GLUU - Earnings call transcript Q3 2020

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Operator

Good afternoon ladies and gentlemen, and welcome to the Q3 2020 Glu Mobile 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 call is being recorded. I would now like to turn the conference over to your host, Mr. Finance Relation. of VP Singh, and Investor Harman

Harman Singh

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

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

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

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

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

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

We are website. reconciliation. and during follow Both over providing IR our with encourage now website the the that, along turn on you aid And, Excel PowerPoint to supplementary on with Excel call a to this conference Nick. also the to file accessible in We easily more are this would the to file I call. like slides

Nick Earl

initiatives. $XXX.X provide year. Hello continued update give from everyone highlights Harman. to and strong revised our for joining. details today's live next titles. thank quarter the We've lead development I had XXXX year Thanks, and better on our and for will grew an second you than on line XX% results and financial Bookings for then On monetization Eric high third will quarter year our and growth expected all results our over in call, a pipeline cover engagement player the very top preliminary and quarter. third outlook with by increase bottom million across guidance

booking stacked free our with Our growth our million $XXX.X greater primarily scaled. and in our adjusted closed spending $XX.X as the months and XX UA record through on QX in focused million in produce cash expansion strategies. EBITDA inorganic business flow to margin trailing generated We support in and productivity driving cash organic

stages for the the $XXX.X EBITDA believe environment, increase expecting the expect initiatives that to growth. grow. in and reorganized amount. technology million player function significant to adding increase We the the year, we our higher produce months over model of ongoing year guidance and year and over is revenue as entered in with the the we adjusted process produced or XX% we X% we of the our the delivered strong quarter. $XXX.X we've quarter a quarter. believe games bookings with people, of strong year new home engagement million of entered through We in income full this quarterly We live scale year's $XXX prior XX% began as players up and net in record showing continued benefit and also results We reflects grew annual productivity. three spoken we today flow raise about the early bookings a million year XXXX launch driven over operating growth this almost on our year bookings have we is surpassed now significant quality representing optimizing from year. strong XXXX beyond. are that Arena, first with our around driving titles. flat guidance initiatives Design start sustainable at the UA We that UA realizing GAAP spend. and In favorable successful basis XX% Disney We of twice at are nine midpoint a as Bookings The by UA to our in growth. performance These and are Sorcerer's year

our a user accessory season. was the performance virtually we a positive is launch. by a fall our This early design cover that performer Covet game the During leverage expect strong results. will our margin with we given collection high re-launched store large design real base year, seen baseball MLB also in ecommerce have shortened a year sports along we're flat fashion we quarter over hair our Tap very pleased standout very and over opportunity home with and home bookings time. XX% feature new growing subscription inspired, led were

of quarter our another growth increasing can this saw game in XXXX. is year, also confidence over which year become strong up Hollywood, XXX% a Kardashian Kim results from We

we believe a Glu brands. is and excited opportunity growth our about are what Crowdstar We for large umbrella Sports

of developing enriched play brand realize makes passions to a and style. inspiring First, understanding include game and the blending women's and users a we statics, the interests, in into with feel a sharp focus and quality and and its female inspired games highest pillars lifestyles, Crowdstar that key are players leaning by and which creating community elevated

and other have brand, new several world developments Hunter brand Deer focused in In games addition we updated Tap version Tap MLB on Under as growth games launches the this XXXX, two of Sports share. also exciting to Sports baseball. current planning under are highly and fishing, are well an Glu our to we our about as umbrella taste. game genres action-packed the pleased Sports that These most create decor of and and I'm largely for complements and outdoor anticipated one will exciting that aesthetic and be our play with games, allow pairings, food users PX our PX to experiences. brands. the sports A draw share male audience a dining to news table some title Crowdstar engage impressive will to

games realistic graphics a addressable to has larger in the home market promotion. the that to home the We entering as Our suite in rates of potential retention will than feature authentic more the We've believe with recipes success in called a diverse their applying broader the is & launch. of ever decor development Crowdstar towards both encouraging continue Table swift Crowdstar of developing categories and we food next been Taste build breed the closed hyper also XXXX [ph] fashion come casual mechanics demographic. and by moments progress very Crowdstar covet and significantly games the leveraging and have cross out made created well ad Crowdstar our brand. Glu's and designed category core base branded Studios to players design their elevate home table taste decor LTV team The the into help and serves more and loop and most best These fashion will that food growth design base as to game the fashion to are and user vertical as game. structure. and high grow drive efficiently design covet games

also potential the IDFA to diversifying us base positioned the due more expand user in is efficiently upcoming changes Given our to business. advertising moments our Crowdstar to ecosystem allow UA while

