Unity Software Inc U shares are trading lower Wednesday morning after the company reported financial results and issued guidance below analyst estimates.
Unity said first-quarter revenue increased 36% year-over-year to $320.1 million, which came in below the $321.49 million estimate, according to data from Benzinga Pro. The company reported an adjusted loss of 8 cents per share, which was in line with estimates.
“Unity delivered record quarterly revenue in the first quarter of 2022, the highest in the company’s history, up 36% compared with the first quarter of 2021, with Create over-performing at 65% year-on-year growth, offset by slower growth in Operate,” said John Riccitiello, president and CEO of Unity.
The company plans to focus on accelerating the growth of Operate in the short term.
Unity said it expects second-quarter revenue to be between $290 million and $295 million versus the $361 million estimate. The company expects full-year 2022 revenue to be between $1.35 billion and $1.45 billion versus the $1.5 billion estimate.
- Daiwa Capital analyst Jonathan Kees downgraded Unity from an Outperform rating to a Neutral rating and lowered the price target from $110 to $34.
- Piper Sandler analyst Brent Bracelin maintained Unity with an Overweight rating and lowered the price target from $145 to $55.
U Price Action: Unity is making new 52-week lows on Wednesday.
The stock was down 23.3% at $36.92 at time of publication.
Photo: courtesy of Unity.