EX-99.02 3 a51217928ex99_02.htm EXHIBIT 99.02

Exhibit 99.02

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Glu Mobile Q3 2015 Earnings © Glu Mobile Inc. – Proprietary  Glu Mobile Inc. Q3 2015 Earnings Call November 5, 2015 Page 1


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Glu Mobile Q3 2015 Earnings © Glu Mobile Inc. – Proprietary Safe Harbor Statement This presentation contains "forward-looking" statements including: that we are minimally exposed to increases in CPI; that the four categories on which we ones where we believe we can be the best in the world in 2016/2017; that by 2020 there are expected to be approximately 4 billion smartphones; the estimated size of the global games market, overall and by segment, for 2015; the expected launch dates for our upcoming celebrity titles; that we have a strong pipeline of celebrity games in 2016 through 2017; strong social features in a game will lead to long tail revenues; Glu’s expected approach to integrating social features in its games; Glu has multiple growth opportunities through wearables, the quad screen future, mobile ad spending and international expansion; that we expect to launch WeFire in certain territories in Q3-2016; that we have a growing and engaged installed base; our Q4-2015 and full year 2015 guidance; the expected contribution margin flow through of our gross revenue; our five year goals of annual revenue growth of 20% to 30%, $1 billion of non-GAAP revenue by 2020 and all quarters from Q3-2014 onward being Adjusted EBITDA profitable; and our long-term margin targets. These forward-looking statements are subject to material risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements. Investors should consider important risk factors, which include: consumer demand for smartphones, tablets and next-generation platforms does not grow as significantly as we anticipate or that we will be unable to capitalize on any such growth; the risk that we do not realize a sufficient return on our investment with respect to our efforts to develop free-to-play games for smartphones and tablets; the risk that we do not maintain our good relationships with Apple and Google; the risk that Glu does not realize the anticipated strategic benefits from its celebrity partnerships; the risk that our development expenses are greater than we anticipate or that we experience product delays; the risk that our recently and newly launched games are less popular than anticipated; the risk that our newly released games will be of a quality less than desired by reviewers and consumers; the risk that the mobile games market, particularly with respect to social, free-to-play gaming, is smaller than anticipated; risks related to the restatement of certain of our historical financial statements and other risks detailed under the caption "Risk Factors" in our Form 10-Q filed with the Securities and Exchange Commission on August 7, 2015 and our other SEC filings. You can locate these reports through our website at http://www.glu.com/investors. These "forward-looking" statements are based on estimates and information available to us on November 5, 2015 and we are under no obligation, and expressly disclaim any obligation, to update or alter our forward-looking statements whether as a result of new information, future events or otherwise.Page 2


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Glu Mobile Q3 2015 Earnings © Glu Mobile Inc. – Proprietary Use of Non-GAAP Financial Measures Glu uses in this presentation certain non-GAAP measures of financial performance. The presentation of these non-GAAP financial measures is not intended to be considered in isolation from, as a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP, and may be different from non-GAAP financial measures used by other companies. In addition, these non-GAAP measures have limitations in that they do not reflect all of the amounts associated with Glu's results of operations as determined in accordance with GAAP. The non-GAAP financial measures used by Glu include non-GAAP revenue, non-GAAP smartphone revenue, non-GAAP cost of revenue, non-GAAP gross profit, non-GAAP gross margin, non-GAAP operating expenses, non-GAAP operating margin, non-GAAP net income/(loss), non-GAAP net income/(loss) per share, Adjusted EBITDA and Adjusted EBITDA margin. These non-GAAP financial measures exclude the following items from Glu's unaudited consolidated statements of operations: Change in deferred revenue and deferred cost of revenue; Amortization of intangible assets; Non-cash warrant expense; Stock-based compensation expense; Restructuring charges; Change in fair value of Blammo earnout; Transitional costs; Litigation proceeds and costs; Release of tax liabilities and valuation allowance; and Foreign currency exchange gains and losses primarily related to the revaluation of assets and liabilities. In addition, Glu has included in this presentation “Adjusted EBITDA” figures which are used to evaluate Glu’s operating performance and is defined as non-GAAP operating income/(loss) excluding depreciation. Adjusted EBITDA margin is defined as Adjusted EBITDA divided by non-GAAP revenue. Glu believes that these non-GAAP financial measures, when taken together with the corresponding GAAP financial measures, provide meaningful supplemental information regarding Glu's performance by excluding certain items that may not be indicative of Glu's core business, operating results or future outlook. Glu's management uses, and believes that investors benefit from referring to, these non-GAAP financial measures in assessing Glu's operating results, as well as when planning, forecasting and analyzing future periods. These non-GAAP financial measures also facilitate comparisons of Glu's performance to prior periods. For a reconciliation of these non-GAAP financial measures to their most directly comparable GAAP financial measures, please refer to the tables at the end of this presentation. Page 3


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Glu Mobile Q3 2015 Earnings © Glu Mobile Inc. – Proprietary Page 4 Executive Summary


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Glu Mobile Q3 2015 Earnings © Glu Mobile Inc. – Proprietary Page 5


