Latest news with #UnityTechnologies
Yahoo
06-08-2025
- Business
- Yahoo
Unity's (NYSE:U) Q2 Sales Top Estimates But Quarterly Revenue Guidance Slightly Misses Expectations
Game engine maker Unity (NYSE:U) reported Q2 CY2025 results exceeding the market's revenue expectations , but sales fell by 1.9% year on year to $440.9 million. On the other hand, next quarter's revenue guidance of $445 million was less impressive, coming in 0.6% below analysts' estimates. Its non-GAAP profit of $0.18 per share was 22% above analysts' consensus estimates. Is now the time to buy Unity? Find out in our full research report. Unity (U) Q2 CY2025 Highlights: Revenue: $440.9 million vs analyst estimates of $427.5 million (1.9% year-on-year decline, 3.1% beat) Adjusted EPS: $0.18 vs analyst estimates of $0.15 (22% beat) Adjusted EBITDA: $90.5 million vs analyst estimates of $77.49 million (20.5% margin, 16.8% beat) Revenue Guidance for Q3 CY2025 is $445 million at the midpoint, below analyst estimates of $447.6 million EBITDA guidance for Q3 CY2025 is $92.5 million at the midpoint, below analyst estimates of $93.25 million Operating Margin: -26.9%, up from -28.8% in the same quarter last year Free Cash Flow Margin: 28.7%, up from 1.7% in the previous quarter Market Capitalization: $14.11 billion "We believe the second quarter of 2025 will be remembered as an inflection point in the Unity story, where our commitment to accelerating product innovation and delivering for our customers translated to markedly better performance," said Matt Bromberg, President and CEO of Unity. Company Overview Started as a game studio by three friends in a Copenhagen apartment, Unity (NYSE:U) is a software as a service platform that makes it easier to develop and monetize new games and other visual digital experiences. Revenue Growth A company's long-term sales performance can indicate its overall quality. Any business can put up a good quarter or two, but the best consistently grow over the long haul. Over the last three years, Unity grew its sales at a 13.4% compounded annual growth rate. Although this growth is acceptable on an absolute basis, it fell short of our standards for the software sector, which enjoys a number of secular tailwinds. This quarter, Unity's revenue fell by 1.9% year on year to $440.9 million but beat Wall Street's estimates by 3.1%. Company management is currently guiding for flat sales next quarter. Looking further ahead, sell-side analysts expect revenue to grow 4.3% over the next 12 months, a deceleration versus the last three years. This projection doesn't excite us and indicates its products and services will see some demand headwinds. Software is eating the world and there is virtually no industry left that has been untouched by it. That drives increasing demand for tools helping software developers do their jobs, whether it be monitoring critical cloud infrastructure, integrating audio and video functionality, or ensuring smooth content streaming. Click here to access a free report on our 3 favorite stocks to play this generational megatrend. Customer Acquisition Efficiency The customer acquisition cost (CAC) payback period represents the months required to recover the cost of acquiring a new customer. Essentially, it's the break-even point for sales and marketing investments. A shorter CAC payback period is ideal, as it implies better returns on investment and business scalability. Unity's recent customer acquisition efforts haven't yielded returns as its CAC payback period was negative this quarter, meaning its incremental sales and marketing investments outpaced its revenue. The company's inefficiency indicates it operates in a highly competitive environment where there is little differentiation between Unity's products and its peers. Key Takeaways from Unity's Q2 Results We were impressed by how significantly Unity blew past analysts' EPS and EBITDA expectations this quarter. We were also happy its revenue outperformed Wall Street's estimates. On the other hand, its revenue and EBITDA guidance for next quarter fell slightly short of Wall Street's estimates. Overall, this print was mixed but still had some key positives. The market seemed to be hoping for more, and the stock traded down 4.9% to $32.30 immediately after reporting. So do we think Unity is an attractive buy at the current price? What happened in the latest quarter matters, but not as much as longer-term business quality and valuation, when deciding whether to invest in this stock. We cover that in our actionable full research report which you can read here, it's free.
Observer
03-08-2025
- Business
- Observer
Game development bootcamp to enhance future-ready digital talent
MUSCAT: As part of its efforts to enhance digital skills development and economic diversification, the Ministry of Transport, Communications and Information Technology (MoTCIT), in collaboration with Unity Technologies and Al-Nahda Training Institute, has launched a National Game Development Bootcamp for young Omani talent. The initiative, which falls under Oman's broader plan to invest in new digital sectors, aims to train 50 Omani nationals in the space of six months. The trainees will be given practical training in game programming, animation design, 3D modelling, and artificial intelligence, the building blocks of today's gaming sector. Jalila bint Abdullah al Fannah al Arimi, Director of Future Skills Development at MoTCIT, announced the launch, emphasizing the programme's focus on practical learning. "This bootcamp has a very strong practical application focus," she said. "It offers participants an opportunity to gain real-world experience in technology incubators and to develop their own game projects, ultimately preparing them to build competitive Omani start-ups in this fast-emerging digital sector." She pointed out that the project reflects a long-term national commitment to digital transformation. "National digital talent investment is key to a sustainable digital economy. This project is a concrete step towards that vision—opening up new possibilities for young Omanis to play an important role in the global gaming sector." Speaking at the bootcamp's official launch ceremony, Shaikh Humaid bin Juma al Shamsi, Chairman of Al-Nahda Training Institute, emphasised the strategic importance of the bootcamp. "This landmark initiative resonates with our vision to empower Omani youth by equipping them with cutting-edge digital skills that now form the bedrock of advanced global economies," he said. He also added that the gaming industry has turned into a knowledge-based industry. "The video game industry is no longer merely entertainment. It's a multi-integrated, knowledge-based industry that includes programming, designing, artificial intelligence, and artistic creativity. The bootcamp was established as a practical platform to allow young Omanis to be part of this active and rapidly emerging global industry." Representing Unity Technologies in the Middle East, Zia Ul Islam further stated that the programme also leverages Unity's real-time AI tech to the advantage of long-term ecosystem development. "This programme is not only intended to upskill people, but to contribute to a sustainable digital ecosystem in Oman," he said. "By building talent and small- and medium-sized enterprises, we hope to power job creation in the gaming and broader digital sectors." Ul Islam was optimistic regarding the programme's future expansion. "This is just the beginning. Our vision is to build something much bigger in the near future, in collaboration with national institutions and ministries across Oman, to further accelerate the development of the local digital economy." The bootcamp marks a significant milestone in Oman's drive to embrace digital innovation and equip its young people for active participation in high-growth global industries.
