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Game developer Glu Mobile (NASDAQ: GLUU) is having an extremely rough day after it reported its second quarter revenues fell short, causing the company to issue a lighter bookings guidance. Shares fell by 20% in after-hours trading on Thursday and then tumbled another 20% during Friday morning’s trading.
The mobile game maker reported revenue of $95.5 million in the second quarter, up 5.9% from $90.2 million year-over-year, and a net income of $2.5 million, or $0.02 a share. Reported bookings were at $101.9 million, representing 12% growth, which was all roughly in line with the company’s guidance and analyst expectations.
However, Glu also issued a heavily decreased annual bookings guidance with a range of $406 million to $410 million, well below the previous guidance, which projected $445 million to $455 million.
For Q3, the company is guiding to bookings of $110 million to $112 million, short of the $120.4 million analyst consensus.
During the quarter, Glu launched WWE Universe and Diner Dash Adventures globally. The worldwide launch timing for Disney Sorcerer’s Arena was moved to Q1 2020.
Shares in Glu had already suffered a 6% drop this year in the months leading up to the second quarter earnings report.
In a statement, CEO Nick Earl said that the company will focus on enhancing its live titles with new features while continuing to fine-tune its pipeline for other growing games.
Glu Mobile chief financial officer Eric Ludwig added, “We revised our annual guidance primarily to reflect the timing of new launches, contribution from newly launched titles and incremental UA investment to take advantage of favorable ROI opportunities.”
