Electronic Arts Reports Q3 FY17 Financial Results

REDWOOD CITY, Calif.--(BUSINESS WIRE)--Electronic Arts Inc. (NASDAQ: EA) today announced preliminary financial results for its third fiscal quarter ended December 31, 2016.

“With the top console games and most-downloaded mobile portfolio in the industry for Q3, Electronic Arts is growing, engaging and exciting a global community of players,” said Chief Executive Officer Andrew Wilson. “We will continue to push the boundaries of play, with stunning new titles like Mass Effect: Andromeda, global competitive gaming tournaments and more amazing experiences coming in the year ahead.”

“For the first time ever, we generated over $1 billion in operating cash flow in a quarter,” said Chief Financial Officer Blake Jorgensen. “This is a true testament to the innovation we built into Battlefield 1 and FIFA 17 and the continued strength of our digital live services.”

News and ongoing updates regarding EA and our games are available on EA’s blog at www.ea.com/news.

Selected Operating Highlights and Metrics:

• Digital net sales* of $2.861 billion for the trailing-twelve-month period represents 60% of total net sales, up 18% year-over-year.
• FIFA 17 was the best-selling console title in the world in 2016.
• Battlefield™ 1 was our biggest Battlefield launch ever and has a player base more than 50% larger than that of Battlefield 4™ in its comparable launch quarter.
• To date, more than 10 million fans have played “The Journey”, the new single-player mode in FIFA 17.
• In Q3, average gameplay time per player in Star Wars™: Galaxy of Heroes reached a new high of 155 minutes per day.

* Net sales is defined as the net amount of products and services sold digitally or sold-in physically in the period.

Selected Financial Highlights:

All financial measures are presented on a GAAP basis.

• Net cash provided by operating activities for the quarter was a record $1.115 billion. Trailing twelve month operating cash flow was also a record $1.372 billion.
• For the quarter, net revenue was $1.149 billion. Of the total net revenue 60%, or $685 million, was digital. Diluted loss per share of $(0.00) was above guidance of $(0.17).
• EA repurchased 1.5 million shares in Q3 for $127 million.

(in millions of $, except per share amounts)	Quarter Ended 12/31/16		Quarter Ended 12/31/15
Digital Net Revenue	$	685	$	569
Packaged Goods and Other Net Revenue		464		501
Total Net Revenue	$	1,149	$	1,070
Net Loss	$	(1)	$	(45)
Diluted Loss Per Share	$	(0.00)	$	(0.14)
Operating Cash Flow	$	1,115	$	889

While EA no longer reports certain non-GAAP financial measures, the following GAAP-based financial data and a long-term tax rate of 21% are used internally by company management to adjust our GAAP results in order to assess EA’s operating results:

	Three Months Ended Dec 31, 2016
$ in millions	GAAP-Based Financial Data
	Statement of Operations		Acquisition-related expenses		Change in deferred net revenue (online-enabled games)	Stock-based compensation
Net revenue	1,149		-		921	-
Cost of revenue	516		(18	)	-	-
Gross profit	633		18		921	-
Total operating expenses	637		(2	)	-	(48	)
Operating loss	(4	)	20		921	48
Interest and other income (expense), net	(2	)	-		-	-
Loss before benefit from income taxes	(6	)	20		921	48
Number of shares used in computation
Basic & Diluted	303

EA’s GAAP loss per share for the three months ended December 31, 2016 was calculated off the basic share count of 303 million. Had EA reported a profit, the diluted share count would have been 313 million shares. For additional information on the GAAP-based financial data, please refer to EA’s Form 10-Q for the quarter ended September 30, 2016.

TTM Financial Highlights:
(in millions)	TTM Ended 12/31/16		TTM Ended 12/31/15
Digital Net Revenue	$	2,655	$	2,308
Packaged Goods and Other Net Revenue		1,971		1,965
Total Net Revenue	$	4,626	$	4,273
Net Income	$	1,300	$	652
Operating Cash Flow	$	1,372	$	1,025
Value of Shares Repurchased	$	1,017	$	479
Number of Shares Repurchased		14.9		7.6

While EA no longer reports certain non-GAAP financial measures, the following GAAP-based financial data and a long-term tax rate of 21% are used internally by company management to adjust our GAAP results in order to assess EA’s operating results:

