Unity Software Inc. shares rose in the extended session Tuesday after the gaming-engine company’ reported quarterly results and a raised outlook topping Wall Street estimates and announced plans to acquire a remote-streaming company.
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The company, which competes with Epic Games Inc.’s Unreal Engine, reported a second-quarter loss of $148.3 million, or 53 cents a share, compared with a loss of $27.3 million, or 21 cents a share, in the year-ago period. The adjusted loss, which excludes stock-based compensation expenses and other items, was 2 cents a share, compared with a loss of 9 cents a share in the year-ago period.
Revenue rose to $273.6 million from $184.3 million in the year-ago quarter as the company added new customers and expanded business with existing ones.
Analysts surveyed by FactSet had forecast a loss of 11 cents a share on revenue of $242.3 million, based on Unity’s forecast of $240 million to $245 million in revenue.
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“While our strong performance is broad based, we are particularly proud of the performance from our Operate Solutions group that expanded market share in a tough environment,” said Luis Visoso, Unity chief financial officer, in a statement. “Our strong performance gives us confidence to raise guidance for the year, again.”
Unity forecast revenue of $260 million to $265 million for the third quarter, and raised its revenue outlook to between $1.05 billion and $1.06 billion for the year, compared with a previous forecast of $1 billion to $1.02 billion for the year.
Analysts estimate a loss of 9 cents a share on revenue of $253.3 million for the third quarter, and a loss of 34 cents a share on revenue of $1.01 billion for the year.
The company also announced it plans to acquire remote desktop and streaming technology company Parsec for about $320 million in cash, and close the deal in the third quarter. Unity reported it had more than $1 billion in cash and cash equivalents at the end of June. Parsec, which was founded in 2016, has already received about $33 million in venture funding, according to Crunchbase.
Unity’s stock price has more than doubled since the company priced its IPO at $52 a share back in September.
Last week, the bulk of videogame publishers — Activision Blizzard Inc. ATVI,
