Glu Mobile (GLUU) Raises Q2 Booking Guidance
Glu Mobile Inc. (NASDAQ: GLUU), a leading developer and publisher of mobile games, today provided an update on its operating and expected financial performance for the second quarter ended June 30, 2020.
Nick Earl, Chief Executive Officer, said, “Since our recent first quarter report and earnings conference call, we’ve seen significant momentum in the business and broad-based growth across our live game portfolio driven by successful live operations execution and continued positive industry trends. Our three Growth Games, along with Diner DASH Adventures, Kim Kardashian: Hollywood and Disney Sorcerer’s Arena, are performing above our expectations, with several setting new records for daily bookings along the way. These positive trends are driving increased scale and better than anticipated flow through to the bottom line. This gives us confidence in raising our expected financial outlook for the current quarter and full year.”
The company now expects to report bookings in the range of $162.5 million to $167.5 million in the second quarter of 2020, an increase over the prior guidance range of $150.0 million to $155.0 million. This updated quarterly bookings guidance represents 62% year-over-year growth at the midpoint of the range. As planned, the company decreased its user acquisition investment in May, driving strong bottom line flow through. The cost per install (CPI) environment remains favorable, and although CPIs are higher than in April, they remain below historical averages.
For the full year 2020, the company has increased its bookings outlook to $502.5 million to $512.5 million from its prior guidance of $490.0 million to $500.0 million reflecting the guidance increase for the second quarter. The bookings guidance includes contributions from current live games and excludes any unlaunched titles.
The company’s key titles have outperformed in the second quarter to date, specifically:
- Design Home and Covet Fashion are both on pace for record quarters driven by continued strength in live operations
- Tap Sports Baseball 2020 has experienced increased year-over-year bookings growth of 27% from April 1st to May 25th, an acceleration from the 23% year-over-year growth reported on the May 7th earnings call
- Diner DASH Adventures and Kim Kardashian: Hollywood have seen their strong first quarter momentum continue
- Disney Sorcerer’s Arena has outperformed across major KPI’s and is showing the foundational signs of a Growth Game
Eric Ludwig, Chief Operating Officer and Chief Financial Officer, stated, “We believe our increased bookings expectations for the second quarter paired with strong marginal flow-through positions us extremely well to execute against our long-term strategic growth plan. Our updated outlook puts us on pace to be over $42 million above our prior record quarterly bookings at the low-end of the range. Other than the revised guidance we announced today, all other assumptions regarding live game performance and user acquisition investment for the second half of 2020 that were made on our May 7th first quarter earnings conference call remain in place. We continue to take a conservative view on the back half of the year in light of macroeconomic uncertainty.”
The company is providing this business update in advance of Glu management participating in the following upcoming investor presentations and meetings:
- One-on-one meetings and a fireside chat at the Cowen 2020 Technology, Media & Telecom Virtual Conference on Friday, May 29, 2020 at 10:10 a.m. Pacific time (1:10 p.m. Eastern time).
- One-on-one meetings at the Piper Sandler 40th Annual Virtual Consumer Marketplace Conference on Thursday, June 4, 2020.
- One-on-one meetings and a fireside chat at the Baird 2020 Virtual Global Consumer, Technology & Services Conference on Thursday, June 4, 2020 at 9:15 a.m. Pacific time (12:15 p.m. Eastern time).
A live webcast, as well as a replay, of the fireside chats at the Cowen 2020 Technology, Media & Telecom Virtual Conference, as well as the Baird 2020 Virtual Global Consumer, Technology & Services Conference will be available on the company’s investor relations website at www.glu.com/investors.
Additionally, the company expects to issue its actual second quarter financial results for the period ending June 30, 2020 in early August.
Updated Second Quarter 2020 Guidance:
| in millions | Low | High |
| Bookings | $162.5 | $167.5 |
| Platform commissions, excluding any impact of deferred platform commissions | $44.2 | $45.6 |
| Royalties, excluding any impact of deferred royalties | $12.4 | $12.7 |
| Hosting costs | $2.3 | $2.3 |
| User acquisition and marketing expenses | $56.1 | $56.1 |
| Adjusted other operating expenses | $37.0 | $37.3 |
| Depreciation | $1.5 | $1.5 |
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| Supplemental information: |
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| Income tax | $0.7 | $0.7 |
| Stock-based compensation | $6.7 | $6.7 |
| Amortization of intangible assets | $0.9 | $0.9 |
| Weighted-average common shares outstanding – basic | 153.1 | 153.1 |
| Weighted-average common shares outstanding – diluted | 163.5 | 163.5 |
Updated Full Year 2020 Guidance:
| in millions | Low | High |
| Bookings | $502.5 | $512.5 |
| Platform commissions, excluding any impact of deferred platform commissions | $135.7 | $138.4 |
| Royalties, excluding any impact of deferred royalties | $33.7 | $34.3 |
| Hosting costs | $7.4 | $7.5 |
| User acquisition and marketing expenses | $127.5 | $130.1 |
| Adjusted other operating expenses | $152.0 | $153.0 |
| Depreciation | $5.8 | $5.8 |
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| Supplemental information: |
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| Income tax | $0.4 | $0.4 |
| Stock-based compensation | $28.0 | $28.0 |
| Amortization of intangible assets | $3.3 | $3.3 |
| Weighted-average common shares outstanding – basic | 154.5 | 154.5 |
| Weighted-average common shares outstanding – diluted | 165.8 | 165.8 |
| Cash and cash equivalent balance | At least $160.0 | |