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Glu Mobile Q3 2015 Earnings © Glu Mobile Inc. – Proprietary Strengthened Management Team Chris Akhavan Pres. of Publishing 11 Quarters Eric R. Ludwig COO & CFO 44 Quarters Niccolo de Masi Chairman & CEO 24 Quarters Tim Wilson CTO New Joiner Nick Earl Pres. of Studios New JoinerPage 6


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© Glu Mobile Inc. – Proprietary Glu Mobile Q3 2015 Earnings Diversified Studio Infrastructure Game teams in diverse locations: San Francisco, CA San Mateo, CA Long Beach, CA Bellevue, WA, Portland, OR Toronto, Canada Moscow, Russia Beijing, China Hyderabad, India Page 7


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Glu Mobile Q3 2015 Earnings © Glu Mobile Inc. – Proprietary 37.9% 4-Year Topline CAGR $66.9$82.7$108.9$113.4$241.820102011201220132014 Non-GAAP revenue has been restated or revised, as appropriate, to reflect gross accounting for digital storefronts for 2010, 2011, 2012 and Q113 and prospectively, as outlined in the Company’s 8/6/2013 Form 8-K and press release Non-GAAP Revenue ($m) Page 8


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Focus on ‘winner-takes-all’ ‘blue-ocean’ genres •These represent categories where we believe we can be the best in the world in 2016/2017 Glu Mobile Q3 2015 Earnings © Glu Mobile Inc. – Proprietary Leader in 4 Key Gamer Demographics Page 9


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Page 10 building annuities


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© Glu Mobile Inc. – Proprietary Glu Mobile Q3 2015 Earnings Robocop $6.5M 31%21%9%8%4%3%3%2%2%2%15% Kim Kardashian: Hollywood $74.3M Deer Hunter 2014 $52.0M Eternity Warriors 3 $20.9M Racing Rivals $18.3M Dino Hunter: Deadly Shores $10.0M Frontline Commando: D-Day $6.6M Contract Killer: Sniper $6.2M Frontline Commando 2 $5.8M Other catalog $36.9M Contract Killer 2 $4.4M 2014: Non-GAAP Revenue Delivery from a Broad Portfolio Page 11


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Glu Mobile Q3 2015 Earnings © Glu Mobile Inc. – Proprietary Revenue Diversity: Ad Revenues Hedge Against CPI Increases One of the leading % revenue contribution from ads in the industry Minimally exposed to increases in CPI $- $2,000 $4,000 $6,000 $8,000 $10,000 $12,000 $14,000Q114Q214Q314Q414Q115Q215Q315Ad Revenue (in Thousands)Variable Marketing Expense (in thousands)14.7%19.5%14.9%15.5%14.8%17.8%16.8%15.5%15.6%15.3%12.6%15.5%17.6%16.6%0%5%10%15%20%25%Q114Q214Q314Q414Q115Q215Q315Ad Revenue as % of Total RevenueVariable Marketing as % of Total RevenuePage 12


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Glu Mobile Q3 2015 Earnings © Glu Mobile Inc. – Proprietary Growth Landscape Page 13


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Glu Mobile Q3 2015 Earnings © Glu Mobile Inc. – Proprietary Smartphone Adoption Continues Apace Source: The Economist: Week of Feb 28-Mar 6, 2015 Total Smartphone Connections 2009: ~0.6B 2014: ~2.3B ~4x Growth in installed base By 2020 expect ~4B smartphones Page 14


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Glu Mobile Q3 2015 Earnings © Glu Mobile Inc. – Proprietary Mobile is the Largest Game Market Source: SuperData Research: May 20, 2015 Page 15


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Social Power Page 16


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Glu Mobile Q3 2015 Earnings © Glu Mobile Inc. – Proprietary ‘5-Year Super Bowl Commercial’ •118m viewers – all time record half time viewing •Katy Perry herself – 200m total social followers* •5-year exclusive mobile gaming partnership •Dynamic and interactive promotion & engagement *Aggregate # of followers across Facebook + Twitter + Instagram + Vevo + Vine + Tumblr followers as of November 2, 2015. There is overlap of these social audiences between channels and celebrities. Page 17


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Glu Mobile Q3 2015 Earnings © Glu Mobile Inc. – Proprietary Strong Social = Long Tail Revenues Typical mobile game Peak at launch, then declining curve VS. Flat to increasing curve, peak revenue 16 months post launch Page 18


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Glu Mobile Q3 2015 Earnings © Glu Mobile Inc. – Proprietary Social Requires Same Approach as Monetization 2013 2014 2015 2016 2017 •Deeper Monetization •Business-minded product leadership •Studio specialization •Genre-appropriate social •User participation •Weigh social-feature impact 100% 0% Proportion of our portfolio One full product + thought cycle Proportion of our portfolio One full product + thought cycle 100% 0% Deeply Social No ‘golden hammer’ Page 19


