Glu Mobile Inc. (NASDAQ:GLUU), a leading global developer and publisher of freemium games for smartphone and tablet devices, today announced preliminary financial results for its second quarter ended June 30, 2012.
“We are pleased with our preliminary Q2 results which exceeded the upper end of guidance for our tenth consecutive quarter,” said Niccolo de Masi, President and CEO of Glu. “Glu’s strong year-over-year growth was powered by our mobile-focus, lack of dependence on Facebook web users, and strength in male-oriented games.”
Glu’s preliminary Q212 results are:
- Total non-GAAP revenue of approximately $24.2 million, up 35% year-over-year. This is above the company’s guidance of $20.5 million to $21.5 million.
- Non-GAAP smartphone revenue of approximately $20.4 million, up 111% year-over-year. This is above the company’s guidance of $17.5 million to $18.5 million.
- Total GAAP revenue is approximately $23.6 million and GAAP smartphone revenue is approximately $19.9 million.
- Original IP contributed approximately 95% of non-GAAP smartphone revenues and non-GAAP gross margin is approximately 91%; GAAP gross margin is approximately 87%.
- Non-GAAP Adjusted EBITDA is approximately $1.2 million.
- Cash generated from operations of approximately $1.6 million; cash balance on June 30, 2012 of $24.5 million, which was above guidance.
“The timely acquisition of the Deer Hunter brand was an efficient use of capital, as Glu avoided paying approximately $1.4 million in royalties in the quarter. We are pleased with the prognosis for freemium mobile gaming in the second half of 2012 and our strong product release slate,” said Eric R. Ludwig, Glu’s Chief Financial Officer and Executive Vice President.De Masi continued, “We will be launching the majority of our second half 2012 titles between September and December in order to capitalize on advertising seasonality and new consumer hardware introductions. As a result, we expect to achieve positive Adjusted EBITDA in the second half of 2012, shaped as an Adjusted EBITDA loss in Q3 and solid Q4 Adjusted EBITDA profitability.”