Glu Mobile Inc. Q Earnings Call

Transcription

1 Glu Mobile Inc. Q Earnings Call February 8, 2017 Page 1

2 Safe Harbor Statement This presentation contains "forward-looking" statements including: that our strategy is for our proven creative leaders to build blue ocean platforms while working in creative environments; that we intend to hire 2-4 additional creative leaders in 2017; that scaled creative centers provide optimal conditions for hit generation; we expect to move into a new San Francisco headquarters in Q4-2017; that we expect to greenlight at least two of the 6+ big ideas that we intend to prototype during 2017; our goal for Cooking Dash 2.0 is to grow bookings with optimizations; our goal for Gordon Ramsay DASH 2.0 is to grow bookings with live operations and updates; that we are minimally exposed to increases in CPI; our expected title release slate for 2017 and that additional game launches may occur pending Beta performance; and our Q and full year 2017 guidance. 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 Glu will be unable to attract and retain creative leaders with a successful track record; the risk that we will be unable build successful platform titles that provide predictable bookings and year over year growth 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 and strategic investments; 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 November 9, 2016 and our other SEC filings. You can locate these reports through our website at These "forward-looking" statements are based on estimates and information available to us on February 8, 2017 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

3 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 Bookings, Adjusted platform commissions, Adjusted royalties, Adjusted research and development expense, Adjusted sales and marketing expense, Adjusted general and administrative expense and Adjusted operating expenses. These non-gaap financial measures exclude the following items from Glu's unaudited consolidated statements of operations: Change in deferred platform commissions Change in deferred royalties; Amortization and impairment of intangible assets; Non-cash warrant benefit/(expense); Stock-based compensation expense; Restructuring charges; Transitional costs; and Litigation proceeds and costs. Bookings do not reflect the deferral of certain game revenue that Glu recognizes over the estimated useful lives of paying users of Glu s games and excludes changes in deferred revenue and litigation settlement proceeds. 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

4 Executive Summary Page 4

5 Page 5

6 Seasoned Management Team Nick Earl President & CEO Eric R. Ludwig COO & CFO Tim Wilson Chief Technology Officer Chris Akhavan Chief Revenue Officer Page 6

7 2016: Bookings Delivery from a Broad Portfolio Deer Hunter 2016 $13.9M Covet Fashion $8.0M* Kendall and Kylie $15.4M 7% 6% 4% 3% 2% 2% Deer Hunter 2014 $5.7M Contract Killer: Sniper $5.2M Design Home $4.0M* Gordon Ramsay DASH $15.5M 7% 14% Other Catalog $29.5M Racing Rivals $23.2M 11% 16% Cooking Dash $33.5M 13% Tap Sports Baseball 2016 $27.0M 15% Kim Kardashian: Hollywood $33.1M *Represents Bookings after acquisition date of November 2, 2016 Page 7

8 Our Strategy Page 8

9 Our Strategy Proven Creative Leaders Building Blue Ocean Platforms in Highly Creative Environments Page 9

10 Creative Leaders with Top Grossing Success Dave Waisglass Kim Kardashian: Hollywood, Kendall & Kylie & Taylor Swift Becky Ann Hughes Cooking Dash, Gordon Ramsay DASH & Prototyping Mike Olsen Prototyping Jerome Collin Tap Sports Baseball & Prototyping Mark Van Ryswyk Covet Fashion, Design Home & Prototyping We intend to hire 2-4 additional Creative Leaders in 2017 Page 10

11 Blue Ocean Platforms Bookings* Goals for our Platforms Predictable Bookings Stacks YoY ** Taylor Swift *Bookings represent actual results for the first 270 days since global launch of TSB15 and TSB16 **Glu acquired Crowdstar and Covet Fashion on November 2, Only Bookings after November 2, 2016 have been included in Glu s consolidated results. Page 11

