GLUU - Earnings call transcript Q1 2018

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Operator

Good day, ladies and gentlemen and welcome to the Glu Mobile first quarter 2018 earnings conference call. At this time, all participants are in a listen-only mode. Later, we will conduct a question-and-answer session and instructions will follow at that time. [Operator Instructions].

As a reminder, this conference is being recorded. to host like Mr. today's now would introduce for your conference, I Singh of [indiscernible]. you President as and Harman Vice Sir, Finance serves Investor Relations may

Harman Singh

you call. for thank Mobile's everyone Good quarter us first conference on Glu Thank you earnings XXXX operator. afternoon joining and

today Earl, President call and Executive and Officer. Financial Nick and COO Ludwig, Chief are the Chief Officer On Eric

Any could in we future to materially During Forms to described our during a factors future XX-Q. with result regarding as to future statements caution today the making of more forward-looking financial events. of the on the be this on performance forward-looking We assumptions risk course that in no of statements of and be you most recent company press will this actual that conference date. from differ forward-looking the based cause releases are those consider believes obligation are reports company. fully XX-K and We in factors the the statements these undertake make reasonable the important These call, and the statements SEC, this specifically we filed that update events call. results documents as to the

to measures we consider present GAAP be to call, superior are an not substitute results GAAP considered a investors financial and intended making and encourage all in non-GAAP our The this investment During will or for to non-GAAP both we measures. financial measures before isolation decision. from,

to presentation today's non-GAAP via can reconciliation those comparable measures our that quantitative GAAP website, regarding supplemental be of information directly accompanying www.glu.com/investors. our refer please investor and complete information, financial call accessed most the For earnings figures, a the

to results consistent revenue, for bookings changes a a prior the deferred used data the our non-GAAP to in on on with aside discuss tables. same cost GAAP the have totaled stated, expenses in otherwise all reminder, financial results our deferred based provide of from revenue will in quarter's of we and and basis you financial presentation will a quarters. the GAAP This the reconciliation refer As or we as non-GAAP information, financial operating methodology of

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Nick Earl

Harman. first highlights. we on Thanks carried for will built XXXX start. momentum reviewing into first quarter I by thank to operating is a financial XXXX Good today's us afternoon and great call. joining begin in strong The the you quarter our and off

will then provide on our growth strategies. We pipeline and an development update

quarter's on take financial the dive will outlook full QX Eric the and into our and deeper color provide a for Next, results year.

an efficiency The all Our operations of Kim and results strong of into year from our reached from generate bookings scale execution $XX.X drive increased strong our growth our first driven portfolios successful allowed significantly to growth as monetization our quarter growth last time The to strategy EBITDA and leading LTV demonstrate midpoint streamline $XX both million our well current Glu. and Hollywood. Home Fashion to us Evergreen by by as approximately adjusted Kardashian million, our quality guidance the growth the bookings. were quarter exceeded to Bookings Design another and Covet quarter we of outperformance increased and improve and financial profitability. record steps the operating for took and

of performance drive strategy. have merchandising These implemented include of overall result and optimize to which the in part helped as improved initiatives efforts outperformance conversion. several ops Our a our we game quarter live was increasing initiatives monetization

million. for to have and contributing our flow $XXX race results, of user user we new and enhancing guidance top the the line Based engagement strong $XXX of retention. bookings onboarding a QX on bottom greater reflects to also XXXX process full raised our balance and and This better are early higher driving the year a for by the $XX beat the to million million year. range We

also meaningfully will this expect We XXXX. improved result for adjusted EBITDA in

remarks. We additional on of will expect EBITDA and color in in the both profitability around Eric adjusted throughout rest steady our sequential provide year. bookings quarterly increases the an guidance basis his

able title our bookings to been year-over-year saw on very games increase capabilities. improvements a a make the we were highlights our Moving massive We growth ops healthy XX% to live They reflecting in quarter. in Home to basis. have million the increased This plan growth XXX% and QX. UA invest a a successful in the the soft well growing strategy and quarter year-over-year was as game performance. quarter-over-quarter to seasonally in features of in improve $XX.X systems by as execution implement to driven XX% Design

a adding new new Some event, and initiatives Home to monthly the successful improving of high double we These our of DAU flow, revamping sixth end the include million. bundle in launched packs to included user led improving Design X.XX series merchandising. daily quarter game initiatives