Crowdstar and growth Table current upcoming the and forward. drive brand games, going our two umbrella this the For continue we launches Crowdstar growth moments to believe will of Taste,

is Glu world at pipeline Deer sports Hunter very well. Looking a development going

next tuning the we history. to game. meta updating its on with potential We flow depth continuously Force Task mechanic beta new these fine user I'm team more and game player core developing in as and player earnings to The that more and while core and download title in to look track a will the fully move this you IP building loop. is social to into features forward in high titles deep On XXXX. We release. a call, live And experience is add on the would we ops robust connected are competitive launch for we've versus quarter the on social second features. immense say is said appeal focused and year. that remains and driven the The team the the out happy last we fishing event global

growth is believe expansion. margin strategy three that initiatives will long around structured growth term Our and strategic we drive

The first our is social grow operations events. to and and three growth games to through continue scale live

have games. we growth titles and in stack the with a roadmap Second, we believe bookings become that XXXX robust potential to have

are and and assets to these a use designed our efficiency to combined are on initiatives strategic drive productivity business from ability also create UA acquiring our focused scale that an to when help with marketing on proven margins. will We benefit executed believe forward. can the that infrastructure us We going and winner. our third priorities And expand

actively evaluating our fit opportunities acquisition the On are we criteria. that target front,

a of record over to billion that a to acquiring franchise the infrastructure year break the aqua utilizing million year a expected dollar the of history to our games. taking studio from years include strong quality our end hire an by Crowdstar lifetime to acquisition The small have assets We million $XXX create with studio sports from of $X highlights $XXX year are a XXXX. $XX and growth a [ph] a million and bookings franchise Glu

full balance had a and we we equipped to position continue to guidance and a to that great third transformative in year. will highly the strong for summary, pursuing XXXX outperformance in well revised quarter acquisition. to quarter will fourth discerning opportunities accretive our quarters ample cash and we and pursue are year reflect with finish We the be be expected the In sheet third our the financially are believe upwardly in

contributions and have XXXX to of strength we growth out by growth games positioned the year. and the our Looking top well progress the steady potential deliver launches line are growth continued solid slated to driven the continue we our exciting for believe games, of we to

our also increased focus will now to would Eric spending expansion. marketing take we questions. efficient turn your over it margin to profitability I like we'll on and We that believe drive then sharpened more and

Eric Ludwig

afternoon year our our guidance. financial fourth Great. strong quarter everyone to XXXX third on I walk full the financial then quarter results Nick. call. Good and will Thanks, through review and

preliminary our outlook. on February, the I guidance plan providing provide we context formal for early While in XXXX would on year some full

results Our net full significantly revenue quarter and to was a bookings and raise year million, $XXX.X GAAP bookings with both quarterly record us year. than income records. expected allowing third for for in and were profitability, $XX.X and better both of million, representing us position the beat EBITDA

as months of the nine $XXX.X was by For months to XXXX. XXXX year driven live year Bookings first execution revenue first engagement titles. over million great up compared to nine and all strong of XX% the player ops XX% across grew

months larger up XXXX XX year than nine through first as year results. to is XXXX XX% and of the months to For first compared full date was the bookings bookings our XXXX nine of September

reflecting million. was XXX% total XX% reached down of a to three XX% Sports $XX.X since XX% late total a Dash MLB game puts reengagement. third bookings and bookings Covet bookings. which of home Royalty UA year quarters is launched was of a flat increase as million, bookings, Diner growth shortened over going year over year as And are year games, investment year Glu baseball the million. of mentioned Nick As had Sorcerer's ad XX% of our IP at two Hollywood XX% to prior and million and revenue titles representing looking was of that Kardashian and in were potential grew March expected fashion over player increase Tap Baseball essentially bookings at grew Adventures, result season. XX% the million full up or its $XX.X $XX.X over contributed $XX.X Arena at Kim bookings effective $XX bookings; total first $XX.X given Design million generated million year games free year, to live last XX% just last $XX.X million, growth and year. quarter. Disney $X.X

daily XXXX in XXXX. of third the a conversion third was up XX% Our This Glu X.X%. record payer quarter from is quarter of the of

day. from XX% two-year $X.XX faster, user per increasing Our monetization over same grew the $X.XX even period per to

of in to implemented assessment our at accelerated our increase operations, and systems and optimization UA growth the of to would adding end player year monetization to our on prior an games as well drive features the period. XX-month like updated last UA continuing XX now touch reflects Our growth and as plan live updated months efficiencies. compared as monetization This of pillars initiatives engagement. to the I the last We strategy. productivity to

showing marginal through rates and player a We flow strong positive in result. are retention both now as our results our

