Glu Mobile Inc. Q320 Earnings Call November 5, 2020
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Glu Mobile Inc. Q320 Earnings Call November 5, 2020
Safe Harbor Statement
This presentation contains "forward-looking" statements including those regarding our Q4-2020 and FY-2020 financial guidance, our key 2021 games, our
strategic priorities to drive margin expansion, our 2021 new title launch strategy, our 2021 bookings and Adjusted EBITDA outlook, our healthy balance sheet
to support expected growth, and statements including words such as “anticipate,” “believe,” “estimate,” “expect,” “may,” “will,” “plan,” “intend,” “could,”
“continue,” “remain,” “positioned,” "potential" and similar expressions or variations, as well as statements in the future tense. These forward-looking
statements are subject to material risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements.
Investors should consider important risk factors, which include: consumer demand for smartphones, tablets and next-generation platforms does not grow as
significantly as we anticipate or that we will be unable to capitalize on any such growth; the risk that we do not realize a sufficient return on our investment
with respect to our efforts to develop free-to-play games for smartphones and tablets; the risk that we will be unable to build successful Growth Games that
provide predictable bookings and year-over-year growth; the risk that we do not maintain our good relationships with Apple and Google; the risk that we do
not realize the anticipated strategic benefits from its license agreements and strategic investments; the risk that our development expenses are greater than
we anticipate or that we experience product delays; the risk that our recently and newly launched games are less popular than anticipated; the risk that our
newly released games will be of a quality less than desired by reviewers and consumers; the risk that the mobile games market, particularly with respect to
social, free-to-play gaming, is smaller than anticipated; risks related to the COVID-19 pandemic; and other risks detailed under the caption "Risk Factors" in
our Form 10-Q filed with the Securities and Exchange Commission on August 7, 2020 and our other SEC filings. You can locate these reports through our
website at http://www.glu.com/investors.
These "forward-looking" statements are based on estimates and information available to us on November 5, 2020 and we are under no obligation, and
expressly disclaim any obligation, to update or alter our forward-looking statements whether as a result of new information, future events or otherwise.
© Glu Mobile Inc., Private & Confidential 2
Use of Non-GAAP Financial Measures
Glu uses in this presentation certain non-GAAP measures of financial performance. The presentation of these non-GAAP financial measures is not
intended to be considered in isolation from, as a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP,
and may be different from non-GAAP financial measures used by other companies. In addition, these non-GAAP measures have limitations in that they do
not reflect all of the amounts associated with Glu's results of operations as determined in accordance with GAAP. The non-GAAP financial measures used
by Glu include Bookings, Adjusted platform commissions, Adjusted royalties, Adjusted research and development expense, Adjusted sales and marketing
expense, Adjusted general and administrative expense and Adjusted operating expenses. These non-GAAP financial measures exclude the following items
from Glu's unaudited consolidated statements of operations:
• Change in deferred platform commissions; • Stock-based compensation expense;
• Change in deferred royalties; • Litigation costs;
• Amortization of intangible assets; • Transitional costs.
• Restructuring costs;
Bookings do not reflect the deferral of certain game revenue that Glu recognizes over the estimated useful lives of paying users of Glu’s games and excludes
changes in deferred revenue.
Glu believes that these non-GAAP financial measures, when taken together with the corresponding GAAP financial measures, provide meaningful
supplemental information regarding Glu's performance by excluding certain items that may not be indicative of Glu's core business, operating results or future
outlook. Glu's management uses, and believes that investors benefit from referring to, these non-GAAP financial measures in assessing Glu's operating
results, as well as when planning, forecasting and analyzing future periods. These non-GAAP financial measures also facilitate comparisons of Glu's
performance to prior periods.
For a reconciliation of these non-GAAP financial measures to their most directly comparable GAAP financial measures, please refer to the tables at the end
of this presentation.
