Unity - Will the rally ever come?

Unity Software (NYSE:U) is a leading provider of real-time 3D (RT3D) development platform. The company's platform is used by game developers, architects, automotive designers, filmmakers, and other creators to make their creations come to life.

Q2'23 results were out recently, and share prices rally after that before slumping down together with the general market.

The stock is trading close to its historical low. So can the stock actually rally back to USD 100 per share?

Here is what investors need to know.

Q2'23 revenue grew 80% YoY, with most of the contribution and growth coming from Grow Solutions. Grow Solutions contributed a revenue of USD 340 million, and was up 157% YoY.

Create Solutions, which encompasses the core subscription services, was up 17% YoY.

Dollar-Based Net Expansion Rate continues to slide down to 106%. 2 years ago, DBNR is at a high of 142%.

There 2 sides to the coin for the DBNR trend - it has come down, which gives the impression that the ceiling for Unity's software solutions is hitting a ceiling soon. The other side of it is that, it should have plateaued and should not go below 100% for the coming quarters.

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