Global Courant 2023-05-11 02:12:53
John Riccitiello, CEO of Unity Software, speaks onstage at TechCrunch Disrupt SF 2018 in San Francisco, September 5, 2018.
Steve Jennings | TechCrunch | Getty Images
Shares of Unity software soared more than 11% in extended trading on Wednesday after the company’s release profit for the first quarter which beat analysts’ revenue expectations and raised its full-year revenue forecast.
Here’s how the company did it:
Loss per share: Loss of 67 cents, not comparable to estimates Revenue: $500 million versus $480 million expected by analysts, according to Refinitiv
Video game software developer revenue for the quarter was up 56% year over year. Unity reported a net loss of $254 million, or 67 cents per share, versus a net loss of $178 million, or 60 cents per share, in the same period last year. Total losses were $251 million this quarter, compared to $182 million in the same period a year ago.
Unity said it expects to report $510 million to $520 million in revenue in the second quarter, above analyst estimates of $509 million. For the full year, Unity said it expects between $2.08 and $2.2 billion in revenue. The company said it raised the bottom of its earnings guide by $30 million after considering its “stronger-than-expected” first quarter.
Founded in 2004, Unity has grown over the past decade to become a major player in game creation by giving developers the tools to create 3D titles for phones, consoles, and the web without having to code for each platform.
Unity said at an expense that it will be “off to a strong start” in 2023 and that it expects to grow faster than its peers this year. The company added that it believes it is “well positioned” to take advantage of AI as it already offers four applications and services that support the technology.
“We embraced AI years ago and see the adoption of AI tools as accelerating our business based on our structural and sustainable competitive advantages,” Unity said in the release.
Unity also re-emphasized its commitment to “execution excellence,” a set of action plans that will help it achieve its “long-term strategies and must-win goals.” As part of this initiative, the company announced plans earlier this month to cut about 600 jobs, or 8% of its workforce, according to a submit company with the Securities and Exchange Commission.
Unity said it will restructure “specific teams” and the layoffs will help position the company for “long-term and profitable growth”. A spokesperson for the company declined to provide further details to CNBC at the time.
“We expect these decisions to make Unity stronger and prepare us for even stronger long-term profitable growth,” the company said of the layoffs on Wednesday.
Unity will hold its quarterly call with investors at 5 p.m. ET.