© Glu Mobile Inc., Private & Confidential
Image Credit: Michael O'Donnell/VentureBeat
Business Update
Nick Earl
President & CEO
4
Q320 Highlights
• $147.3M in bookings representing 22% YoY growth, driven by increased engagement and ABPDAU across key titles
• Achieved record GAAP revenue and Net Income as well as Adjusted EBITDA for the quarter
• Continued investment in new game initiatives under our Crowdstar and Glu Sports umbrella brands
• Significant free cash flow generation of $31.5M; last twelve months $45.9M
• Refined processes and technology powering efficient UA investment
© Glu Mobile Inc., Private & Confidential 5
Q320 Growth Game Highlights
Growth Games
• Q3 bookings grew 13% YoY to $104.5M
• Driven by live ops expertise and execution
➢ Design Home
• Design Home grew 15% YoY to $52.1M
• Launched Design Home Inspired – in game ecommerce
shop
➢ Covet Fashion
• Covet Fashion grew 30% YoY to $22.4M
• Driven by new Covet Collection subscription and strong
Fall Launch
➢ Tap Sports Baseball Franchise
• Despite shortened MLB season, TSB generated $30.0M
of bookings
• Driven by strong live ops performance Lifetime Lifetime Lifetime
Bookings Bookings Bookings
$596.9M $340.3M $341.9M
© Glu Mobile Inc., Private & Confidential 6
2 Powerful Umbrella Brands
Crowdstar Glu Sports
• In real life (IRL) inspiration: Blends games • Highly focused on sports and outdoor
and lifestyles genres
• Leading in women’s lifestyle driven • Predominately male audience, but
categories: A sharp focus on, and welcome all
understanding of, women’s passions and
interests, but inclusive to all • Games that offer action-packed, engaging
gameplay
• Elevated play: Games that make players
feel enriched and inspired. delivered with • High-fidelity graphics and competitive
high aesthetic quality, elegance & style experiences
7
Introducing
Table & Taste
Elevate your food game. Play with impressive
food, pairings and décor to create visually
stunning dining experiences.
• Food is a huge market and complements Fashion and Home Décor well,
while further diversifying the Crowdstar brand
• Building Covet Fashion and Design Home learnings and applying them to
Food to build Glu’s next potential Growth Game
• Design Home structure with a larger TAM given that it serves a broader
demographic and appeals to a wider audience
• Developed using the benchmark development model, data driven insights
throughout the development process to validate consumer interest
• Social forward game that will connect users, encourage friendly competition
and drive player engagement
• Launched a consumer prototype in Q220: retention KPIs of closed alpha
have been highly encouraging
• Three complementary verticals: Food, Fashion and Home Décor. Expands
Crowdstar's position creating a suite of lifestyle products
• Beta release expected in 2021 Q1
8
Key 2021 Games
Crowdstar Glu Sports
Table & Taste Deer Hunter World
• Crowdstar's next • Great reach, WW audience
generation, lifestyle game • PvP focus with competitive
• Real recipes, branded décor events
and more
• Expanded depth and
Tap Sports Fishing
economy
• Mass market appeal WW
• Fully 3D navigable open
Crowdstar Moments lakes & oceans
• Hypercasual games based
on Crowdstar tenets
• Ecosystem of networked Tap Sports Baseball 2021
products: cross promote to • New games modes and
higher LTV games club events
• Ad based games • Web access
9
Strategic Priorities to Drive Margin Expansion
Develop & Drive
Scale
acquire new marketing Margin
existing
Growth efficiencies & expansion
games
Games productivity
© Glu Mobile Inc., Private & Confidential 10Acquisition Highlights
$2.2Bn
2011: Blammo Games:
• Created Kim Kardashian: Hollywood following acquisition
2012: Deer Hunter IP:
• Acquired all rights to Deer Hunter IP from Atari 27.5x
2013: Pick 6 Studios:
• Created MLB Tap Sports Baseball following acquisition
2014: PlayFirst:
• Successfully transitioned Diner DASH franchise to mobile FTP following acquisition
$79MM
2016: Crowdstar:
• Launched Design Home and grew Covet Fashion following acquisition Purchase Lifetime
Price Bookings(1)
Note:
