Shares of Unity Software Inc. fell in extended trading on Wednesday after the company’s outlook for monetization of apps and game engines missed Wall Street estimates in a weak mobile advertising market.
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The shares fell 8% after hours, after rising 3.8% in the regular session to close at $37.85.
Unity forecast revenue of $470 million to $480 million for the first quarter and revenue of $2.05 billion to $2.2 billion for the year. Analysts surveyed by FactSet had estimated revenue of $520.5 million for the first quarter and revenue of $2.21 billion for the year.
“While we do not forecast a recovery in the in-game ad market in 2023, we believe it is possible when the economy improves,” the company told shareholders in a letter.
The company reported a fourth-quarter loss of $275.1 million, or 82 cents per share, compared with $162.1 million, or 56 cents per share, in the same period a year earlier.
Revenue increased to $451 million from $315.9 million in the prior-year quarter.
Analysts had forecast adjusted earnings of 1 cent a share on revenue of $439.9 million.
At the beginning of the month, shares had risen along with those of AppLovin Corp. APP,
which beat Wall Street estimates and said the mobile ad market “remains relatively stable.”
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