The operator, Robin, introduces the participants and announces the topic of the call - EA's first quarter fiscal year 2025 earnings. Andrew Uerkwitz, Vice President Investor Relations, is the moderator and introduces CEO Andrew Wilson and CFO Stuart Canfield. The SEC filings and earnings release are available on the company's website, along with detailed earnings slides. The company's calendar for upcoming events is also mentioned. The presentation and comments will include forward-looking statements and financial metrics will be presented on a GAAP basis, except for free cash flow and non-GAAP operating margin. The call will compare current results to the same period in the prior year.

In the second paragraph, Andrew Wilson discusses the progress made in the first quarter of FY '25 and the company's three strategic priorities. He also mentions the potential for growth in the future, particularly in the areas of social media and sports. He emphasizes the company's commitment to entertaining and engaging players across various platforms and highlights their strong partnerships with sports leagues.

EA SPORTS is blurring the lines between traditional sports consumption and interactive sports entertainment by connecting fans with their favorite athletes and teams through their games. They have seen success with their releases of UEFA EURO 2024, CONMEBOL Copa America 2024, and F1 '24, as well as their integration of real-life events like the NFL draft into their games. Their collaborations with sports personalities and unique in-game events have also contributed to increased engagement and growth in their business. This demonstrates the central role of EA SPORTS in American professional football and their ability to combine authenticity, innovation, and creative content to energize and engage communities.

EA is focused on building online communities for their sports business and prioritizing their owned-IP in their entertainment portfolio. They are committed to evolving and learning to return Apex Legends to growth and are introducing changes and new content for the franchise in upcoming seasons. The Sims 4 community is also engaged with upcoming updates and new experiences in the franchise. Battlefield 2042 has surpassed 25 million players and the community is excited for what comes next, making it one of EA's top priorities and most ambitious projects.

EA is excited about the progress they have made in delivering an epic Battlefield experience, and they have assembled a strong team with the necessary resources and technology. They are also pleased with the successful launch of EA SPORTS College Football 25, which has ignited the passion of college football fans. This achievement reflects the hard work and support of their teams, partners, and fans. The game features impressive technological advancements, such as 150 unique stadiums and over 11,000 player likenesses, thanks to EA's history of being a technology leader. Additionally, players can customize their own teams and share them with others in the game, increasing engagement in the community.

EA SPORTS is continuing to expand its presence in American Football with the release of EA SPORTS College Football 25 and Madden NFL 25. The company is also planning to release a new, improved version of Madden NFL in 2025. Additionally, EA SPORTS FC 25 will feature new innovations and a new 5v5 mode called Rush. The company is expecting growth in its franchise and is looking to expand its reach and impact in the world of football. EA SPORTS is also working on other projects to further their strategy.

In paragraph 7, the company discusses their engagement with the skate community and the unveiling of new gameplay and storytelling for Dragon Age. They express their commitment to delivering exciting experiences for players and their ability to drive innovation. The next speaker, Stuart Canfield, discusses the company's strong start to the fiscal year and their focus on investing in their teams to deliver great experiences. He mentions the positive reception for EA SPORTS College Football 25 and Madden NFL 25, and the upcoming release of Dragon Age: The Veilguard. The company is confident in achieving their fiscal year guidance.

EA's net bookings exceeded expectations due to increased engagement and monetization in their core live services, as well as the initiation of their enhanced stock repurchase program. Total net bookings for the quarter were $1.26 billion, with full game net bookings at $168 million and live services and other net bookings at $1.09 billion. EA SPORTS Madden NFL 24 outperformed expectations and showed the power of a thriving community. Apex Legends saw improved year-over-year declines and the EA SPORTS FC franchise performed better than expected but was down compared to the previous year's double-digit growth, which was boosted by the World Cup. EA remains focused on investing in and updating their games to drive deeper engagement and expand their communities.

In the first quarter, EA SPORTS FC franchise has seen mid-single digit growth compared to the previous version, with record net bookings in Q1 for EA SPORTS FC Mobile due to gameplay improvements and real-life events. GAAP net revenue was $1.66 billion, down 14% year-over-year due to slate timing of full game releases. Operating expenses were up 2% due to investments in growth opportunities. Q2 is expected to be the largest net bookings quarter in EA's history, with upcoming launches for Madden NFL 25 and FC 25. The recent launch of EA SPORTS College Football 25 has also seen record engagement and positive momentum for Ultimate Team.

In the second quarter, EA expects strong launches for Madden NFL 25 and EA SPORTS FC 25, as well as continued growth for Apex Legends. They also anticipate minimal impact from FX and expect net bookings to increase by 7-13%. For the full year, they are focused on executing upcoming releases and delivering strong live services for their core titles.

The company has reaffirmed its fiscal year 2025 net bookings guidance range and other full year metrics. The first quarter results showcase the success of their brands and teams in delivering engaging experiences. The company plans to continue investing in their three strategic pillars for future growth and will discuss long-term growth opportunities at their Investor Day. CEO Andrew Wilson highlights the company's competitive advantages and their ability to navigate changes in the entertainment industry. The call is now open for questions from analysts.

