Unity Earnings: Vector Launches Early
The AI-powered Vector advertising platform launched earlier than expected, providing a tailwind for the Grow Solutions business.
Unity's outlook was a bit weak, possibly due to economic conditions.
Here's our initial take on Unity Software's (NYSE: U) financial report.
Metric
Q1 2024
Q1 2025
Change
vs. Expectations
Revenue
$460 million
$435 million
(5%)
Beat
Earnings per share (adjusted)
$0.28
$0.24
(14%)
Beat
Create Solutions revenue
$164 million
$150 million
(9%)
n/a
Grow Solutions revenue
$297 million
$285 million
(4%)
n/a
Unity revenue declined by 5% year over year in the first quarter, but with the video game engine developer's "portfolio reset" nearly in the rearview mirror, a return to growth is inching closer.
Driving any growth will be Unity's subscription business within the Create Solutions segment. The company dropped a plan to charge developers onerous fees based on the number of game installs last year and instead boosted its subscription pricing. Unity noted that while professional services revenue and consumption services revenue slumped in the first quarter, subscription revenue enjoyed strong growth.
In the Grow Solutions segment, which houses the company's advertising business, revenue was down just 4% as the early rollout of Unity's new Vector platform helped offset declines elsewhere. Vector is an AI-powered rebuild of the company's core advertising technology that aims to boost results for advertisers through better targeting and other improvements.
Unity posted a GAAP loss in the first quarter, but both adjusted earnings per share and free cash flow were in positive territory. Adjusted EPS was down 14% to $0.24, while free cash flow rose to positive $7 million from negative $15 million in the prior-year period.
For the second quarter, Unity expects revenue between $415 million and $425 million along with adjusted EBITDA between $70 million and $75 million.
Unity stock was up about 2% in premarket trading on Wednesday soon after the release of the first-quarter report. The company beat expectations for revenue and earnings per share, but the revenue outlook for the second quarter was slightly below analyst estimates. Shares of Unity went into the earnings report down 5% year to date and down 89% from their all-time high.
Unity's earnings call on Wednesday morning should shed some light on how the company views the current macroeconomic environment. Neither the video game industry nor the advertising industry is immune from an economic slowdown, and Unity's advertising comeback could come under pressure if advertisers pull back on spending. The company's weak outlook for the second quarter could be a reflection of that uncertainty.
Full earnings report
Investor relations page
Ever feel like you missed the boat in buying the most successful stocks? Then you'll want to hear this.
On rare occasions, our expert team of analysts issues a 'Double Down' stock recommendation for companies that they think are about to pop. If you're worried you've already missed your chance to invest, now is the best time to buy before it's too late. And the numbers speak for themselves:
Nvidia: if you invested $1,000 when we doubled down in 2009, you'd have $294,438!*
Apple: if you invested $1,000 when we doubled down in 2008, you'd have $37,636!*
Netflix: if you invested $1,000 when we doubled down in 2004, you'd have $613,546!*
Right now, we're issuing 'Double Down' alerts for three incredible companies, available when you join , and there may not be another chance like this anytime soon.*Stock Advisor returns as of May 5, 2025
Timothy Green has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Unity Software. The Motley Fool has a disclosure policy.
