EA beats net bookings expectations in Q1, feels record-breaking Q2 could be on the cards

EA has made a brisk start to the current financial year (FY25) after exceeding its net bookings guidance for the first quarter.

The publisher, which is currently laying off 5 percent of its workforce, delivered Q1 net bookings of $1.26 billion, exceeding its high-end guidance range of $1.25 billion. The company said that surge was "driven by stronger performance across Madden NFL 24, FC Online and FC Mobile."

Breaking down those numbers in an earnings call, EA CFO Stuart Canfield explained full game net bookings totaled $168 million. Live service and other net bookings totaled $1.09 billion, bolstered by the "outperformance" of EA Sports Madden NFL during Q1.

"The greater-than-expected results from EA Sports Madden NFL 24 are a strong proof point in the power of a thriving community in and around our games," added Canfield.

"During the quarter, we saw sustained momentum late in the title’s cycle with both weekly average users in Ultimate Team and total net bookings up double-digits year-over-year."

On a GAAP basis, Q1 net revenue declined by 14 percent year-on-year to $1.66 billion, primarily driven by "slate timing of full game releases."

Live services and other net revenue totaled $1.41 billion in Q1 FY25, down from $1.48 billion in Q1 FY24. Full game net revenue fell to $250 million in Q1 FY25 from $443 million in Q1 FY24.

GAAP operating expenses rose by 2 percent to $1.03 billon as a result of "focused investments in teams supporting our largest growth opportunities."

EA execs look towards record-breaking second quarter

Looking at the performance of individual franchises, EA boss Andrew Wilson said Battlefield surpassed 25 million users over the past 12 months. He claimed the next entry in the series is a top priority for EA and "one of the most ambitious projects in our history."

Apex Legends is now meeting internal expectations after "year-over-year declines improved sequentially." Discussing the free-to-play shooter, Wilson said "Q1 was largely in line with our expectations, and our commitment to evolving and learning is a foundational part of our strategy to return Apex Legends to growth."

Elsewhere, FC Mobile delivered record Q1 net bookings after benefitting from "double digit growth in spender acquisition as a result of gameplay improvements and real-life events." Canfield said the title will now become the "blueprint" for EA's mobile strategy, which will be "grounded in leveraging the expanded access points offered via the mobile platform to continue to grow our largest franchises."

Looking ahead, EA feels the impending launch of Madden NFL 25 and EA Sports FC 25 could deliver record-breaking net bookings in Q2. "We expect Q2 net bookings of $1.95 billion to $2.05 billion," added Canfield.

The company's full-year release slate also includes Dragon Age: The Veilguard, which EA claims will help realize its 2025 net bookings guidance range of $7.30 billion to $7.70 billion.