1. Post acquisition close.
© Glu Mobile Inc., Private & Confidential 11Financial Update and
Guidance
Eric R. Ludwig
COO & CFO
12Q320 Financial Highlights
GAAP Revenue
• Revenue up 48% YoY to $158.5M (In millions)
$399.1
• Record GAAP profitability
$298.5
• YTD 2020 Revenue up 34% to $399.1M Q319 YTD Q320 YTD
Bookings
(In millions)
• Bookings up 22% YoY to $147.3M $435.8
• YTD 2020 Bookings up 38% to $435.8M $314.9
Q319 YTD Q320 YTD
© Glu Mobile Inc., Private & Confidential 13Q320 Bookings by Category
Bookings (in millions)
TITLE CATEGORY Q319 Q320 YOY%
Design Home Growth $ 45.2 $ 52.1 15.3%
New Games
16% TSB Franchise Growth 30.1 30.0 (0.3%)
Covet Fashion Growth 17.2 22.4 30.1%
Diner Dash Adventures New Games 14.7 9.4 (35.9%)
Disney Sorcerer's Arena New Games 0.1 14.7 na
Catalog Kim Kardashian Hollywood Catalog 4.6 12.4 171.1%
13%
Cooking Dash Catalog 3.5 2.9 (16.4%)
All Other Bookings Catalog 5.0 3.4 (33.0%)
Total Bookings $ 120.4 $ 147.3 22.4%
Growth
71%
Total Growth $ 92.5 $ 104.5 13.0%
Total Catalog $ 13.1 $ 18.7 42.3%
Total Core Games 105.6 123.2 16.7%
Total New Games $ 14.8 $ 24.1 63.5%
Growth Catalog New Games Total Bookings $ 120.4 $ 147.3 22.4%
Note: Beginning in FY20, WWE is being classified as Catalog and for comparative purposes is being classified as Catalog prior to FY20.
© Glu Mobile Inc., Private & Confidential 14Best-in-Class Performance Across Our Portfolio
Daily Payer Conversion (%) ABPDAU
35%
25% YoY
YoY
Note: DAU is the number of individuals who played a particular smartphone game on a particular day. Average bookings per DAU (“ABPDAU’) is computed as our total bookings in a given period, divided by the number of days in that period, divided by the DAU during the period.
Aggregate DAU in Q3’18 to Q3’20 represents the average of aggregate DAU for each month in the quarter. Note, average GAAP revenue per DAU (“ARPDAU”) reflected in Company SEC filings will differ from ABPDAU, which is calculated based on bookings which do not reflect
any deferral of revenue derived from the sale of virtual items within games as required under GAAP. In addition, as of January 1, 2019, we began calculating DAU using the average of each month during the period rather than our historical practice of calculating these metrics on
based on the last month of the period.
15Efficient User Acquisition Strategy
Centralized UA and Marketing Team that Works Across All of Our Studios and Games
✓ New leadership team in ✓ Data-led approach to acquiring Other Initiatives that
place users Benefit our UA strategy
✓ Horizontally organized… ✓ Further optimization of
marketing spend allocation • New hypercasual games –
✓ …with specialty focus areas Crowdstar Moments –
by genre ✓ Payback period approach vs represent additional channel
LTV / CAC for UA
✓ Segmented audience
campaigns • Added new game features
that drive organic installs
• Licensed IP offers familiarity
among scaled audience bases
✓ Enhanced proprietary capabilities
• Re-targeting campaigns
✓ Integration of data science
aimed at idle users
✓ Improved decision making via performance dashboards
© Glu Mobile Inc., Private & ConfidentialQ3 Actuals vs Guidance
(IN MILLIONS) Q320 Q320 Guidance
ACT LOW HIGH
A Bookings $147.3 130.0 135.0
Cost of Goods Sold
B Adjusted Platform Commissions 39.7 35.6 36.9
C Adjusted Royalties 9.9 9.0 9.3
D Hosting and Other Costs 1.9 2.1 2.3
E User Acquisition and Marketing Expense 34.5 36.9 37.9
F Adjusted Operating Expenses 36.8 38.9 39.1
G Depreciation Add Back 1.4 1.5 1.5
Basic Shares Outstanding 171.3 171.6 171.6
Diluted Shares Outstanding 181.6 185.1 185.1
(A - B - C - D - E - F + G) = Adjusted EBITDA
© Glu Mobile Inc., Private & Confidential 17Strong Free Cash Flow Generation
