Unity sees Q3 strategic revenue of $540 mln to $550 mln, up 44% to 47% YoY
Company expects Q3 adjusted EBITDA of $185 mln to $190 mln, up 69% to 74% YoY
Overview
Game engine provider's Q2 revenue rose 24% yr/yr but missed analyst expectations
Q2 adjusted EBITDA beat analyst expectations, driven by higher revenue and cost control
Company's revenue growth led by Unity Vector AI and Grow Solutions; non-strategic revenue declined
Result drivers and key details
Unity Vector AI - Co said growth in Unity Ads Network, driven by Unity Vector AI, contributed to higher Grow Solutions revenue
Subscription revenue - Co said Create Solutions revenue increase was driven by higher subscription revenue, partially offset by declines in cloud and hosting services
Non-strategic revenue decline - Co said decrease in non-strategic revenue was primarily due to the sunset of ironSource Ads Network and sale of Supersonic publishing business
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 20 "strong buy" or "buy", 9 "hold" and no "sell" or "strong sell". The average consensus recommendation for the software peer group is "buy". Wall Street's median 12-month price target for Unity Software Inc. is $37.00, about 4.3% above its August 5 closing price of $35.47.
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