Unity stock inches up despite a Q2 loss: find out more

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on Aug 2, 2023
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  • Unity reports a narrower-than-expected loss for its fiscal Q2.
  • The game-engine company also raised guidance for the future.
  • Unity stock is now up roughly 60% versus the start of 2023.

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Unity Software Inc (NYSE: U) just lifted its outlook for the full year. Shares are up roughly 7.0% in after-hours trading.

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Unity stock up on strong Q2 results

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It was the strength in its recently concluded quarter really that delivered confidence to the management to raise guidance.

Unity now forecasts its revenue to fall in the range of $2.12 billion to $2.20 billion this year – roughly in line with Street estimates. In a letter to shareholders, the game-engine company said:

Our margin expansion was driven by strong operating expense management, enabled by portfolio choices, productivity improvements across teams, more efficient cloud usage and other optimizations.

In June, the California-based company announced a dedicated AI marketplace as Invezz reported here. Unity stock is now up more than 60% year-to-date.

Key takeaways from Unity’s Q2 earnings print

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  • Net loss printed at $201.2 million versus the year-ago $205.8 million
  • Per-share loss also narrowed significantly from 69 cents to 51 cents
  • Revenue soared a whopping 80% year-on-year t $533.5 million
  • FactSet consensus was 62 cents a share loss on $518 million revenue

Unity noted a 17% year-on-year growth in its Create Solutions in Q2 and an incredible 157% growth in its Grow Solutions. The letter to shareholder also reads:

We continue to reduce our reliance on Professional Services as we build a scalable and profitable business.

Last month, the app-monetisation company launched a beta programme that enabled developers to create experiences for the Apple Vision Pro mixed reality headset. Wall Street currently has a consensus “overweight” rating on Unity stock.  

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