• Q320: Free cashflow generation of $31.5M
$45.9M
• $318.1M cash balance
$24.2M
Q418 to Q319 Q419 to Q320
© Glu Mobile Inc., Private & Confidential 18Condensed Cash Flow
(In Millions) Q219 Q319 Q419 Q120 Q220 Q320
(1)
Cash, cash equivalents, and restricted cash at beginning of the period $ 93.3 $ 99.5 $ 102.4 $ 127.1 $ 114.7 $ 283.1
Other cash generated from/(used in) operations 12.5 3.3 25.4 (7.2) 23.7 33.4
Cash paid for royalty advances (3.2) 0.0 (0.4) (9.7) (9.8) (1.2)
Net cash provided by/(used in) operations 9.3 3.3 25.0 (16.9) 13.9 32.2
Net cash provided by/(used in) investing activities (1) (1.1) (1.3) (1.8) (4.8) (0.9) (0.7)
Net cash provided by/(used in) financing activities (2.0) 1.0 1.6 9.5 155.4 3.5
Effect of exchange rate changes on cash 0.0 (0.1) (0.1) (0.2) 0.0 0.0
Net increase / (decrease) in cash, cash equivalents, and restricted cash $ 6.2 $ 2.9 $ 24.7 ($ 12.4) $ 168.4 $ 35.0
Cash, cash equivalents, and restricted cash at end of period (1) $ 99.5 $ 102.4 $ 127.1 $ 114.7 $ 283.1 $ 318.1
Reconciliation of cash, cash equivalents, and restricted cash (1)
Cash and cash equivalents at end of period $ 99.5 $ 102.4 $ 127.1 $ 114.7 $ 283.1 $ 318.1
Cash, cash equivalents, and restricted cash at end of period (1) $ 99.5 $ 102.4 $ 127.1 $ 114.7 $ 283.1 $ 318.1
Note:
1. In 2018, Glu adopted Accounting Standards Update (“ASU”) 2016-18, Restricted Cash. The beginning and ending period balances now include restricted cash and changes in restricted cash line item is removed from cash flow from investing activities in accordance with the
new standard.
© Glu Mobile Inc., Private & Confidential 19Q420 and FY2020 Guidance
20Q420 Non-GAAP Guidance
(IN MILLIONS) Q320 Q420 Guidance
ACT LOW HIGH
A Bookings $147.3 119.5 124.5
Cost of Goods Sold
B Adjusted Platform Commissions 39.7 32.3 36.6
C Adjusted Royalties 9.9 7.6 8.0
D Hosting and Other Costs 1.9 1.7 1.8
E User Acquisition and Marketing Expense 34.5 19.0 19.0
F Adjusted Operating Expenses 36.8 38.4 38.6
G Depreciation Add Back 1.4 1.5 1.5
Basic Shares Outstanding 171.3 172.5 172.5
Diluted Shares Outstanding 181.6 185.2 185.2
(A - B - C - D - E - F + G) = Adjusted EBITDA
© Glu Mobile Inc., Private & Confidential 21FY20 Non-GAAP Guidance
(IN MILLIONS) FY2019 FY2020 Guidance
ACT LOW HIGH
A Bookings $423.3 555.3 560.3
Cost of Goods Sold
B Adjusted Platform Commissions 111.5 150.1 154.4
C Adjusted Royalties 26.4 37.9 38.3
D Hosting and Other Costs 7.2 7.6 7.7
E User Acquisition and Marketing Expense 118.0 146.1 146.1
F Adjusted Operating Expenses 122.6 148.0 148.2
G Depreciation Add Back 4.1 5.6 5.6
Basic Shares Outstanding 145.8 162.5 162.5
Diluted Shares Outstanding 157.4 173.2 173.2
Cash and ST Investments Balance 127.1 $ 365M+
(A - B - C - D - E - F + G) = Adjusted EBITDA
© Glu Mobile Inc., Private & Confidential 222021 Outlook
232021 New Title Launch Strategy
PHASE 3:
• 8+ Q’s post launch
• Manage UA spend to
sustain growth & profit
PHASE 2:
• Scaled margins reached
• 2 - 8 Q’s post launch Scaled Game
Bookings Size Annual Bookings
Margins
PHASE 1: • CPI’s rise / UA ROI over
Single $25M to $75M 15 – 25%
D730
• 1 Q post launch
Double $75M to $150M 25 – 30%
• Manage UA spend to
• Soft launch leveraging Triple $150M to $250M 30 – 35%
achieve growth & profit
cross promo, brand
Home Run $250M to $750M 35%+
marketing, featuring, low • Ramping from
CPI / high ROI UA spend breakeven to scaled Grand Slam $750M+ 40%+
margins
• Small operating loss
Game margins include all Apple/Google fees, royalties, hosting costs, all studio team costs and all marketing and user acquisition fees. The only items that are not allocated to game margins are
sales/marketing personnel costs and G&A expenses. In FY20, these unallocated costs are expected to total ~$56MM.
