25

%

 

22

%

 

15

%

 

 

GAAP-based financial data

 

 

 

 

 

 

 

 

 

 

 

Acquisition-related expenses

105

 

 

97

 

 

69

 

 

82

 

 

76

 

 

 

Change in deferred net revenue (online-enabled games)1

788

 

 

(74

)

 

(468

)

 

(150

)

 

461

 

 

 

Stock-based compensation

129

 

 

125

 

 

125

 

 

140

 

 

141

 

 

 

Net income

 

 

 

 

 

 

 

 

 

 

 

Net income

66

 

 

225

 

 

311

 

 

299

 

 

204

 

 

209

%

Net income (as a % of net revenue)

4

%

 

12

%

 

18

%

 

16

%

 

11

%

 

 

GAAP-based financial data

 

 

 

 

 

 

 

 

 

 

 

Acquisition-related expenses

105

 

 

97

 

 

69

 

 

82

 

 

76

 

 

 

Change in deferred net revenue (online-enabled games)1

788

 

 

(74

)

 

(468

)

 

(150

)

 

461

 

 

 

Stock-based compensation

129

 

 

125

 

 

125

 

 

140

 

 

141

 

 

 

Tax rate used for management reporting

18

%

 

18

%

 

19

%

 

19

%

 

19

%

 

 

Diluted earnings per share

0.23

 

 

0.80

 

 

1.11

 

 

1.07

 

 

0.73

 

 

217

%

Number of shares used in computation

 

 

 

 

 

 

 

 

 

 

 

Basic

283

 

 

281

 

 

279

 

 

278

 

 

276

 

 

 

Diluted

285

 

 

283

 

 

281

 

 

279

 

 

278

 

 

 

1

 

The change in deferred net revenue (online-enabled games) in the unaudited condensed consolidated statements of cash flows does not necessarily equal the change in deferred net revenue (online-enabled games) in the unaudited condensed consolidated statements of operations primarily due to the impact of unrecognized gains/losses on cash flow hedges.

ELECTRONIC ARTS INC. AND SUBSIDIARIES

Unaudited Supplemental Financial Information and Business Metrics

(in $ millions)

 

 

 

 

 

 

 

 

 

 

 

 

 

Q3

 

Q4

 

Q1

 

Q2

 

Q3

 

YOY %

 

FY22

 

FY22

 

FY23

 

FY23

 

FY23

 

Change

QUARTERLY NET REVENUE PRESENTATIONS

 

 

 

 

 

 

 

 

 

 

 

Net revenue by composition

 

 

 

 

 

 

 

 

 

 

 

Full game downloads

400

 

 

312

 

 

237

 

 

328

 

 

423

 

 

6

%

Packaged goods

216

 

 

126

 

 

104

 

 

274

 

 

199

 

 

(8

%)

Full game

616

 

 

438

 

 

341

 

 

602

 

 

622

 

 

1

%

Live services and other

1,173

 

 

1,387

 

 

1,426

 

 

1,302

 

 

1,259

 

 

7

%

Total net revenue

1,789

 

 

1,825

 

 

1,767

 

 

1,904

 

 

1,881

 

 

5

%

Full game

34

%

 

24

%

 

19

%

 

32

%

 

33

%

 

 

Live services and other

66

%

 

76

%

 

81

%

 

68

%

 

67

%

 

 

Total net revenue %

100

%

 

100

%

 

100

%

 

100

%

 

100

%

 

 

GAAP-based financial data

 

 

 

 

 

 

Full game downloads

179

 

 

(103

)

 

(111

)

 

17

 

 

45

 

 

 

Packaged goods

105

 

 

(68

)

 

(65

)

 

16

 

 

20

 

 

 

Full game

284

 

 

(171

)

 

(176

)

 

33

 

 

65

 

 

 

Live services and other

504

 

 

97

 

 

(292

)

 

(183

)

 

396

 

 

 

