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Glu +3.3%; company acquiring game developer PlayFirst

  • Along with its Q1 results, Glu Mobile (GLUU) announces it's buying fellow game developer PlayFirst for 3M shares (current value of $12.3M) + the assumption of $3.55M in debt.
  • PlayFirst is behind Diner Dash, Cooking Dash, and other popular casual gaming titles available on both PCs and mobile devices. Altogether, its Dash games have been downloaded 750M times over the last 10 years. New free-to-play mobile titles are on tap.
  • With a Q1 beat on the books and the PlayFirst deal set to close in May, Glu now expects 2014 revenue of $155M-$161.5M, up from a prior $142M-$150M and above a $147.7M consensus. Q2 revenue is expected to be in a range of $30.6M-$32.7M, in-line with a $31.3M consensus.
  • Q1 adjusted EBITDA was $6.5M, well above guidance of $1.5M-$2.5M. Glu expects Q2 adjusted EBITDA of -$3.4M to -$4.5M, and 2014 adjusted EBITDA of $5M-$6.7M (better than prior guidance of $4M-$6M).
  • Q1 results, PR
Comments (7)
  • Mike Ao
    , contributor
    Comments (97) | Send Message
    30 Apr, 04:38 PM Reply Like
  • pagreen1966
    , contributor
    Comments (596) | Send Message
    (GLUU) just gets better and better! Wonder if it will reach $10 by year end?
    30 Apr, 04:46 PM Reply Like
  • Jerad The Mad
    , contributor
    Comment (1) | Send Message
    Absolutely killed it!
    30 Apr, 05:00 PM Reply Like
  • sdawg11
    , contributor
    Comments (4) | Send Message
    anyone have any ideas why it is trading down in AH? The numbers look great, not sure why it would go anywhere but up. not only was there a beat on top and bottomline #'s, but margins are up as well.
    30 Apr, 05:35 PM Reply Like
  • drmoose00
    , contributor
    Comments (26) | Send Message
    market hates tech and mobile these days. 2nd quarter guidance was weak (possibly due to purchase of PlayFirst) so any tiny negative effectively eliminates all the positives. The numbers are way better than I had hoped, but the market says meh. It's annoying and a bit surprising, but not unexpected....
    30 Apr, 05:39 PM Reply Like
  • Branton
    , contributor
    Comments (2) | Send Message
    Glu is solid. Market will realize its the clear winner in this space sooner or later.
    30 Apr, 09:00 PM Reply Like
  • dhabi walk
    , contributor
    Comments (6) | Send Message
    silly question but why the big swing in Q2 earnings profile/expectations vs Q1? Q1 looks like +6.5MM and Q2 is at -3.5 to -4.5MM (all numbers adjusted); that's about $10MM less. Is that seasonal, based on acquisition cost being realized (likely not), expected spike in cost profile...? Market seems not to care too much about it, but thought i would ask.
    1 May, 11:29 AM Reply Like
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