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intend also add augmented a deeper reality meta-game localization, We later and year. to this

accessibility include essentials. to merchandising well as improved users revamped in We packs Covet. content allowed participate to to and garment more season as Turning and

early growth a for since Covet's rates a January. flow. significant sequentially quarter and user revamp end the reaching full in straight second XX.X made for seven the increase new also consider XX% final retention bookings grew game. to it led of We core million has day the This improvements we to

optimizes development will Baseball Sports and five Tap a example gameplay the This creative and two, believe and that conversion, their in monetization, top and great for the metagame has optimized and and process to bookings. that fine tuning the way balanced both creative drives retention franchise that our improved drives gameplay game. is on craft years ultimately one the This the and is working we engine a title 'XX. results. team fantastic. is for bottom been technology TSB'XX's of increase have team's Early results Moving

star million. has a we quarters from been expect users. as we grew of Kim a Kim improving Evergreen to our Finally, past experience model what be to continues outperform. quarter-over-quarter portfolio. to shining merchandising over and our on focus continued our exceeded for Its expectations the Its the XX.X several performance bookings and elder

you in began worldwide look As WWE pipeline, quarter. expect we at the testing on February a our beta late launch and third

for the continue from is release. economy significant include beta about initial feedback We beta to optimizing the incorporate update feedback fine-tuning core that title's the The as release will we and gameplay, results our team beta balance. first use and meta-game to and title enhancements to to

ensure optimistic. Additionally, engine the closer for we our very that to experience same WWE we remain Baseball, users. highest quality since franchise details for the WWE are leveraging get that but has the is will More launch as Sports as from our to expertise come help Tap

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Assuming line the XXXX. for continues late well, goes launch summer be to time our beta

core brings Additionally, in the we gameplay are franchise original the Town, more that a an Dash with development IP mechanic. accessible together of of best Dash game

the We year. launch of end before expect this the to title

of be significant Finally Racing we economy. are will this of a Rivals revamp design, version X.X. to the relaunch and This forward the summer with experience looking

new we discuss We version monitor as will performance. the have much more its to about

tuned process. last develop Disney approach additional announced exciting Looking that we updates franchises stories for as with and new an and quarter, characters Stay Disney will ahead, we are to brands game across and development. development further we combines move to these Glu's the working details the as iconic game and through Pixar include with

performance that this strategy and Our trajectory and we on quarter serves portfolio working. strong our as another an proof results are is accelerated pillar growth three point

believe progress license This allows cultural in collaboratively work able to culture. creative-led cultivating drive strong talent growth our that change to games. us IP us will lead original made new we to to recruit All-Star and we First,

improved allowed our our execution us and of Evergreen improving live the Second, key our the KPIs tails to games. LTV revenue growth extend ops while also of titles has

will going drive Glu footprint which be we to another remainder weeks of Glu go second we helped and things creativity growth combining the and basis. and culture Third, quarter the Retreat that profitability inspired by outlook new I few of We a operations as to will financial detail well believe for EBITDA as well engagement, an level quarter University has year. profitable the consecutive ago, on management are forward. team's our disciplined the now financials I who closing, In consolidated thank us of some QX would adjusted reflected for on A here. to continued more Eric of ingenuity the and talent. execution. Annual through great have in with and our continue hand work over for creative of our collaboration, our the more built like we for to had hard team quarter positioned I streamlined

Eric Ludwig

Nick XXXX. you good for for the Thank the our further quarter I call. the to quarter will Great. and details increased and everyone guidance full first results discuss financial on second strong provide our then and afternoon year

results year's five as follows. with first the Our was the first Revenue quarter, for topline quarter quarter over $XX.X were largest increase representing our XX.X%. last titles XX% a million for

