We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
The company expects first-quarter revenues to be between $470 million and $480 million, up 47-50% year over year. The Zacks Consensus Estimate is pegged at $477.42 million, indicating an increase of 49.13% from the year-ago quarter’s reported figure.
The consensus mark is pegged at a loss of 5 cents per share, reflecting no change in the past 30 days.
Unity’s earnings beat the Zacks Consensus Estimate in one of the trailing four quarters (matched twice and missed once). It delivered a negative earnings surprise of 22.5%, on average.
Unity’s first-quarter top line is expected to have benefited from steady demand for its software solutions from content creators like game developers, architects, automotive designers and filmmakers.
Strong adoption of U’s subscription-based Create Solutions and Operate Solutions is likely to have driven the momentum.
Unity has been expanding its platform by introducing new product capabilities. This is likely to have been a major growth driver.
Steady demand for interactive, real-time 2D and 3D content for mobile phones, tablets, PCs and virtual reality devices is likely to have aided the company’s top line.
Acquisitions of Parsec and SyncSketch, which enable cloud-based, secure collaboration between separated creators and artists, are expected to have driven top-line growth.
Key Developments in the First Quarter
This Zacks Rank #3 (Hold) company announced that it is planning to release a generative artificial intelligence (AI) marketplace for video game developers who regularly spend considerable resources on building assets like sound effects and characters. With Unity’s marketplace, developers will be able to use technology like artwork generator to instantly create content. You can see the complete list of today’s Zacks #1 Rank stocks here
The big gaming giants, which have already started investing in AI, are Tencent (TCEHY - Free Report) , NetEase (NTES - Free Report) and The NFT Gaming Company .
Chinese video game studios are rushing to invest in AI-generated content. NetEase, the second largest video game service provider has announced ChatGPT-like service in Justice Online, its flagship mobile game. Tencent is already using AI to improve gaming contents like character movements in its games.
The NFT Gaming Company recently announced that it has acquired AI assets of Voxpow and will integrate the same in its gaming portfolio. Voxpow is known for its AI-powered speech-recognition technology with natural language processing that identifies more than 100 languages and variants.
AI is believed to be the future of the gaming industry. Along with making it easier for video game developers to develop new games, this is expected to create a more interactive and personalized experience for the gamers as well.
Unity also launched a teaser video showing how software developers can type a text like "add two seconds of thunder" or "make them flying alien mushrooms" and the codes will be generated, without having to create them manually from scratch.
Image: Bigstock
Unity Software (U) to Post Q1 Earnings: What's in the Cards?
Unity Software (U - Free Report) is set to report first-quarter 2023 results on May 10.
The company expects first-quarter revenues to be between $470 million and $480 million, up 47-50% year over year. The Zacks Consensus Estimate is pegged at $477.42 million, indicating an increase of 49.13% from the year-ago quarter’s reported figure.
The consensus mark is pegged at a loss of 5 cents per share, reflecting no change in the past 30 days.
Unity’s earnings beat the Zacks Consensus Estimate in one of the trailing four quarters (matched twice and missed once). It delivered a negative earnings surprise of 22.5%, on average.
Unity Software Inc. Price and EPS Surprise
Unity Software Inc. price-eps-surprise | Unity Software Inc. Quote
Factors Likely to Influence First-Quarter Results
Unity’s first-quarter top line is expected to have benefited from steady demand for its software solutions from content creators like game developers, architects, automotive designers and filmmakers.
Strong adoption of U’s subscription-based Create Solutions and Operate Solutions is likely to have driven the momentum.
Unity has been expanding its platform by introducing new product capabilities. This is likely to have been a major growth driver.
Steady demand for interactive, real-time 2D and 3D content for mobile phones, tablets, PCs and virtual reality devices is likely to have aided the company’s top line.
Acquisitions of Parsec and SyncSketch, which enable cloud-based, secure collaboration between separated creators and artists, are expected to have driven top-line growth.
Key Developments in the First Quarter
This Zacks Rank #3 (Hold) company announced that it is planning to release a generative artificial intelligence (AI) marketplace for video game developers who regularly spend considerable resources on building assets like sound effects and characters. With Unity’s marketplace, developers will be able to use technology like artwork generator to instantly create content. You can see the complete list of today’s Zacks #1 Rank stocks here
The big gaming giants, which have already started investing in AI, are Tencent (TCEHY - Free Report) , NetEase (NTES - Free Report) and The NFT Gaming Company .
Chinese video game studios are rushing to invest in AI-generated content. NetEase, the second largest video game service provider has announced ChatGPT-like service in Justice Online, its flagship mobile game. Tencent is already using AI to improve gaming contents like character movements in its games.
The NFT Gaming Company recently announced that it has acquired AI assets of Voxpow and will integrate the same in its gaming portfolio. Voxpow is known for its AI-powered speech-recognition technology with natural language processing that identifies more than 100 languages and variants.
AI is believed to be the future of the gaming industry. Along with making it easier for video game developers to develop new games, this is expected to create a more interactive and personalized experience for the gamers as well.
Unity also launched a teaser video showing how software developers can type a text like "add two seconds of thunder" or "make them flying alien mushrooms" and the codes will be generated, without having to create them manually from scratch.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.