On Thursday, Unity Software stock was under wheels again with a minus of over nine percent. But better-than-expected quarterly numbers may now offset price losses – as of Friday, Unity shares are trading down around 10% on early US exchanges.
The 3D content platform provider Unity again posted strong growth in the fourth quarter. Sales soared 43% from the same quarter last year to $316 million – analysts had expected just $295 million.
In the end, the American group is still in the red. Still, the adjusted net loss per share of $0.05 is a marked improvement from $0.10 in the year-ago quarter. Additionally, Unity performed slightly better than analysts had expected with a loss per share of $0.07.
Sales guidance for the current first quarter was between $315 million and $320 million and was in line with expectations.
Click here for Unity’s Q4 report
However, the better-than-expected numbers and the ensuing price reaction can do little to ease investor concerns. Unity stock has now lost more than half its value from its high of $210 in November and is still mired in a sharp downtrend.
The sale of the unprofitable company, which is rated at 23 out of 15 PVR, may continue in the current market environment. Thursday’s sharp drop in prices made this clear.
On the other hand, weak sentiment continues to be offset by attractive long-term opportunities. Due to market position, popularity with customers as well as constantly new application possibilities, such as in the automotive sector or in the metaverse, the management is convinced that growth rates of more than 30% will will continue in the years to come.