Sports million was record year's included which quarter. bookings first First last record only the new on that XX% million, our XX would quarter and XXXX were $XX.X a $X.X the over a in I bookings quarter highlight increase first only quarter. March launched Tap Baseball title in

by came generated on holiday quarter-over-quarter of quarter Kardashian down Design bookings increase on and titles coupled which IP certain prior in season, quarter. Fashion, offers royalties following no a offerable to prior Nick quarter. and $XX.X for of which contributed million, As million, during the outperformed million. Evergreen And strong increased bookings bookings. XX% upside Advertising was bookings mentioned, $XX.X $X.X the total driven or bookings total quarter, Ads a and platform offers which of quarter's of generated our over Home of the outperformance total titles were straight of the quarter $XX.X Kim this units basis bookings XX% third the seasonality removal with Covet due. XX% increase original over Evergreen from XX% XX% the ad due a title, bookings. to one Hollywood, were with the million by

marketing was side, spend million. UA and a the with to due were On second and margin the million $XX.X in $XX.X for of came adjusted $XX.X and at OpEx XX.X% quarter were flow-through $XX.X commissions quarter. UA balance million profitability first We to million margins. adjusted or platform first December royalties resulting cost with the cash quarter-over-quarter $X.X Adjusted adjusted straight marketing down EBITDA XXXX. Hosting quarter. million. $XX.X divestiture This million during and Moscow the $XX costs improved a of incremental drove quarter quarter. The ended in in totaled in million, bookings was the $X.X compared the EBITDA Adjusted excluding expense the a our quarter on increase games compared basis of high million studio prior in improved prior

the used excluding During operations royalty we first million $XX.X in advances. quarter,

Additionally, minimum we used royalty guarantees. advances cash for million for $X.X

we our cash no As overhang we quarter, have last from strategy. celebrity said prior

This for this operations the annual earned. was support variable cash place due contributed Major were first that excluding outstanding the to Baseball, year acquisition plus quarter's to put of annual and reflecting cash Thus, studio as as advances the performance advances we in in million the payments were related XXXX, year, related cash of performance transition incentives we to well quarter XXXX used higher XXXX. this to of compensation, largely the In payment team Crowdstar all timing. onetime than in if in XXXX bonus League February the payout some to Disney. In every paid license royalty $XX.X bonuses. WWE we

to Turning guidance.

year-over-year exceptional sequential As expect with earlier, the results continued QX increases along Nick throughout our stated year. quarterly bookings strong growth were and we

a to to bookings For $XX million to of $XX range second expect we million. the quarter, increase year-over-year

We at arriving million our bookings. figure. guidance very with and $X.X in are another at pleased the puts The record this takes quarterly midpoint increase for both has

to due an moderate summer Home slowdown and growth in have We Design June. expected tempered is quarter-over-quarter expect to

all includes the to first from time XXXX a of which expected centric XXXX of Baseball due is to the to franchise, than vacation annual double to gameplay Baseball base modestly to female at due the SKUs Fashion less from Sports summer launch $X quarter-over-quarter more slightly starting. million Sports the Tap Tap the in five result Covet as that expect quarter's We March. customer having decline XXXX,

dialing Deer in resulted quarter for Hunter bookings Classic, installs PUBG. potential. in all in such market user back softness quarter Our This Deer shooter our have Fortnite weakness Hunter and Hunter in titles, reducing thus Royale Battle into titles and engagement and as first acquisition and has those late and due we the the on Dino the believe, the XXXX to, entrants seen the second

playbook a the upcoming quarter first factored In This that Rivals Racing year Lastly, This we in update Racing their last to point spending have Rivals Racing the post change the significant out decline has on and of and quarter of and decrease Rivals the bookings be Carbonated several a our if back Mobile Rivals several for launch. will believe were guidance. team and full Racing our members informed the also successfully sunset we football reset update would this team dial the they the in working largest experienced EA announcement rivals caused quarter anticipation in update. in successful. a February, previously that community I the X.X XXXX our second the on Madden and see to players we economy upside to purchased. years X.X ever proves is been have which X.X Racing similar QX can have we cars economy will guidance implemented we has ago. when about following

costs second the $XX.X be $X.X be and or of $XX.X commissions expected approximately at at are at range, million, adjusted midpoint royalties are expected acquisition million, and million. quarter our On adjusted are forecasted marketing $X.X bookings side $XX.X expenses for to expected of expense million all XX% be platform the expenses guidance to user hosting operating other forecasted million, are are the to

