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Drive software (New York Stock Exchange:U) fell in early post-market trading Thursday after it reported mixed first-quarter 2024 financial results, less than a week before a new CEO takes over the game development software company.
First quarter 2024 revenue was $460 million, more than the consensus estimate of $433.5 million. However, the San Francisco, California-based company was expected to beat the market consensus for first-quarter results due to low expectations.
GAAP earnings per share were a loss of $0.75 each, which was a larger loss than the consensus calling for a loss of $0.67 per share.
GAAP net loss for the quarter was $291 million. The net loss included $212 million of restructuring costs and a $61 million gain related to the repurchase of Unity convertible notes.
“We closed the first quarter with results in line with expectations,” said Unity interim CEO Jim Whitehurst. “The portfolio and cost reset we began a few months ago are complete. While we will always look for efficiencies, our focus is on accelerating revenue growth while operating at attractive profit margins and cash flow.”
Looking ahead, Unity expects second quarter revenue to be between $420 million and $425 million, which would be a decline of 6% to 7% year over year.
Unity anticipates that Create's second-half revenue growth will primarily come from game subscriptions, continued growth in industries, and growth in multiplayer.
Unity development software allows users to create 2D and 3D games on multiple platforms.
“Key mixed reality games are being created with Unity, such as Demeo Battles and Angry Birds VR: Isle of Pigs by Resolution Games and Arcade Paradise VR “By Nosebleed Interactive,” Whitehurst added. “In addition, 50% of the week's Apple Arcade games for Apple Vision Pro (AAPL) were created with Unity.”
