Shares of Unity Software (NYSE:U) lost over 9% in after-hours trading after the company reported earnings for its fourth quarter of Fiscal Year 2022. Earnings per share came in at a loss of $0.82, which missed analysts’ consensus estimate of a loss of $0.44 per share.
Sales increased by 42.8% year-over-year, with revenue hitting $451 million. This beat analysts’ expectations of $438.23 million.
Several key sections of Unity saw growth in the fourth quarter. Create Solutions 2022 saw its revenue jump 41% against this time last year. Industries aside from games were up 118% against this time last year. Finally, Grow Solutions–which has included ironSource since November 7–added 12% against this time last year.
Looking forward, management now expects revenue for Q1 2023 to be in the range of $470 million to $480 million. For reference, analysts were expecting $524.1 million in revenue.
Overall, Wall Street has a consensus price target of $33.25 on Unity Software implying 12.15% downside risk, as indicated by the graphic above.
