Glu Mobile Inc. develops, publishes and markets a portfolio of games designed to a cross section of the users of smartphones and tablet devices. Products The company provides free-to-play action, celebrity, sports, and simulation genre mobile gaming, and intends to focus on developing games in these genres during 2016. The company creates games in these genres based on its own brands, including Contract Killer, Cooking Dash, Deer Hunter, Diner Dash, Eternity Warriors, Frontline Commando, Gun Bros, and Heroes of Destiny. It also creates games based on third-party licensed brands, including Kim Kardashian: Hollywood, Kendall and Kylie, Katy Perry Pop, James Bond: World of Espionage, Mission Impossible: Rogue Nation and Sniper X With Jason Statham, as well as its own branded games that incorporate third-party licensed brands, properties and other content, such as Racing Rivals, Tap Sports Baseball, and Tap Sports Football. Although users could download and play the company's free-to-play games free of charge, they could purchase virtual currency or virtual items to improve their gameplay experience. The company sells virtual currency to consumers at various prices, which is consistent with storefront pricing guidelines, with the significant majority of player purchases occurring at the lower price points. In addition to in-app purchases of virtual currency, the company also monetizes its games through offers and in-game advertising. Offers enable users to acquire virtual currency without paying cash but by instead taking specified actions, such as downloading another application, watching a short video, subscribing to a service or completing a survey. The company works with third parties to provide these offers to players of its free-to-play games, and it receives a payment from the third party offer provider based on consumer response to these offers. It also works with third party advertising aggregators who embed advertising, such as ads appearing within the game between content transitions and as pop-up ads; the aggregators pay it based on the number of impressions, which is the number of times an advertisement is shown to a player. In addition, from time to time the company works directly with other application developers to include advertising for their applications in its games, and the developers pay it based on either the number of impressions in its games or the number of users who download the developer’s application. Sales and Distribution The company markets, sells and distributes its games primarily through direct-to-consumer digital storefronts, such as Apple’s App Store, the Google Play Store and Amazon’s Appstore. In addition to publishing its smartphone games on direct-to-consumer digital storefronts, the company also publishes some of its titles on other platforms, such as the Mac App Store and Facebook. Research and development The company’s research and development expense was $72.9 million for 2015. Seasonality Majority of new smartphones and tablets are released in or shortly before the fourth calendar quarter to coincide with the holiday shopping season. Because majority of players download the company's games soon after they purchase or receive their new devices, the company generally experiences seasonal sales increases based on the holiday selling period. Although the majority of this holiday impact occurs during the fourth quarter, some of this seasonality also occurs for the company in its first calendar quarter (year ending December 2015) due to some lag between device purchases and game purchases. However, the impact of this seasonality on its operating results is significantly affected by its title release schedule. In addition, companies’ advertising budgets are generally highest during the fourth quarter and decline significantly in the first quarter of the following year, which affects the revenues the company derives from advertisements and offers in its games. Conversely, its marketing expenses also increase in the fourth quarter, since demand for marketing is higher during the holiday season and this increased demand drives up marketing costs. Intellectual Property The company’s trademarks that have been registered with the U.S. Patent and Trademark Office include Glu, its 2-D ‘g’ character logo, its 3-D ‘g’ character logo and various of its game titles, including Blood & Glory, Contract Killer, Cooking Dash, Deer Hunter, Diner Dash, Eternity Warriors, Frontline Commando, Gun Bros, Heroes of Destiny, Racing Rivals and Tap Sports. In addition, the company has trademark applications pending with the U.S. Patent and Trademark Office for other of its game titles. Registrations of both U.S. and foreign trademarks are renewable every 10 years. The company has one patent issued by the U.S. Patent and Trademark Office and has eight patent applications pending, including two that it inherited through acquisitions. In addition, the company has an international patent issued through the Patent Cooperation Treaty, which corresponds to its issued U.S. patent, and it has four international patent applications pending with the PCT, which correspond to four of its U.S. patent applications. Competition The company competes with various companies, including Activision, DeNA, Disney, Electronic Arts, Gameloft, Gamevil, GREE, GungHo Online Entertainment, King Digital Entertainment, Nexon, Warner Brothers, and Zynga; and various well-funded private companies, including Kabam, Machine Zone, Pocket Gems, Rovio, SGN Games, Storm 8/Team Lava, and Supercell. The company also competes for downloads and time spent on mobile devices with companies that develop popular social media and messaging applications, such as Facebook, Pinterest, Snapchat, Twitter, Vevo and YouTube and with companies that create non-gaming related software applications for celebrities. History The company was incorporated in 2001 in Nevada. It was formerly known as Sorrent, Inc. and changed its name to Glu Mobile Inc. in 2005.
glu mobile inc (F2P:Frankfurt)
500 Howard Street
San Francisco, CA 94105
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