We are higher better optimizing initiatives These around efficiently and process technology. and adding players are spend. our quality centered UA productivity people,

team and year. On our reorganize key Glu brands Sports on under we the marketing brand initiative, new focus leadership lifestyle entire horizontally end people at and last of building in our internal verticals the

infrastructure. Glu between fostered better to studios coordination the also enable We feedback within tighter our loop

in into on user campaigns data Additionally, led to our identification ROI we took high ad drive opportunities user our increase processes, focusing improving and retention. a approach

proprietary improvement together we a campaigns well These forward. approach base rates on. in our spend user growth key dashboards, initiatives more was and line better the the us cohorts. front are capabilities have we spend from the campaigns and year, while steady successful as successful these throughout UA place will bottom implemented We while believe and moving during paid going in allowing building foster growth our On making generating helped shelter a taken positive to they're top performance produce ROI, decision shift period. compromising increases campaigns that and tested build more the rebuilt initiatives line to predictable This to higher technology shift on enhanced enabling underperforming as our without margin as and

less this year, the was third spoke of efficiencies spend $X.X $X.X the just XX.X% as I or bookings to our year's discipline expenses quarter. million due $XX.X compared and $XX.X and spent and million compared UA Looking to UA at to UA $XX management. marketing the quarter, on to in a million over less We non UA, UA million positive million excluding expenses for due of year third marketing we year in with last quarter operating third million our guidance UA high-end compared on to were basis XXXX, spent $XX.X second last compared of. OpEx as $XX.X OpEx that million quarter. guidance in high-end On year

of was Our absolute with incremental record at an the all-time by in million the flow the and second September flow quarter the through adjusted period coupled driven management. scale and marginal XX-month EBITDA our million and reflects up XX% generated in third bookings $XX.X cash on was million of the months. XXXX and dollars, guidance We with a combination margins higher disciplined OpEx $XX.X XX% compared prior to the $XX.XX XX third last free quarter. for is ended the in This

amply supports the at quarter million, Our plans. which cash balance end of our $XXX.X was the acquisition

beat the are raise. year, We quarter both and full fourth quarter third guidance raising the and reflecting for

a We $XXX.X midpoint last increase fourth Hollywood to grow we games XXXX, that three Compared expect year of million, over the expect have $XXX.X increased XX.X% fourth our benefiting over fourth we of at quarter each bookings plus the of Kardashian year growth to realized from million quarter. to in representing a throughout Kim year's year. the quarter the the basis monetization range on

basis, EBITDA provide fourth I'd the context to UA an our some strategy for in investments like relates and on adjusted it profitability As to quarter.

environment, back the platforms. late early spending quarter the UA social e-commerce higher and fourth are expenses to seasonally more, drop. CPIs due side, million. Facebook approximately of plan to to to of spend. the due and to In in quarter our million year fourth This CPIs of other $XX the CPIs the UA media guidance, the of this face on we be in $XX.X are at we election December high quarter and also dial our leverage the first in investment and with holiday pressured operating On other the expense XXXX markup investing adjusted bookings midpoint start expect cost

we the forecasted will represents in For of looking to midpoint And midpoint at of XX.X% performance million midpoint adjusted the adventures and expenses expect the marketing Dash XX.X% or operating be expenses Kardashian our expenses a be growth are games, the our $XXX.X the And to plus at Diner three UA expect full all $XXX.X full Arena. successful contribution expect Arena. from other marketing Sorcerer's looking prior year launch million. be Kim Disney guidance increase guidance bookings $XXX.X at bookings Hollywood, the from of million. the that year we $XXX.X resurgence bookings bookings and our we the of will million UA a At outstanding of of at Sorcerer's range over

at Apple the only XXXX end XXXX. last expect in debt, significant million statement flow XX thus, monthly to AR free flagged out payments We four payments two we from to with no of generation. receive I fourth flow the cash and cash year would quarter first least represents expect our the payments point which final happened $XXX of in and cash quarter; from This monthly QX Apple. months will be with of that

