Unity Software Stock Tumbles On Q4 Earnings: The Details
Portfolio Pulse from Adam Eckert
Unity Software Inc (NYSE:U) reported Q4 earnings with a 35% year-over-year revenue increase to $609 million, surpassing estimates. However, it missed per-share loss estimates, reporting a 66 cents loss versus the expected 42 cents. The company announced a portfolio reset, including exiting certain businesses and focusing on strategic engagements. Unity forecasts Q1 strategic portfolio revenue between $415 million to $420 million and full-year 2024 revenue between $1.76 billion to $1.8 billion. Shares fell 15.9% after hours.
February 26, 2024 | 9:41 pm
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Unity Software reported higher than expected Q4 revenue but missed EPS estimates and announced a portfolio reset. Shares dropped 15.9% after hours.
The mixed Q4 earnings report, with a revenue beat but a miss on EPS, coupled with the announcement of a portfolio reset, likely contributed to the negative investor sentiment, leading to a 15.9% drop in share price after hours. The portfolio reset indicates a strategic shift that could have both short-term costs and long-term benefits, but the immediate reaction is negative.
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IMPORTANCE 90
RELEVANCE 100