	Trailing Twelve Months Ended Dec 31, 2016
$ in millions	GAAP-Based Financial Data
	Statement of Operations		Acquisition-related expenses		Amortization of debt discount and loss on conversion of notes	Change in deferred net revenue (online-enabled games)	Stock-based compensation
Net revenue	4,626		-		-	148	-
Cost of revenue	1,322		(55	)	-	-	(3	)
Gross profit	3,304		55		-	148	3
Total operating expenses	2,261		(6	)	-	-	(188	)
Operating income	1,043		61		-	148	191
Interest and other income (expense), net	(23	)	-		7	-	-
Income before benefit from income taxes	1,020		61		7	148	191

Business Outlook as of January 31, 2017

The following forward-looking statements reflect expectations as of January 31, 2017. Electronic Arts assumes no obligation to update these statements. Results may be materially different and are affected by many factors detailed in this release and in EA’s annual and quarterly SEC filings.

Fiscal Year 2017 Expectations – Ending March 31, 2017

• Net revenue is expected to be approximately $4.800 billion.
• Change in deferred net revenue is expected to be approximately $125 million.
• Net income is expected to be approximately $914 million.
• Diluted earnings per share is expected to be approximately $2.91.
• Operating cash flow is expected to be approximately $1.35 billion.
• The Company estimates a share count of 314 million for purposes of calculating fiscal year 2017 diluted earnings per share.

In addition, the following outlook for GAAP-based financial data and a long-term tax rate of 21% are used internally by EA to adjust our GAAP expectations to assess EA’s operating results and plan for future periods:

	Twelve Months Ending March 31, 2017
	GAAP-Based Financial Data
$ in millions	GAAP Guidance	Acquisition-related expenses		Amortization of debt discount and loss on conversion of notes	Change in deferred net revenue (online-enabled games)	Shares from convertible bond hedge		Stock-based compensation
Digital Net Revenue	2,825	-		-	125	-		-
Packaged Goods & Other Net Revenue	1,975	-		-	-	-		-
Total Net Revenue	4,800	-		-	125	-		-
Cost of Revenue	1,338	(43	)	-	-	-		(2	)
Operating Expenses	2,306	(6	)	-	-	-		(192	)
Income Before Taxes	1,135	49		2	125	-		194
Diluted Shares	314	-		-	-	(1	)	-

Fourth Quarter Fiscal Year 2017 Expectations – Ending March 31, 2017

• Net revenue is expected to be approximately $1.482 billion.
• Change in deferred net revenue is expected to be approximately $(407) million.
• Net income is expected to be approximately $513 million.
• Earnings per share is expected to be approximately $1.64.
• The Company estimates a share count of 313 million for purposes of calculating fourth quarter fiscal 2017 earnings per share.

In addition, the following outlook for GAAP-based financial data and a long-term tax rate of 21% are used internally by EA to adjust our GAAP expectations to assess EA’s operating results and plan for future periods:

	Three Months Ending March 31, 2017
	GAAP-Based Financial Data
$ in millions	GAAP Guidance	Acquisition-related expenses		Change in deferred net revenue (online-enabled games)		Stock-based compensation
Net Revenue	1,482	-		(407	)	-
Cost of Revenue	242	-		-		-
Operating Expenses	591	(1	)	-		(50	)
Income Before Taxes	641	1		(407	)	50
Diluted Shares	313

Conference Call and Supporting Documents

Electronic Arts will host a conference call on January 31, 2017 at 2:00 pm PT (5:00 pm ET) to review its results for the third quarter ended December 31, 2016 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 844-215-4106 (domestic) or 918-534-8313 (international), using the password “EA” or via webcast at EA’s IR Website at http://ir.ea.com.

EA has posted a slide presentation and a financial model of EA’s historical results 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 13, 2017 at 855-859-2056 (domestic) or 404-537-3406 (international). 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 fiscal 2017 expectations under the heading “Business Outlook as of January 31, 2017,” contain forward-looking statements that are subject to change. Statements including words such as “anticipate,” “believe,” “estimate” or “expect” and statements in the future tense are forward-looking statements. These forward-looking statements are preliminary estimates and expectations based on current information and are subject to business and economic risks and uncertainties that could cause actual events or actual future results to differ materially from the expectations set forth 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 titles; the Company’s ability to manage expenses; the competition in the interactive entertainment industry; the effectiveness of the Company’s sales and marketing programs; timely development and release of Electronic Arts’ products; the Company’s ability to realize the anticipated benefits of 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 service and support digital product offerings, including managing online security; general economic conditions; and other factors described in the Company’s Quarterly Report on Form 10-Q for the fiscal quarter ended September 30, 2016.