to we XXXX. look As

the to timeline the CPI higher the a UA In to to longer the for accelerate on the cross believe launch of full first time. flow the supporting leverage of XXXX, organic significantly game. approach title soft take investment launch through to installs to lower over four launches. launch allow in each launch. promotion the a profitability In This we will period I've strategy us Beginning from operating to bottom approach, with past expect addition soft costs featuring launch first are and which line, fine new would loss our profitability reduce quarter title produce and around focus our tuning efficiencies we in phases new our we spoken marginal of about

have launched using We this previously titles approach. investment

Kardashian annual new So in to scaled million $XX from and Covet Tap Sports margins to adventures, that to a $XXX Diner due range our of of are titles, our studio $XX XXXX to but million is and franchise its the Sorcerer's baseball that process, million bookings, Design phases so scale. have than category. range you Relations expected XX%. less bookings triples, two also doubles, Singles priority and on. this and doubles, range fashion of for margins margins $XX more in drive singles, we've scale a lower that bookings with can higher have fit from reflection and of XXXX margins year three our the have are road games. analogies and per and triple strategic million is from and ranges in XX% bars would outlining Dash Kim deck $XXX to and baseball for doubles. home to When Disney slide bookings singles, Arena the of full million categorizing and studio definitions low Doubles table studio game refer used the our other etcetera. a I Investor our the of the beyond. Hollywood

in outlook now in as a for provide expand bookings. a at believe bookings is a our we to year year. digit catalog of next preliminary continue the XXXX. EBITDA growth live booking on $XXX to single flat will will our a the on year add games I'll range combination looking the current stack of growth that new that and from X% three full from strategy three our margins from And that of year our comprises growth year titles million our to we anticipate statements basis, directional This potential grow Our bookings of growing top extent $XXX titles We for basis. XX% we games million. over produce the games To percentage growth on games. bookings to over more some our percentage of titles comments expect bookings low to year

and of Tap from this the booking in of four first games Taste quarter first strength high-end potential growth to and exciting provide our are not UA months we from can grow be Not XXXX. from will bookings of mid new formal IP our in For expansion. significant XX our believe XXXX in parlance the games. baseball margin offset fourth the yet guidance our that the if that methodology guidance from drive February, for When guidance but into achieved in are in the to Sports expected the spend largely believe within contributions of by doubles quarter. Hunter original launch, we scaled modeling Table singles and further we not flat be purposes increased including range, the months, XXXX. high games We in live, have be which will titles XXXX seasonality including in Reflecting Baseball, after first quarter first they Deer should World launch continue XX we

expected on addition to top confident our to strategy to in that titles we bookings. new drive acquisition are our XXXX, execute growth In we scale line the will us help

continued Given our momentum expect with margin year EBITDA building we are expansion an that year increased XXXX in profitability XXXX. basis on strong over to we in performance generate adjusted and

quarter management of spend on UA and has expected momentum open top XXXX our progress Tap call. that, high margin expansion News Adjusted full XXXX the to third due earnings XXX new Baseball Operator? with our January We Sports fourth margins the bookings title to to XXXX the XXX approximately results the increased basis is believe on lower margins outlook four combination believe discipline, to in percentage XXXX We first expectations. guidance robust of and ramp call with pleased I'm us the contribution. profile the from for of we'll efficient midpoint to more with digit expansion. of on drive our in EBITDA to quarter. This CPIs are our single year the allowed the and three investments to the of an titles strong the expect seasonality, meaningful be questions. inclusive points And our quarter. you February points for line I margin forward for UA quarter scale seasonally The February. we XXXX. that and bottom to OpEx original third With for growth IP our a title EBITDA and the slate update coupled basis our first margin growth providing current games from in very in adjusted look will and again

Operator

Instructions] Your Hickey comes from [Operator first question Benchmark. with Mike

MikeHickey

Hey, Nick and Eric.

You taking quarter. guys are Thanks congrats on for good, my questions. your

question think of First M&A, and a sort balance Thanks. what your exactly you and what you've look doing, I mean I do on and by patient, clearly been when peers deal follow are and cash your sort seen identified of at have transformative targets primed but maybe now up. you then a you've

NickEarl

the Mike. Hey, for question. Thanks

about We So positioned We are have M&A. What something the with got M&A. we've to way still the infrastructure, it really it. excuse taken company. that level right Crowdstar a a me But we've able And roughly companies evaluating leverage you about for outside talking talent we you multiple this deal seen, was years very really million strategy and mean and that our changed to acquisition. transformed that. decision we're we four We've find that by that just much is group Glu to I just is announce. think with part been did has we've the has now. an can with don't think transformative partner the company. enormous tell $XX incredible we ago, make emphasis to remember It with a the on only to our a if well But cash think and position, of given been critical go our growth what a lot

of think of what to We really we're top we range expand end spent. the in terms the mean. that's able we So what

