Glu Mobile : Q320 Earnings Presentation

Glu Mobile Inc.

Q320 Earnings Call

November 5, 2020

Safe Harbor Statement

This presentation contains "forward-looking" statements including those regarding our Q4-2020 and FY-2020 financial guidance, our key 2021 games, our

strategic priorities to drive margin expansion, our 2021 new title launch strategy, our 2021 bookings and Adjusted EBITDA outlook, our healthy balance sheet

to support expected growth, and statements including words such as "anticipate," "believe," "estimate," "expect," "may," "will," "plan," "intend," "could," "continue," "remain," "positioned," "potential" and similar expressions or variations, as well as statements in the future tense. 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 will be unable to build successful Growth Games 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 we do not realize the anticipated strategic benefits from its license agreements 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 COVID-19 pandemic; and other risks detailed under the caption "Risk Factors" in our Form 10-Q filed with the Securities and Exchange Commission on August 7, 2020 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, 2020 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.

© Glu Mobile Inc., Private & Confidential	2

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;	•	Stock-based compensation expense;
•	Change in deferred royalties;	•	Litigation costs;
•	Amortization of intangible assets;	•	Transitional costs.

• Restructuring 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.

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.

© Glu Mobile Inc., Private & Confidential

Image Credit: Michael O'Donnell/VentureBeat

Business Update

Nick Earl

President & CEO

4

Q320 Highlights

• $147.3M in bookings representing 22% YoY growth, driven by increased engagement and ABPDAU across key titles
• Achieved record GAAP revenue and Net Income as well as Adjusted EBITDA for the quarter
• Continued investment in new game initiatives under our Crowdstar and Glu Sports umbrella brands
• Significant free cash flow generation of $31.5M; last twelve months $45.9M
• Refined processes and technology powering efficient UA investment

© Glu Mobile Inc., Private & Confidential	5

Q320 Growth Game Highlights

Growth Games

• • Q3 bookings grew 13% YoY to $104.5M
  • Driven by live ops expertise and execution
• Design Home
• • Design Home grew 15% YoY to $52.1M
  • Launched Design Home Inspired - in game ecommerce shop
• Covet Fashion
• • Covet Fashion grew 30% YoY to $22.4M
  • Driven by new Covet Collection subscription and strong Fall Launch
• Tap Sports Baseball Franchise
• • Despite shortened MLB season, TSB generated $30.0M of bookings

• Driven by strong live ops performance	Lifetime	Lifetime	Lifetime
	Bookings	Bookings	Bookings
	$596.9M	$340.3M	$341.9M

© Glu Mobile Inc., Private & Confidential	6

2 Powerful Umbrella Brands

Crowdstar

• In real life (IRL) inspiration: Blends games and lifestyles
• Leading in women's lifestyle driven categories: A sharp focus on, and understanding of, women's passions and interests, but inclusive to all
• Elevated play: Games that make players feel enriched and inspired. delivered with high aesthetic quality, elegance & style

Glu Sports

• Highly focused on sports and outdoor genres
• Predominately male audience, but welcome all
• Games that offer action-packed, engaging gameplay
• High-fidelitygraphics and competitive experiences

7

Introducing

Table & Taste

Elevate your food game. Play with impressive food, pairings and décor to create visually stunning dining experiences.

• Food is a huge market and complements Fashion and Home Décor well, while further diversifying the Crowdstar brand
• Building Covet Fashion and Design Home learnings and applying them to
  Food to build Glu's next potential Growth Game
• Design Home structure with a larger TAM given that it serves a broader demographic and appeals to a wider audience
• Developed using the benchmark development model, data driven insights throughout the development process to validate consumer interest
• Social forward game that will connect users, encourage friendly competition and drive player engagement
• Launched a consumer prototype in Q220: retention KPIs of closed alpha have been highly encouraging
• Three complementary verticals: Food, Fashion and Home Décor. Expands Crowdstar's position creating a suite of lifestyle products
• Beta release expected in 2021 Q1

8

Key 2021 Games

Crowdstar

Table & Taste

• Crowdstar's next generation, lifestyle game
• Real recipes, branded décor and more
• Expanded depth and economy

Crowdstar Moments

• Hypercasual games based on Crowdstar tenets
• Ecosystem of networked products: cross promote to higher LTV games
• Ad based games