These forward-looking statements are current as of January 31, 2017. Electronic Arts assumes no obligation and does not intend to update these forward-looking statements. 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, 2016. 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, 2016.

About Electronic Arts

Electronic Arts (NASDAQ: EA) is a global leader in digital interactive entertainment. The Company delivers games, content and online services for Internet-connected consoles, personal computers, mobile phones and tablets. EA has more than 300 million registered players around the world.

In fiscal year 2016, EA posted GAAP net revenue of $4.4 billion. Headquartered in Redwood City, California, EA is recognized for a portfolio of critically acclaimed, high-quality blockbuster brands such as The Sims™, Madden NFL, EA SPORTS™ FIFA, Battlefield™, Dragon Age™ and Plants vs. Zombies™. More information about EA is available at www.ea.com/news.

EA SPORTS, Battlefield, Battlefield 4, The Sims, Dragon Age, and Plants vs. Zombies are trademarks of Electronic Arts Inc. STAR WARS © & TM 2015 Lucasfilm Ltd. All rights reserved. John Madden, NFL and FIFA are the property of their respective owners and used with permission.

ELECTRONIC ARTS INC. AND SUBSIDIARIES
Unaudited Condensed Consolidated Statement of Operations
(in $ millions, except share per data)
	Three Months Ended December 31,					Nine Months Ended December 31,
	2016			2015		2016		2015
Net revenue
Product	649			625		1,753		1,802
Service and other	500			445		1,565		1,286
Total net revenue	1,149			1,070		3,318		3,088
Cost of revenue
Product	389			439		796		868
Service and other	127			107		300		260
Total cost of revenue	516			546		1,096		1,128
Gross profit	633			524		2,222		1,960
Operating expenses:
Research and development	285			266		870		827
Marketing and sales	240			190		511		469
General and administrative	110			97		329		296
Amortization of intangibles	2			2		5		6
Total operating expenses	637			555		1,715		1,598
Operating income (loss)	(4	)		(31	)	507		362
Interest and other income (expense), net	(2	)		1		(13	)	(11	)
Income (loss) before provision for (benefit from) income taxes	(6	)		(30	)	494		351
Provision for (benefit from) income taxes	(5	)		15		93		94
Net income (loss)	(1	)		(45	)	401		257
Earnings (loss) per share
Basic	(0.00		)	(0.14	)	1.33		0.83
Diluted	(0.00		)	(0.14	)	1.28		0.77
Number of shares used in computation
Basic	303			311		302		311
Diluted	303			311		314		333

Results (in $ millions, except per share data)

The following table reports the variance of the actuals versus our guidance for the three months ended December 31, 2016 plus a comparison to the actuals for the three months ended December 31, 2015.

	Three Months Ended December 31,
	2016				2016		2015
	Guidance		Variance		Actuals		Actuals
Net revenue
Net revenue	1,125		24		1,149		1,070
GAAP-based financial data
Change in deferred net revenue (online-enabled games)	910		11		921		733
Cost of revenue
Cost of revenue	532		(16	)	516		546
GAAP-based financial data
Acquisition-related expenses	(3	)	(15	)	(18	)	(12	)
Operating expenses
Operating expenses	652		(15	)	637		555
GAAP-based financial data
Acquisition-related expenses	(2	)	—		(2	)	(2	)
Stock-based compensation	(50	)	2		(48	)	(42	)
Loss before tax
Loss before tax	(66	)	60		(6	)	(30	)
GAAP-based financial data
Acquisition-related expenses	5		15		20		14
Amortization of debt discount and loss on conversion of notes	—		—		—		5
Change in deferred net revenue (online-enabled games)	910		11		921		733
Stock-based compensation	50		(2	)	48		42
Tax rate used for management reporting	21	%			21	%	22	%
Loss per share
Basic	(0.17	)	0.17		(0.00	)	(0.14	)
Diluted^1	(0.17	)	0.17		(0.00	)	(0.14	)
Number of shares
Basic	304		(1	)	303		311
Diluted^1	304		(1	)	303		311

^1Diluted earnings per share reflects the potential dilution from common shares (calculated using the treasury stock method), issuable through stock-based compensation plans. When the company incurs a loss, shares issuable through stock-based compensation plans are excluded from the diluted loss per share calculation as inclusion would be anti-dilutive.

