GLUU stock opened lower by over 16% in today’s session despite Glu Mobile Inc. (NASDAQ:GLUU) posting better than estimated fiscal first quarter revenues.
The Freemium mobile gaming market is something that has exploded over the past three years, and one of the companies that has emerged as a significant name in the 3D mobile games segment is Glu Mobile. The California-based company’s stock has been on fire throughout the course of 2019 due to the projected release of three games this year.
In the fiscal first quarter of 2019, Glu recorded revenues of $95.9 million, which reflected a year-on-year revenue growth of 18%, and earnings per shares share swung from a loss of 5 cents per share to 0 cents per share from the same quarter last year. Analysts estimated earnings per share of 5 cents per share profit, while the estimates for revenues stood at $89.75 million.
The year-on-year bookings growth grew by 7% and stood at $92.6 million. The company projected bookings in the range of $100 million to $102 million. The bookings projection for the entire year has now been pegged between $435 million and $445 million.
GLUU stock is trading at $9.44, down 15.90% as of 12.40 PM EDT.
GLUU Stock: Outlook
One of the more disappointing takeaways from the first fiscal quarter report was the drop in daily active users from the same quarter in 2018. It dropped by 13.8% in this quarter to 3.1 million users, while the same figure stood at 3.6 million last year. In addition to that, monthly active users stood at 19.1 million, a drop of a whopping 23% year-on-year.
Despite the minor setbacks, GLUU stock has releases lined up this year that could vastly change the fortunes of the company. In addition to that, the mobile gaming market is set for explosive growth and is expected to be valued at $180 billion by 2021. All these factors work in the company’s favor for the long term.
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