Glu Sports

Deer Hunter World

• Great reach, WW audience
• PvP focus with competitive events

Tap Sports Fishing

• Mass market appeal WW
• Fully 3D navigable open lakes & oceans

Tap Sports Baseball 2021

• New games modes and club events
• Web access

9

Strategic Priorities to Drive Margin Expansion

Scale	Develop &	Drive
acquire new	marketing	Margin
existing
Growth	efficiencies &	expansion
games
Games	productivity

© Glu Mobile Inc., Private & Confidential	10

Acquisition Highlights

	2011: Blammo Games:		$2.2Bn
	• Created Kim Kardashian: Hollywood following acquisition
	2012: Deer Hunter IP:	27.5x
	• Acquired all rights to Deer Hunter IP from Atari
	2013: Pick 6 Studios:
	• Created MLB Tap Sports Baseball following acquisition
	2014: PlayFirst:
	• Successfully transitioned Diner DASH franchise to mobile FTP following acquisition
	2016: Crowdstar:	$79MM
	• Launched Design Home and grew Covet Fashion following acquisition	Purchase	Lifetime
		Price	Bookings(1)
Note:
1.	Post acquisition close.
© Glu Mobile Inc., Private & Confidential		11

Financial Update and Guidance

Eric R. Ludwig

COO & CFO

12

Q320 Financial Highlights

• Revenue up 48% YoY to $158.5M
• Record GAAP profitability
• YTD 2020 Revenue up 34% to $399.1M
• Bookings up 22% YoY to $147.3M
• YTD 2020 Bookings up 38% to $435.8M

GAAP Revenue

(In millions)

$399.1

$298.5

Q319 YTD

Q320 YTD

Bookings

(In millions)

$435.8

$314.9

Q319 YTD

Q320 YTD

© Glu Mobile Inc., Private & Confidential	13

Q320 Bookings by Category

New Games

16%

Catalog

13%

Growth

71%

Growth Catalog New Games

Bookings (in millions)

TITLE	CATEGORY	Q319	Q320	YOY%
Design Home	Growth	$ 45.2	$ 52.1	15.3%
TSB Franchise	Growth	30.1	30.0	(0.3%)
Covet Fashion	Growth	17.2	22.4	30.1%
Diner Dash Adventures	New Games	14.7	9.4	(35.9%)
Disney Sorcerer's Arena	New Games	0.1	14.7	na
Kim Kardashian Hollywood	Catalog	4.6	12.4	171.1%
Cooking Dash	Catalog	3.5	2.9	(16.4%)
All Other Bookings	Catalog	5.0	3.4	(33.0%)
Total Bookings		$ 120.4	$ 147.3	22.4%
	Total Growth	$ 92.5	$ 104.5	13.0%
	Total Catalog	$ 13.1	$ 18.7	42.3%
	Total Core Games	105.6	123.2	16.7%
	Total New Games	$ 14.8	$ 24.1	63.5%
	Total Bookings	$ 120.4	$ 147.3	22.4%

Note: Beginning in FY20, WWE is being classified as Catalog and for comparative purposes is being classified as Catalog prior to FY20.

© Glu Mobile Inc., Private & Confidential	14

Best-in-Class Performance Across Our Portfolio

Daily Payer Conversion (%)

ABPDAU

	35%
25%	YoY
YoY

Note: DAU is the number of individuals who played a particular smartphone game on a particular day. 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. Aggregate DAU in Q3'18 to Q3'20 represents the average of aggregate DAU for each month in the quarter. Note, average GAAP revenue per DAU ("ARPDAU") reflected in Company SEC filings will differ from ABPDAU, which is calculated based on bookings which do not reflect any deferral of revenue derived from the sale of virtual items within games as required under GAAP. In addition, as of January 1, 2019, we began calculating DAU using the average of each month during the period rather than our historical practice of calculating these metrics on based on the last month of the period.

