SAN FRANCISCO--(BUSINESS WIRE)--May 1, 2018--Glu Mobile Inc. (NASDAQ: GLUU), a leading global developer and publisher of free-to-play mobile games, today announced financial results for its first quarter ended March 31, 2018. The company also provided an outlook for its financial performance in the second quarter and increased its outlook for the full year 2018.
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Nick Earl, Chief Executive Officer, stated, “Momentum from our significantly improved results last year carried into 2018 and we are off to a great start for the year. Glu’s strong first quarter financial results were driven by an outperformance from Design Home and another quarter of growth from both Covet Fashion and Kim Kardashian: Hollywood. These better than expected results demonstrate the quality of our current Growth and Evergreen titles and the successful execution of initiatives we’ve implemented to improve game performance as part of our live ops strategy. We also made steady progress in further developing our product roadmap and are well positioned to execute on our overall growth strategy.”
“As a result of our strong top and bottom line first quarter results we have raised our bookings outlook for the full year 2018 to account for the quarter’s outperformance. We continue to expect sequentially growing bottom line profitability on an adjusted EBITDA basis throughout the year.”
First Quarter 2018 Financial Highlights:
Eric R. Ludwig, Chief Operating Officer and Chief Financial Officer, said, “We are pleased to report another quarter of outperformance as bookings reached $86.3 million, a new quarterly record. The record bookings coupled with the initiatives we started last year to consolidate studios led to improved operating efficiency and drove adjusted EBITDA profitability. We have raised our full year financial guidance to reflect our confidence in our outlook."
Recent Developments and Strategic Initiatives:Launched MLB Tap Sports Baseball 2018: Announced the launch of the latest franchise installment of Tap Sports Baseball, which contains several updates including a new Create-A-Player feature that allows users to customize a player of their own and compete against MLB’s best, and a Pick’em feature that allows users to predict real game results to win in-game prizes. Real baseball strategy and console-quality graphics bring the Major League Baseball experience to life!
Financial Outlook as of May 1, 2018:
Glu is providing its financial outlook for the second quarter of 2018 and updating guidance for the full year 2018 as follows:
Second Quarter 2018 Guidance:
Full Year 2018 Guidance:
Glu does not provide guidance on a GAAP basis primarily due to the fact that Glu is unable to predict, with reasonable accuracy, future changes in its deferred revenue and corresponding cost of revenue. The amount of Glu’s deferred revenue and cost of revenue for any given period is difficult to predict due to differing estimated useful lives of paying users across games, variability of monthly revenue, platform commissions and royalties by game and unpredictability of revenue from new game releases. Future changes in deferred revenue and deferred cost of revenue are uncertain and could be material to Glu’s results computed in accordance with GAAP. Accordingly, Glu is unable to provide a reconciliation of the non-GAAP financial measure guidance to the corresponding GAAP measure without unreasonable effort.
Quarterly Conference Call Information:
Glu will discuss its quarterly results via teleconference today at 2:00 p.m. Pacific Time (5:00 p.m. Eastern Time). Please dial (866) 582-8907 (domestic), or (760) 298-5046 (international), with conference ID # 7169305 to access the conference call at least five minutes prior to the 2:00 p.m. Pacific Time start time. A live webcast and replay of the call will also be available on the investor relations portion of the company's website at www.glu.com/investors. An audio replay will be available between 5:00 p.m. Pacific Time, May 1, 2018, and 8:59 p.m. Pacific Time, May 8, 2018, by calling (855) 859-2056, or (404) 537-3406, with conference ID # 7169305.
Disclosure Using Social Media Channels
Glu currently announces material information to its investors using SEC filings, press releases, public conference calls and webcasts. Glu uses these channels as well as social media channels to announce information about the company, games, employees and other issues. Given SEC guidance regarding the use of social media channels to announce material information to investors, Glu is notifying investors, the media, its players and others interested in the company that in the future, it might choose to communicate material information via social media channels or, it is possible that information it discloses through social media channels may be deemed to be material. Therefore, Glu encourages investors, the media, players and others interested in Glu to review the information posted on the company forum ( http://ggnbb.glu.com/forum.php ) and the company Facebook site ( https://www.facebook.com/glumobile ) and the company twitter account ( https://twitter.com/glumobile ). Investors, the media, players or other interested parties can subscribe to the company blog and twitter feed at the addresses listed above. Any updates to the list of social media channels Glu will use to announce material information will be posted on the Investor Relations page of the company's website at www.glu.com/investors.
