On May 11th, Electronic Arts Inc. forecast annual adjusted revenue above the estimates of industry analysts. Reuters said the company “is betting that demand for its titles… would stay strong even as COVID-19 restrictions ease.”
EA estimated the company’s full-year adjusted revenue to be $7.3 billion. This is significantly higher than the estimate of $6.61 billion by Refinitiv IBES.
“We expect to continue to drive strong organic growth in Apex Legends in fiscal 2022 and expand the franchise to new platforms with the launch of Apex Mobile in the back half of the year,” said Chief Financial Officer Blake Jorgensen during a post-earnings call.
The company also reported $6.19 billion in net bookings for 2020. This represents a 15% increase in net bookings year-over-year from 2020 to now. Furthermore, EA exceeded its full-year projections by $600 million.
The Profit‘s Take:
EA is right! The growth during the pandemic was not an anomaly, and not just related to people being at home more. Demand for gaming will remain incredibly strong for years to come.