prior at $XXX to of million a for over guidance increase the and million a representing last million. full range bookings the $XX $XXX from million, year a puts $XXX guidance updated year's significant increase Our

balance increasing $XX an full year added the the $XX We million. have the million by from are beat and QX of additional

specifically Titan this to bookings titles, and XX% World. than Dash new Town Additionally, be yet comes guidance assumes from launched of less WWE,

expected year On million, million. $XXX.X at $XX.X of forecasted XX.X% marketing and or $XX.X are are all royalties the expected midpoint million, cost hosting and $X.X full expenses platform adjusted the forecasted to commissions other are $XX.X expense operating million, adjusted side acquisition million be expected bookings are expenses be of for are the guidance, to to be approximately to be user

next throughout $X.X We we yet the expect our upon adjusted EBITDA to profitability dependent be In profitability XXXX, grow expect and continue to the be million million in titles. only year meaningfully over not commitments to million to pay is or cumulatively advances compares three to for combined. paid This minimum quarters. $X paid license $XX.X royalty XXXX to remaining XXXX over the and bottomline launched

an as XXXX minimum Mike on Given approximately well we year the has investment confidence last our to guidance back our in our perspective team of flow gain the XXXX forward-looking and by our updating encouraging XXXX. outlook helped $XX we million extremely quarter the three Olsen. first a at new obligations, result in was lower to cash led EBITDA path adjusted some year. creative as year additional tracks success hiring free position a as that saw the the in our guarantee for and of end is significant The year expect us much generation be cash including

This on next franchise increased today, Design the significantly XXXX expect Baseball an Home, which be announced impairments. for Tap Home, we led from as on by the on will including basis Dash Town. adjusted well we and EBITDA tremendous to level essentially year. in incrementally EBITDA ultimately profitable business basis, title year year of to as of XXXX, performance our us Additionally, Covet the see to supported we year by XXXX, In have full new breakeven excluding full an the throughout Strengthened scaling royalty have robust believe WWE results as and UA adjusted pipeline, Tap WWE and contribution Sports Dash Fashion Design the we Town. growth we Baseball the a Sports the is

title announce the an we team launch will Disney in and have Olsen's before title we the of XXXX, original year. Additionally our the IP Mike end expected from of that

generation meaningfully EBITDA significant anticipate expect free and to We adjusted in cash margins improve XXXX. flow

our financial we bookings we million additional the $XXX EBITDA we of expansion level. track term on margin and XX% above when ahead, an Looking and of targets achieve achieve margin are between of to potential bookings $XXX as XX% longer firmly believe scale adjusted million

We forward call the growing I operating you new our and implementing efficient I year and year-to-date have IP sustained last on while open Operator? our strategy of made look beginning updated will creative and updating environment progress with a for the quarter. profitability. our improvement objective outstanding growth progress a guidance more in next our And questions. producing to our results reflects and since that, significant the strategic financial generating

Operator

Instructions]. [Operator

comes Our Creutz Doug question Company. from and with first Cowen

now is open. line Your

Doug Creutz

does leeway Thanks. little a a you get releasing on specific Obviously of might talk that Hi. about Thanks. it's give date. where of is do philosophy out and when Other thinking your in to a ready? you launch them lot a guys the choose terms When you think strong have titles release performance be you you new when don't pressure you of to terms some of considerations any Can date? title? in

Nick Earl

it to these to the the think I we of kind just have Doug. economy the in a that time about really listen, takes not things a and talk opportunity market are numbers. lot to optimize have this in a This that the get we make we are launch of this and order things a the to gameplay, grateful position players situation Hi in Yes. long learning, now we that to as right. are gives lot is Yes, learned

early clear, medium of term we seven, at we but specific that We to have a that sure make day have definitely don't those kind and certain XX retention, we we height. above want numbers look a of at number, certain day look definitely to So retention. of kind set

view lagging for less thing and it and kind of closely launch. at look most are about But up a opportunities to would because look as We we more it's pair when revenue indicator I beta in will more indicators. market sitting of that we retention deciding of we the is say, much leading with a

example, For out happening be something a match that's good to there. with candidate would WWE

going months of release bunch where a to have to a would say, will. time. I really take are now if we six it's even position So in that, we we don't we just And its are before or longer, variables

Doug Creutz

Thank Okay. you.

