Unity Software Reports Mixed Q1 Results: EPS Miss, Sales Beat
Portfolio Pulse from Erica Kollmann
Unity Software Inc. (NYSE:U) reported Q1 financial results with a GAAP loss of 75 cents per share, missing analyst expectations of a 65 cents per share loss. However, sales exceeded forecasts at $460 million, a 6.59% beat over the expected $431.55 million. The company saw a 17% year-over-year increase in Create Solutions revenue at $133 million but a 4% decrease in Grow Solutions revenue at $294 million. Unity's outlook for Q2 anticipates revenue between $420 million and $425 million, marking a 6-7% year-over-year decline. Unity shares dropped 4.84% in after-hours trading to $22.96.

May 09, 2024 | 8:40 pm
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Unity Software reported mixed Q1 results with a larger-than-expected loss but higher sales. Q2 revenue is expected to decline 6-7% year-over-year.
The mixed Q1 results, with a significant EPS miss and a sales beat, may cause investor concern, particularly with the forecasted revenue decline in Q2. The after-hours stock price drop reflects immediate negative market reaction.
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