After Greg Ballard’s announced and Jill Braff’s fairly sudden exits and the persisting rumours of financial frailty, many were waiting for Glu Mobile to fall.
However, at least in revenue terms, they seem to be doing OK: according to reports, Deloitte has put them at #129 in the fastest-growing US technology firms in their “Technology 500” list. The results, alas, are based
on fiscal reports between 2004-2008, during which time Glu grew by 1,000 per cent.
All good but let us remind ourselves what happened in those years: Glu acquired Macrospace (which was founded by Kristian Segerstrale, now of Playfish fame), iPhone, Superscape, MIG (did I forget anyone?). They went public, splashed out on licenses (much to the dismay of competitors who often felt priced out of the market) and only just managed to achieve positive cash-flow in Q2/2009 (i.e. not in the period covered by Deloitte and on decreasing revenues and with negative US-GAAP results).
What does it tell us then? That this strategy worked in terms of revenue growth? Yes, certainly. And I have often paid tribute to that. That it is a good company in terms of putting its working capital to good use? This is – although I truly and sincerely wish them really well – at best doubtful. What more? Ah, well, that Deloitte’s Technology 500 list is probably as trustworthy as the banks they audited… Ouch, did I just say that?
