UNITY SOFTWARE Reports 79.6% Increase in Revenue for Q2 FY2023
August 11, 2023
☀️Earnings Overview
Unity Software ($NYSE:U) reported their Q2 financial results for FY2023 on June 30 2023 with total revenue at USD 533.5 million, a 79.6% increase from the same quarter in the previous year. Net income for the quarter was USD -192.2 million, a decrease from the -204.2 million reported in the same quarter of the previous year.
Analysis
GoodWhale provides a comprehensive analysis of the company’s financials, making it easier to decide whether or not an investment is a good idea. According to GoodWhale’s Risk Rating, UNITY SOFTWARE has been categorized as a high risk investment in terms of financial and business aspects. This means that there could be a higher chance of potential losses associated with investing in the company. GoodWhale has detected five risk warnings in income sheet, balance sheet, cashflow statement, non-financial, and financial journal. These warnings are meant to inform investors of any potential risks that may be associated with the investment. To gain full access to the risk warnings, investors should register on goodwhale.com. With GoodWhale’s help, investors can make more informed decisions regarding their investments in UNITY SOFTWARE. More…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Unity Software. More…
| Total Revenues | Net Income | Net Margin |
| 1.81k | -984.54 | -54.5% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Unity Software. More…
| Operations | Investing | Financing |
| -75.32 | 786.29 | -222.41 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Unity Software. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 7.69k | 4.02k | 8.99 |
Key Ratios Snapshot
Some of the financial key ratios for Unity Software are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 41.3% | – | -51.4% |
| FCF Margin | ROE | ROA |
| -7.2% | -16.8% | -7.6% |
Peers
In the software industry, Unity Software Inc. competes with Autodesk Inc., Microsoft Corp., and Shopify Inc. All four companies offer software products that enable users to create three-dimensional (3D) images and animations. Autodesk Inc. is a multinational software corporation that produces software for the architecture, engineering, construction, manufacturing, media, and entertainment industries. Microsoft Corporation is a multinational technology company that develops, manufactures, licenses, supports, and sells computer software, consumer electronics, personal computers, and services. Shopify Inc. is a Canadian multinational e-commerce company headquartered in Ottawa, Ontario.
– Autodesk Inc ($NASDAQ:ADSK)
Autodesk’s market cap is currently at $43.47 billion. The company has a return on equity of 71.49%. Autodesk is a software company that creates design and engineering software for the architecture, engineering, construction, manufacturing, media, and entertainment industries.
– Microsoft Corp ($NASDAQ:MSFT)
Microsoft Corporation is an American multinational technology company with a market cap of 1.84 trillion as of 2022. The company’s return on equity (ROE) is 45.3%. Microsoft is a leading technology company that develops, manufactures, licenses, supports, and sells a range of software products and services. The company’s products include operating systems for personal computers, servers, and mobile devices; productivity applications; gaming and entertainment consoles; and business and consumer applications. Microsoft also offers cloud-computing services, including computing, storage, and networking. The company was founded in 1975 and is headquartered in Redmond, Washington.
– Shopify Inc ($TSX:SHOP)
Shopify is a Canadian e-commerce company headquartered in Ottawa, Ontario. It is also the name of its proprietary e-commerce platform for online stores and retail point-of-sale systems. Shopify offers online retailers a suite of services “including payments, marketing, shipping and customer engagement tools to simplify the process of running an online store for small merchants.
Summary
Investors in UNITY SOFTWARE should be aware of the company’s latest earnings report for Q2 of FY2023. Total revenue was reported at USD 533.5 million, a 79.6% increase from the same quarter in the previous year. Despite this impressive growth, net income for the quarter was reported at USD -192.2 million, a decrease from the -204.2 million reported the previous year.
This decrease could be a cause for concern for investors, as it signals a potential decrease in profitability and has likely been a factor in the stock price dropping. As such, investors should exercise caution when making investment decisions concerning UNITY SOFTWARE.
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