Updated Aug 11 at 5:04pm ET.
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Unity CEO Matt Bromberg has joined the board of directors at the sandwich chain Jersey Mike's. While this is a separate role from his work at Unity, it is common for chief executives to serve on the boards of other companies to gain broader business experience. This move does not change anything about Unity's operations or strategy. It is a routine personal appointment that should not affect how the company runs its software and advertising businesses.
Source: Business Wire
Unity reported a profit of 28 cents per share, which was far better than the 11 cent loss analysts were expecting. Revenue for the quarter reached 550 million dollars, also coming in ahead of the 510 million dollar target. This performance suggests the company is finding its footing after a difficult period of restructuring and changes to how it charges developers.
The stock rose about 12 percent following the news. For long-term owners, the focus remains on whether Unity can keep this momentum in its advertising business and maintain its lead as the software engine used to build most mobile games. These results are a sign that the leaner cost structure is starting to turn more of its sales into actual profit.
The company is scheduled to share its second quarter numbers today. Analysts are looking for revenue of about 510 million dollars and a loss of roughly 11 cents per share.
This report is an important check on the company's turnaround efforts. We are watching for signs that its advertising and monetization segment is returning to steady growth after a period of restructuring and management changes. Maintaining its lead in the mobile game engine market is the core of our view on the stock.
Analysts at Piper Sandler raised their price target for the stock to 45 dollars, up from 40 dollars previously. This move signals confidence in the company's direction ahead of its quarterly results.
The firm kept its Overweight rating, which is a way of saying they expect the stock to perform better than the broader market. This target is well above the current price and reflects optimism that the company can successfully navigate its current business transition.
Source: Piper Sandler
The company filed an 8-K with the SEC, a form used to report major events that shareholders should know about, confirming a change in its executive ranks or board of directors.
Leadership changes are particularly important for Unity right now as it works through a significant portfolio reset. Stable and effective management is a key part of our view that the company can rebuild developer trust and improve its profit margins.
Source: 8-K filing
Analysts raised their price targets for Unity following the company's strong second-quarter earnings report. Most analysts, 18 of 26, rate the stock a buy, and the average target of $45 is roughly equal to its current price.
Unity has a history of choppy results, but the most recent quarter was a major beat that suggests the business is finally outrunning conservative forecasts.
| Expectation | |
|---|---|
| EPS | $0.28 |
| Revenue | $560M |
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