Operator

with comes question ROTH. Darren next Our from Aftahi

now Your line is open.

Dillon Heslin

for on the This Dillon, for beat. Design of bit Baseball, is some same Home? on me. Darren. with sort on should would WWE developed out you its those some update, And you bookings my But you been as questions. metagame the have WWE with some the that about new the would Thanks expected features you. that I newer provide guys. for with Tap Tap taking know those expected be for team then updates what and beta that user events Baseball, on rolling Hi local the future, Two be of live And Design by talked and of talked you acquisition launch reality of augmented and little congratulation updates out since the On of Sports Sports are well? Home, about a in Thank as languages.

Nick Earl

Thanks. Dillon. Hi Yes.

with Honestly the yes, really the around Home experimenting we much still what So we details that different ideas. talk is. of metagame, too Design can't are about

it's complex a of a an kind really lot game. meaningful got have in direction, right to to stuff moving add metagame the of but existing We in

is not to So do. this easy

relative a get But to apps for at lifestyle coming about But kind to studio, team With such ready community, it than lot to yes, of they kind right, community, there absolutely and WWE, the Baseball a will of that and that to familiar to regard other get WWE the you Tap Although I of back are you what certainly characters WWE, a team, are same we today. Sports think greater keep elder that can metagames in I a talk same it Sports to reasons how in specifics the not it. month-after-month-after-month definitely Tap we but create is to game Sports Baseball. aspects sense design of audience in social elements in some have and is look sense exists kind just and got even will feeling for look the the has are talented Tap you is and just what that. the whole customized the of think engine to that different Baseball

will So new well. the be beta. forward to there will the especially as getting release know But as we new definitely be it those, parallels to look we in world there things but

Dillon Heslin

good. Thanks Very guys.

Nick Earl

right. All Thanks Dillon

Operator

from comes question with Crum next Our Drew Stifel.

line open. Your is now

Drew Crum

Hi Thanks. Okay. guys.

First question for teams.

from titles, that new are you expecting I in you those suggested XX% quarter the from contributions titles. think would new of the about last So bookings probably XXXX come

You you that else? have that's it the from taken seen Is there moved number in saying you guidance now new have Or testing something are is titles. XX% timing the up related? but beta something down? Or

Eric Ludwig

Drew, against how of question. terms new out of for our Eric. say trying scenarios coming of I Thanks guidance titles, park celebrity would of forward-looking from we new forecasting given we that our that much is it's are caution I overabundance guidance of our to abundance de-risk more this two the an titles. of last say, in having an would years

of XX% really XX% the around conservancy but of guidance, the share and legacy downgrading, to celebrity learned the lion scenarios. So have and that is going although increased we what our we history with and from

Drew Crum

seasonality? there talk Okay. And XQ? Design that's Is planned the UA about spend implies you number that marketing spend Home? is else UA versus on then something was Are enough. lower? range during that guys there XQ. down lower you Or expanded something and the something taking may be for can ratcheting what else a Fair The

Eric Ludwig

into there say of the in ROIs buying costs. we the CPI this spending lot are the Christmas holiday, big of in and Christmas plowed were brands window that and Christmas was, drove when January right a and UA the CPIs just around holidays, Yes. it, demand of QX lot golden e-commerce I we was void amounts were brands Christmas into up what when would brands, call a And significant after saw right going money phenomenal. really really plummeted massive after we

I of say, very slightly every the for think guidance and arbitrage, is on absolute and day, week turn buying titles higher, QX the in that at expected again, windows dynamic UA dollars as ROI, LTV, And positive we our will some UA is QX. driven. if of the more team there the UA are and higher to If we ROI and constantly on we to title. we our each would when our LTV find So both CPI looking is incremental around be why terms versus those balance find spend it's it find to in going we the incrementally ever

Drew Crum

it. Got

Thanks Okay. guys.

Nick Earl

Drew. Thanks

Operator

Instructions]. [Operator

with Mike question comes next from Benchmark. Hickey Our

is line open. Your now

Mike Hickey

for Thanks an on guys. Hi quarter, questions. great congratulations awesome taking And guide. my

certainly have performance swagger given some You here.