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Glu Mobile Q3 2015 Earnings © Glu Mobile Inc. – Proprietary Page 20 Glu Analytics Capabilities: Capable of processing 70 million events per second Ingesting 2 billion events per day Aggregating 75 million KPI metrics per day 2 trillion event capacity, easily scalable Usage of Analytics: Optimization of user acquisition, retention, paying user conversion & LTV Continually refining game performance through testing and analysis Glu & Big Data Analytics


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Glu Mobile Q3 2015 Earnings © Glu Mobile Inc. – Proprietary Page 21 Multiple Long-Term Growth Opportunities $ $ $


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Glu Mobile Q3 2015 Earnings © Glu Mobile Inc. – Proprietary Tencent ‘WeFire West’ Publishing Partnership Page 22


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Glu Mobile Q3 2015 Earnings © Glu Mobile Inc. – Proprietary Introducing WeFire Five PVP gameplay modes (and counting) Deep economy Social backend Synch PVP Scaled robust, proven backend Page 23


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Glu Mobile Q3 2015 Earnings © Glu Mobile Inc. – Proprietary Publishing Partnership •We believe WeFire to be the biggest revenue mobile shooter ever •Sustained Top 10 grossing ranking in China and other territories in Asia •Highly social game with PvP and scaled backend •Glu partnering with Tencent to westernize WeFire to proven Glu shooter IP •Expected to be live mid 2016 – territories include North & South America, EMEA, Australia & New Zealand Page 24


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Glu Mobile Q3 2015 Earnings © Glu Mobile Inc. – Proprietary The Install Challenge Page 25


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Games vs. Apps in Top Free Rankings 0 8 6 4 2 United States Top 10 Free iPhone Downloads Jan-14 Feb-14 Mar-14 April-14 May-14 June-14 Jul-14 Aug-14 Sep-14 Oct-14 Nov-14 Dec-14 Jan-15 Feb-15 Mar-15 April-15 May-15 June-15 Jul-15 Aug-15 Sep-15 Oct-15   5 10 15 20 25 Applications Games 26


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Glu Mobile Q3 2015 Earnings © Glu Mobile Inc. – Proprietary 451352684433MESSAGING & SOCIALincluding FacebookENTERTAINMENTincluding YouTubeGAMINGGaming Loses Ground to Entertainment, Messaging & Social AppsQ2 2014Q2 2015 Source: Yahoo Developer Network, August 26, 2015 +50% +240% -36% Time Spent in Minutes Per Day (US consumers) Competing for AttentionPage 27


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Glu Mobile Q32015 Earnings Page 28


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Glu Mobile Q3 2015 Earnings © Glu Mobile Inc. – Proprietary Financial Overview Page 29


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Glu Mobile Q3 2015 Earnings © Glu Mobile Inc. – Proprietary Page 30 Q315 Financial Summary Q315Non-GAAPGuidance(in millions, except EPS)ActualsLowHighRevenue64.4$ 58.0$ 60.0$ Gross Profit38.1 35.1 36.3 Gross Margin59.1%60.5%60.5%Operating Expenses30.4 36.8 36.0 Depreciation0.7 0.7 0.7 Adjusted EBITDA8.5$ (1.0)$ 1.0$ Basic:Earnings/(Loss) per Share0.06$ ($0.02)(0.00)$ Basic Shares127.3 127.5 127.5 Diluted:Earnings per Share0.06$ ($0.02)(0.00)$ Diluted Shares131.5 134.1 134.1 Net Income/(Loss)7.7$ (2.2)$ (0.2)$


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Q315 Non-GAAP Results ($ in millions) Q315 Q215 Q/Q Q314 Y/Y Total Revenue $ 64.4 $ 57.5 12% $ 83.6 (23%) Gross Profit 38.1 36.0 6% 49.8 (24%) Gross Margin 59.1% 62.6% (350) bp 59.6% (50) bp Operating Expense 30.4 35.0 (13%) 35.0 (13%) Operating Income/(Loss) 7.7 1.0 695% 14.8 (48%) Adjusted EBITDA $ 8.5 $ 1.7 396% $ 15.4 (45%) 31


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Glu Mobile Q3 2015 Earnings © Glu Mobile Inc. – Proprietary Page 32 Non-GAAP Revenue and Adjusted EBITDA Non-GAAP revenue has been restated to reflect gross accounting for digital storefronts Q113 and prospectively, as outlined in the Company’s 8/6/2013 Form 8-K and press release. $24.7 $23.2 $22.6 $42.8 $47.0 $35.0 $83.6 $76.2 $62.4 $57.5 $64.4 $- $10.0 $20.0 $30.0 $40.0 $50.0 $60.0 $70.0 $80.0 $90.0Q113Q213Q313Q413Q114Q214Q314Q414Q115Q215Q315Non-GAAP Revenue(In millions)($1.4)($2.9)($4.1)$6.2 $6.5 ($0.9)$15.4 $14.1 $3.9 $1.7 $8.5 $(10.0) $(5.0) $- $5.0 $10.0 $15.0 $20.0Q113Q213Q313Q413Q114Q214Q314Q414Q115Q215Q315Adjusted EBITDA(In millions)