Unity Earnings: Vector Launches Early was originally published by The Motley Fool
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
43 minutes ago
- Yahoo
5 High-Quality Dividend Stocks Yielding Well Over 5% to Buy Without Hesitation Right Now
Key Points Brookfield Infrastructure Partners and MPLX offer high yields due in part to their tax complications. EPR Properties, Main Street Capital, and Realty Income pay monthly dividends. These companies all expect to continue increasing their high-yielding dividends in the future. 10 stocks we like better than Realty Income › With the market continuing its upward move this year, dividend yields have continued to fall. The S&P 500's yield is around 1.2%, near its lowest level in over two decades. However, several stocks still offer attractive dividend yields. Here are five high-quality dividend stocks with yields well over 5%. Brookfield Infrastructure Partners Brookfield Infrastructure Partners (NYSE: BIP) currently yields around 5.8%, which is higher than the yield of its economically equivalent corporate twin, Brookfield Infrastructure Corporation (NYSE: BIPC), at 4.4%. While both entities provide investors with access to Brookfield's global infrastructure assets, BIP offers a higher payout due to its partnership structure and because it sends investors a Schedule K-1 federal tax form, which can complicate tax returns. BIPC, in contrast, delivers a lower yield but issues a 1099-DIV, a simpler tax report for investors. The global infrastructure operator generates stable cash flow. About 85% of its funds from operations (FFO) comes from long-term contracts or regulated frameworks. Meanwhile, Brookfield pays out a conservative portion of its stable cash flow in dividends (60%-70%). It also has a solid investment-grade balance sheet. Those features give it the flexibility to continue investing in growing its business. Brookfield expects to deliver FFO per share growth of 10% or more, fueled by inflation-driven rate increases, expansion projects, and acquisitions. This easily supports its plan to provide annual dividend increases of 5% to 9% over the long term, further extending its 16-year growth streak. EPR Properties EPR Properties (NYSE: EPR) currently yields 6.7%. The real estate investment trust (REIT) pays its dividends monthly, making it highly attractive for those seeking a lucrative passive income stream. The REIT focuses on investing in experiential real estate such as movie theaters, eat & play venues, attractions, and fitness and wellness properties. It leases these properties back to operating tenants under long-term, primarily triple net agreements (NNN). Those leases provide it with predictable rental income to cover its high-yielding dividend. EPR Properties utilizes a combination of excess cash flow generated after paying dividends, noncore property sales, and balance sheet capacity to invest in additional experiential properties. It aims to invest between $200 million and $300 million annually in acquisitions, development projects, and redevelopments. This investment rate should grow its income per share by 3% to 4% annually, supporting a similar dividend growth rate. Main Street Capital Main Street Capital (NYSE: MAIN) is a business development company (BDC) with a rather unique dividend policy. It pays a monthly dividend set at a sustainable level, allowing investors to receive a recurring income stream they can count on. It has never decreased or suspended this payment. Instead, it has raised it by a cumulative 132% since going public in late 2007. Additionally, Main Street periodically pays a supplemental quarterly dividend. The company's most recent payments gave it a 6.6% yield. The BDC supports its dividend payments with a portfolio of debt and equity investments that generate interest and dividend income. The company sets its monthly dividend below its expected income to enhance durability. It also maintains an investment-grade credit rating. Main Street Capital uses its financial flexibility to make more income-generating investments, enabling it to steadily increase its monthly dividend and provide higher supplemental payments. MPLX MPLX (NYSE: MPLX) is a master limited partnership (MLP), similar in structure to Brookfield Infrastructure Partners. Like Brookfield, MPLX also sends a Schedule K-1 tax form to its investors, which affects tax reporting. The energy midstream company yields more than 7.5%. The MLP generates stable cash flow backed by long-term contracts and regulated rate structures. MPLX currently produces enough cash to cover its lucrative distribution by 1.5 times. That allows it to retain cash to fund expansion projects while maintaining its strong financial profile. It currently has a 3.1 times leverage ratio, well below the 4.0x range its stable cash flows can support. MPLX recently agreed to acquire Northwind Midstream in a $2.4 billion deal and has multiple organic projects slated to start commercial service through the end of the decade. These growth investments should support continued distribution increases, building on its history of annual payout raises since 2012 and a compound annual distribution growth rate above 10% since 2021. Realty Income Realty Income (NYSE: O) currently yields more than 5.5%. The REIT owns a diversified portfolio of commercial real estate (retail, industrial, gaming, and other properties such as data centers) net leased to many of the world's leading companies. That lease structure provides it with very stable rental income because tenants cover all property operating expenses. The company pays out a conservative portion of its stable income in dividends (around 75% of its adjusted FFO). Realty Income has increased its dividend 131 times since its public market listing in 1994 (including the last 111 quarters in a row). That steady growth should continue as the REIT acquires more income-producing real estate. With one of the strongest financial profiles in the industry and $14 trillion of real estate suitable for net leases, Realty Income has plenty of room to continue expanding. Great high-yielding dividend stocks to buy for income These five companies have excellent dividend-paying track records. That's due in part to their stable and growing cash flows, as well as their strong financial profiles. With these strengths, they should be able to continue growing their high-yielding payouts well into the future. If you're looking to boost your income and build a solid foundation for your portfolio, these dividend stocks are great ones to consider buying and holding for the long term. Should you invest $1,000 in Realty Income right now? Before you buy stock in Realty Income, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Realty Income wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $668,155!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,106,071!* Now, it's worth noting Stock Advisor's total average return is 1,070% — a market-crushing outperformance compared to 184% for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of August 13, 2025 Matt DiLallo has positions in Brookfield Infrastructure, Brookfield Infrastructure Partners, EPR Properties, Main Street Capital, and Realty Income. The Motley Fool has positions in and recommends EPR Properties and Realty Income. The Motley Fool recommends Brookfield Infrastructure Partners. The Motley Fool has a disclosure policy. 5 High-Quality Dividend Stocks Yielding Well Over 5% to Buy Without Hesitation Right Now was originally published by The Motley Fool Sign in to access your portfolio
Yahoo
an hour ago
- Yahoo
Massive Headwinds Are on the Horizon for Pharmaceutical Stocks, but Here Are 2 That Could Weather the Storm
Key Points Johnson & Johnson and Novartis are facing (or will soon face) important patent cliffs. Both companies can handle these challenges thanks to their deep lineups and innovative abilities. Both drugmakers also have excellent dividend-paying stocks. 10 stocks we like better than Johnson & Johnson › Pharmaceutical companies regularly encounter substantial headwinds. Among the most significant are patent cliffs -- when therapies lose patent exclusivity, inviting cheaper generic or biosimilar competition that erodes their market share. Although these sometimes threaten drugmakers, some can effectively handle the challenge and perform relatively well. With that as a backdrop, let's discuss two pharmaceutical leaders that have faced (or will face) patent expiration for some of their most important products, but should be able to overcome the threat: Johnson & Johnson (NYSE: JNJ) and Novartis (NYSE: NVS). 1. Johnson & Johnson In July 2024, Johnson & Johnson began facing biosimilar competition for Stelara, an immunology medicine and one of its best-selling products, in Europe. The same thing occurred in the U.S. in February of this year. The result is that Stelara's sales are dropping off a cliff. In the second quarter, the medicine generated revenue of $1.7 billion -- a 42.7% decrease from the same period last year. Still, Johnson & Johnson continues to post solid financial results. Its top line in the period grew by 5.8% year over year to $23.7 billion. J&J even raised both top- and bottom-line guidance for the year. In other words, the company is performing relatively well, despite the drop in sales for Stelara. J&J has an incredibly diversified business with a long list of medicines in its pharmaceutical segment. Some of its top growth drivers include cancer medicines Darzalex and Erleada, as well as Remicade, which treats several immunology conditions. The company also has newer products in its arsenal: Imaavy for myasthenia gravis (a condition that causes muscle weakness) was approved earlier this year, and it's awaiting word from regulators for TAR-200, a highly promising investigational medicine for bladder cancer. Furthermore, Johnson & Johnson is a leading player in the medical device industry. One long-term growth driver for the company could be its robotic-assisted surgery system, the Ottava, which is still undergoing clinical trials in the U.S. J&J can overcome patent cliffs -- and, for that matter, drug-price negotiations that also threaten its business -- through innovation. That's what the company is doing with Stelara, and it can do so in the future. Finally, Johnson & Johnson is a terrific dividend stock; it's raised its payouts for 62 consecutive years, making it a Dividend King. The company