Electronic Arts Inc. (NASDAQ:EA) Q3 2018 Earnings Conference Call Transcript

Jan 30, 2018 • 05:00 pm ET


Electronic Arts Inc. (NASDAQ:EA) Q3 2018 Earnings Conference Call Transcript


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Good afternoon. My name is Erika and I will be your conference operator today. At this time, I would like to welcome everyone to the Electronic Arts Q3 2018 Earnings Call. (Operator Instructions). After the speaker's remarks, there will be a question-and-answer session. (Operator Instructions) Thank you. Mr. Chris Evenden, VP of Investor Relations, you may begin your conference.

Chris Evenden

Thank you, Erika. Welcome to EA's third quarter fiscal 2018 earnings call. With me on the call today are Andrew Wilson, our CEO, and Blake Jorgensen, our CFO.Please note that our SEC filings and our earnings release are available at ir.ea.com. In addition, we have posted earnings slides to accompany our prepared remarks. Lastly, after the call, we will post our prepared remarks, an audio replay of this call, our financial model and a transcript.

With regards to our calendar, our Q4 fiscal '18 earnings call is currently scheduled for Tuesday, May 8, 2018. This presentation and our comments include forward-looking statements regarding future events and the future financial performance of the company. Actual events and results may differ materially from our expectations. We refer you to our most recent Form 10-Q for a discussion of risks that could cause actual results to differ materially from those discussed today. Electronic Arts makes these statements as of today, January 30, 2018 and disclaims any duty to update them. During this call, the financial metrics with the exception of free cash flow will be presented on a GAAP basis. All comparisons made in the course of this call are against the same period in the prior year unless otherwise stated.

On the subject of accounting standards, effective fiscal 2019, we will adopt the new ASC 606 revenue recognition standard for GAAP net revenue. We will continue to provide the GAAP measures to enable investors to derive the management reporting metrics. We do not expect a material to net bookings. For more details, please see the brief qualitative overview of the impact of ASC 606 we have posted on our IR website. For additional information, also please see our 10-Q for the period ended December 31, 2017.

Now, I'll turn the call over to Andrew.

Andrew Wilson

Thanks, Chris. Q3 was a quarter defined by strong performances and important learnings for us in Electronic Arts. We love making games. It's a privilege to bring fun and entertainment to people all around the world. As we look across our games and services this quarter, we have a lot to be proud of. We brought hundreds of millions of hours of play to fans during the holiday quarter across console, mobile and PC. We also appreciate that our players have high expectations of us and the games we make and that passion drives us. As we push the boundaries with every new experience, we are continually listening, learning and taking action to serve our players. Now, let me touch on Star Wars Battlefront II.

This was definitely a learning opportunity. You remember that we brought three of our top