© Glu Mobile Inc., Private & Confidential 242021 Outlook
Bookings
The company expects bookings range of $595M to $605M from its current live titles in the full year 2021:
• 8% to 10% annual growth from the three Growth Games
• Flat to low single digit % annual growth from a combination of Potential Growth Games and Catalog
• For modeling purposes: Q121 is expected to be approximately flat from Q420 due to Tap Sports Baseball seasonality
Our preliminary guidance does not include:
• The planned launch of 4 new original IP titles in 2021: Crowdstar Moments, Table & Taste, Deer Hunter World & Tap Sports Fishing
• We believe Table & Taste and Deer Hunter World, have the potential to be mid to high “Singles” in the first year and can grow into “Doubles” by year two
• Bookings from potential acquisitions
Adjusted EBITDA
The company expects margin expansion from current full year 2020 expectation by 220 to 420 basis points:
• This margin profile is inclusive of new title contribution
• Margins are expected to be a high single digit percentage of bookings in Q1 2021 due to lower CPI’s leading to higher UA investment
• Similar to Q420, margins are expected to be higher in Q421 due to lower UA investment arising from higher CPI’s
© Glu Mobile Inc., Private & Confidential 252021 Bookings Guidance
TBD Amount: 4
New 2021 Titles
Catalog
$595M - $605M
$ 555M - $ 560M Flat to Low Single Digit
Annual Growth
8% – 10%
Annual Growth
Current Live Games
FY2020 Guidance Growth Games Potential Growth Games FY2021 Guidance FY2021 Guidance
& Catalog (ex. New Titles) (inc. New Titles)
© Glu Mobile Inc., Private & Confidential 26Extended Track Record of Growth
Bookings Adjusted EBITDA
TBD Amount: 4
~27% New 2021
CAGR Titles
$ 555M - $ 560M
$ 423M
$ 385M
$ 320M Current Live
Games
$595M - $605M
$ 214M
FY2016 FY2017 FY2018 FY2019 FY2020 FY2021
Guidance Guidance
FY2016 FY2017 FY2018 FY2019 FY2020 FY2021
Guidance Guidance
2021 New Title Launches
© Glu Mobile Inc., Private & Confidential 27Q&A © Glu Mobile Inc., Private & Confidential 28
Non-GAAP Reconciliations
& Other Operating Metrics
29GAAP to Adjusted Results Reconciliation
For The Three Month Ended
June 30, September 30, December 31, March 31, June 30, September 30,
2019 2019 2019 2020 2020 2020
GAAP platform commissions $ 24,799 $ 28,122 $ 30,092 $ 28,727 $ 35,032 $ 43,040
Change in deferred platform commissions 1,860 3,972 (1,346) (232) 14,613 (3,371)
Adjusted platform commissions $ 26,659 $ 32,094 $ 28,746 $ 28,495 $ 49,645 $ 39,669
GAAP royalties (including impairment of royalties and minimum guarantees) $ 6,245 $ 6,643 $ 6,285 $ 6,381 $ 9,617 $11,467
Change in deferred royalties 1,071 592 (410) 1 4,420 (1,551)
Adjusted royalties $ 7,316 $ 7,235 $ 5,875 $ 6,382 $ 14,037 $9,916
