Unity Software Inc. Raises Annual Forecast and Reports Narrower Loss
Unity Software Inc. (U, -8.50%) experienced a rise in its shares during the extended session on Wednesday, following the company's announcement of an improved annual forecast and a narrower loss than expected. Unity's shares increased by more than 4% after hours, recovering from an 8.5% drop earlier in the regular session, closing at $41.45.
Second Quarter Performance and Outlook
In the second quarter, Unity reported a loss of $201.2 million, equivalent to 51 cents per share, compared to a loss of $205.8 million, or 69 cents per share, in the same period last year. However, Unity did not provide an adjusted earnings-per-share figure.
On the revenue front, Unity demonstrated substantial growth, with earnings reaching $533.5 million, compared to $297 million in the year-ago quarter. Analysts surveyed by FactSet estimated a second-quarter loss of 62 cents per share, adjusted earnings of 8 cents per share, and revenue of $518 million for the second quarter.
Strong Third Quarter Outlook
For the upcoming third quarter, Unity has projected revenue between $540 million and $550 million. This projection takes into account a stagnant game ads market as well as a challenging market environment in China.
Full-Year Forecast Update
Unity has revised its annual forecast upwards, increasing the low end of its outlook. As a result, the company now predicts full-year revenue ranging from $2.12 billion to $2.2 billion. Analysts currently estimate third-quarter earnings of 11 cents per share on revenue of $549 million, with full-year earnings anticipated at 45 cents per share on revenue of $2.16 billion.
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