12 Consolidated Studio Infrastructure Game studios: SF Bay Area, CA Toronto, Canada Moscow, Russia Portland, OR Live Ops, Insource Art & Shared Service Center: Hyderabad, India Page 12

13 Scaled Creative Centers Optimal Conditions for Hit Generation Rapid prototyping Fail fast Succeed fast High energy Built & optimized for the creative process Fun environments! Collaborative & enabling product surges We expect to move into a new SF facility Q417 Page 13

14 Swinging for the Fences Launching in 2017 MLB Tap Sports Baseball 2017 Taylor Swift Expected Prototyping in big ideas prototyping Expect to greenlight 2-4 games We Are Funding Big Ideas Page 14

15 Crowdstar, QuizUp and Evergreen Update Page 15

16 Crowdstar Update $45.5m acquisition price Employee Incentives: 5m options and 1.1m RSU s that vest over four years and up to $4.2m incentive in cash based on achievement of certain 2017 financials targets Successful Design Home Launch: Peaked at # 28 top grossing game on U.S. App Store for iphone Nov + Dec 2016 Bookings: $12m Covet Fashion & Design Home are Platform Titles Page 16

17 QuizUp Update Asset purchase closed 12/20/2016 Glu net investment approximately $6.3 million Currently approximately 400,000 daily active users Platform Game with Synchronous Player vs. Player User Generated Content Platform Operationally breakeven from Day 1 of Asset Purchase Page 17

18 Strong Social & Elder Game = Long Tail Revenues Typical mobile game Peak at launch, then declining curve Launch Date VS. Flat to increasing curve, peak bookings 18+ months post launch 18+ Months From Launch Launch Date 18+ Months From Launch Page 18

19 Daily Net Bookings $50.4M Bookings Through Q Days Live Stabilize post Ramsay with Live-Ops and Venue Cadence Goal Is to Grow with Optimizations Venue Cadence (Ongoing) 1 per month New Mechanics New Recipes New Customers Ease of Play Live Operations (Ongoing) Regular Sales Live Weekend Events Daily Challenges Venue Drives Systems Optimizations

20 6/4/16 6/11/16 6/18/16 6/25/16 7/2/16 7/9/16 7/16/16 7/23/16 7/30/16 8/6/16 8/13/16 8/20/16 8/27/16 9/3/16 9/10/16 9/17/16 9/24/16 10/1/16 10/8/16 10/15/16 10/22/16 10/29/16 11/5/16 11/12/16 11/19/16 11/26/16 12/3/16 12/10/16 12/17/16 12/24/16 12/31/16 1/7/17 1/14/17 1/21/17 Daily Net Bookings $15.5M Bookings Through Q Days Live Stabilize launch declines Grow with cadence, live ops & updates Venue Cadence (Ongoing) 1 per month New Mechanics New Recipes New Customers New Avatar Items PvP Integration Ease of Play (Combos) Live Operations (Ongoing) Regular Sales Live Weekend Events Daily Challenges Venue Drives PvP Weekly Refresh Systems Optimizations

21 User Engagement Page 21

22 Consumer Interest (in Millions) Installs (in Millions) 1, , , , , Cumulative Installs 1, ,417.31, , , , , , Q114 Q214 Q314 Q414 Q115 Q215 Q315 Q415 Q116 Q216 Q316 Q Q114 Q214 Q314 Q414 Q115 Q215 Q315 Q415 Q116 Q216 Q316 Q416 Page 22

23 DAU and MAU Trends (in Millions) DAU (in Millions) MAU Q114 Q214 Q314 Q414 Q115 Q215 Q315 Q415 Q116 Q216 Q316 Q Q114 Q214 Q314 Q414 Q115 Q215 Q315 Q415 Q116 Q216 Q316 Q416 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. Page 23