15

Efficient User Acquisition Strategy

Centralized UA and Marketing Team that Works Across All of Our Studios and Games

✓ New leadership team in	✓ Data-led approach to acquiring
place	users
✓ Horizontally organized…	✓ Further optimization of
	marketing spend allocation
✓ …with specialty focus areas
by genre	✓ Payback period approach vs
	LTV / CAC
	✓ Segmented audience
	campaigns

• Enhanced proprietary capabilities
• Integration of data science
• Improved decision making via performance dashboards

Other Initiatives that

Benefit our UA strategy

• New hypercasual games - Crowdstar Moments - represent additional channel for UA
• Added new game features that drive organic installs
• Licensed IP offers familiarity among scaled audience bases
• Re-targetingcampaigns aimed at idle users

© Glu Mobile Inc., Private & Confidential

Q3 Actuals vs Guidance

(IN MILLIONS)	Q320	Q320 Guidance
	ACT	LOW	HIGH
A Bookings	$147.3	130.0	135.0
Cost of Goods Sold
B Adjusted Platform Commissions	39.7	35.6	36.9
C Adjusted Royalties	9.9	9.0	9.3
D Hosting and Other Costs	1.9	2.1	2.3
E User Acquisition and Marketing Expense	34.5	36.9	37.9
F Adjusted Operating Expenses	36.8	38.9	39.1
G Depreciation Add Back	1.4	1.5	1.5
Basic Shares Outstanding	171.3	171.6	171.6
Diluted Shares Outstanding	181.6	185.1	185.1
(A - B - C - D - E - F + G) = Adjusted EBITDA

© Glu Mobile Inc., Private & Confidential	17

Strong Free Cash Flow Generation

• Q320: Free cashflow generation of $31.5M

$45.9M

• $318.1M cash balance

$24.2M

Q418 to Q319

Q419 to Q320

© Glu Mobile Inc., Private & Confidential	18

Condensed Cash Flow

(In Millions)	Q219	Q319	Q419	Q120	Q220	Q320
Cash, cash equivalents, and restricted cash at beginning of the period (1)	$ 93.3	$ 99.5	$ 102.4	$ 127.1	$ 114.7	$ 283.1
Other cash generated from/(used in) operations	12.5	3.3	25.4	(7.2)	23.7	33.4
Cash paid for royalty advances	(3.2)	0.0	(0.4)	(9.7)	(9.8)	(1.2)
Net cash provided by/(used in) operations	9.3	3.3	25.0	(16.9)	13.9	32.2
Net cash provided by/(used in) investing activities (1)	(1.1)	(1.3)	(1.8)	(4.8)	(0.9)	(0.7)
Net cash provided by/(used in) financing activities	(2.0)	1.0	1.6	9.5	155.4	3.5
Effect of exchange rate changes on cash	0.0	(0.1)	(0.1)	(0.2)	0.0	0.0
Net increase / (decrease) in cash, cash equivalents, and restricted cash	$ 6.2	$ 2.9	$ 24.7	($ 12.4)	$ 168.4	$ 35.0
Cash, cash equivalents, and restricted cash at end of period (1)	$ 99.5	$ 102.4	$ 127.1	$ 114.7	$ 283.1	$ 318.1
Reconciliation of cash, cash equivalents, and restricted cash (1)
Cash and cash equivalents at end of period	$ 99.5	$ 102.4	$ 127.1	$ 114.7	$ 283.1	$ 318.1
Cash, cash equivalents, and restricted cash at end of period (1)	$ 99.5	$ 102.4	$ 127.1	$ 114.7	$ 283.1	$ 318.1

Note:

1. In 2018, Glu adopted Accounting Standards Update ("ASU") 2016-18, Restricted Cash. The beginning and ending period balances now include restricted cash and changes in restricted cash line item is removed from cash flow from investing activities in accordance with the new standard.

© Glu Mobile Inc., Private & Confidential	19

Q420 and FY2020 Guidance

20

Q420 Non-GAAP Guidance

(IN MILLIONS)	Q320	Q420 Guidance
	ACT	LOW	HIGH
A Bookings	$147.3	119.5	124.5
Cost of Goods Sold
B Adjusted Platform Commissions	39.7	32.3	36.6
C Adjusted Royalties	9.9	7.6	8.0
D Hosting and Other Costs	1.9	1.7	1.8
E User Acquisition and Marketing Expense	34.5	19.0	19.0
F Adjusted Operating Expenses	36.8	38.4	38.6
G Depreciation Add Back	1.4	1.5	1.5
Basic Shares Outstanding	171.3	172.5	172.5
Diluted Shares Outstanding	181.6	185.2	185.2
(A - B - C - D - E - F + G) = Adjusted EBITDA

