Interactive software platform Unity (NYSE: U) will be announcing earnings results this Thursday before the bell. Here’s what investors should know.
Unity beat analysts’ revenue expectations last quarter, reporting revenues of $546.5 million, up 23.9% year on year. It was a stunning quarter for the company, with an impressive beat of analysts’ billings estimates and EBITDA guidance for next quarter exceeding analysts’ expectations.
Is Unity a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Unity’s revenue to grow 20.5% year on year, improving from the 5.4% increase it recorded in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. Unity has a history of exceeding Wall Street’s expectations.
Looking at Unity’s peers in the vertical software segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Procore Technologies delivered year-on-year revenue growth of 18.7%, beating analysts’ expectations by 4.8%, and Cadence Design Systems reported revenues up 22%, topping estimates by 1.1%. Cadence Design Systems traded up 6.5% following the results.
Read our full analysis of Procore Technologies’s results here and Cadence Design Systems’s results here.
There has been positive sentiment among investors in the vertical software segment, with share prices up 3.5% on average over the last month. Unity is down 11.8% during the same time and is heading into earnings with an average analyst price target of $50.45 (compared to the current share price of $40.28).
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