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Glu Mobile Q3 2015 Earnings © Glu Mobile Inc. – Proprietary Page 33 % of Non-GAAP Revenue Non-GAAP revenue has been restated to reflect gross accounting for digital storefronts Q113 and prospectively, as outlined in the Company’s 8/6/2013 Form 8-K and press release. 14%15%14%8 %9%12 %6%8%10%9%4%20%22%24%25%20%22%18%16%20%22%19%44 %48%49% 27%28%39%17%20%2 8%30%24%23%2 4%24%23%25%23 %26%25%26%25%25%4%3%5%1%2%4%13%11%10%10%1 3%3%4%5%3%3%4%2%2%2%3%3%0 %20%40%60%80%100%120%140%Q113Q213 Q313Q413Q114Q214Q314Q414Q115Q215Q315Hosting andother costsRoyaltiesPlatformcommissionsR &D OpexS&M OpexG&A Opex


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Non-GAAP Revenue by Geography NA APAC ROW 56.9 50.7 44.5 41.8 49.6 $10.0 (In millions) $20.0 $30.0 $40.0 $50.0 $60.0 $70.0 $80.0 12.6 6.8 9.8 9.8 8.5 7.6 6.4 10.3 8.2 16.9 15.7 9.4 8.1 8.4 $47.0 $83.6 $47.0 $35.0 $76.2 $62.4 $57.5 $64.4 $35.0 34


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Glu Mobile Q3 2015 Earnings © Glu Mobile Inc. – Proprietary Page 35 Non-GAAP Revenue Mix Non-GAAP revenue has been restated to reflect gross accounting for digital storefronts for Q113 and prospect ively, as outlined in the Company’s 8/6/2013 Form 8-K and press release. The presentation of platform and category mix contribution in prior presentations was repo rted as a percentage of non-GAAP smartphone revenue. All prior percentages in the above graphs have been updated to reflect each category’s respective percenta ge of total non-GAAP revenue. The ‘Premium/All Other’ revenue include featurephone revenue. 59%59%60%61%59%56%67%62%60%61%61%27%29%29 %35%38%38%31%36%38%38%3 8%14%12%11%4%3%6%2%2%2%1%1%$24.7 $23.2 $22.6 $42.8 $47.0 $35 .0 $83.6 $76.2 $62.4 $57.5 $64.4 $0. 0$10.0$20.0$30.0$40.0 $50.0$60.0$70.0$80.0$90.0Q113Q213Q313Q413Q114Q214Q314Q414Q115Q215Q315(In millions)No n-GAAP Revenue by PlatformiOSAndroidAll Other73%78%77%76%83%76%85%85%85%82%83%11%10%12%20 %15%20%15%15%15%18% 17%16%12%11%4%2%4%$0.0$10.0$20.0$30.0$40.0$50.0$60.0$70.0$80.0$90.0Q113Q2 13Q313Q413Q114Q214Q314Q414Q115Q215Q315(In millions)Non-GAAP Revenue by CategoryIn-App PurchasesAdsPremium/All Other


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Glu Mobile Q3 2015 Earnings © Glu Mobile Inc. – Proprietary Q214, 18,834 , 29%Q314, 12,594 , 19%Q414, 4,318 , 7%Other, 3,882 , 6%Q115, 355 , 1%Q215, 13,263 , 21%Q315, 5,784 , 9%Q313, 5,393 , 8% Non-GAAP Revenue by Vintage $64.4M Total Non-GAAP Revenue in Q315 Deer Hunter 2014 $5.3M Racing Rivals $11.0M Dino Hunter: Deadly Shores $1.3M Contract Killer: Sniper $3.3M Diner Dash $1.0M Cooking Dash 2016 $7.5M Tap Sports Baseball 2015 $5.0M Tap Sports Football $2.0M Deer Hunter 2016 $1.9M Mission Impossible $1.8M Eternity Warriors 4 $0.1M Kim Kardashian: Hollywood $18.8M Q115, 355, 1%Page 36


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Glu Mobile Q3 2015 Earnings © Glu Mobile Inc. – Proprietary Page 37 Strong Balance Sheet ($ in millions)Q315Q215Q314Cash and cash equivalents182.3$ 189.7$ 54.3$ Accounts receivable, net26.0 25.1 34.6 Prepaid expenses, royalties and other current assets35.4 33.7 16.8 Other assets51.7 15.9 13.0 Intangible assets & goodwill108.0 110.5 119.6 Total Assets403.4$ 374.9$ 238.3$ Accounts payable and accrued liabilities12.4 13.6 13.1 Accrued expenses, royalties and other liabilities50.3 29.5 22.3 Deferred revenue34.1 31.2 34.2 Common stock/Paid in capital554.9 549.0 413.9 Accumulated deficit & other comprehensive income(248.3) (248.4) (245.2) Total Liabilities and Stockholders' Equity403.4$ 374.9$ 238.3$


