San Francisco free-to-play developer Glu Mobile made $107 million in revenue but failed to generate a profit.
This information was revealed via the company’s financial results for its third quarter ended September 30, 2019.
Even though the firm’s revenue grew by 7.9 per cent, net loss for Glu rose to $5.1 million after the firm told investors it was confident about making a profit in early 2019.
Glu did make a long-awaited return to profitability in Q1 after reporting $700k in net income but has now fallen back.
Glu shares peak in April at around $11.50 but are now worth less than $6, falling 14 per cent since financial details were announced.
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“Glu reported record third quarter bookings highlighted by double-digit increases in all three of our Growth Games on a year-over-year basis,” said Glu Mobile CEO Nick Earl.
“We were extremely encouraged by our ability to drive early results from Diner Dash Adventures in its first full quarter and to make progress on our development pipeline, particularly with Disney Sorcerer’s Arena, which is on track to launch in Q1 2020.
“These accomplishments reflect the successful execution of our strategy and reinforce our belief that we are well positioned for continued top line growth heading into next year.”
In June, Tencent sold off $56 million worth of Glu Mobile shares and reduced its stake in the US developer to 14.46 per cent.