MikeHickey

Cool.

me. for question curve how phase, of very something your really for monetization. what opportunity, few on and alpha you're just Congrats, engagement growth The sort you'd sort download, engine, or I curious Then are far of just guessing within how a hyper-casual, guess lastly, I to looks portfolio? you just game? you've you're new along you balanced taste us done of cable about internally size, think be within from that domestic guess, reveal to you seeing and Can things second of and you development else team via of leveraging between Crowdstar for the games, can, this I'm whether much interesting. Crowdstar and you international what retention terms the three when in sounds maybe that's drive sort the I sort as new able of it there of growth curious deploy the moment, guess, and your as table way Then sort what

NickEarl

players a our is sort way. That's This engage really game food expectation. of allows that a with to in very aesthetic

pairings food, dining full the getting experience. that recipes, decor, just So the

deep I on very as this shoulders is we and Fashion that and terms live of that, get much elder voting, two general has construct. structure just For is sense it about in the we're the anyone really the for a who how continuing loop something The think Home Design ops. improve game you very and watches social, our of giants, the the expand of excitement interest Food build Network, like stands Covet and of engaging it's you've there you to very we about this space. core that and game expand submitted a What

of All everyone is and much decor we into of single food. table fashion that and it's but a has and theme to that learning lot interest goes a broad given just in ubiquitous every and eats in day, more obviously tastes believe that

talented this to gaming game. to really this add It very move We people spots the join perspective, of that's from brought over expertise we in interesting beyond and Crowdstar leverages and we've in so games. had out. that industry is So a from add the the people people other the and several studio, think over key from internally the leaders

split expanded really where kind on based studio, really there. in So talent the teams, and we've there's been Crowdstar into of the this multiple mitosis

this offset this the about learning very Crowdstar We which Crowdstar think Covet think all piece leverage that do it's we we of a way but is to puzzle size, three and just it, them the So really to Design next Crowdstar of standalone to to the a them other mitigation exist rich them and but are contributor an cross-promote very launching that in it year. user, Unity time out bring in engine. low These very users we'll because can potentially. testing of is another are loop games, the qualified learning on games. It's we Not terms excited We on It could platform simple out as cross-promote Fashion exciting big in the the acquisition user close feel the the the because only to to that not the We've this LTV just the and going games. aesthetic, platform acts shortly. bring think fashion, four bring of in that graphics, that just into mechanic to in then Crowdstar out. hyper-casual for but in been it and in from also of set us out set very, the higher a space it laid an turns is, be look and build of opportunity users very is introduce the an It us. This Home or these moments, front. three a into do and game the but opportunity We is roughly been has CPI, really high very out hyper-casual is has a for and just at beta this the to opportunity think engage a the big they're at where Crowdstar challenges this of good games, we being as have to think beautiful be unlike look higher that are to and games. of games getting games there, LTV yet. a them

EricLudwig

two Just to things add here.

to taste. back the table and On

after broad demographic, going On great going bit male, I we versus as the broad audience, broader demographic, there's touched female, on the tables Nick appeal as thing appeal, domestic, about here, think as more to be demographic international a the well broad but more we're this more age-wise. think

of had number closed game kind we one. point that's think So this Then in I a alpha. have

Covet that alpha - same in compared the Home at and Design and KPIs title Fashion Design in monitors sorry, stage. pleased where with closed Covet compared to that where and to We're improvements improvements Home was, were Fashion. For

MikeHickey

Crowdstar I One that that that quick in a developing the Crowdstar created? before here, you studio portfolio Good fact, that moment, go guys have stuff. is hyper-casual is one, or is new

EricLudwig

Crowdstar. they're and capacity games a and They've responsible group our Crowdstar, very extended is grown here expand which to some working We've have really Kim. other excess is in San talented on. Toronto that is hungry there to that from had they been being studio, among what Francisco for Yes,

in. Crowdstar and with moment part So on Crowdstar of that working the primarily Crowdstar the here. has traditionally they whole partnership and vernacular but kind of be the been to studio that now and working expanding They're from the going in Area of GLUU all so are reports got bit into of folks part in Bay that larger the to group, existing like the the a footprint going out infrastructure we've capabilities be

