What happened
Shares of Glu Mobile (GLUU +0.00%) have skyrocketed today, up by 24% as of noon EST, after the company reported third-quarter earnings yesterday afternoon. The results topped analyst expectations, and the company boosted its full-year bookings guidance.
So what
Revenue in the third quarter hit a record $158.5 million, well above the consensus estimate of $136.3 million. That resulted in adjusted earnings per share of $0.11, compared with the $0.07 per share in adjusted profits that Wall Street was looking for. The mobile video game company reported bookings of $147.3 million in the third quarter. Daily active users (DAUs) were 2.9 million.
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"We followed up a very strong second quarter with a better-than-expected third quarter that saw year-over-year bookings growth of 22% led by the continued strong performance of our Growth Games," CEO Nick Earl said in a statement. "Our focus on margin expansion led to significantly higher profitability driven by greater productivity from our marketing spend."
Now what
Guidance for the fourth quarter calls for bookings of $119.5 million to $124.5 million. That should bring full-year bookings to a range of $555.3 million to $560.3 million, up from a prior forecast of $538 million to $548 million in bookings for 2020.
The company also provided some outlook for 2021, detailing three phases of game launches. Bookings in 2021 are forecast at $595 million to $605 million, but there may be upside to that guidance since it does not include the planned launch of four new original games. Margins are also expected to expand in 2021 by 220 to 420 basis points.