Yahoo
03-07-2025
- Business
- Yahoo
2 Beaten-Down Stocks That Could Come Roaring Back
Unity is refocusing on subscriptions and improving its advertising platform after a major company reset. Intel is leaving no stone unturned as it searches for a viable strategy after years of struggle. Both stocks could soar on any positive developments. These 10 stocks could mint the next wave of millionaires › The stock market has rebounded over the past few months, but some struggling stocks have been left behind. Unity (NYSE: U) and Intel (NASDAQ: INTC) are facing serious challenges, and it will take time for their turnarounds to gain traction. In both cases, new CEOs are making big changes with the potential to get the companies back on track. While Unity and Intel are risky stocks, they could soar on any positive progress. Video game engine developer Unity went through a major restructuring last year. A company reset led to significant layoffs and the exit from multiple non-core businesses. A new CEO stepped in last May with extensive experience in the mobile games business. While progress has been slow, the early results are promising. While Unity's overall revenue still declined in the first quarter of 2025, the situation looks better under the surface. Subscription revenue increased, the result of price increases and the company fully scrapping a proposed fee that set off a developer revolt in 2023. Unity 6, the latest version of the company's game engine, brings important performance improvements and new features that are resonating with customers. In the advertising business, the launch of the new artificial intelligence (AI)-powered Vector ad platform sets the stage for recovery. The Grow Solutions segment, which houses Unity's advertising business, still saw revenue decline by 4% in Q1. However, Unity Vector is starting to offset declines in other products. Unity is one of two major commercial game engines that dominate the market, along with Epic Games' Unreal Engine. This dominant position is Unity's most valuable asset, and the game engine is used heavily across the gaming industry. The challenge now is to turn that dominance into a growing, profitable business. Shares of Unity are down 88% from their all-time high. While the turnaround is just getting started, visible progress over the next few quarters could light a fire under the stock and deliver major gains to patient investors. Semiconductor giant Intel is going through some major changes. Following a turnaround effort led by former CEO Pat Gelsinger that ultimately led to his ouster, the company has brought on industry veteran Lip-Bu Tan to fix its problems. The first order of business is a streamlining of operations that will involve substantial layoffs. Rumors suggest that even workers in the foundry, one of Intel's key growth initiatives, won't be immune. Intel is also planning to outsource marketing to a consulting company, which will use AI to slash marketing costs. Beyond cost cutting, Intel will likely pare down its product portfolio and focus on its best opportunities. A new strategy for its AI chip business could be coming following the scrapping of its previously planned Falcon Shores GPU. The company has already sold off a majority stake in Altera, and more exits could be coming. In the foundry business, Tan may be about to take a dramatic step. According to Reuters, Tan is considering giving up on marketing the Intel 18A manufacturing process to external customers, instead shifting focus to the upcoming Intel 14A process. While Intel 18A represents a huge leap over Intel's previous manufacturing technology, it only closes the gap with TSMC, and the company has struggled to win over big customers. Long story short, Intel's comeback is going to be a drawn-out affair. However, the stock is priced so pessimistically today that any meaningful progress could send shares soaring. Intel is currently valued right around book value, or assets minus liabilities, a historically low valuation for the storied semiconductor company. If Tan can tell a good story and convince investors that a turnaround is viable, a major recovery for the stock could be in the cards. Intel investors will need to be patient as the company attempts to fix its past mistakes and return to profitable growth. It's not a sure thing, but the risk-reward trade-off looks appealing. 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 $397,573!* Apple: if you invested $1,000 when we doubled down in 2008, you'd have $39,453!* Netflix: if you invested $1,000 when we doubled down in 2004, you'd have $697,627!* 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 June 30, 2025 Timothy Green has positions in Intel. The Motley Fool has positions in and recommends Intel, Taiwan Semiconductor Manufacturing, and Unity Software. The Motley Fool recommends the following options: short August 2025 $24 calls on Intel. The Motley Fool has a disclosure policy. 2 Beaten-Down Stocks That Could Come Roaring Back was originally published by The Motley Fool Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
