Glu Mobile -9.4% AH due to guidance; revenue recognition policy changed


Glu (GLUU) is now accounting for sales on "digital storefronts" (e.g. the App Store, Google Play) on a gross, rather than net, basis. This means Apple/Google's 30% cut is now included in revenue figures.

Glu has restated past results to reflect this accounting change. It's also reflected in the company's revenue guidance.

Using the new method, non-GAAP Q2 revenue (exc. $1.2M deferred revenue increase) was $23.2M (-22% Y/Y). "Platform commissions, royalties, and other" amounted to $7.7M.

Glu expects Q3 revenue of $19.6M-$21M and EPS of -$0.10; the consensus (based on older method) is at $21.8M and -$0.03.

2013 guidance is for revenue of $96.8M-$98.9M and EPS of -$0.22 to -$0.24; consensus (old method) is at $84.4M and -$0.13. The guidance implies strong Q4 growth.

Glu says its guidance "reflects an adjusted launch schedule."

Q2 operating cash flow was -$1.9M vs. $1.6M a year ago. Gross margin was 69%, -500 bps Y/Y. 2013 gross margin guidance is at 68%.

Opex -16% Y/Y to $21.6M; R&D spend -29% to $11.2M.

Q2 results, PR

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