Market Overview

Unity Software Could Beat Q4 Revenue Guidance, Survey Says

Unity Software Could Beat Q4 Revenue Guidance, Survey Says

Loup Ventures, the venture capital firm founded by former Wall Street tech analyst Gene Munster, recently surveyed Unity Software (NYSE: U) developers to get insight on possible increased revenue for the company going forward.

What The Survey Showed: The survey showed that 81% of Unity developers plan on spending more with Unity over the next 12 months. Unity Pro and Enterprise users were even more likely to add additional subscriptions over the next 12 months, with 95% expected to add subscription seats.

The survey also showed a higher attach rate of 4.1 additional Unity operate solutions added to accounts. Loup Ventures was expecting this figure to be in the low 3s. Operate solutions are typically monetized on a pay per usage basis according to Loup.

Unity competes with the Unreal Engine, owned by Epic Games, a Tencent Holdings (Pink: TCEHY) company. The survey showed that the platform of choice is Unity, with it getting 85% of the vote as the preferred platform.

Related Link: Unity Software IPO: What Investors Need To Know

Why It’s Important: Unity reported $200.8 million in third-quarter revenue, which was up 53% year-over-year. The revenue came in ahead of Street consensus estimates.

Unity issued fourth-quarter guidance in a range of $752 million to $756 million. This is above the Street consensus of $736.7 million according to Loup.

The survey results show that revenue could come in higher than the company’s guidance based on positive trends of users increasing the size of their accounts.

Loup Ventures said in October that Unity could surpass AutoDesk Inc (NASDAQ: ADSK) in the creative software market.

U Price Action: Shares of Unity are up 4% to $127.76, hitting new all-time highs on Monday.


Related Articles (U)

View Comments and Join the Discussion!

Posted-In: Epic Game Loup Ventures Unity Unreal EngineLong Ideas Tech Trading Ideas Best of Benzinga