MikeHickey

All right, Thank Good stuff. guys. luck, you. good

EricLudwig

right. the questions. Thanks All for Mike. Thanks,

Operator

Parker from comes Tyler question next KeyBanc. with Your

Unidentified Analyst

Ashley is on this for Tyler. guys, Hi,

Just two for me.

it to first your through any The can flow you versus one, to how about the should Should just guide going focus forward. mistaken on Thanks. not forward? think Then, you perform seeing margins weakness and last should in Dash, margin grow it beyond on the if on game not rate touched or an growth guys are I'm for gain? floor year get level I'm curious we be if Q? fourth given update moving XX% the guys how Diner we

EricLudwig

Great. Thanks, Ashley.

for the topic margins, points to title On to if XXX year. full growing off year basis you'll to expected stated XX% get of look think about new XXXX, at guidance a of first inclusive guidance, I margin, XXX you is and next our that of the launches XX%

bottom launches amount XX% title they margin. not will than be dollars absolute not kind New bigger to overall in contributory, line a but XX% big of are

small, of XX% middle margins strong and phases in is are contributory the pleased kind terms being Diner two and margins to Dash to new Then at XX.X% that years ago We're titles business grow profitability dollars from in firmly absolute into core XX% year. about this and very, my with scaled of you the year, and title very three phase, next when able year XX% and overall XX% small our but growing So a to degree. Phase investments, look Dash adventures, of Diner is margins X. to launches, for

an my mid-single? that a my single is The title is will to up. growth high million. so Right quarter, question bigger total be a of grow kind from nine current Does way million now, you breakeven right As $XX phase see its overall in to now the it's Is a in the revenue where profile? costs mid-single baseball minus total change scaling the parlance? it allocated, in at and post it's $XX it

So low mid-single. that of to kind be would a

really triple singles title and coming year forth. out high and acquired Design four Crowdstar of and a so that now We've singles, goal so $XX out for proven a running. becoming into that year turn right and was Our $XX double is a the years sticking with several when high million first Home million was into gates a the Fashion to doubles, low singles it's on. years to about we Covet on

focus runs to that that growing three the last us. God beyond to bookings, for team move home doubles and then so great to years million the triples to goal really singles growth fantastically double-digit would to to $XX-plus these in and games, is our a booking in and that is is grow a games from doubles, be of willing, stack Now, growth that triples

Unidentified Analyst

guys. Thanks, Great.

EricLudwig

Thanks, Ashley.

NickEarl

Thank you.

Operator

from Aftahi Darren next Instructions] Your ROTH. with [Operator comes question

Unidentified Analyst

Darren. my Dawn question. taking on is [ph] for for This thanks Hi,

user acquisition. First one around

a moment into You XXXX with driver margins? of like helping the you're little organic talked about How game Crowdstar the of is a in for sort sort projecting of creativeness big and XXXX bit efficiencies cobranding you're seeing. the of that some the

EricLudwig

Dawn, catch up so hey, Yes, good on. to -

grown over we've about so game grown first in a [ph]; many a daily on X% - UA we've people in talking basis today so significant - So conversions, conversion. from off, our how spend daily improvement the X% years, to efficiencies, the that very last two

- do not of as in what people that, get spend paid industry organic that XX% game. is in says either or So starting downloads the our this case, we really in downloads in

better vast So the you it move efficient, function. the you do slightly, that even a job opportunity, in becomes more needle there's a And the a effect. more UA can huge multiplier

the And to leadership more So over is on game focus deploying with under are the people about efficient. at call around building a our really UA the on that campaigns - be new technology XX months, to under done a talking while have more - able last those teams, UA the we better identify job last, kill losing process dollars to function, months, better really much the refined what but even being redeploy do more process, trying and last actually XX side, I'd happening. it able - to the doing them team, being campaigns getting then then technology. embedded And you'll importantly, that they're people,

improvements conversion. this year, that UA lot efficiency. all last a back, The our the so, this last over we've improved is really, of So is two of years, coming

be to cheap, what is CPI, set suite there every will under against we here Crowdstar not one is our So and of is the launch out ones is, a our whole can space. moments users, the from would breakeven you're going which of users to build the a be fantastic. of hyper-casual games. many, we three, going is then bit four we low the But be we're that And the itself. business, expectations right will the are to many is buying ad-based is won't others watching of And just business, could expectation That'd hyper-casual titles be and contributory throwing that have spaghetti line the This wall that'd successful, goal the a one revenue little I be. This or Crowdstar seeing - from be be going if of premise. out suite. in bottom title. and win that - this a ad sticks. the this of a an or hallmark those moments. one to very put be And gets it Crowdstar for

