We took a long look at EA stock on our last report. If you want to get a better idea of the immediate history of the stock then check out that article.

https://www.vdgms.com/stocks/2019/3/7/electronic-arts-ea

if you are all caught up on EA and care more about how the Q1 FY2020 report looked then read on. EA had their Q1 FY2020 earnings report last week. They were also happy with their performance and as a result the stock rose about 10 percent after the report until the end of the week. Let’s take a closer look at what helped EA regain confidence that it had lost in the past few weeks.

Right away the biggest takeaway is that operating results came in significantly over expectations for Q1. Net revenue was 1.21 billion which came in over expectations by about 80 million and was up from 1.14 billion during Q1 the previous year. As mentioned when talking about Nintendo, it came as a little shocking how little their digital sales accounted for considering the era we are currently living in. Electronic Arts posted digital sales of 701 million for the quarter, which represents almost 76% of their total business for the quarter. The digital sales could be anything from full downloads, to live services games and subscription fees just to name a few. They said these digital sales were strongly driven by interaction in their live service games including Apex Legends, The Sims 4 and FIFA.

In regards to Apex Legends, EA noted that it has outperformed expectations with significant growth on a weekly and daily basis. They are quite pleased with its success that they are increasing their investment into Apex for content development. Hopefully this leads to more meaningful content and not just cosmetic and other methods for EA to get your money. They also noted that Apex is going to be a major competitor in Esports this year, which leads to believe they have some modes or changes coming that will change the way this game is streamed because right now its not winning the streaming war.

Finally, the mentioned how happy they were with the performance of season 2 and its robust changes including a better battle pass, ranked mode and map changes. They also noted that there will be a huge event happening in mid August and that they will be delivering one of the most fan requested features. I am not sure what that could be but one of the top requested features is solo or duo modes. We don’t have long to wait to find out more about this as we are only a few weeks away.