What: Shares of mobile game maker Glu Mobile (NASDAQ:GLUU) plummeted 20% today after the company reported fiscal-second-quarter results last night with guidance that left a lot to be desired.
So what: Non-GAAP revenue came in at $57.5 million, an increase of 64% compared to a year ago, and adjusted EBITDA was $1.7 million. Both figures "significantly" topped the company's guidance. Adjusted net income came in at $1.8 million, or $0.01 per share. Investors were expecting the company to lose $0.04 per share.
Now what: The real kicker was guidance. Glu expects fiscal-third-quarter revenue to be in the range of $58 million to $60 million, which is well below the consensus estimate of nearly $74 million in sales in the current quarter. The bottom line is forecast at a net loss of $0.02 per share to breakeven, while analysts were modeling for $0.08 per share in adjusted profits. Following the hit Kim Kardashian: Hollywood, Glu is now partnering with additional celebrities, announcing deals with Nicki Minaj and Jason Statham.
Evan Niu, CFA has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.