Total change in deferred net revenue (online-enabled games) by composition1

788

 

 

(74

)

 

(468

)

 

(150

)

 

461

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net revenue by platform

 

 

 

 

 

 

 

 

 

 

 

Console

1,138

 

 

1,092

 

 

1,042

 

 

1,161

 

 

1,152

 

 

1

%

PC & Other

374

 

 

420

 

 

402

 

 

423

 

 

435

 

 

16

%

Mobile

277

 

 

313

 

 

323

 

 

320

 

 

294

 

 

6

%

Total net revenue

1,789

 

 

1,825

 

 

1,767

 

 

1,904

 

 

1,881

 

 

5

%

GAAP-based financial data

 

 

 

 

 

 

Console

608

 

 

(86

)

 

(405

)

 

(134

)

 

423

 

 

 

PC & Other

137

 

 

3

 

 

(54

)

 

8

 

 

29

 

 

 

Mobile

43

 

 

9

 

 

(9

)

 

(24

)

 

9

 

 

 

Total change in deferred net revenue (online-enabled games) by platform1

788

 

 

(74

)

 

(468

)

 

(150

)

 

461

 

 

 

1

 

The change in deferred net revenue (online-enabled games) in the unaudited condensed consolidated statements of cash flows does not necessarily equal the change in deferred net revenue (online-enabled games) in the unaudited condensed consolidated statements of operations primarily due to the impact of unrecognized gains/losses on cash flow hedges.

ELECTRONIC ARTS INC. AND SUBSIDIARIES

Unaudited Supplemental Financial Information and Business Metrics

(in $ millions)

 

 

 

 

 

 

 

 

 

 

 

 

 

Q3

 

Q4

 

Q1

 

Q2

 

Q3

 

YOY %

 

FY22

 

FY22

 

FY23

 

FY23

 

FY23

 

Change

CASH FLOW DATA

 

 

 

 

 

 

 

 

 

 

 

Operating cash flow

1,534

 

444

 

(78

)

 

(112

)

 

1,123

 

(27

%)

Operating cash flow - TTM

1,826

 

 

1,899

 

 

1,964

 

 

1,788

 

 

1,377

 

 

(25

%)

Capital expenditures

48

 

 

53

 

 

59

 

 

53

 

 

48

 

 

—

 

Capital expenditures - TTM

166

 

 

188

 

 

203

 

 

213

 

 

213

 

 

28

%

Repurchase and retirement of common stock

325

 

 

325

 

 

320

 

 

325

 

 

325

 

 

—

 

Cash dividends paid

48

 

 

48

 

 

53

 

 

53

 

 

52

 

 

8

%

DEPRECIATION

 

 

 

 

 

 

 

 

 

 

 

Depreciation expense

41

 

 

42

 

 

44

 

 

45

 

 

46

 

 

12

%

BALANCE SHEET DATA

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

2,670

 

 

2,732

 

 

2,082

 

 

1,539

 

 

2,202

 

 

 

Short-term investments

346

 

 

330

 

 

334

 

 

335

 

 

351

 

 

 

Cash and cash equivalents, and short-term investments

3,016

 

 

3,062

 

 

2,416

 

 

1,874

 

 

2,553

 

 

(15

%)

Receivables, net

965

 

 

650

 

 

579

 

 

919

 

 

836

 

 

(13

%)

STOCK-BASED COMPENSATION

 

 

 

 

 

 

 

 

 

 

 

Cost of revenue

1

 

 

2

 

 

2

 

 

1

 

 

2

 

 

 

Research and development

86

 

 

84

 

 

81

 

 

95

 

 

95

 

 

 

Marketing and sales

14

 

 

13

 

 

13

 

 

16

 

 

15

 

 

 

General and administrative

28

 

 

26

 

 

29

 

 

28

 

 

29

 

 

 

Total stock-based compensation

129

 

 

125

 

 

125

 

 

140

 

 

141

 

 

 

Category: Company News
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