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Glu Mobile Q3 2015 Earnings © Glu Mobile Inc. – Proprietary Page 38 Consumer Interest 52.240.849.979.6105.660.2107.789.472.687.678.80.020.040.060.080.0100.0120.0Q113Q213Q313Q413Q114Q214Q314Q414Q115Q215Q315(in Millions)Installs436.0476.8526.7606.3711.9772.1879.8969.21,041.81,129.51,208.20.0200.0400.0600.0800.01,000.01,200.01,400.0Q113Q213Q313Q413Q114Q214Q314Q414Q115Q215Q315(in Millions)Cumulative Installs


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Glu Mobile Q3 2015 Earnings © Glu Mobile Inc. – Proprietary Page 39 MAU and DAU Trends Aggregate DAU and MAU for each period presented represents the aggregate metric for the last month of the period. An individual who plays two different games in the same month is counted as two active users for that month when we aggregate DAU and MAU across games. In addition, an individual who plays the same game on two different devices during the same month (e.g., an iPhone and an iPad) is also counted as two active users for each such month when we average or aggregate DAU and MAU over time. Our methodology for calculating DAU and MAU may differ from the methodology used by other companies to calculate similar metrics. 3.92.94.36.47.05.37.27.26.06.15.50.01.02.03.04.05.06.07.08.0Q113Q213Q313Q413Q114Q214Q314Q414Q115Q215Q315(in Millions)DAU40.129.445.256.364.551.960.362.654.659.653.00.010.020.030.040.050.060.070.0Q113Q213Q313Q413Q114Q214Q314Q414Q115Q215Q315(in Millions)MAU


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© Glu Mobile Inc. – Proprietary Glu Mobile Q3 2015 Earnings Page 40 Guidance


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12 Launches in 2015 Page 41


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© Glu Mobile Inc. – Proprietary Glu Mobile Q3 2015 Earnings Strong Contribution Margin Flow Through % of Gross RevenuesOriginal IPLowHighGross Revenue100.0%100.0%100.0%Platform Fees25.6%25.6%25.6%Royalties0.0%6.9%24.0%Gross Margin74.4%67.5%50.4%User Acquisition15.0%15.0%15.0%Contribution Margin of Incremental $1.00 of Gross Revenue59.4%52.5%35.4%Branded IP Royalty Page 42


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© Glu Mobile Inc. – Proprietary Glu Mobile Q3 2015 Earnings Page 43 2015 Full Year Guidance Guidance ($ in millions)Q115Q215Q315Q4152015Total Revenue (Low)$62.4 $57.5 $64.4 $50.0 $234.3 Total Revenue (High)$62.4 $57.5 $64.4 $52.0 $236.3 Adjusted EBITDA (Low)$3.9 $1.7 $8.5 ($3.0)$11.0 Adjusted EBITDA (High)$3.9 $1.7 $8.5 ($2.0)$12.0


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© Glu Mobile Inc. – Proprietary Glu Mobile Q3 2015 Earnings Page 44 Q415 Guidance ($ in millions, except EPS)Q315 ActQ415 GuidanceQ415 GuidanceLow HighTotal Revenue$64.4 $50.0$52.0Gross Margin59.1%62.7%62.7%Operating Expense30.4 35.135.3Operating Income/(Loss) 7.7 (3.7)(2.7) Depreciation Addback 0.7 0.70.7Adjusted EBITDA$8.5 ($3.0)($2.0)Net Income/(Loss)7.7 (3.9)(2.9)Basic Shares (millions)127.3 128.0128.0Diluted Shares (millions)131.5 129.3129.3Net Income/(Loss) Per Basic Share $0.06 ($0.03)($0.02)Net Income/(Loss) Per Diluted Share $0.06 ($0.03)($0.02)Cash and ST Investments Balance$182.3 $170.0


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© Glu Mobile Inc. – Proprietary Glu Mobile Q3 2015 Earnings Page 45 Full Year Guidance ($ in millions, except EPS)2014ActLow HighTotal Revenue$241.8 $234.3 $236.3 Gross Margin63.3%61.6%61.7%Operating Expense120.5 136.4136.7Operating Income/(Loss) 32.6 8.1 9.1 Depreciation Addback 2.5 2.92.9Adjusted EBITDA$35.1 $11.0 $12.0 Net Income/(Loss)33.3 7.6 8.6 Basic Shares (millions)91.8 118.8118.8Diluted Shares (millions)96.9 122.8122.8Net Income/(Loss) Per Basic Share $0.36 $0.06 $0.07 Net Income/(Loss) Per Diluted Share $0.34 $0.06 $0.07 Cash and ST Investments Balance$70.9 $170.0 2015 Guidance


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© Glu Mobile Inc. – Proprietary Glu Mobile Q3 2015 Earnings Page 46 Long-Term Model


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© Glu Mobile Inc. – Proprietary Glu Mobile Q3 2015 Earnings •Annual Revenue Growth of 20% to 30% •$1 Billion of Non-GAAP Revenue in 2020 •Long-term goal of all quarters being Adjusted EBITDA Profitable Long Term Operating Model: Five Year Goals Glu’s goals with respect to revenue growth and EBITDA profitability illustrate potential outcomes if our business strategies are successful. These goals should not be treated as forecasts, projections or financial guidance. We cannot assure you that we will achieve any particular growth rate and our revenue and EBITDA may not grow at all. Our performance is subject to many material risks and uncertainties that could cause our actual performance to fall short of these goals, including the risks discussed in our Quarterly Report on Form 10-Q filed with the SEC on August 7, 2015 and our other SEC filings.Page 47