© Glu Mobile Inc., Private & Confidential	21

FY20 Non-GAAP Guidance

(IN MILLIONS)	FY2019	FY2020 Guidance
	ACT	LOW	HIGH
A Bookings	$423.3	555.3	560.3
Cost of Goods Sold
B Adjusted Platform Commissions	111.5	150.1	154.4
C Adjusted Royalties	26.4	37.9	38.3
D Hosting and Other Costs	7.2	7.6	7.7
E User Acquisition and Marketing Expense	118.0	146.1	146.1
F Adjusted Operating Expenses	122.6	148.0	148.2
G Depreciation Add Back	4.1	5.6	5.6
Basic Shares Outstanding	145.8	162.5	162.5
Diluted Shares Outstanding	157.4	173.2	173.2
Cash and ST Investments Balance	127.1	$ 365M+

(A - B - C - D - E - F + G) = Adjusted EBITDA

© Glu Mobile Inc., Private & Confidential	22

2021 Outlook

23

2021 New Title Launch Strategy

PHASE 3:

PHASE 1:

• 1 Q post launch
• Soft launch leveraging cross promo, brand marketing, featuring, low CPI / high ROI UA spend
• Small operating loss

PHASE 2:

• 2 - 8 Q's post launch
• CPI's rise / UA ROI over
  D730
• Manage UA spend to achieve growth & profit
• Ramping from breakeven to scaled margins

• 8+ Q's post launch

• Manage UA spend to sustain growth & profit

• Scaled margins reached
Bookings Size	Annual Bookings	Scaled Game
	Margins
	Single	$25M to $75M	15 - 25%
	Double	$75M to $150M	25 - 30%
	Triple	$150M to $250M	30 - 35%
	Home Run	$250M to $750M	35%+
	Grand Slam	$750M+	40%+

Game margins include all Apple/Google fees, royalties, hosting costs, all studio team costs and all marketing and user acquisition fees. The only items that are not allocated to game margins are sales/marketing personnel costs and G&A expenses. In FY20, these unallocated costs are expected to total ~$56MM.

© Glu Mobile Inc., Private & Confidential	24

2021 Outlook

Bookings

The company expects bookings range of $595M to $605M from its current live titles in the full year 2021:

• 8% to 10% annual growth from the three Growth Games
• Flat to low single digit % annual growth from a combination of Potential Growth Games and Catalog
• For modeling purposes: Q121 is expected to be approximately flat from Q420 due to Tap Sports Baseball seasonality

Our preliminary guidance does not include:

• The planned launch of 4 new original IP titles in 2021: Crowdstar Moments, Table & Taste, Deer Hunter World & Tap Sports Fishing
• • We believe Table & Taste and Deer Hunter World, have the potential to be mid to high "Singles" in the first year and can grow into "Doubles" by year two
• Bookings from potential acquisitions

Adjusted EBITDA

The company expects margin expansion from current full year 2020 expectation by 220 to 420 basis points:

• This margin profile is inclusive of new title contribution
• Margins are expected to be a high single digit percentage of bookings in Q1 2021 due to lower CPI's leading to higher UA investment
• Similar to Q420, margins are expected to be higher in Q421 due to lower UA investment arising from higher CPI's

© Glu Mobile Inc., Private & Confidential	25

2021 Bookings Guidance

TBD Amount: 4

New 2021 Titles

			Catalog	$595M - $605M
$ 555M - $ 560M
	Flat to Low Single Digit
	8% - 10%		Annual Growth
	Annual Growth

Current Live Games

FY2020 Guidance	Growth Games	Potential Growth Games	FY2021 Guidance	FY2021 Guidance
		& Catalog	(ex. New Titles)	(inc. New Titles)

© Glu Mobile Inc., Private & Confidential	26

Extended Track Record of Growth

Bookings

Adjusted EBITDA

									TBD Amount: 4
~27%							New 2021
		CAGR		$ 555M - $ 560M		Titles
				$ 423M
		$ 385M						Current Live
$ 320M
									Games
									$595M - $605M