GAAP operating expense $ 59,727 $ 74,987 $ 62,641 $ 78,941 $ 100,889 $80,870
Stock-based compensation (2,035) (4,080) (4,461) (6,382) (8,106) (8,523)
Transitional costs (5) (5) (1) (4) - -
Litigation costs 416 - - - - -
Restructuring charge - - - - - (1,015)
Adjusted operating expense $ 58,103 $ 70,902 $ 58,179 $ 72,555 $ 92,783 $ 71,332
GAAP research and development expense $ 19,736 $ 22,968 $ 25,877 $ 29,531 $ 28,420 $ 30,778
Transitional costs (5) (5) (1) (4) - -
Stock-based compensation (1,128) (2,494) (2,898) (3,962) (5,298) (5,201)
Restructuring charge - - - - - (1,015)
Adjusted research and development expense $ 18,603 $ 20,469 $ 22,978 $ 25,565 $ 23,122 $ 24,562
GAAP sales and marketing expense $ 35,040 $ 46,140 $ 31,013 $ 42,743 $ 65,203 $ 42,222
Stock-based compensation (55) (293) (526) (875) (1,013) (1,004)
Adjusted sales and marketing expense $ 34,985 $ 45,847 $ 30,487 $ 41,868 $ 64,190 $ 41,218
GAAP general & administrative expense $ 4,951 $ 5,879 $ 5,751 $ 6,667 $ 7,266 $ 7,870
Stock-based compensation (852) (1,293) (1,037) (1,545) (1,795) (2,318)
Litigation costs 416 - - - - -
Adjusted general and administrative expense $ 4,515 $ 4,586 $ 4,714 $ 5,122 $ 5,471 $ 5,552
Other supplemental financial information
Depreciation $ 1,025 $ 1,065 $ 1,072 $ 1,343 $ 1,366 $ 1,381
Foreign currency exchange (gain)/loss (56) 222 (54) 448 (366) (209)
Income tax provision/(benefit) - (348) 641 (1,321) (6,187) 7,391
© Glu Mobile Inc., Private & Confidential 30GAAP to Adjusted Results Reconciliation
FOR THE THREE MONTHS ENDED
JUNE 30, SEPTEMBER 30, DECEMBER 30, MARCH 31, JUNE 30, SEPTEMBER 30,
2019 2019 2019 2020 2020 2020
A Bookings $ 101.9 $ 120.4 $ 108.4 $ 106.5 $ 182.0 $ 147.3
Cost of Goods Sold
B Adjusted Platform Commissions 26.7 32.1 28.7 28.5 49.6 39.7
C Adjusted Royalties 7.3 7.2 5.9 6.4 14.0 9.9
D Hosting Costs 1.8 2.0 1.9 1.9 2.1 1.9
Adjusted Operating Expenses
E User Acquisition and Marketing Expenses 30.1 40.2 24.7 35.6 57.0 34.5
F Adjusted Other Operating Expenses 28.0 30.7 33.4 36.9 35.9 36.8
G Depreciation Add Back 1.1 1.0 1.0 1.3 1.4 1.4
Basic Shares Outstanding 145.5 146.2 147.2 149.6 156.6 171.3
Diluted Shares Outstanding 159.7 146.2 155.8 149.6 156.6 181.6
(A - B - C - D - E - F + G) = Adjusted EBITDA
© Glu Mobile Inc., Private & Confidential 31Key Operating Metrics
ACTUAL ACTUAL ACTUAL ACTUAL ACTUAL ACTUAL
Q219 Q319 Q419 Q120 Q220 Q320
Total Bookings (in millions) $ 101.9 $ 120.4 $ 108.4 $ 106.5 $ 182.0 $ 147.3
Total Bookings Growth Q/Q 10% 18% (10%) (2%) 71% (19%)
Total Bookings Growth Y/Y 3% 20% 10% 15% 79% 22%
Original IP % of Total Bookings 64% 69% 73% 72% 57% 60%
Total Ad Bookings (in millions) $ 12.9 $ 13.2 $ 12.4 $ 11.3 $ 16.4 $ 14.9
Ad Revenue as a % of Bookings 13% 11% 11% 11% 9% 10%
