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Glu Reports Fourth Quarter And Full Year 2012 Financial Results

Glu Mobile Inc. (NASDAQ:GLUU), a leading global developer and publisher of freemium games for smartphone and tablet devices, today announced financial results for its fourth quarter and full year ended December 31, 2012.

“The fourth quarter came in at the high end of expectations across our key metrics,” stated Niccolo de Masi, Chief Executive Officer of Glu. “Consistent with our guidance, smartphone revenue was flat compared to Q3 due to the decision to delay the global launch of approximately half of our Q4 2012 titles. We anticipate seeing momentum accelerate as new titles launch incorporating our new monetization systems.”

De Masi continued, “Looking forward, we believe Glu is strongly positioned to lead in a Social Gaming 2.0 landscape. We will continue to deliver engaging core gameplay, industry leading production values, and outstanding global reach. Our new product roadmap emphasizes deeper and more immersive gameplay designed to drive higher monetization and lifetime value. Every game we release in 2013 is designed to have the potential to outperform our best titles of years past.”

Fourth Quarter 2012 Financial Highlights:

  • Revenue: Total GAAP revenue was $21.0 million in the fourth quarter of 2012 compared to $15.2 million in the fourth quarter of 2011. Total non-GAAP revenue was $20.8 million in the fourth quarter of 2012 compared to $20.1 million in the fourth quarter of 2011. Non-GAAP revenue excludes changes in deferred revenue and amortization of in-process development contracts.
  • Gross Margin: GAAP gross margin was 85% in the fourth quarter of 2012 compared to 73% in the fourth quarter of 2011. Non-GAAP gross margin was 90% in the fourth quarter of 2012 compared to 87% in the fourth quarter of 2011. Non-GAAP gross margin excludes changes in deferred revenue and royalties and amortization of intangible assets.
  • GAAP Operating Loss: GAAP operating loss was $(6.7) million in the fourth quarter of 2012 compared to a $(9.8) million loss in the fourth quarter of 2011.
  • Non-GAAP Operating Loss: Non-GAAP operating loss was $(2.5) million in the fourth quarter of 2012 compared to a loss of $(1.2) million during the fourth quarter of 2011. Non-GAAP operating loss excludes changes in deferred revenue and royalty expense, amortization of in-process development contracts, stock-based compensation expense, amortization of intangible assets, restructuring charges, change in fair value of the Blammo earnout, transitional costs and impairment of goodwill.
  • Adjusted EBITDA: Adjusted EBITDA was a $(1.8) million loss for the fourth quarter of 2012 compared to a $(0.7) million loss during the fourth quarter of 2011. Adjusted EBITDA is defined as non-GAAP operating income/(loss) less depreciation.
  • GAAP Net Loss and EPS: GAAP net loss was $(7.1) million for the fourth quarter of 2012 compared to a GAAP net loss of $(10.0) million for the fourth quarter of 2011. GAAP EPS was a loss of $(0.11) for the fourth quarter of 2012, based on 65.7 million weighted-average basic shares outstanding, compared to a loss of $(0.16) for the fourth quarter of 2011, based on 63.0 million weighted-average basic shares outstanding.
  • Non-GAAP Net Loss and EPS: Non-GAAP net loss was $(3.2) million for the fourth quarter of 2012 compared to a loss of $(1.4) million for the fourth quarter of 2011. Non-GAAP EPS was a loss of $(0.05) for the fourth quarter of 2012 based on 65.7 million weighted-average basic shares outstanding, compared to a loss of $(0.02) for the fourth quarter of 2011 based on 63.0 million weighted-average basic shares outstanding.
  • Cash Flows Used in Operations: Cash flows used in operations were $(1.6) million for the fourth quarter of 2012 compared to cash flows used in operations of $(4.3) million for the fourth quarter of 2011.

Selected Fourth Quarter and Full Year 2012 Operating Highlights and Metrics :

  • Our total GAAP smartphone revenue for the fourth quarter of 2012 of $18.6 million grew 85% from the fourth quarter of 2011 and comprised 89% of total GAAP revenue.
  • Our total GAAP smartphone revenue for 2012 of $74.4 million grew 112% from 2011 and was 85% of total GAAP revenue.
  • Our non-GAAP smartphone revenue for the fourth quarter of 2012 of $18.5 million grew 24% from the fourth quarter of 2011 and was 89% of total non-GAAP revenue.
  • Our non-GAAP smartphone revenue for 2012 of $74.6 million grew 78% from 2011 and was 85% of total non-GAAP revenue.