Use of Non-GAAP Financial Measures
To supplement Glu's unaudited condensed consolidated financial data presented in accordance with GAAP, Glu uses certain non-GAAP measures of financial performance. The presentation of these non-GAAP financial measures is not intended to be considered in isolation from, as a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP, and may be different from non-GAAP financial measures used by other companies. In addition, these non-GAAP measures have limitations in that they do not reflect all of the amounts associated with Glu's results of operations as determined in accordance with GAAP. The non-GAAP financial measures used by Glu include historical and estimated bookings, platform commissions, excluding any impact of deferred platform commissions, royalties, excluding any impact of deferred royalties, and adjusted operating expenses. These non-GAAP financial measures exclude the following items from Glu's unaudited consolidated statements of operations:Change in deferred platform commissions; Change in deferred royalties; Non-cash warrant benefit/(expense) Impairment and amortization of intangible assets; Stock-based compensation expense; Restructuring charges; and Transitional costs.
Bookings do not reflect the deferral of certain game revenue that Glu recognizes over the estimated useful lives of paying users of Glu’s games and excludes changes in deferred revenue and litigation settlement proceeds.
Glu may consider whether significant items that arise in the future should also be excluded in calculating the non-GAAP financial measures it uses.
Glu believes that these non-GAAP financial measures, when taken together with the corresponding GAAP financial measures, provide meaningful supplemental information regarding Glu's performance by excluding certain items that may not be indicative of Glu's core business, operating results or future outlook. Glu's management uses, and believes that investors benefit from referring to, these non-GAAP financial measures in assessing Glu's operating results, as well as when planning, forecasting and analyzing future periods. These non-GAAP financial measures also facilitate comparisons of Glu's performance to prior periods.
Cautions Regarding Forward-Looking Statements
This news release contains forward-looking statements, including those regarding our “Financial Outlook as of May 1, 2018” (“Second Quarter 2018 Guidance” and “Full Year 2018 Guidance”), and the statements that we are well positioned to execute on our overall growth strategy; we continue to expect sequentially growing bottom line profitability on an adjusted EBITDA basis throughout the year; and we have raised our full year financial guidance to reflect our confidence in our outlook. These forward-looking statements are subject to material risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements. Investors should consider important risk factors, which include: the risk that consumer demand for smartphones, tablets and next-generation platforms does not grow as significantly as we anticipate or that we will be unable to capitalize on any such growth; the risk that we do not realize a sufficient return on our investment with respect to our efforts to develop free-to-play games for smartphones, tablets and next-generation platforms, the risk that we will be unable build successful Growth titles that provide predictable bookings and year over year growth; the risk that we will not be able to maintain our good relationships with Apple and Google; the risk that our development expenses for games for smartphones, tablets and next-generation platforms are greater than we anticipate; the risk that our recently and newly launched games are less popular than anticipated or decline in popularity and monetization rate more quickly than we anticipate; the risk that our newly released games will be of a quality less than desired by reviewers and consumers; the risk that the mobile games market, particularly with respect to free-to-play gaming, is smaller than anticipated; the risk that we may lose a key intellectual property license; the risk that we are unable to recruit and retain qualified personnel for developing and maintaining the games in our product pipeline resulting in reduced monetization of a game, product launch delays or games being eliminated from our pipeline altogether; and other risks detailed under the caption "Risk Factors" in our Form 10-K filed with the Securities and Exchange Commission on March 9, 2018 and our other SEC filings. You can locate these reports through our website at http://www.glu.com/investors. We are under no obligation, and expressly disclaim any obligation, to update or alter our forward-looking statements whether as a result of new information, future events or otherwise.
About Glu Mobile
Glu Mobile (NASDAQ: GLUU) is a leading creator of mobile games. Founded in 2001, Glu is headquartered in San Francisco with Bay Area studios in Burlingame and San Mateo, and international locations in Toronto and Hyderabad. With a history spanning over a decade, Glu’s culture is rooted in taking smart risks and fostering creativity to deliver world-class interactive experiences for our players. Glu’s diverse portfolio features top-grossing and award-winning original and licensed IP titles including, Cooking DASH, Covet Fashion, Deer Hunter, Design Home, MLB Tap Sports Baseball and Kim Kardashian: Hollywood available worldwide on various platforms including the App Store and Google Play. For more information, visit www.glu.com or follow Glu on Twitter, Facebook and Instagram.
COOKING DASH, COVET FASHION, DEER HUNTER, DESIGN HOME, TAP SPORTS, GLU, GLU MOBILE, and the 'g' character logo are trademarks of Glu Mobile Inc.
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