The speaker answers two questions about the future of Madden and EA, FC. He discusses how Madden will continue to grow globally through international and demographic expansion, as well as new business models. He also mentions the success of Madden Mobile and the constant evolution of the franchise.

EA Sports is confident that the combination of Madden and College football will help grow their football community. They plan to invest in new modes of play, including social connection and mobile options, and may also explore new business models. They see the potential for international growth and believe their games are a way for fans to connect and expand their fandom. The successful relaunch of EA Sports FC has also positioned them for growth, with expanded gameplay and commercial relationships with global sports brands.

The speaker discusses how the company is expanding beyond traditional play and moving faster in terms of development and partnerships. They mention the success of American Football and potential for cannibalization of Madden Ultimate Team due to the popularity of the College football game.

The speaker addresses the potential for cannibalization between the Madden and College football games. They mention that the two games are complementary and have brought in new players and increased the overall community. They also mention that the MVP bundle, which includes both games, has performed well in pre-orders. The speaker believes that the combination of the two games is proving to be successful.

The speaker discusses the success of Madden '24 and the upcoming Madden '25, which will include new modes and players from College football. They also mention strong engagement during the traditional football off season and how they are working to make the experiences of playing both College and Madden greater than the sum of their parts. The speaker also addresses fiscal 1Q performance and fiscal 2Q guidance, citing strong soccer performance as a contributing factor to the beat. They mention that while the full year outlook did not see the same flow through, they were trending towards the higher end of their prior range.

Stuart Canfield, speaking on behalf of EA, responds to a question about the potential impact of the Copa and EURO tournaments on their financial performance. He acknowledges the strong momentum they are currently experiencing and how it is reflected in their guidance for Q2. He also mentions the growth in live services for FIFA and the uncertainty around the sales and engagement of their two American Football titles, Madden and College, in the same quarter. However, he remains optimistic about the full year and expects continued growth. They will provide more information in the next earnings report after the release of Madden, FIFA, and Dragon Age.

During a conference call, a question was asked about the potential risk of disruption to EA's business due to a strike by talent actors. CEO Andrew Wilson stated that they value their talent actors and are working to negotiate at the table. The strike is limited to games starting production after September 2023, so there is no expected disruption to current games or live services. They are committed to bargaining in good faith and hope to resolve the issues quickly. Another question was asked about the decision to release games on both previous and current generation consoles. Wilson stated that it is not a perfect science and comes down to where they expect the player base to show up.

EA discusses their decision to support certain gaming platforms based on the size and engagement of player communities. They mention that larger franchises have more dispersed platform engagement, while smaller ones tend to migrate to new platforms more quickly. They also highlight their efforts in developing the game College, which has received positive reviews and strong uptake on new platforms. They mention the challenge of creating 11,000 new star player heads for the game, which is a significant undertaking compared to their usual annual development of 500 to 1000 star heads.

The speaker discusses the importance of incorporating AI and machine learning into the development of College football for the new generation of platforms and fans. This allowed for a high level of visual fidelity and gameplay that would not have been possible without these technologies. The decision to focus on the future generation was made in order to build a franchise for the future. The speaker also briefly mentions the positive reception to changes in the Apex battle pass and how it informs their approach to monetization in the future.

Andrew Wilson discusses the upcoming seasons of Apex and the improvements that the Respawn team has been working on. He mentions that the seasons will be bigger and more content-rich and that the team is taking their time to develop them. He also talks about the changes made to the battle pass, stating that the team listens and learns from the community's feedback. He believes that the community will be receptive to the upcoming content in the next two seasons.

Stuart Canfield and Andrew Wilson discuss the financial framework and expectations for EA's first quarter. They mention that the declines in revenue were in line with expectations and that they are moderating their outlook for the second quarter. In response to a question about sluggish growth in the industry, Wilson mentions competition for time and money and potential external catalysts. On the topic of The Sims franchise, he mentions reducing friction for players and expanding onto other platforms as potential growth strategies.

The interactive entertainment industry has seen a significant increase in engagement during the COVID pandemic, with a shift towards bigger franchises that allow for extended play and community involvement. Electronic Arts has been actively investing in this trend, with two out of three of their strategic pillars focused on building online communities and enhancing player connections. This can be seen in their recent releases such as College football, Madden, FC, and The Sims.

The speaker discusses the importance of community and connection in both Battlefield and Apex, and how this will continue to be a focus as games evolve to fulfill players' needs beyond just playing. They mention the potential for increased hours spent in the broader gaming community, especially among younger generations. The Sims 4 will continue to receive updates and new content, with a focus on social interaction and platform expansion. There are plans to add new experiences to the Sims universe, which will bring deeper social connections and expanded platforms in key regions.

The speaker, Andrew Wilson, is asked about his thoughts on the growth of the gaming industry and the impact of free to play games on pricing power and gamer perception. He responds by saying that free to play games have been around for a long time and the industry has continued to grow overall. He also mentions that their company supports all business models and has seen growth in their biggest franchises across all platforms and modalities of play.

The speaker believes that by focusing on building communities and utilizing free-to-play models, they can reach a global player base and drive growth for the company. They also mention the excitement surrounding the return of football and look forward to sharing more about their future plans at an upcoming Investor Day.

This summary was generated with AI and may contain some inaccuracies.