Jul. 26 at 6:49 AM
$U is approaching a major test when Unity reports Q2 results on August 6.
Expectations are higher after Strategic Grow revenue jumped 49% to
$279M in Q1. For Q2, Unity is guiding for another 50%-52% increase, making its advertising performance, and its competition with
$APP, more important than headline revenue alone.
Key numbers to watch:
• total revenue of
$505M-
$515M
• Strategic Grow revenue of at least
$302M
• adjusted EBITDA of
$130M-
$135M
• evidence that exiting non-strategic businesses is improving margins
The main risk remains the wide gap between adjusted profitability and GAAP results. Q2 needs to show that Unity’s turnaround is becoming sustainable, rather than being driven mainly by restructuring and cost reductions.
Not financial advice. Always do your own research.