Total Ad Bookings Growth Y/Y (1%) (7%) (9%) (8%) 27% 13%
User Acquisition and Marketing Expense (in millions) 30.1 40.2 24.7 35.6 57.0 34.5
Adjusted Other Operating Expenses (in millions) 28.0 30.7 33.4 36.9 35.9 36.8
Adjusted Total Operating Expenses (in millions) $ 58.1 $ 70.9 $ 58.1 $ 72.5 $ 92.9 $ 71.3
User Acquisition and Marketing Expenses as % of Total Bookings 30% 33% 23% 33% 31% 23%
Adjusted Other Operating Expenses as % of Total Bookings 28% 26% 31% 35% 20% 25%
Headcount (1) (at quarter-end) 718 719 715 740 762 780
Daily Active Users (DAU) (2) (in millions) 3.2 3.3 2.9 3.0 3.8 2.9
Monthly Active Users (MAU) (2) (in millions) 19.1 18.7 15.6 17.8 20.2 14.0
Downloads (in millions) 29.1 26.5 20.7 28.9 30.3 18.0
Cumulative Downloads (in millions) 1,931.6 1,958.1 1,978.8 2,007.7 2,038.0 2,056.0
In-App Purchase Billable Transactions (in millions) 13.4 18.6 16.7 16.0 24.5 19.5
Average Bookings per Billable Transaction $ 6.67 $ 5.77 $ 5.75 $ 5.94 $ 6.76 $ 6.81
Note:
1. FTE only, excludes contractors, temporary employees and consultants.
2. DAU and MAU for Q2’19 to Q3’20 represents the average of aggregate DAU and MAU for each month in the quarter.
© Glu Mobile Inc., Private & Confidential 32Appendix
33Healthy Balance Sheet to Support Expected Growth
(IN MILLIONS) Q319 Q220 Q320
Cash and cash equivalents $ 102.4 $ 283.1 $ 318.1
Accounts receivable, net 44.8 64.7 53.6
Prepaid expenses, royalties and other current assets 56.5 88.9 73.5
Other non current assets 82.4 76.1 73.0
Intangible assets & goodwill 122.0 119.2 118.3
Total Assets $ 408.1 $ 632.0 $ 636.5
Accounts payable and accrued liabilities $ 20.2 $ 27.3 $ 15.6
Accrued expenses, royalties and other liabilities 99.5 94.2 96.2
Deferred revenue 102.1 145.5 134.3
Common stock/paid in capital 628.7 813.5 825.5
Accumulated deficit & other comprehensive income/(loss) (442.4) (448.5) (435.1)
Total Liabilities and Stockholders' Equity $ 408.1 $ 632.0 $ 636.5
© Glu Mobile Inc., Private & Confidential 34DAU and MAU Trends
DAU MAU
(In millions) (In millions)
3.8
3.3 20.2
3.2
3.0 19.1 18.7
2.9 2.9 17.8
15.6
14.0
Q219 Q319 Q419 Q120 Q220 Q320 Q219 Q319 Q419 Q120 Q220 Q320
Aggregate DAU and MAU in Q2’19 to Q2320 represents the average of aggregate DAU and MAU for each month in the quarter. An individual who plays two different games in the same month is counted as two active users for that month when we aggregate DAU and MAU
across games. In addition, an individual who plays the same game on two different devices during the same month (e.g., an iPhone and an iPad) is also counted as two active users for each such month when we average or aggregate DAU and MAU over time. Our
methodology for calculating DAU and MAU may differ from the methodology used by other companies to calculate similar metrics.
