In today's video, I look at Unity's (U 5.43%) earnings. The stock price has been very volatile, and it is currently down over 50% from its 52-week high. Below I share three bullish signs for the company.

Three Bullish Signs for Unity

  1. Unity reported revenue growth of 41% y/y, which exceeded its previous expectations. Unity increased guidance for FY 2021 and now expects revenue growth of 29%-31% y/y.  
  2. Management is investing aggressively in R&D for real-time 3D, which opens the opportunity in all types of markets outside of gaming -- ranging from household appliances, automotive, healthcare, aerospace, and so much more. 
  3. It is important to note that Unity is still not GAAP or Non-GAAP profitable, but the company does have a strong balance sheet of roughly $1.6B of cash, cash equivalents, and short-term investments compared to no debt. Its strong balance sheet should deter any worries about the company's financial health. 

Click the video below for my full thoughts. 

*Stock Prices used were the closed prices of May 11, 2021. The video was published on May 11, 2021.