- Revenue increased to $99.3 million from $81.1 million year-over-year
- Record bookings increased 17.5% year-over-year and 1% sequentially to $100.7 million
- Company raises 2018 full year bookings guidance to a range of $380.7 million to $382.7 million
- Design Home peaks at #5 top grossing game on U.S. App Store for iPhone
Glu Mobile Inc.(NASDAQ: GLUU), a leading global developer and publisher of free-to-play mobile games, today announced financial results for its third quarter ended September 30, 2018. The company also provided an outlook for its financial performance in the third quarter and increased its financial guidance for the full year 2018.
This press release features multimedia. View the full release here:https://www.businesswire.com/news/home/20181106005870/en/
(Photo: Business Wire)
Third Quarter 2018 Financial Highlights:
|Three Months Ended|
|in millions, except per share data||September 30, 2018||September 30, 2017|
|Net loss per share – basic and diluted||($0.00)||($0.09)|
|Weighted-average common shares outstanding – basic and diluted||142.4||135.7|
|Cash generated from operations excluding royalty advances||$17.7||$3.0|
|Cash paid for royalty advances that are included in cash generated from operations||($0.1)||($3.9)|
|Cash and cash equivalents||$80.8||$62.9|
|Additional Financial Information|
|Three Months Ended||Guidance provided for three monthsended September 30, 2018|
|September 30, 2018||September 30, 2017||Low||High|
|Platform commissions, excluding any impact of deferred platform commissions *||$26.1||$22.2||$23.9||$24.3|
|Royalties, excluding any impact of deferred royalties*||$7.1||$6.3||$6.9||$7.0|
|Hosting and other costs||$1.6||$1.8||$1.8||$1.8|
|User acquisition and marketing expenses||$24.2||$25.7||$22.9||$23.2|
|Adjusted other operating expenses*||$30.0||$30.7||$30.0||$30.2|
* Platform commissions, excluding any impact of deferred platform commissions, Royalties, excluding any impact of deferred royalties, and Adjusted other operating expenses are non-GAAP financial measures. These non-GAAP financial items should be considered in addition to, but not as a substitute for, the information provided in accordance with GAAP. Reconciliations for these non-GAAP financial items to the most directly comparable financial items based on GAAP are provided in GAAP to Adjusted results reconciliation table.
Nick Earl, Chief Executive Officer, stated, “Glu continued the strong momentum established in the first half of the year as bookings reached a record level in the third quarter with another quarter of increased profitability on an adjusted EBITDA basis. These better than expected results were driven by continued strength in our Growth games and the improvements in our live operations and merchandising."
“As we head into the end of the year, we believe we have made significant strides in fostering creativity, simplifying operations and focusing on profitable growth and free cash flow. Looking further ahead, we believe the best approach to increasing shareholder value is to continue to focus our resources on our live operations while stacking bookings on top of our strong foundation with new potential Growth titles,” said Nick Earl.
Eric R. Ludwig, Chief Operating Officer and Chief Financial Officer, said, “Our strong top line marks our seventh consecutive quarter of reporting improved year over year bookings growth. This accomplishment reflects our decision to pivot away from celebrity titles and focus our resources on Growth games that can grow bookings year over year while generating sustainable profitability and free cash flow. These improved financial results and our increased outlook for the full year put us on track for a record 2018 in terms of bookings, adjusted EBITDA profitability and free cash flow. We believe we remain on track to reach our long-term financial goals and are excited about our future."
Financial Outlook as of November 6, 2018:
Glu is providing its financial outlook for the fourth quarter of 2018 and updating guidance for the full year 2018 as follows:
Fourth Quarter 2018 Guidance:
|Platform commissions, excluding any impact of deferred platform commissions||$24.8||$25.2|
|Royalties, excluding any impact of deferred royalties||$5.8||$6.0|
|User acquisition and marketing expenses||$22.5||$22.6|
|Adjusted other operating expenses||$31.0||$31.2|
|Amortization of intangible assets||$1.4||$1.4|
|Weighted-average common shares outstanding – basic||143.8||143.8|
|Weighted-average common shares outstanding – diluted||156.9||156.9|
Full Year 2018 Guidance:
|Platform commissions, excluding any impact of deferred platform commissions||$100.1||$100.5|
|Royalties, excluding any impact of deferred royalties||$25.8||$26.0|
|User acquisition and marketing expenses||$94.2||$94.3|
|Adjusted other operating expenses||$118.5||$118.7|
|Amortization of intangible assets||$8.6||$8.6|
|Weighted-average common shares outstanding – basic||141.5||141.5|
|Weighted-average common shares outstanding – diluted||151.2||151.2|
|Cash and cash equivalents balance||At least $90.0|
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.
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