Electronic Arts Inc. stock research
FY2024 Q4
Electronic Arts (EA) Gross Margin — Quarter Ended Mar 31, 2024
Revenue decreased slightly from the prior quarter and the same quarter one year earlier, while gross profit held roughly steady. Cost of revenue declined more sharply than revenue, resulting in an expanded gross margin for the current quarter.
Gross margin takeaway
Quarter ended Mar 31, 2024 · FY2024 Q4
Revenue decreased slightly from the prior quarter and the same quarter one year earlier, while gross profit held roughly steady. Cost of revenue declined more sharply than revenue, resulting in an expanded gross margin for the current quarter.
- The strongest observable margin driver is a lower cost of revenue relative to the immediate prior quarter, which improved gross margin despite a small drop in revenue.
- Compared with the immediately preceding quarter, gross margin improved, driven by a larger proportional reduction in cost of revenue than in revenue. Year over year, gross margin also strengthened, as cost of revenue declined while gross profit remained broadly unchanged.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
79.9%
Gross profit
$1.4B
Revenue
$1.8B
Cost of revenue
$357.0M
Quarter-over-quarter change
+7.1 pts
Year-over-year change
+3.8 pts
Quarterly gross margin trend
A four-quarter view of the revenue and direct-cost bridge behind gross margin.
| Period | Revenue | Gross profit | Cost of revenue | Gross margin |
|---|---|---|---|---|
| Jun 30, 2023 | $1.9B | $1.6B | $368.0M | 80.9% |
| Sep 30, 2023 | $1.9B | $1.5B | $456.0M | 76.2% |
| Dec 31, 2023 | $1.9B | $1.4B | $529.0M | 72.8% |
| Mar 31, 2024 | $1.8B | $1.4B | $357.0M | 79.9% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Dec 31, 2023
+7.1 pts
Year-over-year change
Mar 31, 2023
+3.8 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable margin driver is a lower cost of revenue relative to the immediate prior quarter, which improved gross margin despite a small drop in revenue.
Compared with the immediately preceding quarter, gross margin improved, driven by a larger proportional reduction in cost of revenue than in revenue. Year over year, gross margin also strengthened, as cost of revenue declined while gross profit remained broadly unchanged.
Monitor whether the lower cost of revenue level can be sustained in future quarters as revenue trends shift.