$ 214M

FY2016

FY2017

FY2018

FY2019

FY2020

FY2021

Guidance

Guidance

FY2016

FY2017

FY2018

FY2019

FY2020

FY2021

2021 New Title Launches

Guidance

Guidance

© Glu Mobile Inc., Private & Confidential	27

Q&A

© Glu Mobile Inc., Private & Confidential	28

Non-GAAP Reconciliations & Other Operating Metrics

29

GAAP to Adjusted Results Reconciliation

			For The Three Month Ended
	June 30,	September 30,	December 31,	March 31,	June 30,	September 30,
	2019	2019	2019	2020	2020	2020
GAAP platform commissions	$ 24,799	$ 28,122	$ 30,092	$ 28,727	$ 35,032	$ 43,040
Change in deferred platform commissions	1,860	3,972	(1,346)	(232)	14,613	(3,371)
Adjusted platform commissions	$ 26,659	$ 32,094	$ 28,746	$ 28,495	$ 49,645	$ 39,669
GAAP royalties (including impairment of royalties and minimum guarantees)	$ 6,245	$ 6,643	$ 6,285	$ 6,381	$ 9,617	$11,467
Change in deferred royalties	1,071	592	(410)	1	4,420	(1,551)
Adjusted royalties	$ 7,316	$ 7,235	$ 5,875	$ 6,382	$ 14,037	$9,916
GAAP operating expense	$ 59,727	$ 74,987	$ 62,641	$ 78,941	$ 100,889	$80,870
Stock-based compensation	(2,035)	(4,080)	(4,461)	(6,382)	(8,106)	(8,523)
Transitional costs	(5)	(5)	(1)	(4)	-	-
Litigation costs	416	-	-	-	-	-
Restructuring charge	-	-	-	-	-	(1,015)
Adjusted operating expense	$ 58,103	$ 70,902	$ 58,179	$ 72,555	$ 92,783	$ 71,332
GAAP research and development expense	$ 19,736	$ 22,968	$ 25,877	$ 29,531	$ 28,420	$ 30,778
Transitional costs	(5)	(5)	(1)	(4)	-	-
Stock-based compensation	(1,128)	(2,494)	(2,898)	(3,962)	(5,298)	(5,201)
Restructuring charge	-	-	-	-	-	(1,015)
Adjusted research and development expense	$ 18,603	$ 20,469	$ 22,978	$ 25,565	$ 23,122	$ 24,562
GAAP sales and marketing expense	$ 35,040	$ 46,140	$ 31,013	$ 42,743	$ 65,203	$ 42,222
Stock-based compensation	(55)	(293)	(526)	(875)	(1,013)	(1,004)
Adjusted sales and marketing expense	$ 34,985	$ 45,847	$ 30,487	$ 41,868	$ 64,190	$ 41,218
GAAP general & administrative expense	$ 4,951	$ 5,879	$ 5,751	$ 6,667	$ 7,266	$ 7,870
Stock-based compensation	(852)	(1,293)	(1,037)	(1,545)	(1,795)	(2,318)
Litigation costs	416	-	-	-	-	-
Adjusted general and administrative expense	$ 4,515	$ 4,586	$ 4,714	$ 5,122	$ 5,471	$ 5,552
Other supplemental financial information
Depreciation	$ 1,025	$ 1,065	$ 1,072	$ 1,343	$ 1,366	$ 1,381
Foreign currency exchange (gain)/loss	(56)	222	(54)	448	(366)	(209)
Income tax provision/(benefit)	-	(348)	641	(1,321)	(6,187)	7,391

© Glu Mobile Inc., Private & Confidential	30

GAAP to Adjusted Results Reconciliation

				FOR THE THREE MONTHS ENDED
		JUNE 30,	SEPTEMBER 30,	DECEMBER 30,	MARCH 31,	JUNE 30,	SEPTEMBER 30,
		2019	2019	2019	2020	2020	2020
A Bookings	$ 101.9	$ 120.4	$ 108.4	$ 106.5	$ 182.0	$ 147.3
Cost of Goods Sold
B	Adjusted Platform Commissions	26.7	32.1	28.7	28.5	49.6	39.7
C	Adjusted Royalties	7.3	7.2	5.9	6.4	14.0	9.9
D	Hosting Costs	1.8	2.0	1.9	1.9	2.1	1.9
Adjusted Operating Expenses
E User Acquisition and Marketing Expenses	30.1	40.2	24.7	35.6	57.0	34.5
F	Adjusted Other Operating Expenses	28.0	30.7	33.4	36.9	35.9	36.8
G Depreciation Add Back	1.1	1.0	1.0	1.3	1.4	1.4
Basic Shares Outstanding	145.5	146.2	147.2	149.6	156.6	171.3
Diluted Shares Outstanding	159.7	146.2	155.8	149.6	156.6	181.6