we we XX% to can or And build successful moments CPIs or or then $X. player of or & or a Secondly, $X Design can as higher Taste into we them instead, & user where that, And $X.XX. arbitraging them for them higher Design monetized Table base, in bring Covet Crowdstar Home, a we're X% Table convert become in do Taste? into into that Fashion and we we're the $X, CPI. converting if users We're Fashion over Covet are buying a Home, can

we be a or fund breakeven a business cross-promotion can win-win see to profitable, a you can that's great have if So it's situation. and successful campaign

move about what So that efficiencies. as about into UA crosshair excited is as we're forward moments, talking well we our as

Unidentified Analyst

you, it, thank quite Got it's really helpful.

aggressive that during And launch? soft the game, launch when's approach a On go sort you to time of do what - bit go of could how little more the games to with then new go right soft the more exactly a new strategy, sort you judge means? about on depth for into those UA

EricLudwig

Yes. Great question.

games launches, say so years three, much way, used the approach. ago. So, a recent not new Dash Diner and is Disney We really this last five four, two adventures year, this most I year. would this say Arena watch to Sources I

of of hangover then then in always skyrocket. like a we lot lean CPI the fantastic unfortunate last the CPIs into the UA bookings a we had put had we You when And of Dash the and when CPIs in third Diner CPIs launching launch. UA dialed third normalized, But we heavy of dollars quarter were circumstances of in then first had we we the example, know, out what a got low, we is Diner was gate, looked terms downloads. of Dash of a quarter, bit - kind kind great quarter, back. and And fourth when that quarter of we year of came a to

not kind we for was by reverse And low were CPI, to you spending then and what had we then up So saw set revenue success the and of go less. down. great spend greatest

was quarter for for it breakeven of second - actually and - profitable. Diner that Now, Dash, launch that

of shelter-in-place two phase anything probably - were my quickly. into launched have frankly, not on got CPIs Disney when would done of fantastic. to Disney kind it because, we we definition So differently Disney

be late the of gobble would said, approach. maybe and if in paid March gets enemy. we we marketing brand we'll an we I like would believe launch of this CPIs build that UA up in April, to then And is will come doing I all other we up also March, brands, Apple could. environment in the would May, That out soft too will that be we have the launching, then So launch our on title featuring. avoid worst ever being to early kind saw the environments, the harvesting we Taste users cross-promotion organic CPI, and thing harvesting Google as to cross-promotion, spending say much want we become marketing, then of & and your own And own or normalized around drive probably up doing I a across brand I throw you Table of

under launch is the really spending a - that favorable of get presentation talks the hopefully chart well can that period CPIs the curve, baseball would the it we I other And analogy. But in encourage those make approach both So longer we're at ourselves as kind of favorable three users time. I clear as again, as the to slowly phases, you up that into going part more. soft IR and that to very CPI look ease over the of about the harvest

a We is a to profitability Slam. then for out breakeven scale a operating kind single, And profitability. a losses. for a our looks lay like we will losses, next and plan like go to expect And a of Disney, be a with Diner but launch Dash home then I modest from where kind double, run saw the of one-quarter of triple, operating massive, of title not not over for to quarter kind and what scale loss Grand to

on going in - become be when a to is get over and be to in going wherever so and If XX% it's station it'll to XX% a a And so so category, to two months, talk years, we become, get XX it'll single game the title then forth. that to XX% will about XX% margin. whatever double, if life a

a is, see to rat, what million lastly, it Now, year with run, a then now [ph] grow. they home Home's zero, it's say booking. we over would in from to go and double, station a to a approaching from I a triple, life as a $XXX gets games gone do and Design a

it continue grow. to So does

always continue games, we how that's kind looking So but were out. of at yes, that how we rolls optimize to these

Unidentified Analyst

on one, basis that an that amount if Last the I at you. thank of are of Great, may, able e-commerce you're the trajectory? are Design Home? Maybe a daily seeing from engagement users on of that perspective you of all, like to quantify, sort sort actually or monthly of sort taking sort

EricLudwig

pleased talking inspired But investing early - success. I It's metrics announce Home be to Design a it's too forward we to to yet. the at with inspired. impact Design that will say to nothing this And continuing Home looking the we probably date. about are business we're Yes, moment. are in performance and to

NickEarl

It's a as and you we're as really ago, like that, we're Yes, while part I'd building to to the we're lot is build as what and know, to much to and which of learned couple do merge se, a run out, few is had - moved a informed to we on and not didn't feel business. quarters to really And a place work know, we - partner, we this as the better months do. it. first a thing we've that with games, this and a new with more one add you just what this do this per and first a a new out, e-commerce function a about

I the going this. KPIs saying share And we're are now, learning So definitely - would feel just meaningful, but right And lot, but that like to be we'll build a those you, happy we'll trajectory good get it. a think really we we're in on I yes, start we're we that will you with as to with continue right direction.