© Glu Mobile Inc., Private & Confidential 35DAU by Category Trends
DAU
(In millions)
3.0 2.8
2.5 2.3
2.2
2.1 2.1 Current/Potential Future Growth Titles Include:
2.0
2.0 • Covet Fashion
• Design Home
1.5
• Tap Sports Baseball Franchise
1.0 1.1 • Disney Sorcerer's Arena
1.0 1.0
0.9 0.9
0.7
• Diner Dash Adventures
0.5
0.0
Q219 Q319 Q419 Q120 Q220 Q320
Current/Potential Future Growth Titles Catalog Titles
Aggregate DAU and MAU in Q2’19 to Q3’20 represents the average of aggregate DAU and MAU for each month in the quarter. An individual who plays two different games in the same month is counted as two active users for that month when we aggregate DAU and MAU
across games. In addition, an individual who plays the same game on two different devices during the same month (e.g., an iPhone and an iPad) is also counted as two active users for each such month when we average or aggregate DAU and MAU over time. Our
methodology for calculating DAU and MAU may differ from the methodology used by other companies to calculate similar metrics.
© Glu Mobile Inc., Private & Confidential 36ABPDAU and ABPMAU Trends
ABPDAU ABPMAU
$0.53 $0.54
$3.50
$3.00
$0.40 $0.41
$0.38
$0.35 $2.32
$2.15
$2.00
$1.78
Q219 Q319 Q419 Q120 Q220 Q320 Q219 Q319 Q419 Q120 Q220 Q320
Average bookings per DAU (“ABPDAU’) is computed as our total bookings in a given period, divided by the number of days in that period, divided by the DAU during the period. Average bookings per MAU (“ABPMAU’) is computed as our total bookings in a given period,
divided by the number of months in that period, divided by the MAU during the period. Aggregate DAU in Q2’19 to Q3’20 represents the average of aggregate DAU for each month in the quarter.
© Glu Mobile Inc., Private & Confidential 37ABPDAU by Category Trends
ABPDAU
$1.00
$0.80
Current/Potential Future Growth Titles Include:
$0.63
$0.61
$0.60
• Covet Fashion
$0.50 $0.51 $0.46
$0.46 • Design Home
$0.40 • Tap Sports Baseball Franchise
• Disney Sorcerer's Arena
$0.29 $0.28
$0.20 • Diner Dash Adventures
$0.19 $0.20
$0.14 $0.14
$0.00
Q219 Q319 Q419 Q120 Q220 Q320
Current/Potential Future Growth Titles Catalog Titles
Average bookings per DAU (“ABPDAU’) is computed as our total bookings in a given period, divided by the number of days in that period, divided by the DAU during the quarter. Aggregate DAU in Q2’19 to Q3’20 represents the average of aggregate DAU for each month in
the quarter.
© Glu Mobile Inc., Private & Confidential 38Q320 Bookings by Geography
(In millions)
10%
$182.0 5%
19.5
9.5
$147.3
14.0
7.5
$120.4
12.7 $108.4 $106.5
$101.9 5.4 12.1 12.4 153.0
10.5 4.7
4.7 4.7
125.8
102.3
86.7 91.6 89.4
85%
Q219 Q319 Q419 Q120 Q220 Q320
NA APAC ROW
NA APAC ROW
© Glu Mobile Inc., Private & Confidential 39Bookings Mix
Bookings by Category Bookings by Platform
(In millions) (In millions)
$182.0 $182.0
9% 39%
$147.3 $147.3
10% 38%
$120.4 $120.4
11% $108.4 $106.5 38% $108.4 $106.5
$101.9 $101.9
11% 11% 38% 38%
13% 39%
91% 61%
90% 62%
89% 62%
89% 89% 62% 62%
87% 61%
Q219 Q319 Q419 Q120 Q220 Q320 Q219 Q319 Q419 Q120 Q220 Q320
In-App Purchases Ads Other iOS Android Other
© Glu Mobile Inc., Private & Confidential 40Advertising Bookings: Percent and Dollars
(% of Bookings) Ad bookings in millions
13% $16.4
$14.9
11% 11% 11%
10%
$13.2
9% $12.9
$12.4
$11.3
Q219 Q319 Q419 Q120 Q220 Q320 Q219 Q319 Q419 Q120 Q220 Q320
© Glu Mobile Inc., Private & Confidential 41You can also read