So M&A, well deserved. Curious maybe on strategy. your

like in driving have orchestrate your in your terms to right of deals constructive it's phenomenal peers terms deals a also of fairly at growth. of ability it success lot looking seems a Obviously that some can be of success You been Crowdstar. the with margin some EBITDA and had are

flow thinking that the M&A hoping just well, of to as of more think you a So of course on a where sort are and long-term? how you and guess at, as lot your medium puzzle could sort of you driving piece could are be of, but cash I we

Nick Earl

Mike. Hi Yes.

landscape break and and energy there. about chime we spending lot can what of to this another then it kind in. are we take a see will down talk against Again, looking of two We kind out is into thing classes. Eric at I So the

like leader a They in really would single-game bring The entire and opportunistic did. the first of that be could studio way ahead would Crowdstar are kind move even franchise and/or us or potentially creative acquisitions. an that

park. risk, provide We such in low for to also things bets great the ultimately is and out bring reward look can small but maybe that what hitting a a have a of of high at chance not it the opportunity fairly

of definitely market. and this both We as So the see we great are we next a looking as buyer's view more XX over at this opportunity months. a

this and to give that of with significant another is years the integrate course So going out and kind opportunity ours to scale growth great currency a company the over complete cash able go to is be like kind happens has of able that to to a deals. us be

Eric Ludwig

would are going perspective, last this add year good to a and allocation Yes. targeted three we to flow doing M&A. generating cash capital and free very track the quarters of have that, from be I record strategy of we a XXXX

big So talked I M&A. think about Nick the

I Nick talked about. think deals know I smaller that

UA $X and to We out million venture and four $X.X that to invest and have invariably that successfully of, launch. get funds million maybe have the don't the venture that into they acquisitions transactions, $X money have times. title now launching doing actually ready a or turned two $X launch a to that for title investor have either maybe four titles done prototype people there a in transaction those their launch have get we the the title million, actually from where is of venture this or whether they million beta that fruition, investor. are it's million done XX.X%, And A have now transaction to to we spend $X to of we don't multi-contract we are prototype fruition

will will publishing company the we where we a the launch at same title arrangement a them. for do time, with Secondly,

become and we We because want upfront. side a price UA them risk to our are fruition. at title at And to on a to then will at do get helping that, risk them successful we put and will putting preset buy our capital that the lastly, them help option capital call

can't if in. somebody successful, successful, we So swoop are they but are

they or launching XX and with well as maker we with transaction some that that three contracts two point months. done done are we with done QuizUp. Vanilla, and those then at what now of have others have we the announced will two first both have So translated as be those next Dairy acquisition we but And Free Plain not it had we the into in actually titles those partners

where just our the would market venture are have to folks goal we is creative to efficiently higher a them that in think capital then I there but this way up, to are the we great get use leaders, ideas one out that table. is love So on shots and more there dried bring can't

Nick Earl

would cultural important or look the That's any we really make the or or last of do, they even Mike, the are but would integrate possibilities scrub to are only integrating is to and we sure made, studio, us. financials I really that the a potential, And at working acquiring before not title, on that that fit. Yes. consider really on going there a strong title the is comment

that right a doesn't want into up and group do mess our our over absolutely that XX last not fit We got purpose. just months that to integrating core the values and have we by

Mike Hickey

But core category, day Certainly there, to some and Thanks expertise you back No with shooter obviously you exposure, Glu, thinking guess or it's the sure. internally, I maybe of layer guess, more. reality Yes. whether you it's the PUBG the guys. now, about, your do core success the don't I ways you evolve was shooter doubt. years, back thinking you on positioning? have that about category you is Fortnite think can I in can your the do know the over and not or again Hunter you think, it's guess, had how am number bringing different there I curious, one strategy a if mobile gaming category gaming still how title. good not obviously in shooter I think Hunter, And with maybe find if Deer about augmented But forward? Deer moving with really any

Nick Earl

topical it's watch the the love been like we really happy question. Battle and in obviously rise This core fact off games of Royale mobile. we category we happening. Great getting certainly are are We has as that the taking Yes.

