Unity Software Inc. (U) Misses Q4 EPS by 88c

Unity Software Inc. (NYSE: U) reported Q4 EPS of ($0.66), which may not compare to the analyst estimate of $0.22. Revenue for the quarter came in at $609 million versus the consensus estimate of $551.57 million.

"During the quarter, Unity and Wētā FX mutually agreed to terminate Unity’s service agreement and entered into a perpetual license agreement for Wētā FX’s internal use of Unity's Wētā tools. This transaction resulted in $99 million of incremental revenue, including the release of Wētā FX’s deferred revenue. Excluding this transaction, revenue would have been $510 million, down -2% year-over-year on a pro-forma basis."

"Going forward, we will guide revenue only for our Strategic Portfolio, as we expect that the non-Strategic portfolio will not be material for the year. We will report any non-strategic revenue separately so that you can track our underlying performance. In 2024, we expect another year of high engagement from gamers and new game launches."

GUIDANCE:

Unity Software Inc. sees Q1 2024 revenue of $415-420 million, which may not compare to the consensus of $536.1 million.

Unity Software Inc. sees FY2024 revenue of $1.76-1.8 billion, which may not compare to the consensus of $2.32 billion.

For earnings history and earnings-related data on Unity Software Inc. (U) click here.

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