24 ABPDAU and ABPMAU Trends $0.18 $0.16 $0.14 $0.12 $0.10 $0.08 $0.06 $0.04 $0.07 $0.07 $0.13 ABPDAU $0.14 $0.13 $0.12 $0.12 $0.11 $0.12 $0.10 $0.16 $0.14 $0.70 $0.60 $0.50 $0.40 $0.30 $0.20 $0.24 $0.23 $0.46 ABPMAU $0.42 $0.41 $0.41 $0.38 $0.39 $0.32 $0.47 $0.58 $0.54 $0.02 $0.10 $0.00 Q114 Q214 Q314 Q414 Q115 Q215 Q315 Q415 Q116 Q216 Q316 Q416 $0.00 Q114 Q214 Q314 Q414 Q115 Q215 Q315 Q415 Q116 Q216 Q316 Q416 Average Bookings per DAU ( ABPDAU ) is computed as our total Bookings in a given period, divided by the number of days in that period, divided by, the DAU during the period. Average Bookings per MAU ( ABPMAU ) is computed as our total Bookings in a given period, divided by the number of months in that period, divided by, the MAU during the period. Aggregate DAU and MAU for each period presented represents the aggregate metric for the last month of the period. Page 24

25 Financial Overview Page 25

26 Q416 Financial Summary (In millions) Q416 Actual Q416 Guidance Low Q416 Guidance High Bookings $57.8 $46.0 $48.0 Cost of Goods Sold Adjusted Platform Commissions $14.5 $11.6 $12.1 Adjusted Royalties $5.0 $3.6 $3.8 Hosting and Other Costs $1.4 $1.0 $1.1 Adjusted Operating Expenses $38.8 $40.0 $40.3 Depreciation Add Back $0.8 $0.8 $0.8 Basic and Diluted Shares Outstanding Page 26

27 (in Millions) Bookings $90.0 $80.0 $83.6 $76.2 $70.0 $60.0 $62.4 $57.5 $64.4 $57.9 $54.0 $50.9 $51.3 $57.8 $50.0 $47.0 $40.0 $35.0 $30.0 $20.0 $10.0 $0.0 * Q114 Q214 Q314 Q414 Q115 Q215 Q315 Q415 Q116 Q216 Q316 Q416 Page 27

28 180% % of Bookings 160% 2% 10% 140% 120% 100% 80% 60% 40% 20% 0% 58% 4% 3% 3% 3% 4% 2% 4% 10% 10% 2% 3% 10% 10% 3% 23% 2% 2% 8% 9% 2% 2% 11% 25% 25% 25% 13% 11% 25% 26% 25% 2% 24% 25% 25% 39% 26% 25% 35% 39% 28% 28% 30% 37% 33% 32% 17% 20% 24% 20% 22% 20% 22% 23% 18% 16% 18% 19% 21% 19% 17% 9% 12% 6% 8% 10% 9% 4% 8% 11% 10% 10% 11% Q114 Q214 Q314 Q414 Q115 Q215 Q315 Q415 Q116 Q216 Q316 Q416 Hosting and other costs Adjusted Royalties Adjusted Royalty Impairments Adjusted Platform Commissions Adjusted R&D Opex Adjusted S&M Opex Adjusted G&A Opex Page 28

29 Bookings by Geography (in Millions) $90.0 $83.6 Q $80.0 $ $ $62.4 $ $57.5 $57.9 $57.8 $ $54.0 $50.9 $51.3 $ % $ % 5.0 $ $ $ $ % $ $0.0 - Q114 Q214 Q314 Q414 Q115 Q215 Q315 Q415 Q116 Q216 Q316 Q416 Q212 Q312 Q412 Q113 Q213 Q313 Q413 NA APAC ROW NA APAC ROW Page 29

