Unity Software (U -0.81%) is scheduled to report its second-quarter earnings on August 10, 2021, after the market closes. In today's video I look at recent news and share some metrics that Unity investors should watch for in the upcoming earnings. Here are some highlights from the video.
- Investors should watch for the growth of customers outside of gaming. Unity continues to develop its real-time 3D technology, bringing new customers outside of gaming to its platform. This market is still in the early stages for Unity but can provide substantial growth in the future.
- For the second quarter, Unity expects revenue of $242.5 million at the midpoint, reflecting roughly 32% year-over-year growth. The average revenue estimate among numerous Wall Street analysts is similar.
- Unity Software's forward price-to-sales ratio is at roughly 23. Investors might consider this a high valuation, but as noted before, Unity is a high-growth company. The risk with high valuation is high expectations, and Unity stock price could see an adverse reaction to its stock price if revenue values and future guidance are not reflective of its high growth.
Click the video below for my full thoughts and analysis.
*Stock prices used were the premarket prices of August 9, 2021. The video was published on August 9, 2021.