Guidance (in $ millions, except per share data)

The following tables provide the Company’s guidance for the three months ended March 31, 2017 and the twelve months ended March 31, 2017.

	Three Months Ended		Twelve Months Ended
	Mar 31, 2017		Mar 31, 2017
Net revenue
Net revenue	1,482		4,800
GAAP-based financial data
Change in deferred net revenue (online-enabled games)	(407	)	125
Cost of revenue
Cost of revenue	242		1,338
GAAP-based financial data
Acquisition-related expenses	—		(43	)
Stock-based compensation	—		(2	)
Operating expenses
Operating expenses	591		2,306
GAAP-based financial data
Acquisition-related expenses	(1	)	(6	)
Stock-based compensation	(50	)	(192	)
Income before tax
Income before tax	641		1,135
GAAP-based financial data
Acquisition-related expenses	1		49
Amortization of debt discount and loss on conversion of notes	—		2
Change in deferred net revenue (online-enabled games)	(407	)	125
Stock-based compensation	50		194
Tax rate used for management reporting	21	%	21	%
Earnings per share
Basic	1.66		3.02
Diluted	1.64		2.91
Number of shares
Basic	309		303
Diluted	313		314	^2

^2Excludes the benefit of 1 million shares from convertible bond hedge.

ELECTRONIC ARTS INC. AND SUBSIDIARIES
Unaudited Condensed Consolidated Balance Sheets
(in $ millions)
	December 31, 2016		March 31, 2016 ^3
ASSETS
Current assets:
Cash and cash equivalents	2,483		2,493
Short-term investments	1,736		1,341
Receivables, net of allowances of $196 and $159, respectively	587		233
Inventories	35		33
Other current assets	260		254
Total current assets	5,101		4,354
Property and equipment, net	424		439
Goodwill	1,704		1,710
Acquisition-related intangibles, net	9		57
Deferred income taxes, net	386		387
Other assets	95		103
TOTAL ASSETS	7,719		7,050
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable	65		89
Accrued and other current liabilities	901		710
0.75% convertible senior notes due 2016, net	—		161
Deferred net revenue (online-enabled games)	1,971		1,458
Total current liabilities	2,937		2,418
Senior notes, net	990		989
Income tax obligations	87		80
Deferred income taxes, net	2		2
Other liabilities	154		163
Total liabilities	4,170		3,652
0.75% convertible senior notes due 2016	—		2
Common stock	3		3
Additional paid-in capital	1,086		1,349
Retained earnings	2,461		2,060
Accumulated other comprehensive loss	(1	)	(16	)
Total stockholders’ equity	3,549		3,396
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	7,719		7,050

^3Derived 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,
	2016		2015		2016		2015
OPERATING ACTIVITIES
Net income (loss)	(1	)	(45	)	401		257
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation, amortization and accretion	49		50		140		149
Stock-based compensation	48		42		144		131
Loss on conversion of convertible notes	—		2		—		8
Change in assets and liabilities:
Receivables, net	126		111		(367	)	(268	)
Inventories	15		20		(2	)	(6	)
Other assets	(12	)	3		42		42
Accounts payable	(139	)	(56	)	(6	)	70
Accrued and other liabilities	145		25		111		(124	)
Deferred income taxes, net	(20	)	5		—		6
Deferred net revenue (online-enabled games)	904		732		513		562
Net cash provided by operating activities	1,115		889		976		827
INVESTING ACTIVITIES
Capital expenditures	(25	)	(21	)	(94	)	(63	)
Proceeds from maturities and sales of short-term investments	324		194		968		707
Purchase of short-term investments	(548	)	(176	)	(1,372	)	(727	)
Net cash used in investing activities	(249	)	(3	)	(498	)	(83	)
FINANCING ACTIVITIES
Payment of convertible notes	—		(95	)	(163	)	(293	)
Proceeds from issuance of common stock	2		2		33		86
Excess tax benefit from stock-based compensation	16		8		53		73
Repurchase and retirement of common stock	(127	)	(126	)	(383	)	(384	)
Net cash used in financing activities	(109	)	(211	)	(460	)	(518	)
Effect of foreign exchange on cash and cash equivalents	(20	)	(10	)	(28	)	(31	)
Increase (decrease) in cash and cash equivalents	737		665		(10	)	195
Beginning cash and cash equivalents	1,746		1,598		2,493		2,068
Ending cash and cash equivalents	2,483		2,263		2,483		2,263

