Unity Software's Stock Plunges 30% on Weak Revenue Guidance

Dow Jones2022-05-11

Unity Software Inc. shares plummeted 30% to $33.54 in late trading Tuesday after the company issued second-quarter revenue guidance below analysts' expectations in conjunction with its first-quarter results.

The video gaming software developer widened its loss to $177.6 million, or 60 cents a share, for the quarter ended March 31, compared to a loss of $107.5 million, or 39 cents a share, in the year-ago period. Adjusted loss was 8 cents a share, matching analysts' expectations.

Revenue rose to $320.1 million from $234.8 million. Analysts polled by FactSet expected $320.8 million.

The company issued guidance for the second quarter and said it is lowering guidance for 2022 due to expected challenges with monetization products.

For the second quarter, Unity Software guided for revenue between $290 million and $295 million. Analysts polled by FactSet expect $360 million in the second quarter. The company guided for revenue in 2022 between $1.35 billion and $1.43 billion, below analysts' expectations of $1.5 billion for the year.

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Comments

  • DragonLee
    2022-05-11
    DragonLee
    Wait for the rebounds and recovery. If can still afford,  buy in tranches to do DCA.
  • 苗派
    2022-05-11
    苗派
    30% drop in a day is scary 😱
  • Jess261
    2022-05-11
    Jess261
    Okay
  • mel18
    2022-05-11
    mel18
    My goodness. This is not expected.
  • ZenInv
    2022-05-11
    ZenInv
    I'm surprised people are not using tools for building games anymore. Or that people are using other tools. 
  • leeinvest
    2022-05-11
    leeinvest
    ...
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