30 Bookings Mix (in Millions) $90.0 $83.6 Bookings by Platform $80.0 2% $76.2 2% $ % $62.4 $ % 2% $57.5 1% $57.9 $57.8 $60.0 1% 1% $54.0 1% $50.9 $51.3 1% $47.0 $ % 38% 2% 2% 3% 38% 39% 36% 35% $40.0 $ % 37% 38% 6% $ % 67% 62% $ % 61% 61% 60% 64% 64% 63% 59% 61% $ % $0.0 Q114 Q214 Q314 Q414 Q115 Q215 Q315 Q415 Q116 Q216 Q316 Q416 ios Android All Other (in Millions) Bookings by Category $90.0 $ % $ % $ % 17% 18% 21% 16% $ % 2% 18% 17% $ % 4% 85% $ % 20% 85% 83% 82% 79% 84% 84% $ % 82% 83% 76% $10.0 $0.0 Q114 Q214 Q314 Q414 Q115 Q215 Q315 Q415 Q116 Q216 Q316 Q416 In-App Purchases Ads Premium/All Other Page 30

31 Bookings by Vintage $57.8M Total Bookings in Q416 Gordon Ramsay DASH $7.0M Covet Fashion* Design Home* Nicki Minaj: The Empire $8.0M $4.0M $0.6M Q216, $7.2M, 11% Q416, $13.0M, 23% Tap Sports Baseball 2016 $6.5M Kendall and Kylie $1.3M Q116, $7.8M, 12% Other, $4.1M, 7% Deer Hunter 2014 $1.3M Deer Hunter 2016 $3.6M Cooking Dash *Represents Bookings after acquisition date of November 2, 2016 $7.6M Q315 $4.0M 6% Q215, $8.1M, 13% Q314, $5.3M, 8% Q414, $1.4M, 3% Q214, $6.9M, 11% Kim Kardashian Hollywood $6.9M Racing Rivals Dino Hunter Contract Killer: Sniper Diner Dash $4.7M $0.6M $0.9M $0.5M Page 31

32 Bookings Diversity: Ad Bookings Hedge Against CPI Increases We believe Glu has one of the leading % bookings contributions from ads in the industry Minimally exposed to increases in CPI (in Millions) $ % $12.0 $10.0 $8.0 $6.0 20% 15% 10% 15.5% 14.7% 19.5% 15.3% 15.6% 14.9% 17.8% 16.8% 15.5% 15.5% 17.6% 16.6% 14.8% 12.6% 20.7% 18.5% 15.7% 13.8% 18.0% 18.3% 19.5% 17.0% 16.4% 14.6% $4.0 $2.0 5% $0.0 Q114 Q214 Q314 Q414 Q115 Q215 Q315 Q415 Q116 Q216 Q316 Q416 0% Q114 Q214 Q314 Q414 Q115 Q215 Q315 Q415 Q116 Q216 Q316 Q416 Ad & Other Bookings Marketing Expense Ad & Other Bookings as % of Total Bookings Marketing as % of Total Bookings Page 32

33 Strong Balance Sheet ($M) Q416 Q316 Q415 Cash and cash equivalents $ $ $ Accounts receivable, net Prepaid expenses, royalties and other current assets Other assets Intangible assets & goodwill Total Assets $ $ $ Accounts payable and accrued liabilities Accrued expenses, royalties and other liabilities Deferred revenue Common stock/paid in capital Accumulated deficit & other comprehensive income (338.4) (321.4) (251.3) Total Liabilities and Stockholders' Equity $ $ $ Page 33

34 Guidance Page 34

35 2 Launches in 2017* Taylor Swift MLB Tap Sports Baseball 2017 *Additional game launches may occur pending Beta performance Page 35

36 2017 Full Year Bookings Guidance Guidance ($M) Q117 Q217 Q317 Q Total Bookings (Low) $53.0 $215.0 Total Bookings (High) $55.0 $225.0 Page 36

37 Q117 Non-GAAP Guidance (In millions) Q416 Actual Q117 Guidance Low Q117 Guidance High Bookings $57.8 $53.0 $55.0 Cost of Goods Sold Adjusted Platform Commissions $14.5 $13.6 $14.0 Adjusted Royalties $5.0 $3.7 $3.9 Hosting and Other Costs $1.4 $1.5 $1.5 Adjusted Operating Expenses $38.8 $43.6 $44.0 Depreciation Add Back $0.8 $0.9 $0.9 Basic and Diluted Shares Outstanding Page 37

