Previous Statements by GLUU
» Glu Mobile's CEO Discusses Q4 2011 Results - Earnings Call Transcript
» Glu Mobile's CEO Discusses at 8th Annual Citi US Small/Mid Cap - Conference Call Transcript
» Glu Mobile's CEO Discusses Q3 2011 Results - Earnings Call Transcript
» Glu Mobile's CEO Discusses Q2 2011 Results - Earnings Call Transcript
We caution you to consider the important risk factors that could cause actual results to differ materially from those in the forward-looking statements in the press release and during this conference call. These risk factors are described in our press release and are more fully detailed under the caption and Risk Factors in the Form 10-Q filed with the Securities and Exchange Commission on March 14th, 2012.During this call, we will present both GAAP and non-GAAP financial measures. Non-GAAP measures exclude the change in deferred revenues and royalties, amortization of in-process development contracts, amortization of intangibles, stock-based compensation charges, restructuring charges, changes in the fair value of the Blammo earn out, transitional costs, release of MIG pre-acquisition tax liabilities and foreign currency gains and losses primarily related to revaluation of assets and liabilities. Additionally, we will be discussing adjusted EBITDA, which is defined as non-GAAP operating income or loss, excluding depreciation. These non-GAAP measures are not intended to be considered in isolation from, a substitute for, or superior to our GAAP results, and we encourage investors to consider all measures before making an investment decision. For complete information regarding our non-GAAP financial information, the most directly comparable GAAP measures and a quantitative reconciliation of those figures, please refer to today’s press release regarding our first quarter results. The press release has also been furnished to the SEC as part of a Form 8-K. In addition, please note that the date of this conference call is May 2 nd, 2012 and any forward-looking statements that we may make today are based on assumptions that we believe to be reasonable as of this date. We undertake no obligation to update these statements as a result of future events. Lastly, this conference call is a property of Glu Mobile and any recording, reproduction or rebroadcast of this conference call without the express written permission of Glu is strictly prohibited.
With that, I’ll turn the call over to Niccolo.Niccolo de Masi Good afternoon and a warm welcome to everyone joining us today. Before I begin, allow me to direct you to the supplemental presentation accompanying today’s earnings. It can be accessed via our investor website, glu.com/investors. In addition to the presentation, you will find video demos of our upcoming summer titles. I am delighted to announce that in Q1 2012, we delivered $17.4 million of non-GAAP Smartphone revenue. This was ahead of expectations, representing 158% growth from the same period last year and a 17% growth quarter-on-quarter. The percentage of total non-GAAP revenue derived from Smartphones increased from 75% in Q4 ’11 to 81% in Q1 ’12. During the first quarter of 2012, we generated a modest adjusted EBITDA profit due to our strength Smartphone revenue, favorable gross margin expansion and tight cost controls. We anticipate the Smartphone revenue will continue to grow from Q1 levels in order to cover planned headcount growth, annual merit increases and direct marketing spend. Glu is expected to be sustainably adjusted EBITDA and operating cash flow positive from Q4 of this year onwards. Underpinning these strong results were our update to our Q4 ’11 title launches as well as solid performances from new releases, Small Street and Samurai versus Zombies Defense. The latter was our first title from our Griptonite studio that we acquired last August. Both of these titles benefited from additional live beta testing prior to worldwide release. While launching later than originally anticipated, we believe this additional refinement period will lead to larger lifetime revenues and would have otherwise resulted from a more premature release. Looking at these positive data points, we will be applying a similarly elongated live beta period for future new launches. This will reduce the number of titles reaching worldwide release in Q2. However, we believe in turn that this will set up Glu up for a strong second half of the year. Read the rest of this transcript for free on seekingalpha.com