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Unity Software’s stock has dropped over 30% due to disappointing revenue guidance

Unity Software Inc.’s stockU, -4.47 percent fell 29.3 percent in extended trading Tuesday after the software company published fiscal first-quarter earnings that were roughly in line with Wall Street analysts’ expectations, but offered disappointing second-quarter and fiscal year revenue outlook. Unity’s net loss was $177.6 million, or 60 cents per share, compared to a net loss of $107.5 million, or 39 cents per share, in the prior quarter. Earnings per share were down 8 cents adjusted.

 

From $234.8 million a year before, revenue climbed by 36% to $320.1 million. FactSet polled analysts, who predicted a net loss of 8 cents per share on $321 million in revenue. However, Unity expects sales of $290 million to $295 million in the second quarter, while analysts polled by FactSet predict $360 million on average. Unity expects $1.35 billion to $1.43 billion in revenue for the fiscal year, while FactSet polled analysts forecast $1.5 billion. Unity’s stock has dropped 66 percent this year, while the S&P 500 index SPX, +0.25 percent has down 16 percent.

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Kathy Lewis

Kathy Lewis is an all-around geek who loves learning new stuff every day. With a background in computer science and a passion for writing, she loves writing for almost all the sections of Editorials99.

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