Glu Mobile’s smartphone revenues climb 111% to $19.9 million in Q2

Glu Mobile reported a better-than-expected second quarter this week. According to the company’s second quarter earnings report, Glu saw an 111 percent increase in its smartphone revenue year-over-year to $19.9 million in the second quarter, up from the $17.4 million the company earned in the first quarter. Revenue from iOS and Android games now accounts for 84 percent of Glu’s revenues, a slight increase from last quarter, when smartphone revenues accounted for 81 percent of the company’s earnings. By comparison, in Q2 2011 Glu’s smartphone revenues were $9.4 million, and accounted for 54 percent of the company’s total revenue. Overall, Glu’s total revenue for the quarter ending June 30 was $23.6 million, good enough for an operating loss of $5.2 million, down slightly from last quarter’s operating loss of $6.0 million. Under non-GAAP (generally accepted accounting principals) terms, Glu’s operating income was $602,0000. The company is still predicting a return to profitability under non-GAAP terms in the fourth quarter. Glu also revealed it had acquired GameSpy for 600,000 shares, a deal worth approximately $2.7 million based on Glu’s current share price of $4.52. Glu is planning to use GameSpy’s technology to provide cross-platform matchmaking, player statistic tracking, leaderboards, asynchronous PVP, text and voice chat, and cloud storage capabilities to its games, with a long-term focus on increasing player lifetime value. Glu’s catalogue of games drove 46 million downloads during Q2, down a noticeable 16.3 percent from the 55 million installs the company reported in Q1. Glu’s monthly active users also continued to fall in the second quarter, dropping slightly to 29.03 million MAU, from 29.8 million MAU in the first quarter. Although MAU declined for the second quarter in a row, the company’s daily active users increased again, rising 6.25 percent quarter-over-quarter to 3.4 million. On the financial side, Glu only reported average revenue per daily active user (ARPDAU) for the iOS versions of its titles. In June, the company’s female-focused game Stardom: The A List had the highest conversion and ARPDAU, with 3.9 percent of all MAU becoming paying customers, ARPDAU of 13.2 cent and 74,000 DAU. Looking forward, Glu is predicting its non-GAAP smartphone revenues will fall somewhere between $17.5 and $18.5 million in the third quarter, the same estimate it gave for Q2. For the full year, the company is estimating total non-GAAP smartphone revenues will be between $81.9 and $83.9 million, up from the company’s previous estimate of $76.4 million to $81.5 million. Glu has also updated its outlook for cash on hand, and is predicting to end the year with $21.5 million, up 19.4 percent from its previous estimate of $18.0 million. The company’s stocks were down slightly today, falling 2.98 percent to $4.52 in trading.

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Glu Mobile’s smartphone revenues climb 111% to $19.9 million in Q2

Kathleen De Vere

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Kathleen De Vere