Unity Software Inc (NYSE:U) sank almost 15% in pre-market trading after the app-monetization firm underwhelmed with results on Monday evening.
A net loss of US$254 million for the final quarter, which narrowed from US$288 million last year, came in below analysts’ forecasts, sitting at US$0.66 on a per share basis, against an expected US$0.46 loss.
Guidance for the upcoming first quarter also disappointed, with Unity’s estimated revenue of US$415 million to US$420 million shadowed by FactSet consensus for $534 million.
Unity is in the midst of a transition plan, with the company telling shareholders in a post-close update that efforts to cut costs were now mostly complete.
“All of our focus turns to reigniting revenue growth,” the firm added, with the restructuring said to have included job cuts and changes to its portfolio structure.
“We believe that we have a unique competitive advantage around visualization, a market that is expected to be larger than the gaming tools and services market in the not-too-distant future,” the company explained.
That said, full-year guidance of around US$1.8 billion in revenue and $425 million in pre-tax earnings were also below the US$2.3 billion and US$647 million respectively expected by analysts.
“We will update you on progress and plan to share our sustainable growth model with you towards the end of this year,” Unity added.
Shares fell 14.5% to US$28.25 in pre-market trading.