Today's video focuses on Unity Software (U -2.80%) and its earnings call, reported on Feb. 3. This company is mainly discussed as a metaverse stock, but in its most recent earnings, it showcased numerous partnerships outside the gaming market. Here are some highlights from the video.
- In early December, eBay (EBAY 1.53%) partnered with Unity to bring selected sellers a 360-degree view solution, allowing sellers to showcase their items in a more realistic 3D image. The partnership may not be a big moneymaker for Unity, but it shows how its tools are used outside the gaming industry.
- Running a manufacturing factory can be a logistics nightmare, and moving heavy equipment around to test new setups can take a long time and be expensive. So-called digital twins solve these problems by presenting a digital version of a factory that allows management to test new setups to improve logistics, costs, and more without disrupting the manufacturing process. On Jan. 7, Unity announced that Hyundai Motor Company would be building a digital-twin factory using Unity's solutions.
- Here are two of my favorite things mentioned during the earnings call. First, management believes revenue can be at or above 30% over the long term. Second, Unity is expected to break even on a non-GAAP basis within its fiscal year of 2023.
Click the video below for my full thoughts and analysis.
*Stock prices used were the market prices of Feb. 7, 2022. The video was published on Feb. 7, 2022.