Mobile gaming is developing at a tremendous pace; along these lines is mobile gaming organization Glu Mobile (NASDAQ:GLUU). Having picked up strongly in 2014, Glu Mobile is set to get better. The organization's games are picking up solid footing on Apple's (AAPL) ios stage, with the as of late dispatched Kim Kardashian: Hollywood turning into the third-positioned free application on the application store.
Glu's results have been strong recently. The organization had conveyed record development in both its revenue and income in the first quarter, and this has pushed the stock close to 52-week highs. Its revenue for the quarter increased an incredible 90% year over year to $47 million. Glu also reported a fabulous change in the bottom line, with its net income coming in at $5.4 million as contrasted with a loss of $2.3 million in the year-prior quarter.
Looking ahead, Glu has various games lined up that can keep driving its robust revenue and bottom line development. The organization attributes its first-quarter outperformance to Deer Hunter 2014 and Eternity Warriors 3. Glu has now readied a robust substance redesign pipeline.
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A strong pipeline
What's more, Glu as of late proclaimed the acquisition of Playfirst, which has made several hit games such as Diner Dash, Hotel Dash and so forth over the past few years. Actually, the fame of its Dash series might be gaged from the way that, it has been downloaded more than 750 million times across all platforms in the course of recent years.
Glu administration believes that Playfirst is one of the largest casual gaming brands ever that will help it take its casual gaming portfolio to new heights. As indicated by Glu CEO Niccolo de Masi, "Glu continues to search for universally perceived IP that might be reinvigorated by leveraging our worldwide studio and publishing organizations." The organization has wanted to dispatch an allowed to-play Diner Dash mobile diversion in the final quarter of 2014, and going ahead, it plans to develop the franchise all inclusive.
Glu has also signed a concurrence with MGM and EON. They will together bring the James Bond franchise to mobile devices around the world. Glu will turn into the first organization to bring the 007 diversion to mobiles and tablets. As indicated by administration, "As the franchise continues to set ever higher film industry grossing records, we're optimistic about our titles prospects of significantly inspiring Glu's fiscal trajectory."
Additionally, administration anticipates that the normal cost per install will rise at a faster rate later on. On the other hand, at the same time, Glu believes that it will have the capacity to develop the normal lifetime esteem per install at a faster rate. The organization is focused on enhancing brand distinguishment. Glu has been making and sustaining franchises and erudite properties such as Contract Killer, Eternity Warriors and so on to drive long haul development.
An alternate element that could drive Glu Mobile's development is the normal increase in Apple's addressable business this year. The mobile gaming organization gets around 64% of its revenue from the Apple application store, and the dispatch of iphones with greater screens this year can will permit it to tap a greater business sector.
As indicated by rumors, Apple is on track to dispatch two iphones this year. One device will sport a 4.7-inch screen while the other will accompany a 5.5-inch screen. A greater screen will permit Apple to tap consumers who had stayed far from conventional iphones because of a small screen. Consequently, Apple will have the capacity to take away a piece of the overall industry from smartphone players such as Samsung and LG who were having a free run in the extra large screen smartphone market. Eventually, the quantity of iphone users will increase, alongside the application store's compass, and this will profit Glu Mobile.
Glu Mobile has performed impressively this year. The organization's strong gaming pipeline, the acquisition of Playfirst, and Apple's approaching iphone will go about as tailwinds going ahead, and help Glu sustain its fantastic energy.