Unity Software - To infinity and beyond?

Share prices popped after that, but corrected downwards again.

There is a mixed bag of aspects to take note of. But overall, I would say it's a good one, with a few points to take note of.

Here are some points to take note of.

Grow Solutions was the outperformer here, with a revenue contribution of USD 313 million, growing by 101% YoY. But Create Solutions is anticipated to accelerate throughout the year behind the Editions price increase and the adoption of digital twins and acceleration in China.

With IronSource and Weta now under Unity's portfolio, customers that contribute to more than USD 100k grew significantly since Q4'22.

But the dollar-based expansion rate is dropping. It used to be in the range of 140% but has now been whittled down to 107% and shouldn't experience erosion anymore.

Apart from the dropping DBNR, shareholders or investors should take note that even though gross profit increased on top of higher revenue, GAAP net loss deepened.

This is mainly due to higher stock-based compensation expenses. A higher stock-based compensation also indicates a higher dilution rate of the weighted outstanding shares available.

Should the company fail to grow, investors are at risk of worst results.

DISCLAIMER
The information available in this article/report/analysis is for sharing and education purposes only. This is neither a recommendation to purchase or sell any of the shares, securities, or other instruments mentioned; nor can it be treated as professional advice to buy, sell or take a position in any shares, securities, or other instruments. If you need specific investment advice, please consult the relevant professional investment advice and/or for study or research only.