Unity Software Inc (NYSE: U) shares are trading lower in Wednesday’s after-hours session after the company reported fourth-quarter results and issued below par outlook.
Unity said fourth-quarter revenue increased 43% year-over-year to $451 million, which beat average analyst estimates of $438.81 million, according to Benzinga Pro.
The company said Create Solutions 2022 revenue grew 41% year-on-year. Revenue growth was broad-based, with games up 24% year-over-year and industries (beyond games) up 118% year-over-year.
Grow Solutions 2022 revenue increased 12% year-on-year, which includes ironSource as of November 7. Unity said its Grow Solutions segment was impacted by portfolio and executional gaps, which are now behind the company, as well as a challenging economic environment.
“We put our users first, and as a result, customers reward us with their business,” the company said in a letter to shareholders.
Unity repurchased 42.7 million shares during the fourth quarter at an average price of $35.10 per share. The company ended the quarter with $1.6 billion in cash, equivalents, and short-term investments.
View more earnings on U
“While we are not forecasting a recovery in the in-game ads market in 2023, we believe it is possible when the economy improves,” the company said.
Unity sees first-quarter revenue in a range of $470 to $480 million versus the $524.79 million estimate. Full-year 2023 revenue is expected to be in the range of $2.05 billion to $2.2 billion against an estimate of $2.22 billion.
Unity offers an end-to-end platform for content creators of all sizes to successfully realize their vision.
U Price Action: Unity has a 52-week high of $109.99 and a 52-week low of $21.22.
The stock initially traded higher before pulling back and turning negative. The stock was down 10.3% after hours at $33.98 at the time of publication, according to Benzinga Pro.
Photo: courtesy of Unity.
Don’t miss real-time alerts on your stocks – join Benzinga Pro for free! Try the tool that will help you invest smarter, faster, and better.
This article After-Hours Alert: Why Unity Stock Is Falling originally appeared on Benzinga.com
© 2023 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.