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Glu Mobile Hits A Home Run

Glu Mobile (GLUU) reported earnings last night and we could not be more pleased with what we heard.

  • Q1 EPS of $0.06 beats by $0.04.
  • Revenue of $47M (+90.1% Y/Y) beats by $7.55M.
  • Announced key acquisition that will accelerate growth

A particularly exciting quote from the report for investors: “We are willing to trade some EBITDA out performance in 2014 for potentially exponential return in 2015. Both the 2015 Deer Hunter and 007 games will possess uniquely strong name recognition and differentiated core game play. I believe that never before in Glu’s history has so graded a potential existed for breakout revenue growth.”

We continue to like GLUU for several core reasons:

  • The mobile gaming sector is expected to grow 30% per year
  • GLUU has great record for monetizing games; all w/o major hit
  • GLUU has not had to rely on one-hit wonders, unlike other popular gaming companies

These core reasons, plus a great Q1 earnings, and great guidance by management make GLUU one of our favorite picks.

Read the full earnings report or listen to the conference call.

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