Unity Software Inc. (NYSE:U) shares closed more than 10% higher on Wednesday following the company’s reported Q2 results, with EPS of ($0.18) coming in better than the Street estimate of ($0.21). Revenue was $297 million, compared to the Street estimate of $299.1 million.
The company expects Q3/22 revenue to be in the range of $315-335 million, compared to the Street estimate of $346.9 million. For the full 2022-year, the company expects revenue in the range of $1.3-1.35 billion, compared to the Street estimate of $1.36 billion.
According to the analyst at Oppenheimer, the 2022 revenue target is consistent with the company’s updated guidance as of 7/13 with the Unity-ironSource deal announcement, despite seemingly soft Q3/22 guidance.
The company focused on solving its data quality and accuracy challenges during Q2, as the impacted Operate Segment sales were down 14% year-over-year. Management said a data quality issue is behind the company and Audience Pinpointer accuracy and performance are improving. Create Segment continues to show traction outside videogame customers, which accounted for 33% of Create sales in Q4/21 and 40% in Q2/22.
The analyst reiterated their outperform rating and raised their price target to $60 from $54.
Follow us on Google news for more updates and News