can handle all the challenges it faces and still deliver solid returns over the long run. 2. Novartis Novartis is gearing up for generic competition for Entresto, a medication for heart failure, later this year in the U.S. Through the first half of the year, this drug generated $4.6 billion in sales, almost 52% of which came from the U.S. With cheaper generics in its single most important market for its best-selling medicine, Novartis might be in trouble -- except it isn't. The drugmaker continues to expect high-single-digit revenue growth for the year, a strong performance for a pharmaceutical giant. Even if Entresto's patent cliff has a greater impact on financial results next year, the company should be fine. Novartis has a vast and diversified portfolio of medicines across various therapeutic areas. Many of its products are blockbusters; seven had already generated more than $1 billion in revenue each through the first six months of 2025. Novartis also has several newer products that will help drive top-line growth for a long time. For instance, in April the company earned U.S. approval for Vanrafia, a medicine indicated to treat proteinuria (excess protein in urine) in patients with a rare kidney disease called IgA nephropathy. Some analysts estimate that Vanrafia could hit peak sales of $1.5 billion. Novartis' extensive lineup, combined with its continued launches of new products, should help it move beyond Entresto's patent cliff. Additionally, the company is engaged in patent litigation over the legitimacy of generic versions of Entresto. If it ends up winning these battles, it might be owed money from companies that would have launched those generics on the market. Even if that doesn't happen, the drugmaker should continue delivering consistent revenue and earnings over the long run, as well as annual dividend increases. The company has raised its payouts for 28 consecutive years. Despite the patent-cliff threat it faces, Novartis remains a top pick for those seeking blue chip dividend stocks. Should you invest $1,000 in Johnson & Johnson right now? Before you buy stock in Johnson & Johnson, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Johnson & Johnson wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $668,155!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,106,071!* Now, it's worth noting Stock Advisor's total average return is 1,070% — a market-crushing outperformance compared to 184% for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of August 13, 2025 Prosper Junior Bakiny has positions in Johnson & Johnson. The Motley Fool recommends Johnson & Johnson. The Motley Fool has a disclosure policy. Massive Headwinds Are on the Horizon for Pharmaceutical Stocks, but Here Are 2 That Could Weather the Storm was originally published by The Motley Fool
Yahoo
2 hours ago
- Yahoo
NextEra Energy (NEE) to Invest $120 Billion in Renewables and Storage Through 2029
We recently published . NextEra Energy, Inc. (NYSE:NEE) is one of these profitable utility stocks. NextEra Energy, Inc. (NYSE:NEE), headquartered in Juno Beach, Florida, is a leading North American electric power and energy infrastructure company. It owns Florida Power & Light Company (FPL), serving about 12 million customers, and NextEra Energy Resources, a top U.S. renewable energy developer with a diverse portfolio including natural gas, nuclear, wind, solar, and battery storage. In 2024 and early 2025, NextEra Energy, Inc. (NYSE:NEE) significantly expanded its renewable energy capacity, adding 8.7 gigawatts of new renewable and storage projects in 2024 and 3.2 gigawatts in Q1 2025. FPL also brought 894 megawatts of new solar capacity online, reinforcing the company's clean energy momentum. The business plans to invest approximately $120 billion over the next four years to grow its fleet to around 121 gigawatts, underscoring its long-term commitment to clean energy and infrastructure growth, and strengthening its case as one of the most profitable stocks in the sector. Strategically, the corporation signed a framework agreement with GE Vernova to develop natural gas power generation solutions, broadening its energy mix to meet evolving customer needs and transition goals. Alongside its renewable focus, NextEra Energy, Inc. (NYSE:NEE)'s regulated utility segment continues to provide reliable electricity and stable earnings, supporting its consistent dividend policy. The board recently declared a quarterly dividend of $0.5665 per share payable in September 2025 and expects to raise dividends by about 10% annually through at least 2026, reflecting strong financial health. With a solid cash position of $1.8 billion in Q2 2025 and robust operating cash flow, the corporation is well-positioned for sustained growth and leadership in the clean energy transition. While we acknowledge the potential of NEE as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: The Best and Worst Dow Stocks for the Next 12 Months and 10 Unstoppable Stocks That Could Double Your Money. Disclosure: None. Errore nel recupero dei dati Effettua l'accesso per consultare il tuo portafoglio Errore nel recupero dei dati Errore nel recupero dei dati Errore nel recupero dei dati Errore nel recupero dei dati
