Unity Software Posts a Solid Close to 2020 and Plans for Apple's "Privacy" Updates in 2021
A couple of weeks ago, I said Unity Software's (NYSE: U) share price would be volatile. Case in point: The stock is down nearly 20% from all-time highs following the company's fourth-quarter 2020 report card and initial outlook for 2021, which was released late last week. However, there was plenty to like in the quarterly update -- including Unity providing some guidance on how Apple's (NASDAQ: AAPL) privacy updates (expected to roll out this spring) will affect its business long-term.
I think this is the pullback in Unity's stock some investors may have been waiting for before making a buy.
Unity grew its revenue 39% year over year in Q4 to $220 million, and free cash flow improved to positive $3.6 million compared to negative $9.7 million for the same period a year ago. The company now has 793 customers spending over $100,000 with Unity over the last year, compared with just 600 in 2019. Also of note: While Unity's platform has historically been for creation of 3D video games, 13% of those top 793 customers were using the platform for non-video game development (like movies, TV, engineering, and manufacturing), compared to only 8% just a couple of quarters ago -- illustrating the massive potential this company has in the greater digital economy.
Source Fool.com
