Upcoming AWS Coverage on Changyou.com Post-Earnings Results
LONDON, UK / ACCESSWIRE / February 14, 2017 / Active Wall St. announces its post-earnings coverage on Glu Mobile Inc. (NASDAQ: GLUU). The Company posted its financial results for the fourth quarter and full year fiscal 2016 on February 08, 2017. The mobile game maker's net loss widened. In November 2016, Glu Mobile acquired a controlling interest in Crowdstar in an all-cash transaction valuing the latter company at approximately $45.5 million. Register with us now for your free membership at: http://www.activewallst.com/register/.
One of Glu Mobile's competitors within the Multimedia & Graphics Software space, Changyou.com Ltd. (NASDAQ: CYOU), is expected to report fourth-quarter 2016 results sometime around February 06, 2017. AWS will be initiating a research report on Changyou.com following the release of its earnings results.
Today, AWS is promoting its earnings coverage on GLUU; touching on CYOU. Get our free coverage by signing up to http://www.activewallst.com/register/.
Earnings Reviewed
For the period ended December 31, 2016, Glu Mobile reported total revenue of $46.3 million compared to $61.0 million in Q4 2015. The Company's five-largest titles during Q4 2016 represented 70% of GAAP revenue. The Company's revenue numbers came in short of market expectations of $46.6 million. Glu Mobile's total revenue was $200.6 million for FY16 compared to $249.9 million in FY15.
During Q4 2016, Glu Mobile's total bookings were $57.8 million compared to $57.9 million in Q4 2015, primarily due to the better-than-expected performance in Design Home, which generated $4 million for the two-month period the Company owned Crowdstar during the reported quarter. Glu Mobile's five-largest titles during Q4 2016 represented 62% of total bookings, down from 74% in previous quarter. The decline was attributed to an increase in the number of top-performing titles with the addition of Crowdstar. In terms of bookings, the largest title during the reported quarter was Covet Fashion, generating $8 million in the two months following the Company's acquisition of Crowdstar. Cooking Dash was $7.6 million while Gordon Ramsay Dash bookings were $7 million. Kim Kardashian Hollywood generated $6.9 million and Tap Sports Baseball bookings were $6.5 million. Glu Mobile also benefitted from an additional week of in-app purchase revenue from the Apple platform, which added $2.7 million to bookings in Q4 2016. For FY16, the Company's total bookings were $214.0 million compared to $242.2 million in FY15.
For Q4 2016, Glu Mobile's gross margin was 56% compared to 58% in Q4 2015. For FY16, the Company's gross margin was 40% compared to 57% in FY15. Gross margin for the full year of 2016 included $30.2 million in prepaid royalty impairments.
Glu Mobile reported net loss of $(17.2) million for Q4 2016 compared to a net loss of $(3.0) million for the year ago same period. The Company's EPS loss was $(0.13) for the reported quarter compared to an EPS loss of $(0.02) for Q4 2015. For the reported quarter, losses, adjusted for stock option expense, came in at ($0.11) per share, which was below analysts' consensus for a loss of ($0.07) per share. For FY16, Glu Mobile's net loss was $(87.4) million compared to a loss of $(7.2) million in FY15. EPS loss was $(0.66) for FY16 compared to an EPS loss of $(0.06) in FY15.
Cash and Cash Flows
As of December 31, 2016, Glu Mobile had cash and cash equivalents of $102.1 million and no debt. Cash used in operations was $(0.2) million for Q4 2016 compared to generating $2.6 million in Q4 2015. Cash used in operations was $(19.8) million for FY16 compared to $(11.5) million used in operations in FY15.
Outlook
For Q1 2017, Glu Mobile is expecting bookings to be between $53.0 million and $55.0 million. Royalties, excluding any impact of deferred royalties, are expected to be between $3.7 million and $3.9 million. Stock-based compensation expense is expected to be $3.8 million, restructuring charges are expected to be $3.2 million, transitional costs are expected to be $1.4 million, and amortization of intangible assets is expected to be $3.3 million.
For FY17, Glu Mobile is forecasting bookings in the range of $215.0 million and $225.0 million. Royalties, excluding any impact of deferred royalties, are expected to be between $17.2 million and $18.0 million. Stock-based compensation expense is expected to be $16.7 million, restructuring charges are expected to range from $3.2 million to $5.5 million, transitional costs are expected to be $2.7 million, and amortization of intangible assets is expected to be $10.2 million. The Company expects to have cash and short-term investments at December 31, 2017, of at least $60.0 million.
Partnership with Kris Bryant and MLB
On February 08, 2017, in a separate press release, Glu Mobile announced that it has partnered with MLB, the Major League Baseball Players Association (MLBPA), the Major League Baseball Players Alumni Association (MLBPAA), and Chicago Cubs third baseman Kris Bryant for the upcoming release of the latest title in the successful Tap Sports Baseball franchise. Through Glu's multi-year agreements with MLB, the MLBPA, and MLBPAA, Tap Sports Baseball is set to include all 30 teams as well as current players and select former players.
Stock Performance
On Monday, February 13, the stock closed the trading session at $2.11, slightly down 0.94% from its previous closing price of $2.13. A total volume of 6.89 million shares have exchanged hands, which was higher than the 3-month average volume of 3.09 million shares. Glu Mobile's stock price rallied 13.44% in the past three months. The stock currently has a market cap of $288.27 million.Active Wall Street:
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