Shares of mobile-gaming company Glu Mobile (NASDAQ:GLUU) spiked higher on Friday, after the company provided an unscheduled upbeat update for its current quarterly results. As of 11 a.m. EDT, the stock was trading 10% higher.
Today's movement for Glu Mobile stock continues an upward trend for 2020. Shares are up around 60% so far in 2020, handily outpacing the market.
Preliminary results for the second quarter of 2020 show Glu Mobile's bookings (a slightly more forward looking metric than revenue) increased to a range of $162.5 million to $167.5 million. That would be 62% growth at the midpoint from the second quarter of 2019. The company also spent less to acquire new customers, which means Q2 should be more profitable.
The update especially excited investors, considering Glu Mobile didn't set expectations this high in the first quarter. In Q1, it reported quarterly net bookings growth of 15%, coming in at $106.5 million. But the company noted favorable trends were helping its business, as consumers sheltered at home. With the wind at its back, it guided for Q2 net bookings in the range of $150 million to $155 million.
Today's preliminary Q2 update from Glu Mobile raises expectations 12% from the low point of the previous guidance to the high point of current guidance. So Wall Street's positive reaction does appear to be proportionate to the news.
In Q1, Glu Mobile raised its full-year 2020 net bookings guidance from a range of $423 million to $433 million to a range of $490 million to $500 million. Now the company is raising its guidance again. Net bookings are now expected to range from $502.5 million to $512.5 million.
Glu Mobile's pristine balance sheet and growing popularity could provide further upside for this video game stock going forward.