Game engine maker Unity (NYSE:U) will be reporting earnings tomorrow after the bell. Here's what you need to know.
Last quarter Unity reported revenues of $286.3 million, up 42.6% year on year, beating analyst revenue expectations by 7.49%. It was a strong quarter for the company, with accelerating growth in large customers and an exceptional revenue growth.
Is Unity buy or sell heading into the earnings? Read our full analysis here, it's free.
This quarter analysts are expecting Unity's revenue to grow 30.2% year on year to $287 million, slowing down from the 39.3% year-over-year increase in revenue the company had recorded in the same quarter last year. Loss is expected to come in at -$0.05 per share.
The company has a history of exceeding Wall St's expectations, beating revenue estimates every single time over the past two years.
With Unity being the first among its peers to report earnings this season, we don't have anywhere else to look at to get a hint at how this quarter will unravel for vertical software stocks, but the segment has been facing declining investor sentiment following the fears around raising interest rates, with the stocks down on average 8.81% over the last month. Unity is down 14.1% during the same time, and is heading into the earnings with analyst price target of $133.2, compared to share price of $111.1.
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The author has no position in any of the stocks mentioned.