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Unity faces uncertainty ahead of Q3 earnings amidst CEO departure and pricing controversy

Published 2023-11-08, 02:04 p/m
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Gaming software company Unity is set to release its Q3 results on Thursday, November 9, 2023. Analysts predict earnings of $0.18 per share with revenues at $549.41 million, marking a significant increase of 70.2% from the previous year. However, the company's recent "Runtime Fee" pricing controversy and the departure of CEO John Riccitiello have injected a degree of uncertainty into these projections.

In September 2023, Unity had to retract parts of its disputed pricing policy following widespread developer backlash. The financial repercussions of this issue are being closely monitored for Q4 and beyond. The threat of an advertising boycott by some developers also poses near-term risks to Unity's Grow Solutions business.

Despite these challenges, investor confidence remains high in the Create Solutions business due to limited alternatives in the market. BTIG predicts a tough short-term scenario with potential shifts in developer spending towards rivals. Unity's earnings per share forecasts have undergone two downward revisions recently, while revenue estimates have varied. The impact on the company's financial performance in 2024 and 2025 remains unclear.

In other news, Wall Street has made predictions for Scientific Games (NASDAQ:LNW)' Q3 earnings report also scheduled for Thursday, November 9, 2023. They anticipate a significant drop in EPS to $0.408 from last year's Q3 EPS of $3.42 and a revenue increase of 10.70% to $717.3 million from last year's Q3 revenue of $648 million. Furthermore, they project a sharp decline in annual profit to $1.08 per share from last year's $38.78 per share. Financial technology firm RoboEddy advises investors to monitor the company's stock price closely during this period.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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