38 2017 Full Year Non-GAAP Guidance FY16 FY2017 (In millions) Actual Low High Bookings $214.0 $215.0 $225.0 Cost of Goods Sold Adjusted Platform Commissions $53.3 $58.0 $60.8 Adjusted Royalties $50.6 $17.2 $18.0 Hosting and Other Costs $6.0 $5.4 $5.6 Adjusted Operating Expenses $146.1 $160.1 $162.3 Depreciation Add Back $2.9 $3.7 $3.7 Basic and Diluted Shares Outstanding Cash and ST Investments Balance $102.1 At least $60.0 Page 38

39 Key Statistics Market Statistics (as of February 3, 2017) (in millions except per share and volume data) Stock Price $ Week High $ Week Low $1.73 Shares Outstanding Avg. Daily Volume (last 90 days) 2,226,884 Market Capitalization $325.6 Debt $0 Cash $102.1 Enterprise Value $223.5 Cash balance is as of December 31, 2016 Average Daily Volume is calculated using the last 90 calendar days Page 39

40 Investment Highlights Diversified portfolio of franchises Strengthened studio and technology leadership Hiring new Creative Leaders to develop new platforms Strong balance sheet with no debt Page 40

41 Non-GAAP Reconciliations & Other Operating Metrics Page 41

42 (in thousands) (unaudited) GAAP to Adjusted Results Reconciliation For the Three Months Ended March 31, June 30, September 30, December 31, March 31, June 30, September 30, December 31, GAAP gross profit/(loss) $ 40,726 $ 32,396 $ 33,445 $ 35,596 $ 31,841 $ 27,388 $ (4,693) $ 25,907 Impairment and amortization of intangible assets in cost of revenue 2,434 2,434 2,360 2,325 2,324 2,336 7,320 2,811 Non-cash warrant benefit/(expense) ,896 (116) 9 (32) (6) (26) Change in deferred revenue and litigation settlement proceeds (7,023) 1,329 1,174 (3,135) (530) 2,575 (102) 11,464 Change in deferred platform commissions 1,838 (214) (605) 1,081 (278) (588) 96 (3,126) Change in deferred royalties 981 (107) (175) 416 (398) 240 (294) (200) GAAP platform commissions $ 17,880 $ 13,948 $ 15,462 $ 14,799 $ 13,374 $ 11,974 $ 12,681 $ 11,381 Change in deferred platform commissions (1,838) (1,081) (96) 3,126 Adjusted platform commissions $ 16,042 $ 14,162 $ 16,067 $ 13,718 $ 13,652 $ 12,562 $ 12,585 $ 14,507 GAAP royalties (including impairment of royalties and minimum guarantees) $ 7,108 $ 5,764 $ 8,089 $ 6,066 $ 5,184 $ 5,163 $ 34,796 $ 4,844 Change in deferred royalties (981) (416) 398 (240) Adjusted royalties $ 6,127 $ 5,871 $ 8,264 $ 5,650 $ 5,582 $ 4,923 $ 35,090 $ 5,044 GAAP operating expense $ 38,214 $ 38,540 $ 33,056 $ 38,654 $ 41,026 $ 40,868 $ 37,252 $ 43,287 Stock-based compensation (2,129) (3,032) (3,056) (3,469) (3,545) (2,961) (3,090) (3,667) Amortization of intangible assets in operating expenses (127) (32) (31) (11) Litigation costs and settlement proceeds - (476) Transitional costs (72) (802) Restructuring charge (1,075) (106) (2,116) (57) - Adjusted operating expense $ 35,886 $ 35,000 $ 30,359 $ 34,099 $ 37,375 $ 35,791 $ 34,105 $ 38,818 GAAP research and development expense $ 18,243 $ 18,308 $ 16,304 $ 20,001 $ 20,312 $ 20,721 $ 20,080 $ 20,766 Transitional costs (83) Stock-based compensation (760) (836) (868) (1,099) (1,194) (837) (1,135) (1,401) Adjusted research and development expense $ 17,483 $ 17,472 $ 15,436 $ 18,902 $ 19,118 $ 19,884 $ 18,945 $ 19,282 GAAP sales and marketing expense $ 12,438 $ 12,771 $ 12,302 $ 10,729 $ 12,624 $ 10,935 $ 10,104 $ 14,387 Transitional costs (39) Stock-based compensation (218) (282) (277) (305) (292) (191) (263) (344) Adjusted sales and marketing expense $ 12,220 $ 12,489 $ 12,025 $ 10,424 $ 12,332 $ 10,744 $ 9,841 $ 14,004 GAAP general & administrative expense $ 7,406 $ 7,429 $ 4,419 $ 6,838 $ 7,984 $ 7,096 $ 7,011 $ 8,134 Transitional costs (72) (680) Stock-based compensation (1,151) (1,914) (1,911) (2,065) (2,059) (1,933) (1,692) (1,922) Litigation costs - (476) Adjusted general and administrative expense $ 6,183 $ 5,039 $ 2,898 $ 4,773 $ 5,925 $ 5,163 $ 5,319 $ 5,532 Other supplemental financial information Depreciation $ 706 $ 732 $ 718 $ 706 $ 656 $ 720 $ 768 $ 804 Foreign currency exchange gain/(loss) (148) (182) 1, Loss/(income) from change in fair value of strategic investments (300) 4, (255) Income tax provision/(benefit) 1,104 (809) 79 (234) (166) (280) Interest and other (income)/expense (6) (12) (15) (15) (21) (25) (12) 74 Page 42