Fourth Quarter and Recent Developments and Strategic Initiatives:

  • We launched four new freemium games: Death Dome, Contract Killer 2, Dragon Slayer, and Contract Killer Zombies 2.
  • We announced the availability of our leading freemium titles for Google’s new Nexus devices and Android 4.2, Jelly Bean.
  • We announced the availability of Deer Hunter Reloaded, Small Street and Samurai vs. Zombies Defense for the Mac, all of which are fully optimized for new features on OS X Mountain Lion including full screen Retina display and support for in-app purchasing.
  • We hired Matthew Ricchetti as our President of Studios.
  • We partnered with Probability PLC to expand our mobile portfolio to include real-money gambling and reach new international audiences.
  • In January 2013, we invested in Bee Cave Games, a new company formed by industry veterans that is focused on developing social and mobile casino games.
  • We launched Glu Publishing and hired a VP of 3rd Party Development.

Fiscal 2012 Financial Highlights:

  • Revenue: Total GAAP revenue was $87.5 million for the year ended December 31, 2012 compared to $66.2 million for the year ended December 31, 2011. Total non-GAAP revenue was $87.8 million for the year ended December 31, 2012 compared to $72.9 million in the year ended December 31, 2011. Non-GAAP revenue excludes changes in deferred revenue and amortization of in-process development contracts.
  • Gross Margin: GAAP gross margin was 85% for the year ended December 31, 2012 compared to 72% for the year ended December 31, 2011. Non-GAAP gross margin was 90% for the year ended December 31, 2012 compared to 82% for the year ended December 31, 2011. Non-GAAP gross margin excludes changes in deferred revenue and royalties and amortization of intangible assets.
  • GAAP Operating Loss: GAAP operating loss was $(22.1) million for the year ended December 31, 2012 compared to a $(21.2) million loss for the year ended December 31, 2011.
  • Non-GAAP Operating Loss: Non-GAAP operating loss was $(4.6) million for the year ended December 31, 2012 compared to a loss of $(3.4) million during the year ended December 31, 2011. Non-GAAP operating loss excludes changes in deferred revenue and royalty expense, amortization of in-process development contracts, stock-based compensation expense, amortization of intangible assets, restructuring charges, change in fair value of the Blammo earnout, transitional costs and impairment of goodwill.
  • Adjusted EBITDA: Adjusted EBITDA was a $(2.3) million loss for the year ended December 31, 2012 compared to a $(1.5) million loss for the year ended December 31, 2011. Adjusted EBITDA is defined as non-GAAP operating income/(loss) less depreciation.
  • GAAP Net Loss and EPS: GAAP net loss was $(20.5) million for the year ended December 31, 2012 compared to a GAAP net loss of $(21.1) million for the year ended December 31, 2011. GAAP EPS was a loss of $(0.32) for the year ended December 31, 2012, based on 64.3 million weighted-average basic shares outstanding, compared to a loss of $(0.37) for the year ended December 31, 2011, based on 57.5 million weighted-average basic shares outstanding.
  • Non-GAAP Net Loss and EPS: Non-GAAP net loss was $(5.1) million for the year ended December 31, 2012 compared to a loss of $(4.0) million for the year ended December 31, 2011. Non-GAAP EPS was a loss of $(0.08) for the year ended December 31, 2012 based on 64.3 million weighted-average basic shares outstanding, compared to a loss of $(0.07) for the year ended December 31, 2011 based on 57.5 million weighted-average basic shares outstanding.
  • Cash Flows Used in Operations: Cash flows used in operations were $(6.7) million for the year ended December 31, 2012 compared to cash flows used in operations of $(6.7) million for the year ended December 31, 2011.

A reconciliation of GAAP to non-GAAP results has been provided in the financial statement tables included in this press release. An explanation of these measures is also included below under the heading “Non-GAAP Financial Measures.”

Stock quotes in this article: GLUU 

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