Unity Software Inc. (NYSE:U) Q1 2024 Earnings Conference Call May 9, 2024 5:00 PM ET Corporate Participants Daniel Amir - Vice President and Head, Investor Relations Jim Whitehurst - Interim Chief Executive Officer Luis Visoso - Executive Vice President and Chief Financial Officer Conference Call Participants Andrew Boone - JMP Securities Jason Bazinet - Citi Michael Funk - Bank of America Clark Lampen - BTIG Parker Lane - Stifel Josh Tilton - Wolfe Matthew Cost - Morgan Stanley Martin Yang - Oppenheimer Gi ...

Unity Software Inc. (U) came out with quarterly earnings of $0.15 per share, beating the Zacks Consensus Estimate of $0.05 per share. This compares to earnings of $0.06 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 200%. A quarter ago, it was expected that this company would post earnings of $0.19 per share when it actually produced earnings of $0.23, delivering a surprise of 21.05%.Over the last four quarters, the company h ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2024 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _______ to _______ Commission File Number: 001-39497 UNITY SOFTWARE INC. (Exact name of registrant as specified in its charter) Delaware 27-0334803 (State or ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 8-K CURRENT REPORT Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Date of Report (Date of earliest event reported): May 9, 2024 (Exact name of registrant as specified in its charter) (State or other jurisdiction of incorporation) Delaware 001-39497 27-0334803 (Commission File Number) (I.R.S. Employer Identification No.) 30 3rd Street San Francisco, California 94103‑3104 (Address, including zip code, of princ ...

About this content About William Farrington William kickstarted his career as a researcher and reporter for a global legal publication, covering everything from public law to M&A. Before moving to Proactive Investors, he worked as a reporter for a major fintech company with a focus on cryptocurrency and blockchain technology. Harking from Queensland, Australia, William obtained first-class honours in journalism and media from Birkbeck University before going on to complete an MA in creative and critical ...

The most recent trading session ended with Unity Software Inc. (U) standing at $24.55, reflecting a +1.15% shift from the previouse trading day's closing. This move outpaced the S&P 500's daily loss of 0.34%. Elsewhere, the Dow gained 0.23%, while the tech-heavy Nasdaq lost 0.33%.Prior to today's trading, shares of the company had lost 7.54% over the past month. This has lagged the Computer and Technology sector's loss of 4.23% and the S&P 500's loss of 4.05% in that time.The investment community will be cl ...

Unity Software Inc. (U) closed at $22.89 in the latest trading session, marking no change from the prior day. This move lagged the S&P 500's daily gain of 0.87%. Elsewhere, the Dow gained 0.67%, while the tech-heavy Nasdaq added 1.11%.Shares of the company have depreciated by 15.19% over the course of the past month, underperforming the Computer and Technology sector's loss of 5.98% and the S&P 500's loss of 3.97%.Analysts and investors alike will be keeping a close eye on the performance of Unity Software ...

Investment Rating - The report initiates coverage on Unity (U.US) with a "Buy" rating and a target price of $31, indicating a potential upside of 19% from the current price of $26.05 [14][44]. Core Insights - Unity is a leading player in the game engine market, holding approximately 70% market share in mobile games and expanding into industries beyond gaming, such as architecture, automotive, and aerospace, which currently contributes 23% to its Create Solutions revenue [3][33]. - The integration of AI technologies, particularly through the Unity editor, is expected to enhance product competitiveness and drive long-term growth [4][16]. - The company's growth solutions, which include advertising networks and game publishing services, accounted for 61% of revenue in 2023, showcasing a strong network effect and data advantage [15][16]. Summary by Sections Game Engine Market Leadership - Unity dominates the game engine market with a significant presence in mobile gaming, where 70% of the top 1000 mobile games are developed using Unity [10][11]. - The company has a market share of approximately 50% on PC and 40% on consoles, with a 90% share in the AR headset market [10]. AIGC Impact on Content Development - The report suggests that AIGC (AI-Generated Content) will complement traditional content creation tools rather than compete with them, enhancing efficiency in the development process [4][41]. - Unity has integrated AI capabilities into its editor, allowing for proprietary model training and support for third-party AI models, which is expected to benefit the company in the long run [4][41]. Financial Projections - Revenue is projected to grow from $1.39 billion in FY22 to $2.29 billion by FY26, with a notable increase in adjusted EBITDA from -$71 million in FY23 to $758 million by FY26 [9][17]. - The report anticipates a shift towards profitability, with operating losses decreasing from -$882 million in FY22 to -$103 million by FY26 [9][17]. Valuation Analysis - The target price of $31 corresponds to a 6.5x P/S ratio for FY24E, reflecting confidence in Unity's market position and growth potential [16][17]. - The report highlights that Unity's upcoming Unity 6 product is expected to enhance performance and support for new technologies, contributing to revenue growth through the newly introduced Runtime Fee model [30][61]. Business Focus and Strategy - Unity is focusing on core business areas: engine, cloud, and monetization, aiming to achieve the "Rule of 40" by the end of the year, which combines revenue growth and profitability [76]. - The company plans to exit non-strategic businesses that contributed $283 million in revenue, allowing for a more concentrated effort on high-margin SaaS subscriptions and other growth areas [76].

Unity Software Inc. (U) ended the recent trading session at $25.36, demonstrating a +0.16% swing from the preceding day's closing price. The stock lagged the S&P 500's daily gain of 1.11%. On the other hand, the Dow registered a gain of 0.8%, and the technology-centric Nasdaq increased by 1.24%.Shares of the company have depreciated by 7.39% over the course of the past month, underperforming the Computer and Technology sector's gain of 0.85% and the S&P 500's gain of 0.48%.The upcoming earnings release of U ...

The most recent trading session ended with Unity Software Inc. (U) standing at $27.57, reflecting a +1.55% shift from the previouse trading day's closing. This change outpaced the S&P 500's 0.32% gain on the day. Elsewhere, the Dow gained 0.68%, while the tech-heavy Nasdaq added 0.2%.The company's stock has dropped by 11.94% in the past month, falling short of the Computer and Technology sector's gain of 6.04% and the S&P 500's gain of 5.11%.The investment community will be paying close attention to the ear ...