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© Glu Mobile Inc. – Proprietary Glu Mobile Q3 2015 Earnings Long Term Margin Targets % of Non-GAAP RevenueLTMLowHighRevenue100.0%100.0%100.0%Platform Fees25.2%24.8%24.0%Net Revenue74.8%75.2%76.0%Royalties11.0%15.7%14.0%Hosting2.5%1.8%1.8%Gross Margin61.3%57.7%60.2%R&D25.2%15.9%14.2%S&M3.3%3.0%2.5%S&M: User Acquisition15.4%15.0%15.0%G&A7.6%4.8%4.5% Subtotal: Opex51.5%38.7%36.2%Depreciation/Amortization1.1%1.0%1.0%Adjusted EBITDA Margin10.9%20.0%25.0%Long Term TargetPage 48


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© Glu Mobile Inc. – Proprietary Glu Mobile Q3 2015 Earnings Page 49 Key Statistics Stock Price$3.84 52 Week High$7.03 52 Week Low$3.27 Shares Outstanding 131.3 Avg. Daily Volume (last 90 days)2,318,930 Market Capitalization$504.0 Debt$0 Cash$182.3 Enterprise Value$321.7 Shares Outstanding is as of November 3rd, 2015Cash balance is as of September 30th, 2015Average Daily Volume is calculated using the last 90 calendar daysMarket Statistics (as of November 3, 2015) (in millions except per share and volume data)


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Glu Mobile Q3 2015 Earnings © Glu Mobile Inc. – Proprietary Page 50 Investment Highlights Diversified portfolio of franchises Cost-effective customer acquisition Long-tail social games provide significant visibility Added new studio and technology leadership Strong balance sheet with no debt


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© Glu Mobile Inc. – Proprietary Glu Mobile Q3 2015 Earnings Page 51 Non-GAAP Reconciliations


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Q315 GAAP to Non-GAAP Reconciliation Condensed Consolidated Statements of Operations GAAP to Non-GAAP Reconciliation (in thousands, except per share data) (unaudited) GAAP Results Change in deferred revenue and litigation settlement proceeds Change in deferred platform commissions and royalty expense Amortization of intangible assets Stock-based compensation Litigation costs and settlement proceeds Non-cash warrant expense Foreign currency exchange loss Non-GAAP Results Revenue $ 6 3,250 $ 1,174 $ - $ - $ - $ - $ - $ - $ 64,424 Cost of revenue: Platform commissions, royalties and other 27,445 - 780 - - - (1,896) - 26,329 Amortization of intangible assets 2,360 - - (2,360) - - - - - Total cost of revenue 29,805 - 780 (2,360) - - (1,896) - 26,329 Gross profit 33,445 1,174 (780) 2,360 - - 1,896 - 38,095 Operating expenses: Research and development 16,304 - - - (868) - - - 15,436 Sales and marketing 12,302 - - - (277) - - - 12,025 General and administrative 4,419 - - - (1,911) 390 - - 2,898 Amortization of intangible assets 31 - - (31) - - - - - Total operating expenses 33,056 - - (31) (3,056) 390 - - 30,359 Income from operations 389 1,174 (780) 2,391 3,056 (390) 1,896 - 7,736 Interest and other income/(expense), net: (152) - - - - - - 167 15 Income before income taxes 237 1,174 (780) 2,391 3,056 (390) 1,896 167 7,751 Income tax provision ( 79) - - - - - - - (79) Net income $ 158 $ 1,174 $ (780) $ 2,391 $ 3,056 $ (390) $ 1,896 $ 167 $ 7,672 Earnings per share: Earnings per share Basic $ 0.00 Basic $ 0.06 Diluted $ 0.00 Diluted $ 0.06 Number of shares used in computation Number of shares used in computation Basic 1 27,287 Basic 1 27,287 Diluted 1 31,486 Diluted 1 31,486  52


