SECURITIES AND EXCHANGE COMMISSION FORM 8-K Current report filing Filing Date: 2021-05-11 | Period of Report: 2021-05-10 SEC Accession No. 0000712515-21-000047 (HTML Version on secdatabase.com) FILER ELECTRONIC ARTS INC. Mailing Address Business Address 209 REDWOOD SHORES 209 REDWOOD SHORES CIK:712515| IRS No.: 942838567 | State of Incorp.:DE | Fiscal Year End: 0331 PARKWAY PARKWAY Type: 8-K | Act: 34 | File No.: 000-17948 | Film No.: 21911202 REDWOOD CITY CA 94065 REDWOOD CITY CA 94065 SIC: 7372 Prepackaged software 650-628-1500 Copyright © 2021 www.secdatabase.com. All Rights Reserved. Please Consider the Environment Before Printing This Document UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 8-K CURRENT REPORT Pursuant to Section 13 or 15(d) of The Securities Exchange Act of 1934 Date of report (Date of earliest event reported) May 10, 2021 ELECTRONIC ARTS INC. (Exact Name of Registrant as Specified in Its Charter) Delaware 0-17948 94-2838567 (State or Other Jurisdiction of (Commission File Number) (IRS Employer Identification No.) Incorporation) 209 Redwood Shores Parkway, Redwood City, California 94065-1175 (Address of Principal Executive Offices) (Zip Code) (650) 628-1500 (Registrant’s Telephone Number, Including Area Code) (Former Name or Former Address, if Changed Since Last Report) Copyright © 2021 www.secdatabase.com. All Rights Reserved. Please Consider the Environment Before Printing This Document Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below): ☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) ☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) ☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) ☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933(17 CFR §230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR §240.12b-2). Emerging growth company ☐ If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended ☐ transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. Securities registered pursuant to Section 12(b) of the Act: Name of Each Exchange on Which Title of Each Class Trading Symbol Registered Common Stock, $0.01 par value EA NASDAQ Global Select Market Copyright © 2021 www.secdatabase.com. All Rights Reserved. Please Consider the Environment Before Printing This Document Item 2.02 Result of Operations and Financial Condition. On May 11, 2021, Electronic Arts Inc. ("Electronic Arts" or “EA”) issued a press release announcing its financial results for the fourth fiscal quarter and fiscal year ended March 31, 2021. A copy of the press release is attached hereto as Exhibit 99.1. Neither the information in this Form 8-K nor the information in the press release attached hereto as Exhibit 99.1 shall be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing. Item 8.01 Other Events. On May 10, 2021, the Audit Committee of EA, on behalf of EA’s full Board of Directors declared a cash dividend of $0.17 per share of EA's common stock. The dividend is payable on June 23, 2021 to stockholders of record as of the close of business on June 2, 2021. Item 9.01 Financial Statements and Exhibits. (d) Exhibits. Exhibit No. Description 99.1 Press release dated May 11, 2021, relating to Electronic Arts Inc.’s financial results for the fiscal fourth quarter and full year ended March 31, 2021. Copyright © 2021 www.secdatabase.com. All Rights Reserved. Please Consider the Environment Before Printing This Document INDEX TO EXHIBITS Exhibit No. Description 99.1 Press release dated May 11, 2021, relating to Electronic Arts Inc.’s financial results for the fiscal fourth quarter and full year ended March 31, 2021. Copyright © 2021 www.secdatabase.com. All Rights Reserved. Please Consider the Environment Before Printing This Document SIGNATURE Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. ELECTRONIC ARTS INC. Dated: May 11, 2021 By: /s/ Blake Jorgensen Blake Jorgensen Chief Operating Officer and Chief Financial Officer Copyright © 2021 www.secdatabase.com. All Rights Reserved. Please Consider the Environment Before Printing This Document Exhibit 99.1 Electronic Arts Reports Q4 and Full Year FY21 Financial Results Results Above Expectations, Record Annual Operating Cash Flow Driven by Successful New Games, Live Services Engagement, and Network Growth REDWOOD CITY, CA – May 11, 2021 – Electronic Arts Inc. (NASDAQ: EA) today announced preliminary