Shares of Unity Software Inc (NYSE: U) slid 10% in extended trading even though the game-engine company reported its first profitable (adjusted) quarter as a public company.
Why is Unity stock down?
The tech stock is responding to guidance that came in shy of expectations. Unity is now calling for $2.05 billion to $2.2 billion of revenue this year, including up to $480 million in its current quarter.
Street had forecast a higher $520.5 million in revenue for Q1 and $2.21 billion for the year. In its letter to shareholders, the app monetisation company said:
While we’re not forecasting a recovery in the in-game ads market in 2023, we believe it’s possible when the economy improves.
Unity shares are still up nearly 30% for the year.
Unity’s Q4 earnings snapshot
Lost $275.1 million versus the year-ago $162.1 million
Per-share loss also increased from 56 cents to 82 cents
Revenue jumped 43% year-on-year to $451 million
Consensus was a penny per share on $440 million revenue
Other notable figures in the company’s fourth-quarter earnings report include a 41% annualised growth in Create Solutions.
2022 was a highly transformation year. Create Solutions grew our already strong gaming business.
What else was noteworthy?
According to Unit Software, its revenue from Grow Solutions that includes ironSource increased 12% this quarter. The letter to shareholder also reads:
Unity and ironSource merged, creating a true platform with more opportunities to better serve customers and shareholders and drive profitability and cash flow. The integration is progressing as planned.
Wall Street currently has a consensus “overweight” rating on Unity shares.
The post What’s happening to Unity shares in after-hours trading? appeared first on Invezz.