Glu Mobile Inc. (NASDAQ: GLUU) stock lost over 10.3% on Feb 5th, 2019 pre-market session. GLUU in the fourth quarter of FY 18 has reported the adjusted earnings per share of 3 cents, missing the analysts’ estimates for the adjusted earnings per share of 7 cents.
However, the Full year 2018 bookings reached a record level of $384.6 million, up 20% year over year on the strength of the core business driven by the successful execution of the Growth Games strategy. The annual bookings for Design Home, Covet Fashion and Tap Sports Baseball collectively grew by 53% year-over-year and contributed 74% of total annual bookings. GULU has ended the fourth quarter with a cash balance of $97.8 million and has generated $18.8 million of cash from operations in the fourth quarter and $17.3 million of free cash flow.
The company had reported the adjusted revenue growth of 19 percent to $98.2 million in the fourth quarter of FY 18. Fourth quarter bookings grow 18% year over year to $98.2 million. Bookings were higher-than-expected and included another quarter of sequential growth from Design Home and Covet Fashion, along with a strong performance from Tap Sports Baseball and a seasonally soft quarter. In the fourth quarter, Design Home bookings grew 46% year-over-year to $43.9 million delivering another quarter of outperformance. Covet Fashion grew bookings to $14.8 million in the quarter, a 49% increase over last year’s fourth quarter. And the Tap Sports Baseball franchise outperformed the normal seasonal decline and generated $17.2 million of bookings for the fourth quarter, a 38% increase year-over-year. Another bright point this quarter was the performance of Kim Kardashian: Hollywood, which outperformed both the quarter and full year with bookings growing 27% to $34.8 million.
The company has rolled out Style Challenges in collaboration with Disney games with the latest service featuring Looks inspired by iconic Disney princesses including Cinderella, Ariel, Jasmine, Belle and many more.
GULU have three new launches which are all in various stages of development that are planned to go live in the May to August 2019 timeframe tightening the launch range by one month.
For 2019, GULU expect bookings to be in the range of $435 million to $445 million, up from $415 million to $425 million. 2019 adjusted EBITDA margin is expected to be of between 15% and 20%