Unity Software (NYSE:U) shares fell over 3% on Wednesday after the company’s second-quarter outlook came in slightly below expectations, while the first-quarter earnings and revenue beat the consensus estimates.
The company reported adjusted earnings per share of $0.24, doubling analyst projections of $0.12. Revenue came in at $435 million—down from $460 million a year earlier—but still ahead of the $417.13 million consensus estimate.
Adjusted EBITDA reached $83.9 million for the quarter, beating the $64.9 million forecast and showcasing continued operational improvement despite year-over-year top-line pressure.
For the second quarter, Unity projected revenue between $415 million and $425 million, compared to the Street’s expectation of $424.2 million. However, its EBITDA guidance of $70 million to $75 million came in below the $81.4 million consensus.