Unity stock was dropping after its earnings release.
Dreamstime
Unity Software stock was tumbling after the videogame development platform’s earnings met analyst expectations but its sales and outlook fell short.
Unity reported a loss of eight cents a share, meeting analyst expectations, on sales of $320.1 million, which missed forecasts for $321.49 million. Unity said its second-quarter sales would come in between $290 and $295 million, below estimates for $360.97 million, while lowering its full-year revenue guidance to a range of $1.35 billion and $1.425 billion, down from $1.485 billion to $1.50 billion.
“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-over-year growth, offset by slower growth in Operate,” said Unity CEO John Riccitiello. “We remain focused on the massive opportunity we see in front of us long-term. Short-term, we are laser-focused on accelerating growth in Operate.”
The market seems more worried. Unity stock has fallen 34% to $31.81 in after-hours trading.
Write to Ben Levisohn at [email protected]
