Glu Mobile laments recent releases, delays upcoming titles
Glu Mobile (NASDAQ:GLUU) deemed nine of the 11 titles it released last quarter as financial failures, despite an overall increase in revenue of 27 percent. This was the first of many mixed results the company reported during its third-quarter earnings call.
"We are satisfied with our 73 percent year-over-year growth in non-GAAP smartphone revenue. User reviews remained strong, with growth in daily active users from July to September," said Glu CEO Niccolo de Masi, in a prepared release. "Q3 was underpinned by the strength of newly launched Eternity Warriors 2 across iOS and Android and the continued success of catalog
titles Frontline Commando and Deer Hunter Reloaded." During the company's earnings call, de Masi promised that localization efforts will increase in 2013, with a special emphasis in East Asian markets.
The company deemed that only Eternity Warriors 2 and Blood and Glory Warriors were financially successful, though further details were not given as to what constitutes a successful title.
Glu already launched two titles this quarter including Contract Killer 2 last week. It plans to only launch two more, Dragon Slayer and Contract Killer Zombie 2, later in the quarter. Glu is delaying the release of five additional titles while its newly hired President of Studios Matthew Ricchetti has 60 days to review them.
Glu lowered its guidance for the fourth quarter, citing the poor performance of new titles in the third quarter; changes in Apple's (NASDAQ:AAPL) policy regarding HTML5; and Glu's decision to delay several titles from the fourth quarter to 2013.
"As expected, both consumer adoption of new hardware, and advertising demand, slowed over the summer in anticipation of new device launches. These industry headwinds, along with weaker-than-anticipated monetization from most new launches during the quarter, resulted in a sequential decline in smartphone revenue from Q2 2012," said de Masi.