Unidentified Analyst

guys. Thanks, Great.

NickEarl

thanks, right, Dawn. All

EricLudwig

Thanks, Dawn.

Operator

Franco Davidson. comes from Granda with question DA next Your

FrancoGranda

and on Hey, results. congrats my thank for taking questions guys. strong I you those

and that impact lot has of a IDFA put thought obviously business. on into it You've your the

kind IDFA Crowdstar past impact you year? combat for perhaps changes of it to will speak the to introducing you've how this. You're for Can UA moments stands new platform this as introduced your

NickEarl

Franco. Yes, sure. Hey,

least, we've that So continues, the you six our like another space, and With for lot IDFA could lot a respect real change to prepare the months of We yes, a this. certainly be for us. this key few peers working bring. last for and to diligently in a got said, have months, at we've been for the focus of

really is they We're very that are way these around think and changes of volume confident are we do of and games, that and things. fortunate us we part in - less and Crowdstar partly here. heavily the Basically, moments, more a pushed on really casual leaning about sit plus So the vast few user. affected we're to It's lifestyle brands, kind and big very we dependent as One they're they're to talked really anything to is branding. into cross-promotion, portfolio reliance spanned reduce on paid from the reliant much are engaged. and because we make spenders, on just of process going in that we're high we more users ultimately partly and they're big exploring. frequency hopefully, on and not but increase our technology the sure susceptible Working engaged media, bring to certainly dependent to and be organics because spender IDA, they're engaged

Other So predict anything is value marketing - to table. understanding better and and of what bring they're tech a we're of in building we going create good we're think value models, player there. around to the probabilistic process shape sort to

across preparing casual and use long and games are in the are really strong and for space, we core, data-led fact then, the our think the approach we've I a fact technology, people, that process brands our attract if you more of look data have in way games, even the been lifestyle So time, which the sports our that most And organics. science. process,

we quantitative out. doing I as to the we will we right good And are right qualitative - from I - a think now going when in But things. we're how a perspective, and rolls feel we're actually we'll well-positioned. be play perspective. we're it's think shape like out that knows No one from

FrancoGranda

have color, the Thanks question, more Awesome. for X may. I I if Nick.

launches your you of the [indiscernible]. Can Taste Sports So to as you The Thank Table perhaps & Fishing? Hunter be Tap and you next you. speak clearly year. expect timing well as how to Deer biggest launch

NickEarl

for and This game Yes, Tap working asking out testing really with, focused about team really we're loop looking that is really getting that just has now the beta Sports been been yes, been now, and stability the It's into core early Fishing. happy bugs we've really And we're we'll a forward. from thanks that it's an out a building Australia, the on. be right perspective.

and game mechanic. that but So fun and ultimate really depth And driving meta that really really it's depth we like got positive. is of nice then flow are stage, got the social frequency, fish. spender and LTV. and PVP loop that play user still to the indications elder a this really And early into combination very you've about game depth, engaging you've gets strong what that the spender real for you that It's highly that core

and around two - outdoor unbelievably people It's absolutely the an fishing. passionate those that world. together with put a are things so theme about love activity people You just the

by developed we think And we So Glu that Group Deer Hunter and something there. Baseball. does Sports the talented very it's we're think onto

No timing we're we beyond, into as big this about XXXX. than certain. and forward talking get games in with specific for looking to one, say call up on we'll be but showing So to earnings two other update them XXXX, the QX more

FrancoGranda

Awesome, thank you.

NickEarl

All Franco. thanks, right,

Operator

questions at conference. your wonderful Ladies this I'm showing there no gentlemen, Thank are you day. and for participation, have this a and concludes time. further today's

Goodbye. disconnect. all may You

Harman Singh	Vice President, Finance & Investor Relations
Nick Earl	President & Chief Executive Officer
Eric Ludwig	Chief Operating Officer & Chief Financial Officer
Mike Hickey	Benchmark
Franco Granda	DA Davidson

Glu Mobile (GLUU) 6 Nov 202020 Q3 Earnings call transcript