Shares of Glu Mobile Inc. (GLUU), a developer and marketer of games designed for smartphones and tablets such as Design Home, Contract Killer, Deer Hunter, among others, are up 15% as of 10:44 a.m. EDT Wednesday after releasing second-quarter results.
Second-quarter revenue jumped 31% year over year to $90.2 million with bookings up 20% year over year to $99.4 million. Adjusted earnings per share checked in at less than $0.01 per share, and while the company was profitable, EPS was lower than analysts' estimates of $0.05 per share, according Zacks Investment Research. But what has investors optimistic Wednesday is strong bookings growth during the second quarter and management was willing to bump full-year guidance higher. The company now expects full-year bookings guidance in the range of $374 million to $378 million, which is an $11 million boost at the mid-point.
"Glu generated strong sequential and year over year growth in bookings, adjusted EBITDA and adjusted EBITDA margin in the second quarter," said Chief Executive Officer Nick Earl, in a press release. "Our focus remains on monetizing our existing titles, while continuing to develop our pipeline of new games that we believe will position us for strong bookings, adjusted EBITDA margin, and free cash flow growth as we head into next year."
The second quarter was a positive step for the company, and while there will always be pressure to create hit gaming titles and to keep a full pipeline of games in development -- remember Glu generates a large chunk of its bookings from Design Home -- the increased guidance is a sign to investors that management believes it can carry its momentum throughout 2018 and into 2019.