(A - B - C - D - E - F + G) = Adjusted EBITDA

© Glu Mobile Inc., Private & Confidential	31

Key Operating Metrics

	ACTUAL	ACTUAL	ACTUAL	ACTUAL	ACTUAL	ACTUAL
	Q219	Q319	Q419	Q120	Q220	Q320
Total Bookings (in millions)	$ 101.9	$ 120.4	$ 108.4	$ 106.5	$ 182.0	$ 147.3
Total Bookings Growth Q/Q	10%	18%	(10%)	(2%)	71%	(19%)
Total Bookings Growth Y/Y	3%	20%	10%	15%	79%	22%
Original IP % of Total Bookings	64%	69%	73%	72%	57%	60%
Total Ad Bookings (in millions)	$ 12.9	$ 13.2	$ 12.4	$ 11.3	$ 16.4	$ 14.9
Ad Revenue as a % of Bookings	13%	11%	11%	11%	9%	10%
Total Ad Bookings Growth Y/Y	(1%)	(7%)	(9%)	(8%)	27%	13%
User Acquisition and Marketing Expense (in millions)	30.1	40.2	24.7	35.6	57.0	34.5
Adjusted Other Operating Expenses (in millions)	28.0	30.7	33.4	36.9	35.9	36.8
Adjusted Total Operating Expenses (in millions)	$ 58.1	$ 70.9	$ 58.1	$ 72.5	$ 92.9	$ 71.3
User Acquisition and Marketing Expenses as % of Total Bookings	30%	33%	23%	33%	31%	23%
Adjusted Other Operating Expenses as % of Total Bookings	28%	26%	31%	35%	20%	25%
Headcount (1) (at quarter-end)	718	719	715	740	762	780
Daily Active Users (DAU) (2) (in millions)	3.2	3.3	2.9	3.0	3.8	2.9
Monthly Active Users (MAU) (2) (in millions)	19.1	18.7	15.6	17.8	20.2	14.0
Downloads (in millions)	29.1	26.5	20.7	28.9	30.3	18.0
Cumulative Downloads (in millions)	1,931.6	1,958.1	1,978.8	2,007.7	2,038.0	2,056.0
In-App Purchase Billable Transactions (in millions)	13.4	18.6	16.7	16.0	24.5	19.5
Average Bookings per Billable Transaction	$ 6.67	$ 5.77	$ 5.75	$ 5.94	$ 6.76	$ 6.81

Note:

1. FTE only, excludes contractors, temporary employees and consultants.
2. DAU and MAU for Q2'19 to Q3'20 represents the average of aggregate DAU and MAU for each month in the quarter.

© Glu Mobile Inc., Private & Confidential	32

Appendix

33

Healthy Balance Sheet to Support Expected Growth

(IN MILLIONS)	Q319	Q220	Q320
Cash and cash equivalents	$ 102.4	$ 283.1	$ 318.1
Accounts receivable, net	44.8	64.7	53.6
Prepaid expenses, royalties and other current assets	56.5	88.9	73.5
Other non current assets	82.4	76.1	73.0
Intangible assets & goodwill	122.0	119.2	118.3

Total Assets	$ 408.1	$ 632.0	$ 636.5
Accounts payable and accrued liabilities	$ 20.2	$ 27.3	$ 15.6
Accrued expenses, royalties and other liabilities	99.5	94.2	96.2
Deferred revenue	102.1	145.5	134.3
Common stock/paid in capital	628.7	813.5	825.5
Accumulated deficit & other comprehensive income/(loss)	(442.4)	(448.5)	(435.1)
Total Liabilities and Stockholders' Equity	$ 408.1	$ 632.0	$ 636.5

© Glu Mobile Inc., Private & Confidential	34

DAU and MAU Trends

DAU				MAU
(In millions)				(In millions)
			3.8
3.2	3.3				20.2
			19.1
	2.9	3.0	2.9	18.7
			17.8
					15.6

14.0

Q219

Q319

Q419

Q120

Q220

Q320

Q219

Q319

Q419

Q120

Q220

Q320

Aggregate DAU and MAU in Q2'19 to Q2320 represents the average of aggregate DAU and MAU for each month in the quarter. 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.