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Glu Mobile Q3 2015 Earnings © Glu Mobile Inc. – Proprietary Page 53 Q314 GAAP to Non-GAAP Reconciliation Condensed Consolidated Statements of OperationsGAAP to Non-GAAP Reconciliation(in thousands, except per share data)(unaudited)GAAP ResultsChange in deferred revenueChange in deferred platform commissions and royalty expenseAmortization of intangible assetsStock-based compensation Transitional costsRetsructuring chargeNon-cash warrant expenseRelease of tax liabilities and valuation allowanceForeign currency exchange lossNon-GAAP ResultsRevenue64,791$ 18,762$ -$ -$ -$ -$ -$ -$ -$ -$ 83,553$ Cost of revenue:Platform commissions, royalties and other25,733 - 9,122 - - - - (1,126) - - 33,729 Amortization of intangible assets1,338 - - (1,338) - - - - - - - Total cost of revenue27,071 - 9,122 (1,338) - - - (1,126) - - 33,729 Gross profit37,720 18,762 (9,122) 1,338 - - - 1,126 - - 49,824 Operating expenses:Research and development15,355 - - - (764) - - - - - 14,591 Sales and marketing15,327 - - - (201) - - - - - 15,126 General and administrative6,808 - - - (989) (493) - - - - 5,326 Amortization of intangible assets127 - - (127) - - - - - - - Restructuring charge209 - - - - - (209) - - - - Total operating expenses37,826 - - (127) (1,954) (493) (209) - - - 35,043 Income/(loss) from operations(106) 18,762 (9,122) 1,465 1,954 493 209 1,126 - - 14,781 Interest and other income/(expense), net:(340) - - - - - - - - 347 7 Income/(loss) before income taxes(446) 18,762 (9,122) 1,465 1,954 493 209 1,126 - 347 14,788 Income tax benefit10,850 - - - - - - - (8,352) - 2,498 Net income10,404$ 18,762$ (9,122)$ 1,465$ 1,954$ 493$ 209$ 1,126$ (8,352)$ 347$ 17,286$ Earnings per share: Basic0.11$ 0.18$ Diluted0.10$ 0.16$ Number of shares used in computation Basic98,628 98,628 Diluted105,438 105,438 Three Months Ended September 30, 2014


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Glu Mobile Q3 2015 Earnings © Glu Mobile Inc. – Proprietary Page 54 YTD 2015 GAAP to Non-GAAP Reconciliation Condensed Consolidated Statements of OperationsGAAP to Non-GAAP Reconciliation(in thousands, except per share data)(unaudited)GAAP ResultsChange in deferred revenue and litigation settlement proceedsChange in deferred platform commissions and royalty expenseAmortization of intangible assetsStock-based compensation Transitional costsNon-cash warrant expenseLitigation costs and settlement proceedsForeign currency exchange lossNon-GAAP ResultsRevenue188,870$ (4,520)$ -$ -$ -$ -$ -$ -$ -$ 184,350$ Cost of revenue:Platform commissions, royalties and other75,075 - (1,718) - - - (2,124) - - 71,233 Amortization of intangible assets7,228 - - (7,228) - - - - - - Total cost of revenue82,303 - (1,718) (7,228) - - (2,124) - - 71,233 Gross profit106,567 (4,520) 1,718 7,228 - - 2,124 - - 113,117 Operating expenses:Research and development52,855 - - - (2,464) - - - - 50,391 Sales and marketing37,511 - - - (777) - - - - 36,734 General and administrative19,254 - - - (4,976) (72) - (86) - 14,120 Amortization of intangible assets190 - - (190) - - - - - - Total operating expenses109,810 - - (190) (8,217) (72) - (86) - 101,245 Income/(loss) from operations(3,243) (4,520) 1,718 7,418 8,217 72 2,124 86 - 11,872 Interest and other income/(expense), net:(610) - - - - - - - 643 33 Income/(loss) before income taxes(3,853) (4,520) 1,718 7,418 8,217 72 2,124 86 643 11,905 Income tax provision(374) - - - - - - - - (374) Net income/(loss)(4,227)$ (4,520)$ 1,718$ 7,418$ 8,217$ 72$ 2,124$ 86$ 643$ 11,531$ Net loss per share - basic and diluted(0.04)$ Earnings per shareBasic0.10$ Diluted0.10$ Number of shares used in computation - basic and diluted115,775 Number of shares used in computationBasic115,775 Diluted120,625 Nine Months Ended September 30, 2015


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Glu Mobile Q3 2015 Earnings © Glu Mobile Inc. – Proprietary Page 55 YTD 2014 GAAP to Non-GAAP Reconciliation Condensed Consolidated Statements of OperationsGAAP to Non-GAAP Reconciliation(in thousands, except per share data)(unaudited)GAAP ResultsChange in deferred revenueChange in deferred platform commissions and royalty expenseAmortization of intangible assetsStock-based compensation Transitional costsRetsructuring chargeNon-cash warrant expenseChange in fair value of Blammo earnoutRelease of tax liabilities and valuation allowanceForeign currency exchange lossNon-GAAP ResultsRevenue150,281$ 15,265$ -$ -$ -$ -$ -$ -$ -$ -$ -$ 165,546$ Cost of revenue:Platform commissions, royalties and other51,367 - 8,804 - - - - (1,126) - - - 59,045 Amortization of intangible assets2,333 - - (2,333) - - - - - - - - Total cost of revenue53,700 - 8,804 (2,333) - - - (1,126) - - - 59,045 Gross profit96,581 15,265 (8,804) 2,333 - - - 1,126 - - - 106,501 Operating expenses:Research and development48,231 - - - (6,686) (20) - - - - - 41,525 Sales and marketing32,801 - - - (492) - - - - - - 32,309 General and administrative17,865 - - - (2,321) (1,155) - - (835) - - 13,554 Amortization of intangible assets381 - - (381) - - - - - - - - Restructuring charge368 - - - - - (368) - - - - - Total operating expenses99,646 - - (381) (9,499) (1,175) (368) - (835) - - 87,388 Income/(loss) from operations(3,065) 15,265 (8,804) 2,714 9,499 1,175 368 1,126 835 - - 19,113 Interest and other income/(expense), net:(494) - - - - - - - - - 514 20 Income/(loss) before income taxes(3,559) 15,265 (8,804) 2,714 9,499 1,175 368 1,126 835 - 514 19,133 Income tax benefit10,328 - - - - - - - - (8,352) - 1,976 Net income6,769$ 15,265$ (8,804)$ 2,714$ 9,499$ 1,175$ 368$ 1,126$ 835$ (8,352)$ 514$ 21,109$ Earnings per share: Basic0.08$ 0.24$ Diluted0.07$ 0.23$ Number of shares used in computation Basic87,965 87,965 Diluted93,578 93,578 Nine Months Ended September 30, 2014


