Glu Mobile, a publicly-traded mobile gaming company that specializes in freemium games, raised its second-quarter earnings guidance by a range of $500,000 to $1 million and said going forward, it’s not accounting for revenue from incentivized installs.
The company said that smartphone gaming revenue will come in at between $8.25 and $8.75 million this quarter, up from the $7.25 to $8.25 million range it forecasted in its earnings call a few weeks ago. It says $2.9 million of that will come from incentivized installs, where users download apps from an offer wall in exchange for virtual currency inside a game. This revenue has already been transacted, and the company isn’t counting incentivized install revenue going forward.
Glu said it will probably be able to make up for 50 to 75 percent of the revenue lost from offer walls through other kinds of incentivized actions in games — like getting users to watch video ads in exchange for virtual currency.