-Mobile smartphone use is at 1 Billion vs 5 billion mobile phone market. 500% increase in users as people move to smartphones.
-Current Monetization is below industry average... Just hired 12-15 people to help improve monetization.
-Any improvement in monetization will be huge for revenues.
-Barrier to entry is larger than investors think and because of this the top 20 companies keep getting bigger and gaining market share. Glu is one of them.
-Also the reason they launched their 3rd Party Developer Platform and see a lot of potential there.
-Glu has had significant growth in the US Chinese and Korean markets, and they continue to perform well there.
-They Acquire 5M new users a qtr and are able to cross promote all of their games to their large user base.
-This helps them spend only 18% of revenues on customer acquisition vs 40% industry average.
-Even their "flop" releases generate over 1.6 million downloads.
-Glu is excited about the TV platform. This opens a new market for them and costs very little to convert their games to the new platform. Apple Tv, Google TV, Ouya, and others will greatly benefit them.
-Glu is spending a lot of time exploring real money gambling. They have explored all possible ways to position themselves including partnerships and launching their own platform. The interesting thing was that Ludwig kept repeating that no "Official Announcements" have been made yet on their plans for real money gambling. (yet).
-Real money gambling is inexpensive and relatively easy for them to do, little monetary risk involved.
-Glu's launch of the slot game through Probability is a PROFIT SHARE and not a a license fee, which is very good. Glu plans to launch more titles in the UK and other countries as well.
-They plan to end the year with 14 M in cash with no additional need to access the capital markets.
All in all, nothing ground shaking but definitely good news with some hints at great things soon to come.
POINTS-By Harsh Chauhan - February 15, 2013 & Osborne
1 delivering Street-beating numbers over the past three quarters it has imploded drastically 2. GLUU has bet on MOBILE, gaming on smartphones and Glu possesses the required expertise and technology to bring multiplayer gaming, and it had acquired GameSpy from IGN Entertainment last year for this purpose. 3. Glu was in the mobile gaming arena. And it has done well in this arena. The company’s games have featured regularly among the top grossing apps on the iOS and Play stores.
4. It plans to release 15 titles, and five of them would be in the current quarter. The release of sequels to famous games, such as Gun Bros 2 and Samurai vs. Zombies Defense 2 apart from a host of other titles, should help Glu reclaim its smartphone mojo this year.
5. The company has created a separate publishing division, through which it would partner with third-party developers across the globe for developing titles for different platforms, countries or languages. The publishing division will kick off 2013 with four releases, and plans to move aggressively in 2014 by hitting a run rate of one title per month.
6. Glu is that its games have presence across various operating systems. Hence, growing sales of tablet and smartphones, coupled with the company’s presence across each ecosystem should be an advantage in the long run. For instance, the company was expected to rake in two-thirds of its revenue from Apple’s (NASDAQ: AAPL) iOS store last year.
7. We are pleased to expand our mobile portfolio to include real-money gambling. We anticipate that real-money gambling will continue to gain momentum globally and believe that with this offering, Glu is well positioned to capitalize to the extent that additional markets adjust regulations," said Niccolo de Masi, CEO . The gaming industry has lobbied Congress to relax online gambling bans, arguing that games like poker are based on skill rather than chance, and it seems likely that those legislative changes will happen. Nevada, New Jersey and Delaware have all recently legalized online gambling. Many more states like Iowa have nill introduced to pass it.
Glu original IP-branded casino games will be offered as part of the Probability portfolio and will be offered to a broad range of Probability's partners such as Paddy Power, William Hill, and Probability's white label partners.
8.backing of its management, as evidenced by insider buys in the past three months.
9. Glu Mobile’s non-GAAP gross margin improvement to 90% in the previous quarter from 87% in the prior-year period tells us that the company is efficiently going about its business.
10) The majority stake of Glu Mobile shares are held by institutions, at the start of the third quarter of 2012, institutional ownership was 78% of the outstanding shares according to Google Finance statistics.