43 Key Operating Metrics Actual Actual Actual Actual Actual Actual Actual Actual Actual Actual Actual Actual Q114 Q214 Q314 Q414 Q115 Q215 Q315 Q415 Q116 Q216 Q316 Q416 Total Bookings (in millions) $47.0 $35.0 $83.6 $76.2 $62.4 $57.5 $64.4 $57.9 $54.0 $50.9 $51.3 $57.8 Total Bookings Growth Q/Q 10% (25%) 138% (9%) (18%) (8%) 12% (10%) (7%) (6%) 1% 13% Total Bookings Growth Y/Y 90% 51% 270% 78% 33% 64% (23%) (24%) (14%) (11%) (20%) (0%) Original IP % of Total Bookings 91% 93% 37% 41% 43% 41% 38% 50% 43% 37% 33% 50% Adjusted Operating Expenses (in millions) $26.7 $25.6 $35.0 $33.1 $35.9 $35.0 $30.4 $34.1 $37.4 $35.8 $34.1 $38.8 Marketing Expense (in millions) Marketing as % of Total Bookings 15% 16% 15% 13% 16% 18% 17% 14% 19% 17% 15% 20% Headcount** (at quarter-end) Daily Active Users (DAU)* (in millions) Monthly Active Users (MAU)* (in millions) Installs (in millions) Cumulative Installs (in millions) , , , , , , , ,537.3 In-App Purchase Billable Transactions (in millions)*** Average Bookings per Billable Transaction*** $11.79 $11.84 $9.14 $9.31 $10.06 $9.78 $8.91 $9.44 $9.15 $9.61 $9.08 $8.30 *DAU & MAU reflects the DAU & MAU figures for the last month of the quarter **FTE only, excludes contractors, temporary employees and consultants ***Q416 in-app purchase billable transactions and average booking per billable transaction include the impact of Crowdstar activity after its acquisition on November 2, 2016; Q314 in-app purchase billable transactions and average booking 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 bookings per billable transaction have been revised to reflect corrected data Page 43