Unity Software Inc (NYSE:U) recovered Friday morning after dropping 12% in extended trading Thursday following quarterly results that missed expectations.
The video game software company posted a loss of $0.32 per share, well worse than Street expectations of a $0.17 per share profit. Revenue was $544.2 million, below estimates of $554.17 million.
Investors may be responding well to Unity's proposed cost-saving measures, which are "likely" to include layoffs, the company said.
The company intends “to focus on those products that are most valuable to our customers” and will “likely include discontinuing certain product offerings, reducing our workforce, and reducing our office footprint.”
This is the company’s first quarterly report since former CEO John Riccitiello retired last month following a highly controversial pricing model change that angered the developer community.
In September, Unity frustrated developers who utilize the company’s software to create video games by introducing what it called the Unity Runtime Fee (URF). The URF charges developers each time a game is downloaded, once it hits certain revenue and download thresholds.
Ultimately, Unity slightly moderated the policy change in response to the backlash.
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