Unity Software’s stock plunges nearly 30% on weak revenue forecasts

Unity Software Inc. stock U,
fell 29.3% in extended trading on Tuesday after the software company reported first-quarter results that were broadly in line with Wall Street analysts’ forecasts, but issued a poor second-quarter revenue forecast and exercise. Unity posted a net loss of $177.6 million, or 60 cents per share, compared with a net loss of $107.5 million, or 39 cents per share, in the year-ago quarter. Adjusted earnings were a loss of 8 cents per share. Revenue rose 36% to $320.1 million from $234.8 million a year ago. Analysts polled by FactSet on average had expected a net loss of 8 cents per share on revenue of $321 million. However, Unity said it expects revenue of between $290 million and $295 million in the second quarter, while analysts polled by FactSet expect an average of $360 million. For the fiscal year, Unity expects $1.35 billion to $1.43 billion; analysts polled by FactSet predict $1.5 billion. Unity shares have fallen 66% this year, while the broader S&P 500 SPX index,
decreased by 16%.

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