Unity (U) First Quarter 2023 Earnings Report – 247 News Around The World

Shares of Unit Software rose more than 11% in extended trading on Wednesday after the company reported first-quarter results that 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
  • Income: $500 million vs. $480 million expected by analysts, according to Refinitiv

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The video game software developer’s revenue for the quarter was up 56% year over year. Unity reported a net loss of $254 million, or 67 cents per share, compared with a net loss of $178 million, or 60 cents per share, in the prior year period. Overall losses were $251 million this quarter, down from $182 million a year ago.

Unity said it expects second-quarter revenue of $510 million to $520 million, above analyst estimates of $509 million. For the full year, Unity said it expects revenue of between $2.08 billion and $2.20 billion. The company said it raised the bottom of its revenue guide by $30 million after considering its first quarter “stronger than expected.”

Founded in 2004, Unity has become a major player in game creation over the past decade by giving developers tools to create 3D titles for phones, consoles and the web without having to code for each platform.

Unity said in a statement that it is off to a “good start” in 2023 and expects to grow faster than its competitors this year. The company added that it believes it is “well positioned” to benefit from AI since it already offers four apps and services that support the technology.

“We embraced AI years ago and view the adoption of AI tools as an accelerator to our business based on our structural and enduring competitive advantages,” Unity said in the statement.

Unity also reaffirmed its commitment to “Excellence in Execution,” a series of action plans that will help it achieve its “long-term strategies and compelling goals.” As part of the move, the company announced plans to cut about 600 jobs, or 8% of its workforce earlier this month, according to a filing the company filed with the U.S. Securities and Exchange Commission.

Unity said it would restructure “specific teams” and the layoffs will help position the company for “long-term, profitable growth”. A company spokesperson declined to provide further details to CNBC at the time.

“We expect these decisions to strengthen Unity and prepare us for even stronger long-term profitable growth,” the company said Wednesday of the layoffs.

Unity will hold its quarterly call with investors at 5 p.m. EST.

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