Video game publisher Electronic Arts has today forecast full-year adjusted revenue above Wall Street estimates.
The company's performance was boosted by the broader surge in videogame sales as people shelter at home due to the Covid-19 pandemic.
Videogame sales in the US have surged in the last two months as the virus shut down the country and forced millions inside their homes, with sales in March hitting their highest in over a decade.
Analysts expect the extended stay-at-home orders to further boost sales and user engagement for videogames across all platforms.
EA, like rivals Activision Blizzard and Take-Two Interactive Software, has a history of guiding conservatively at the beginning of the year.
The company said today that revenue from live services in the quarter were $832m, up about 17% from a year ago.
EA earns a bigger chunk of its sales from its live services which include in-game purchases and "EA Access", a subscription-based online service, among other items.
"With more people staying at home, we have experienced, and are continuing to experience, heightened levels of engagement and live services net bookings growth to date", EA said in a statement.
EA's popular titles, including "Star Wars Jedi: Fallen Order" that has over 10 million players to date, competes with other big-budget titles from rivals Activision Blizzard and Take-Two Interactive.
The company forecast full-year adjusted revenue of $5.55 billion, beating analysts' average estimate of $5.37 billion.
On an adjusted basis, the company's quarterly revenue fell to $1.21 billion from $1.36 billion, but edged past analysts' estimates of $1.19 billion, according to IBES data from Refinitiv.
"The year-on-year decrease is driven by the massive launch of Apex Legends a year ago", Blake Jorgensen, chief financial officer, said on a post-earnings call with analysts.
Its net income jumped to $418m, or $1.43 per share, in the fourth quarter ended March 31, from $209m, or 69 cents per share, a year ago.