I think it the and expands it to just the market. adds legitimacy format

are well right. title we ironic this our really Deer And You is of in are It Hunter. be absolutely subcategory. used to not number positioned in of one that yet kind sort this

most said, market. in market a core play company, We we Home. "casual will with our and now that much Covet the being any and of and is everything side" look and games will we can at on as Kim portfolio more Design right the certainly With

again it have us given positive this overall an presents growth for we start, some least with stationary opportunity a this somewhat shooter expansion So we subcategory, whole a head of that market and long-term the of at is do certainly like for think, mechanics. for

we at look we we will up. where So will it and end see

Mike Hickey

game guess saying a recently the State, There genre. in pipeline. market. on or pipeline see now. question, I have that last your social a that think in you that's the XXXX still big are disruption I you to have slots and don't that is regulatory games some It if issues obviously Washington pretty they in your exposure you. casino, in some not, gambling I was going caused it's are zero for Thank

kind of wondering are that the game opportunity risk a going in So just if do genre? you what you think to still

Eric Ludwig

that's Mike, a Yes. great question.

on expect any have nor in First to titles Washington titles rulings, any rulings our we current impact off, live the of of our the development. State, of any don't the preliminary

have for less casino are in title is for said XX%. with all company me specifically working titles heard the though than of our guidance nor that in social overall space, we the that We XXXX, is the speak guidance unlaunched new as what not partner the you

this So that gambling State's yet. ruling. there. it's to are I say think lastly, Fish's limited And Big de-risked matter would parent the Washington then is company, that laws a settled we Aristocrat, appealing really And not and we already know is I

will of is or lot plays not if this may thing and that out we this wood may I with then that So there whether to under a how partner purview. social chopped that for the be we before becomes ruling's think casino and title And a see reality. be

Mike Hickey

Appreciate All luck. it. right. guys. Thanks Good

Nick Earl

All right. Thanks Mike.

Eric Ludwig

Thanks Mike.

Operator

Your next Brian Bank. question Peganoff comes from from Deutsche

Your line open. is now

Brian Peganoff

Hi and prototyping here license brought guys. I last rapid especially Pixar the one time mean of and quick context quarter Thanks this the as Disney last for around. just it a I stuff. bit had a quarter pulling question. on the in in well, up

aspect for So one I they models of wondered how active in potential to around team? up give a that can new of bit that spinning us size just is it? developments? are little your business? more you specific What's if And color the

Nick Earl

the you call. Pixar. to Yes, on and working Good beyond this on that Brian. team the is is well something just Hi Yes. Disney have

me she entire kind years rapid heads was In evolved studio fact, and telling as been the I mutated culture last her the of was over know, speaking and the you involved now. week themselves with of how one has, culture prototyping has studio she of that they and view

live different and new ops new So now game integrated as ways, happening new But development. features all is studios as well obviously. in it's and development into in it the of

interesting when something something to company is is along really for new believe combining here the just really the think teams create process this results. very for we something punishment it ingenuity and are and There no So failure of is of in. and with I the fabric that much good the you trying

obviously we of sort big the will franchise Baseball virtually players many then these in that of that Sports Town, all terms and well out Disney be up you then one, things what or and things are of teams with continued with new that coming like integrating. see, In as or you rapid and and operations but in ultimately Dash have the results see, live will that the as the our failing items will in Tap new items casting obviously are of and small succeeding prototyped are been really WWE anything

company of Pixar Disney the the entire I culture said, and very beyond now. of definitely kind So like much

Brian Peganoff

the on Congrats guys. Thanks quarter.

Nick Earl

All Good much, have right. on. so you to Thanks Brian.

Operator

to am turn like I showing questions. remarks. At CEO, call closing time, further the back no over this Nick would I for Earl,

Nick Earl

forward Thank was We for a great look today's year. the much for Great. continue very of Glu. the you. joining the result QX Thank everyone for momentum rest to call. you

Operator

in you This conclude and Ladies thank program. your gentlemen, today's the for conference. does participation

Everyone, disconnect. a day. now may have great You

Glu Mobile (GLUU) 1 May 182018 Q1 Earnings call transcript