Unity Software: Conservative Guidance Could Prove Beneficial In Current Macro

Summary:

  • Unity Software has continued to demonstrate improving fundamentals, despite a more challenging macro environment.
  • Management has discussed their conservative approach to 2023 guidance, and have historically beaten their expectations.
  • Despite the significant pullback from all-time highs, the stock’s current valuation appears to be pricing in solid fundamental performance over the next 18+ months.

5G data stream shown as dots running through an office

Huber & Starke

Unity Software (NYSE:U) recently turned the corner on profitability and while the company is set up nicely for solid revenue growth and margin expansion, the stock is currently priced for success.

Management utilized a conservative approach

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Data by YCharts

Revenue Trends

Unity Software

Customer Growth

Unity Software

Guidance

Unity Software

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Data by YCharts


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