Unity Software Forecasts Lower-than-Expected Revenue, Shares Tumble

Despite a significant revenue increase in 2023, Unity Software's stock falls following weak guidance for the current quarter.

Unity Software's shares dropped over 14% in pre-market trading after issuing current-quarter guidance well below Wall Street's estimates.
The company reported a 35% year-over-year jump in revenue to $609 million in Q4, but a net loss widened to $254 million.
Full-year revenue for 2023 rose 57% to $2.1 billion, with a net loss narrowing to $826.3 million.
Unity's weak guidance is attributed to a portfolio and cost structure reset, including a controversial runtime fee proposal.
The company has undergone significant restructuring, including job cuts and a focus on strategic portfolio revenue.