Glu Mobile Inc. GLUU reported second-quarter Thursday results that were broadly in-line with expectations and reduced its guidance for the full year.
Although the company’s 2019 has been impacted by a delay in the release of "Sorcerer’s Arena" by Walt Disney Co DIS, there are “multiple potential positive catalysts” for the stock in 2020, according to Wedbush.
Glu Mobile’s second-quarter results reflected growth in titles being largely offset by catalog declines, Pachter said in a Friday note. (See his track record here.)
Bookings came in at $102 million, broadly in-line with consensus estimates and the company's guidance. Glu Mobile had expected bookings from Design Home and Covet Fashion to remain flat in the second quarter.
Bookings from these two titles combined grew by 11% sequentially, contributing to the record-high quarterly bookings posted by the company in the second quarter, the analyst said.
Despite this performance, Glu Mobile reduced its bookings and adjusted EBITDA guidance for full year 2019 from $445-$455 million to $406-$410 million and from $55-$57 million to $34-$36 million, respectively.
The lowered full-year guidance reflects the shift of Disney’s "Sorcerer’s Arena" from August 2019 to the first quarter of 2020.
Glu Mobile still expects the launch of two other titles in 2020, including "Originals" and the next release from the "Deer Hunter" franchise, Pachter said.
Two more original titles are in development, according to Wedbush.
Glu Mobile shares were plunging 41.36% to $4.40 at the time of publication Friday.
Photo courtesy of Glu Mobile.
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