ELECTRONIC ARTS INC. AND SUBSIDIARIES
Unaudited Supplemental Financial Information and Business Metrics
(in $ millions, except per share data)
	Q3		Q4		Q1		Q2		Q3		YOY %
	FY16		FY16		FY17		FY17		FY17		Change
Net revenue
Net revenue	1,070		1,308		1,271		898		1,149		7	%
GAAP-based financial data
Change in deferred net revenue (online-enabled games)^4	733		(384	)	(589	)	200		921
Gross profit
Gross profit	524		1,082		1,092		497		633		21	%
GAAP-based financial data
Acquisition-related expenses	12		12		13		12		18
Change in deferred net revenue (online-enabled games)^4	733		(384	)	(589	)	200		921
Stock-based compensation	—		1		1		1		—
Gross profit % (as a % of net revenue)	49	%	83	%	86	%	55	%	55	%
Operating income
Operating income (loss)	(31	)	536		560		(49	)	(4	)	87	%
GAAP-based financial data
Acquisition-related expenses	14		13		15		13		20
Change in deferred net revenue (online-enabled games)^4	733		(384	)	(589	)	200		921
Stock-based compensation	42		47		48		48		48
Operating income (loss) % (as a % of net revenue)	(3	%)	41	%	44	%	(5	%)	—
Net income
Net income (loss)	(45	)	899		440		(38	)	(1	)	98	%
GAAP-based financial data
Acquisition-related expenses	14		13		15		13		20
Amortization of debt discount and loss on conversion of notes	5		5		2		—		—
Change in deferred net revenue (online-enabled games)^4	733		(384	)	(589	)	200		921
Stock-based compensation	42		47		48		48		48
Tax rate used for management reporting	22	%	22	%	21	%	21	%	21	%
Net income (loss) % (as a % of net revenue)	(4	%)	69	%	35	%	(4	%)	—
Diluted earnings (loss) per share
Earnings (loss) per share	(0.14	)	2.79		1.40		(0.13	)	(0.00	)	100	%
Number of diluted shares used in computation
Basic	311		307		301		301		303
Diluted	311		322		315		301		303
Anti-dilutive shares excluded for loss position^1	20		—		—		13		10
Shares from convertible bond hedge	(6	)	(3	)	(2	)	—		—

^4The difference between the balances of deferred net revenue (online-enabled games) does not necessarily equal the change in deferred net revenue (online-enabled games) in the consolidated statements of cash flows 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, except per share data)
	Q3		Q4		Q1		Q2		Q3		YOY %
	FY16		FY16		FY17		FY17		FY17		Change
QUARTERLY NET REVENUE PRESENTATIONS
Net revenue by geography
North America	448		572		525		389		561		25	%
International	622		736		746		509		588		(5	%)
Total net revenue	1,070		1,308		1,271		898		1,149		7	%
North America	403		(147	)	(245	)	58		370
International	330		(237	)	(344	)	142		551
Change in deferred net revenue (online-enabled games)	733		(384	)	(589	)	200		921
North America	42	%	44	%	41	%	43	%	49	%
International	58	%	56	%	59	%	57	%	51	%
Total net revenue %	100	%	100	%	100	%	100	%	100	%
Net revenue by composition
Full game downloads	112		152		137		94		169		51	%
Extra content	241		317		300		240		267		11	%
Subscriptions, advertising and other	89		94		87		83		102		15	%
Mobile	127		152		165		149		147		16	%
Total digital	569		715		689		566		685		20	%
Packaged goods and other	501		593		582		332		464		(7	%)
Total net revenue	1,070		1,308		1,271		898		1,149		7	%
Full game downloads	83		(18	)	(53	)	(1	)	186
Extra content	119		(7	)	(42	)	(68	)	195
Subscriptions, advertising and other	1		1		(2	)	—		2
Mobile	35		21		(24	)	(11	)	27
Total digital	238		(3	)	(121	)	(80	)	410
Packaged goods and other	495		(381	)	(468	)	280		511
Change in deferred net revenue (online-enabled games)	733		(384	)	(589	)	200		921
Full game downloads	10	%	12	%	11	%	10	%	15	%
Extra content	23	%	24	%	23	%	27	%	23	%
Subscriptions, advertising and other	8	%	7	%	7	%	9	%	9	%
Mobile	12	%	12	%	13	%	17	%	13	%
Total digital	53	%	55	%	54	%	63	%	60	%
Packaged goods and other	47	%	45	%	46	%	37	%	40	%
Total net revenue %	100	%	100	%	100	%	100	%	100	%

