Glu Mobile shares slip after posting surprise 4Q loss

Shares of Glu Mobile Inc (NASDAQ:GLUU) slipped in after-hours trade Monday after the mobile game maker fell short of Wall Street’s revenue and profit estimates in the fourth quarter.

In its latest quarter, the San Francisco company’s net loss shrunk to $1.3 million, down from a loss of $39.6 million in the year- ago quarter. Its revenue, meanwhile, came in at $95.6 million, up from $80.2 million in the corresponding period a year ago. Bookings – another key metric -looked solid in the fourth quarter, growing 18% year-over-year to $98.2 million.

But Glu Mobile’s loss surprised analysts who called for Glu Mobile to earn $0.07 per share on revenue of $95.98 million.

Investors also remained unimpressed, sending Glu Mobile shares down 9.8% to $9.20 as after-hours trading kicked off on Monday.

The company’s results came alongside the unveiling of the next generation of its Deer Hunter games.

“We are excited to announce that one of the games in development is the next generation of our highly successful Deer Hunter franchise,” said CEO Nick Earl in a statement. “This new game will combine a proven game mechanic with a deep meta layer that we expect our fans will love.”

Looking ahead, the management of Glu Mobile expects booking in the first quarter to fall in the range of $88 million to $90 million, which falls short of its performance in its latest quarter. For the full 2019 year, its bookings are set to span from $435 million to $445 million.

Based in San Francisco, Glu Mobile is a creator of mobile games. Its portfolio of titles include Cooking DASH, Covet Fashion, Deer Hunter, Design Home and Kim Kardashian.

The company was sitting on cash and cash equivalents of $97.8 million at the end of December, up from $63.8 million in the year-ago quarter.

Contact Ellen Kelleher at [email protected]

Story by ProactiveInvestors