Glu Mobile stock plunges more than 20% after guidance is slashed

Glu Mobile Inc. shares dropped more than 20% in after-hours trading Thursday, after the mobile-game publisher slashed its annual forecast. Glu reported net income of $2.5 million, or 2 cents a share, on sales of $95.5 million, up from $90.2 million. Glu reported bookings, a more inclusive revenue metric, of $101.9 million, all of which was roughly in line with guidance and analysts' expectations. But Glu also sharply decreased its annual bookings guidance, to a range of $406 million to $410 million after previously projecting $445 million to $455 million. "We revised our annual guidance primarily to reflect the timing of new launches, contribution from newly launched titles and incremental UA investment to take advantage of favorable ROI opportunities," Chief Financial Officer Eric Ludwig said in a release. Shares, already down 6% this year, fell more than 22% in after-hours trading.

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