Unity Software Inc. (U) witnessed a remarkable surge of 15.04% in pre-market trading on Thursday, driven by the company's solid fourth-quarter results that exceeded analysts' expectations on both revenue and profitability.
Despite issuing first-quarter revenue guidance below Wall Street expectations, Unity Software's stock rallied, as investors focused on the company's robust performance in the previous quarter. For the first quarter, Unity forecasted revenue in the range of $405 million to $415 million, falling short of the consensus estimate of $436.6 million.
However, the company's strong fourth-quarter results, which included revenue of $457 million, beating analysts' expectations, and a narrower-than-expected loss per share, outweighed concerns over the lower Q1 revenue outlook. Unity's ability to deliver profitability, with an expected adjusted EBITDA between $60 million and $65 million in the first quarter, also contributed to the stock's upward momentum.
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.