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Glu Mobile Inc. (GLUU)
Q4 2016 Earnings Conference Call
February 08, 2017 04:30 PM ET
Greg Cannon - VP, Finance and IR
Nick Earl - President and CEO
Eric Ludwig - COO and CFO
Mike Hickey - Benchmark
Previous Statements by GLUU
» Glu Mobile's (GLUU) CEO Nick Earl on Q3 2016 Results - Earnings Call Transcript
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» Glu Mobile's (GLUU) CEO Niccolo de Masi on Q1 2016 Results - Earnings Call Transcript
» Glu Mobile's (GLUU) CEO Niccolo de Masi on Q4 2015 Results - Earnings Call Transcript
I would now like to introduce your host for today's conference Mr. Greg Cannon, Vice President of Finance and Investor Relations. Sir, please begin.
Good afternoon, everyone and thank you for joining us on the Glu Mobile's fourth quarter 2016 financial results conference call. This is Greg Cannon, VP of Finance and Investor Relations from Glu Mobile. On the call today we have President and CEO, Nick Earl; and COO and CFO, Eric Ludwig.
During the course of this call, we will make forward-looking statements regarding future events and the future financial performance of the company. Any forward-looking statements that we may make today are based on assumptions that we believe to be reasonable as of this date. We undertake no obligation to update these statements as a result of future events. We caution you to consider the important risk factors that could cause actual results to differ materially from those in the forward-looking statements in the press release and during this conference call. These risk factors are described more fully in our documents filed with the SEC, specifically the most recent reports on Form 10-K and Form 10-Q.
During this call we will present both GAAP and non-GAAP financial measures. The non-GAAP measures are not intended to be considered in isolation from, a substitute for or superior to our GAAP results and we encourage investors to consider all measures before making an investment decision. For complete information regarding our non-GAAP financial information, the most directly comparable GAAP measures and a quantitative reconciliation of those figures, please refer to the supplemental presentation accompanying today's earnings call that can be accessed via our Investor website at www.glu.com/investors.
Finally, in order to comply with recently issued SEC guidance on the use of non-GAAP financial measures, we have changed the way we present and discuss certain non-GAAP financial measures. Specifically we will no longer adjust for the change in deferred revenue when arriving on our non-GAAP measures. However, we will provide the change in deferred revenue -- deferred cost of revenue information so that investors can calculate our non-GAAP results based on the same methodology we have used in prior quarters.
With that I will turn the call over to Nick. Nick?
Thanks, Greg. Thank you all for joining our earnings call. I would like to welcome everyone as we discuss the prior quarter results for my first three months as CEO and the opportunities ahead in 2017 and beyond. By now you've seen the fourth quarter results, we significantly outperformed our bookings guidance, primarily due to better than anticipated performance from Crowdstar and our evergreen titles as well as Apple reporting 14 weeks of revenue in the quarter rather than its book of '13 [ph].
Eric will walk you through the financials in more detail in a few minutes but first I would like to spend some time discussing observations following my first 100 days as CEO. I spent most of my time focused on creating refined direction with our leadership team, rolling it out to our employees and making the necessary structural changes, in order to move our company forward.
And we're also spending a lot of time identifying and hiring proven leaders to attribute this new strategy. Our mission at Glu is to create top 10 grossing games and apps that stack revenues year-over-year. We've built a three pronged strategy focused on, hiring proven creative leaders, who will build Blue Ocean platforms in highly creative environments. I'll now go into detail in each of these components.
Glu's talent model is to attract the industry's finest and arm them with world class infrastructure, tools, funding and the support to creative innovative and polished products. We provide all of this while eliminating the risk of going it alone.
Under the guidance of these creative leaders, I believe we will deliver best-in-class entertainment products. I am extremely pleased to say that two weeks ago we added to our current creative leader group, by hiring a perfect example of the strong new creative leader, I'll talk about shortly.
While we will not be mandating specific genres of categories, we will ask that each new title is what we call a platform game, meaning it generates repeatable, predictable revenue that stacks year-over-year. Covet Fashion, from our recent acquisition of Crowdstar is a good example of this, as it is growing in annual bookings each year, since its launch in 2013.
Another one is our Tap Sports Baseball franchise, which is growing annual bookings in each of its three years. And we believe 2017 will continue that trend, with the inclusion of the MLB license, the delivery of higher quality graphics and a much deeper [indiscernible].
We will be consolidating our games to fewer locations, including a planned mega studio in San Francisco. We hope to move into our new San Francisco facility by the end of the year. The idea is to create a state-of-the-art facility that is optimal for the creation of innovative designs and the highest quality games. The way I look at it is that while we cannot guarantee shipping hits, we absolutely can provide the optimal environment for world-class output.