Unity stock was dropping after its earnings release.
stock was tumbling after the videogame development platform’s earnings met analyst expectations but its sales and outlook fell short.
Unity reported a loss of eight cents a share, meeting analyst expectations, on sales of $320.1 million, which missed forecasts for $321.49 million. Unity said its second-quarter sales would come in between $290 and $295 million, below estimates for $360.97 million, while lowering its full-year revenue guidance to a range of $1.35 billion and $1.425 billion, down from $1.485 billion to $1.50 billion.
“Unity delivered record quarterly revenue in the first quarter of 2022, the highest in the company’s history, up 36% compared with the first quarter of 2021, with Create over-performing at 65% year-over-year growth, offset by slower growth in Operate,” said Unity CEO John Riccitiello. “We remain focused on the massive opportunity we see in front of us long-term. Short-term, we are laser-focused on accelerating growth in Operate.”
The market seems more worried. Unity stock has fallen 34% to $31.81 in after-hours trading.
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