The new CEO needs more drastic improvements
Many of Unity's layoffs in January and February had little impact on lower-level employees. They only cut a few big fish after the new CEO arrived, which was far from enough.
Unity's stock incentives account for high compensation, which many analysts have emphasized. When stocks fall, it is necessary to issue more stocks to attract or retain people, because companies need to issue bonds to maintain cash, which invisibly forms a vicious cycle.
The number of shares of many executives is frightening, but they are still being issued. Looking at the company's equity information change announcement throughout June, all of the increases in holdings were compensation shares newly approved by the board of directors, not private repurchases. Many stocks were also released during mergers and acquisitions 1-2 years ago. Now that the lockdown period has passed, they are all beginning to dilute the market. The company seems to have proposed a 2 billion dollar share repurchase in 2022, which will last until 2024, but it spent 1.5 billion dollars at the end of 2023, and many big fish successfully left the market last year.
Unity is a product I've always used, but the monetization of the product can't support such a high market value, so Unity only uses its own advertising platform, so in a strict sense, Unity's stock value comes from the advertising platform, not the Unity game engine itself. Many retail investors like games or development engines. This is a belief. Unfortunately, this huge belief only accounts for 30% of revenue.
Unity needs to aggressively implement the integration of ironsource. The major layoffs at the beginning of this year are likely ironsource is still in the acquisition protection period, and the overall loss after removing compensation for the layoffs is unreasonable, indicating that the advertising integration was unsuccessful. If the market value continues to fall or the current slump continues, it is likely that an operation will be needed to reduce the operating investment ratio to less than 4,000, and increase profitability. After all kinds of failed integrations, the advertising business is an essential part of succeeding.
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一朝游戏一航梦 : Thank you for sharing There aren't many reviews like this.