ELECTRONIC ARTS INC. AND SUBSIDIARIES
Unaudited Supplemental Financial Information and Business Metrics
(in $ millions, except per share data)
	Q3		Q4		Q1		Q2		Q3		YOY %
	FY16		FY16		FY17		FY17		FY17		Change
QUARTERLY NET REVENUE PRESENTATIONS
Net revenue by platform
Xbox One, PLAYSTATION 4	571		793		776		513		728		27	%
Xbox 360, PLAYSTATION 3	157		147		133		64		65		(59	%)
Other consoles	3		1		1		1		—		(100	%)
Total consoles	731		941		910		578		793		8	%
PC / Browser	182		195		179		158		190		4	%
Mobile	128		151		165		149		148		16	%
Other	29		21		17		13		18		(38	%)
Total net revenue	1,070		1,308		1,271		898		1,149		7	%
Xbox One, PLAYSTATION 4	626		(287	)	(441	)	177		762
Xbox 360, PLAYSTATION 3	16		(93	)	(92	)	43		3
Other consoles	(1	)	(1	)	—		—		—
Total consoles	641		(381	)	(533	)	220		765
PC / Browser	55		(27	)	(30	)	(9	)	127
Mobile	35		23		(24	)	(11	)	27
Other	2		1		(2	)	—		2
Change in deferred net revenue (online-enabled games)	733		(384	)	(589	)	200		921
Xbox One, PLAYSTATION 4	53	%	61	%	61	%	57	%	63	%
Xbox 360, PLAYSTATION 3	15	%	11	%	11	%	7	%	6	%
Other consoles	—		—		—		—		—
Total consoles	68	%	72	%	72	%	64	%	69	%
PC / Browser	17	%	15	%	14	%	18	%	17	%
Mobile	12	%	11	%	13	%	17	%	13	%
Other	3	%	2	%	1	%	1	%	1	%
Total net revenue %	100	%	100	%	100	%	100	%	100	%

ELECTRONIC ARTS INC. AND SUBSIDIARIES
Unaudited Supplemental Financial Information and Business Metrics
(in $ millions, except per share data)
	Q3	Q4	Q1		Q2	Q3	YOY %
	FY16	FY16	FY17		FY17	FY17	Change
CASH FLOW DATA
Operating cash flow	889	396	(248	)	109	1,115	25	%
Operating cash flow - TTM	1,025	1,223	1,046		1,146	1,372	34	%
Capital expenditures	21	30	40		29	25	19	%
Capital expenditures - TTM	95	93	109		120	124	31	%
Repurchase and retirement of common stock	126	634	129		127	127	1	%
DEPRECIATION
Depreciation expense	31	28	29		28	29	(6	%)
BALANCE SHEET DATA
Cash and cash equivalents	2,263	2,493	2,042		1,746	2,483
Short-term investments	966	1,341	1,385		1,520	1,736
Cash and cash equivalents, and short-term investments	3,229	3,834	3,427		3,266	4,219	31	%
Receivables, net	621	233	246		723	587	(5	%)
STOCK-BASED COMPENSATION
Cost of revenue	—	1	1		1	—
Research and development	26	26	27		27	27
Marketing and sales	5	7	7		8	8
General and administrative	11	13	13		12	13
Total stock-based compensation	42	47	48		48	48