Shares of Unity Software Inc. fell in late trading Monday after the app monetization company released its latest results and forecasts.
The company expects between $415 million and $420 million in fiscal first-quarter revenue for what it calls its “strategic portfolio,” believing that its non-strategic portfolio will not contribute significantly to revenue going forward. The FactSet consensus was for revenue of $534 million.
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It also expects annual revenue of $1.7 billion to $1.8 billion for the strategic portfolio. Analysts tracked by FactSet were looking for $2.3 billion.
Shares fell more than 17% in Monday’s extended session.
The company’s fiscal first-quarter guidance for adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) was between $45 million and $50 million, while its full-year outlook calls for between $400 million and $425 million. dollars. Analysts had expected $112 million for the quarter and $647 million for the year.
The company reported a fiscal fourth-quarter net loss of $254 million, or 66 cents per share, compared with a loss of $288 million, or 82 cents per share, in the year-earlier quarter. Analysts had expected a loss of 46 cents per share.
Revenues totaled $609 million, while analysts tracked by FactSet estimated $551 million. Unity noted that revenue would have been $510 million excluding a transaction that resulted in the release of Wētā FX’s deferred revenue.
Unity said in its letter to shareholders that it is in the midst of “a two-phase business recovery that we expect will enable Unity to win customers and shareholders in a sustainable manner.”
“With the portfolio and cost structure reset mostly behind us, our full attention is on reigniting revenue growth,” the company said.