Naughty and Nice ER Review: Unity

Current Standings:

Nice List:

  1. ZI
  2. MELI

Eye of the Beholder List:

  1. NET

Naughty List:

  1. CFLT
  2. AMPL
  3. UPST

Unity Software - Platform for creating and operating interactive, real time 3D content

https://unity.com/

U Announced First QTR 2022 Earnings Today:

https://seekingalpha.com/news/3836206-unity-software-plunges…

  • Company delivered record quarter with $320 million in revenue during the first quarter of 2022, up 36% year-over-year. This was a MISS: Oh POOP!

  • "with Create over-performing at 65% year-on-year growth, offset by slower growth in Operate,”…uh…Going with Oh POOP!

  • Loss from operations was $171.2 million, or 53% of revenue, compared to loss from operations of $110.9 million, or 47% of revenue, in the first quarter of 2021: Big OH POOP!

  • Non-GAAP loss from operations was $23.0 million, or 7% of revenue, compared to a non-GAAP loss from operations of $23.4 million, or 10% of revenue, in the first quarter of 2021: ATTA BOY!

  • Basic and diluted non-GAAP net loss per share was $0.08, compared to basic and diluted non-GAAP net loss per share of $0.10 in the first quarter of 2021: ATTA BOY!

  • 1,083 customers each generated more than $100,000 of revenue in the trailing 12 months as of March 31, 2022, compared to 837 as of March 31, 2021: ATTA BOY!

  • Dollar-based net expansion rate as of March 31, 2022 was 135% as compared to 140% as of March 31, 2021: Light OH POOP!

  • Free Cash Flow in the first quarter of 2022 was $86.4 million, compared to $(100.6) million for the same period last year: ATTA BOY.

  • Unity (U) forecast sharply slowing growth for the second-quarter, saying it expects sales to be between $290 million and $295 million, compared to estimates of $359.65 million. At the low end, that would represent just 6% year-over-year growth, compared to 36.3% growth in the first quarter: Huge OH POOP!

  • For the full-year, Unity (U) expects sales to be within a range of $1.35 billion and $1.425 billion, compared to estimates of $1.49 billion, implying revenue will grow between 22% and 28% year-over-year: OH POOP!

  • Market Opinion: Stock Down -32+% During After Hours: OMG OH POOP!

U ER SCORE: ATTA BOYs 7/OH POOPs 4

List and Ranking Assignment: Naughty #4

Note: For those Readers who follow the Mongolian Rating System (MRS) this report is the equivalent of: Black Tent.

All the Best,

1 Like