financial results for its fiscal fourth quarter and full year ended March 31, 2021. “Our teams have done incredible work over the last year to deliver amazing experiences during a very challenging time for everyone around the world,” said Andrew Wilson, CEO of Electronic Arts. “With tremendous engagement across our portfolio, we delivered a record year for Electronic Arts. We’re now accelerating in FY22, powered by expansion of our blockbuster franchises to more platforms and geographies, a deep pipeline of new content, and recent acquisitions that will be catalysts for further growth.” “EA delivered a strong quarter, driven by live services and Apex Legends’ extraordinary performance. Apex steadily grew through the last year, driven by the games team and the content they are delivering,” said COO and CFO Blake Jorgensen. “Looking forward, the momentum in our existing live services provides a solid foundation for FY22. Combined with a new Battlefield and our recent acquisitions, we expect net bookings growth in the high teens.” Selected Operating Highlights and Metrics • Net bookings1 for fiscal 2021 was $6.190 billion, up 15% year-over-year, and over $600 million above original expectations. • Delivered 13 new games and had more than 42 million new players join our network during the fiscal year. • FIFA 21, life to date, has more than 25 million console/PC players. • FIFA Ultimate Team™ players grew 16% year-over-year and FUT matches were up 180%. • Apex Legends™ has more than 100 million players life to date on console/PC, and Season 8 had more than 12 million weekly average players. • Record number of new players joined Madden NFL on console/PC during fiscal 21. • The SimsTM 4, life to date, has almost 36 million players and delivered its sixth consecutive year of franchise growth. Selected Financial Highlights and Metrics • Net cash provided by operating activities was $371 million for the quarter and $1.934 billion for the fiscal year. • EA repurchased 2.4 million shares for $325 million during the quarter, bringing the total for the fiscal year to 5.6 million shares for $729 million. • EA paid a cash dividend of $0.17 per share during the quarter. Copyright © 2021 www.secdatabase.com. All Rights Reserved. Please Consider the Environment Before Printing This Document Dividend EA has declared a quarterly cash dividend of $0.17 per share of the Company’s common stock. The dividend is payable on June 23, 2021 to shareholders of record as of the close of business on June 2, 2021. Copyright © 2021 www.secdatabase.com. All Rights Reserved. Please Consider the Environment Before Printing This Document Quarterly Financial Highlights Three Months Ended March 31, 2021 2020 (in $ millions, except per share amounts) Full game 250 356 Live services and other 1,096 1,031 Total net revenue 1,346 1,387 Net income 76 418 Diluted earnings per share 0.26 1.43 Operating cash flow 371 498 Value of shares repurchased 325 291 Number of shares repurchased 2.4 2.7 The following GAAP-based financial data2 and tax rate of 18% was used internally by company management to adjust its GAAP results in order to assess EA’s operating results: Three Months Ended March 31, 2021 GAAP-Based Financial Data Change in deferred net revenue Acquisition- (online- Statement of related enabled Stock-based (in $ millions) Operations expenses games) compensation Total net revenue 1,346 — 144 — Cost of revenue 319 (4) — (1) Gross profit 1,027 4 144 1 Total operating expenses 852 (14) — (108) Operating income 175 18 144 109 Interest and other income (expense), net (10) — — — Income before provision for income taxes 165 18 144 109 Number of shares used in computation: Diluted 290 Copyright © 2021 www.secdatabase.com. All Rights Reserved. Please Consider the Environment Before Printing This Document Copyright © 2021 www.secdatabase.com. All Rights Reserved. Please Consider the Environment Before Printing This Document Fiscal Year Financial Highlights Twelve Months Ended March 31, 2021 2020 (in $ millions) Full game 1,613 1,887 Live services and other 4,016 3,650 Total net revenue 5,629 5,537 Net income 837 3,039* Diluted earnings per share 2.87 10.30* Operating cash flow 1,934 1,797 Value of shares repurchased 729 1,207 Number of shares repurchased 5.6 12.3 *Includes the impact of one-time tax benefits recognized during the period.