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Glu Mobile Q3 2015 Earnings © Glu Mobile Inc. – Proprietary Page 56 Non-GAAP EBITDA Reconciliation Glu Mobile Inc.Non-GAAP Adjusted EBITDA(in thousands)(unaudited)March 31,June 30,September 30,December 31,March 31,June 30,September 30,2014201420142014201520152015GAAP net income/(loss)133$ (3,768)$ 10,404$ 1,379$ 1,124$ (5,509)$ 158$ Change in deferred revenue and litigation settlement proceeds 2,377 (5,874) 18,762 3,363 (7,023) 1,329 1,174 Change in deferred platform commissions and royalty expense(1,209) 1,527 (9,122) (108) 2,819 (321) (780) Non-cash warrant expense- - 1,126 66 93 135 1,896 Amortization of intangible assets681 568 1,465 2,561 2,561 2,466 2,391 Depreciation620 607 617 669 706 732 718 Stock-based compensation 2,979 4,566 1,954 2,134 2,129 3,032 3,056 Change in fair value of Blammo earnout304 531 - - - - - Transitional costs- 682 493 255 72 - - Litigation costs and settlement proceeds - - - - - 476 (390) Restructuring charge- 159 209 67 - - - Foreign currency exchange loss136 31 347 981 290 186 167 Interest income and other expense(6) (7) (7) (3) (6) (12) (15) Income tax provision/(benefit)444 78 (10,850) 2,773 1,104 (809) 79 Total Non-GAAP Adjusted EBITDA6,459$ (900)$ 15,398$ 14,137$ 3,869$ 1,705$ 8,454$ For the Three Months Ended


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Glu Mobile Q3 2015 Earnings © Glu Mobile Inc. – Proprietary Page 57 Key Operating Metrics *DAU & MAU reflects the DAU & MAU figures for the last month of the quarter **FTE only, excludes contractors, temporary employees and consultants ***Q314 in-app purchase billable transactions and average revenue per billable transaction has been revised to include the impact of Cie Games activity after its acquisition on August 20, 2014; Q115 and Q215 in-app purchase billable transactions and average revenue per billable transaction have been revised to reflect corrected data ActualActualActualActualActualActualActual(All Revenue Figures are Non-GAAP)Q114Q214Q314Q414Q115Q215Q315Total Revenue (in thousands)$46,957 $35,036 $83,553 $76,228 $62,447 $57,479 $64,424 Total Revenue Growth Q/Q10%(25%)138%(9%)(18%)(8%)12%Total Revenue Growth Y/Y90%51%270%78%33%64%(23%)Original IP % of Total Revenue91%93%37%41%43%41%38%Platform Commissions (in thousands)$11,886 $8,155 $21,382 $19,391 $16,043 $14,162 $16,067 Royalties (in thousands)1,121 1,348 10,711 8,441 6,127 5,871 8,264 Hosting and other COGS (in thousands)1,405 1,402 1,636 1,835 1,228 1,473 1,998 Total Cost of Revenue (in thousands)$14,411 $10,905 $33,729 $29,667 $23,398 $21,506 $26,329 Non-GAAP Operating Expenses (in thousands)26,707$ 25,638$ 35,043$ 33,093$ 35,886$ 35,000$ 30,359$ Variable Marketing Expense (in thousands)7,271 5,456 12,800 9,641 9,693 10,103 10,677 Variable Marketing as % of Total Revenue15%16%15%13%16%18%17%Adjusted EBITDA (in thousands)6,459(900)15,39814,1373,8691,7058,454Headcount** (at quarter-end)547562630653695732770Daily Active Users (DAU)* (in millions)7.05.37.27.26.06.15.5Monthly Active Users (MAU)* (in millions)64.551.960.362.654.659.653.0Installs (in millions)105.660.2107.789.472.687.678.8Cumulative Installs (in millions)711.9772.1879.8969.21,041.8 1,129.5 1,208.2 In-App Purchase Billable Transactions (in thousands)***3,2862,2577,7786,9245,2884,8186,013Average Revenue per Billable Transaction***$11.79$11.84$9.14$9.31$10.06$9.78$8.91