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Unity Software (U) to Post Q4 Earnings: What's in the Cards?
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Unity Software (U - Free Report) is set to release fourth-quarter fiscal 2020 results on Feb 4.
For the quarter under review, the company projects revenues between $200 million and $204 million. The Zacks Consensus Estimate for revenues is currently pegged at $203.9 million.
Moreover, the consensus mark for a loss of 15 cents per share has remained unrevised over the past 30 days.
Let’s see how things have shaped up prior to the upcoming announcement.
Unity Software’s fiscal fourth-quarter performance is anticipated to have benefited from robust demand for its software solutions from content creators like game developers, architects, automotive designers and filmmakers. Growing momentum in the Operate Solutions business is likely to have served as a key catalyst.
In addition, the online gaming industry has been witnessing accelerated growth owing to the pandemic-led shelter-in-place guidelines. This, in turn, is expected to have driven the adoption of Unity’s real-time 3D technology among gaming companies globally.
Further, strong demand for interactive, real-time 2D and 3D content for mobile phones, tablets, PCs and virtual reality devices might have aided the company’s top line.
Additionally, integration of Unity Reflect with Autodesk’s (ADSK - Free Report) BIM 360, which enables project members to connect their BIM projects to Unity’s platform to access real time 3D experiences acrossVR, AR, XR, Web & mobile, is anticipated to have boosted the customer base expansion during the to-be-reported quarter.
Furthermore, the company partnered with Snap (SNAP - Free Report) to extend the reach of Unity’s Ad supply to Snapchat advertisers. It also brings Snap technology to mobile game developers through select Snap Kit tools and gives Unity developers access to Snapchat’s 249 million daily active users.
The above-discussed partnership is anticipated to have expanded the reach of Unity’s platform to a wide mobile gaming audience base, thereby stoking top-line growth during the quarter to be reported.
Apart from this, Unity continues to expand its platform by introducing product capabilities, which is likely to have been a major growth driver.
During the fiscal fourth quarter, the company unveiled Unity Forma, a solution which enables marketing teams to build custom real-time 3D marketing content. Also, the company rolled out its latest TECH stream, with more than 400 enhancements to provide improved work flows and enhanced productivity to users.
Additionally, Unity acquired RestAR, a computer vision and deep learning company, which helps marketers create high quality AI-powered 3D models of the products. The buyout is anticipated to have aided the performance of the recently-launched Unity Forma, thereby driving client wins during the quarter under review.
Notably, as of Sep 30, 2020, the company hosted 2.5 billion monthly active end-users across more than 20 platforms.
Furthermore, the company’s dollar-based net expansion rate, which measures expansion in existing customers’ revenues over a trailing 12-month period, grew from 132% as of Sep 30, 2019, to 144% as of Sep 30, 2020.
The momentum is likely to have continued in the soon-to-be-reported quarter, primarily on strong adoption of the company’s subscription-based Create Solutions and Operate Solutions.
What Our Model Says
According to the Zacks model, the combination of a positive Earnings ESP and Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here.
Unity Software has an Earnings ESP of 0.00% and carries a Zacks Rank #3 currently. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
A Stock to Consider
Here is a company, which, per our model, has the right combination of elements to post earnings beat in its upcoming release.
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Image: Bigstock
Unity Software (U) to Post Q4 Earnings: What's in the Cards?
Unity Software (U - Free Report) is set to release fourth-quarter fiscal 2020 results on Feb 4.
For the quarter under review, the company projects revenues between $200 million and $204 million. The Zacks Consensus Estimate for revenues is currently pegged at $203.9 million.
Moreover, the consensus mark for a loss of 15 cents per share has remained unrevised over the past 30 days.
Let’s see how things have shaped up prior to the upcoming announcement.
Unity Software Inc. Price and EPS Surprise
Unity Software Inc. price-eps-surprise | Unity Software Inc. Quote
Factors to Consider
Unity Software’s fiscal fourth-quarter performance is anticipated to have benefited from robust demand for its software solutions from content creators like game developers, architects, automotive designers and filmmakers. Growing momentum in the Operate Solutions business is likely to have served as a key catalyst.
In addition, the online gaming industry has been witnessing accelerated growth owing to the pandemic-led shelter-in-place guidelines. This, in turn, is expected to have driven the adoption of Unity’s real-time 3D technology among gaming companies globally.
Further, strong demand for interactive, real-time 2D and 3D content for mobile phones, tablets, PCs and virtual reality devices might have aided the company’s top line.
Additionally, integration of Unity Reflect with Autodesk’s (ADSK - Free Report) BIM 360, which enables project members to connect their BIM projects to Unity’s platform to access real time 3D experiences acrossVR, AR, XR, Web & mobile, is anticipated to have boosted the customer base expansion during the to-be-reported quarter.
Furthermore, the company partnered with Snap (SNAP - Free Report) to extend the reach of Unity’s Ad supply to Snapchat advertisers. It also brings Snap technology to mobile game developers through select Snap Kit tools and gives Unity developers access to Snapchat’s 249 million daily active users.
The above-discussed partnership is anticipated to have expanded the reach of Unity’s platform to a wide mobile gaming audience base, thereby stoking top-line growth during the quarter to be reported.
Apart from this, Unity continues to expand its platform by introducing product capabilities, which is likely to have been a major growth driver.
During the fiscal fourth quarter, the company unveiled Unity Forma, a solution which enables marketing teams to build custom real-time 3D marketing content. Also, the company rolled out its latest TECH stream, with more than 400 enhancements to provide improved work flows and enhanced productivity to users.
Additionally, Unity acquired RestAR, a computer vision and deep learning company, which helps marketers create high quality AI-powered 3D models of the products. The buyout is anticipated to have aided the performance of the recently-launched Unity Forma, thereby driving client wins during the quarter under review.
Notably, as of Sep 30, 2020, the company hosted 2.5 billion monthly active end-users across more than 20 platforms.
Furthermore, the company’s dollar-based net expansion rate, which measures expansion in existing customers’ revenues over a trailing 12-month period, grew from 132% as of Sep 30, 2019, to 144% as of Sep 30, 2020.
The momentum is likely to have continued in the soon-to-be-reported quarter, primarily on strong adoption of the company’s subscription-based Create Solutions and Operate Solutions.
What Our Model Says
According to the Zacks model, the combination of a positive Earnings ESP and Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here.
Unity Software has an Earnings ESP of 0.00% and carries a Zacks Rank #3 currently. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
A Stock to Consider
Here is a company, which, per our model, has the right combination of elements to post earnings beat in its upcoming release.
CDW Corporation (CDW - Free Report) has an Earnings ESP of +6.74% and carries a Zacks Rank of 2, at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
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Although marijuana stocks did better as the pandemic took hold than the market as a whole, they’ve been pushed down. This is exactly the right time to get in on selected strong companies at a fraction of their value before COVID struck. Zacks’ Special Report, Marijuana Moneymakers, reveals 10 exciting tickers for urgent consideration.
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