Unity has issued its earnings results for Q1 2022. The news was not particularly great. While the company is touting a record quarter with $320 million USD in revenue, the company has cut the full year 2022 revenue guidance. As a result, the company's stock has fallen by roughly 40 percent.
"Unity delivered record quarterly revenue in the first quarter of 2022, the highest in the company’s history, up 36% compared with the first quarter of 2021, with Create over-performing at 65% year-on-year growth, offset by slower growth in Operate," Unity President and Chief Executive Officer John Riccitiello said via press release. "We remain focused on the massive opportunity we see in front of us long-term. Short-term, we are laser-focused on accelerating growth in Operate."
Unfortunately, Wall Street does not appear to be responding positively to Unity's report after the company lowered its revenue guidance for the year. Unity (U) sunk by as much as 40 percent in after-hours trading and continues to fluctuate, according to Yahoo Finance. The lower guidance number comes from continuing challenges to the supply chain that are expected to linger throughout 2022 and potentially beyond. Unity also notes in its report, "A reconciliation of non-GAAP guidance measures to corresponding GAAP measures is not available on a forward-looking basis without unreasonable effort due to the uncertainty of expenses that may be incurred in the future and cannot be reasonably determined or predicted at this time, although it is important to note that these factors could be material to Unity’s results computed in accordance with GAAP."
Unity will have more information on its Q1 2022 earnings when it holds its investor call later today. The Unity Investor Relations website will host the call at 2:00 p.m. PT/5:00 p.m. ET. You can also listen to the Unity earnings call here at Shacknews. We'll be back with any further updates.