© Glu Mobile Inc., Private & Confidential	35

DAU by Category Trends

DAU

(In millions)

3.0	2.8
2.5	2.3
2.1	2.2
2.1
	2.0
2.0

1.5

1.0	1.1
	1.0			1.0
			0.9	0.9
0.5								0.7
0.0
Q219	Q319	Q419	Q120		Q220	Q320
			Current/Potential Future Growth Titles		Catalog Titles

Current/Potential Future Growth Titles Include:

• Covet Fashion
• Design Home
• Tap Sports Baseball Franchise
• Disney Sorcerer's Arena
• Diner Dash Adventures

Aggregate DAU and MAU in Q2'19 to Q3'20 represents the average of aggregate DAU and MAU for each month in the quarter. 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.

© Glu Mobile Inc., Private & Confidential	36

ABPDAU and ABPMAU Trends

ABPDAU

ABPMAU

	$0.53	$0.54	$3.50
			$3.00
$0.40	$0.41
$0.38
$0.35			$2.32
			$2.15
			$2.00
			$1.78

Q219

Q319

Q419

Q120

Q220

Q320

Q219

Q319

Q419

Q120

Q220

Q320

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 in Q2'19 to Q3'20 represents the average of aggregate DAU for each month in the quarter.

© Glu Mobile Inc., Private & Confidential	37

ABPDAU by Category Trends

ABPDAU

$1.00

$0.80

$0.61 $0.63

$0.60

$0.50 $0.51 $0.46

$0.46

$0.40

$0.20						$0.29	$0.28
				$0.19	$0.20
$0.14	$0.14
$0.00
Q219	Q319	Q419	Q120		Q220	Q320
			Current/Potential Future Growth Titles		Catalog Titles

Current/Potential Future Growth Titles Include:

• Covet Fashion
• Design Home
• Tap Sports Baseball Franchise
• Disney Sorcerer's Arena
• Diner Dash Adventures

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 quarter. Aggregate DAU in Q2'19 to Q3'20 represents the average of aggregate DAU for each month in the quarter.

© Glu Mobile Inc., Private & Confidential	38

Q320 Bookings by Geography

(In millions)

10%

				$182.0	5%
				19.5
				9.5	$147.3
					14.0
	$120.4				7.5
	12.7	$108.4	$106.5
$101.9
5.4	12.1
	12.4	153.0
10.5
	4.7	4.7
4.7
			125.8
	102.3	91.6
86.7		89.4

85%

Q219	Q319	Q419	Q120	Q220	Q320
		NA APAC	ROW

NA APAC ROW

© Glu Mobile Inc., Private & Confidential	39

Bookings Mix

Bookings by Category			Bookings by Platform
(In millions)				(In millions)
			$182.0				$182.0
			9%				39%
			$147.3				$147.3
			10%				38%
	$120.4				$120.4
$101.9	11%	$108.4	$106.5	$101.9	38%	$108.4	$106.5
	11%			38%
13%		11%	39%		38%
			91%				61%
			90%				62%
	89%	89%	89%		62%	62%	62%
87%		61%

Q219	Q319	Q419	Q120	Q220	Q320	Q219	Q319	Q419	Q120	Q220	Q320
		In-App Purchases	Ads Other					iOS	Android Other

© Glu Mobile Inc., Private & Confidential	40

Advertising Bookings: Percent and Dollars

(% of Bookings)				Ad bookings in millions
13%					$16.4
11%	11%	11%			$14.9
			10%		$13.2
		9%		$12.9
			$12.4
					$11.3

Q219

Q319

Q419

Q120

Q220

Q320

Q219

Q319

Q419

Q120

Q220

Q320

© Glu Mobile Inc., Private & Confidential	41