Glu Mobile continues in the right direction with Q2 FY12 revenue up 33% to $23.6 million
Freemium focus working, if not yet profitable
Revenue was $23.6 million, up 33 percent year-on-year.
However, the company made a loss of $3.0 million, compared to a loss of $1.8 million 12 months ago.
This is due to higher operational costs as it has doubled development staff, and continues to spend on user acquisition and building up its gaming community, especially on Android.
During the quarter, Glu said it generated $1.6 million in terms of generated cash flow or $1.2 million when measured by adjusted EBITDA.
Both measures are up significantly from 12 months ago.
On the up
"We are very pleased with our strong execution during the second quarter," stated Niccolo de Masi, Glu's CEO.
"Our ability to grow our quarterly smartphone revenues by 111 percent year-over-year was driven by our strength in freemium, male-oriented games such as Deer Hunter Reloaded and Frontline Commando across iOS, Android, and Amazon.
"We remain excited about our strong slate of sequel and new franchise titles that will launch primarily between September and December. We believe that Glu is well positioned for strength in Q4 and beyond."
Making Android pay
In terms business breakdown, Glu saw its smartphone revenue rise to $19.9 million, up 111 percent. This category - which consists of micro-transactions, in-game advertising and offers - now accounts for 84 percent of its overall revenue.
The company is also acting bullish to further build out its capacity in this area.
It's the first third party developer to use in-app purchasing on Windows Phone, has created its own Glu Credits - the first universal currency on Google Play - as well as launching the Glu VIP Club, an Android subscription service.
This enables players to receive additional Glu Credits as part of a monthly membership fee.
Glu ended the quarter with $24.5 million in cash and cash equivalents, down $7.7 million compared to $28.9 million three months ago.
It expects full year revenue to be $94.4 million to $96.4 million, although this is measured using non-GAAP calculations.
It also predicts it will achieve non-GAAP operating income profitability during Q4 2012.
[source: Glu Mobile]