Unity (U) issues 2024 revenue guidance below expectations

Unity looked cautious in its guidance for the coming fiscal year shared in its Q4 2023 earnings results.

Image via Unity

With Unity (U) having released its Q4 2023 earnings results and its FY2023 results alongside, the company also spoke to its expectations for the 2024 fiscal year, but the conversation wasn’t highly optimistic. In its guidance, Unity shared forecasts that were quite a bit below the expectations set for them. With the company looking less than confident about the quarters ahead, it spells caution for Unity’s business in 2024.

Unity released its Q4 2023 and FY2023 earnings results via its investor relations website this week. In that report, the company also released its guidance for the upcoming FY2024. For its full-year guidance, Unity shared a revenue forecast of $1.76 to $1.8 billion USD. This was substantially below Wall Street estimates that called for a possible $2.3 billion.

Unity (U) stock chart as of February 26, 2024 at 5:42 p.m. ET
Unity (U) stock was down in after-hours trading following the release of the company's Q4 2023 earnings results and FY 2024 guidance.
Source: Google

Unity has been in a bit of a crisis mode over the course of the last few months. Whether it was John Ricatello stepping down as CEO or a following mass layoffs in conjunction with product and project cancellations, the company has been reorganizing drastically to cut costs and find a way to profitability. The company even goes on to say that it will be necessary to make the “right interventions to win with customers for many years to come through a more focused portfolio.” That will apparently include more cost-cutting and margin expansion.

Even so, Unity’s caution in its guidance spells caution for investors as well, and with additional cuts possibly coming, it could continue to be choppy seas ahead as the company continues to stabilize. Stay tuned as we continue to cover Unity and other companies reporting on their latest earnings results.

Senior News Editor

TJ Denzer is a player and writer with a passion for games that has dominated a lifetime. He found his way to the Shacknews roster in late 2019 and has worked his way to Senior News Editor since. Between news coverage, he also aides notably in livestream projects like the indie game-focused Indie-licious, the Shacknews Stimulus Games, and the Shacknews Dump. You can reach him at tj.denzer@shacknews.com and also find him on Twitter @JohnnyChugs.

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