Unity Software Inc (NYSE: U) crashed by nearly 30% in post-market hours after announcing its Q1 FY22 results which disappoint investors.
The steep crash in the stock price follows the downward momentum of many other recently announced US companies such as Netflix, Amazon, Upstart, Teladoc, Cloudflare, and many others.
Q1 Earnings Review
The company announced its Q1 results which actually topped the higher end of the revenue estimates at $320m – which was up 36% year on year on the same period.
Unfortunately, in an environment where market is cynical on companies that have yet to make bottomline profits, most of the other metrics do not really matter at the end of the day (not at least for the time being).
An important part of Unity’s vertical is the Operate business division – which adds tools for in-app ads, purchases, analytics and in-game communication – started strongly in the month of January but...