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Upturn AI SWOT - About
U 
Unity Software Inc (U)
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Upturn Advisory Summary
04/01/2025: U (1-star) is currently NOT-A-BUY. Pass it for now.
Upturn Star Rating
Not Recommended Performance
These Stocks/ETFs, based on Upturn Advisory, consistently fall short of market performance, signaling caution before investing.
AI Based Fundamental Rating
Moderate Performance
These Stocks/ETFs, based on Upturn Advisory, typically align with the market average, offering steady but unremarkable returns.
Analysis of Past Performance
Type Stock | Historic Profit -47.55% | Avg. Invested days 26 | Today’s Advisory PASS |
Upturn Star Rating | Upturn Advisory Performance  3.0 | Stock Returns Performance  1.0 |
| Profits based on simulation | Last Close 04/01/2025 |
Key Highlights
Company Size Mid-Cap Stock | Market Capitalization 8.27B USD | Price to earnings Ratio - | 1Y Target Price 28.95 |
Price to earnings Ratio - | 1Y Target Price 28.95 | ||
Volume (30-day avg) 14084705 | Beta 2.27 | 52 Weeks Range 13.89 - 30.88 | Updated Date 04/1/2025 |
52 Weeks Range 13.89 - 30.88 | Updated Date 04/1/2025 | ||
Dividends yield (FY) - | Basic EPS (TTM) -1.68 |
Analyzing Revenue: Products, Geography and Growth
Revenue by Products
Product revenue - Year on Year
Revenue by Geography
Geography revenue - Year on Year
Earnings Date
Report Date - | When - | Estimate - | Actual - |
Profitability
Profit Margin -36.63% | Operating Margin (TTM) -25.05% |
Management Effectiveness
Return on Assets (TTM) -4.84% | Return on Equity (TTM) -19.42% |
Valuation
Trailing PE - | Forward PE 1111.11 | Enterprise Value 8746578044 | Price to Sales(TTM) 4.56 |
Enterprise Value 8746578044 | Price to Sales(TTM) 4.56 | ||
Enterprise Value to Revenue 4.82 | Enterprise Value to EBITDA -50.66 | Shares Outstanding 409664992 | Shares Floating 317154082 |
Shares Outstanding 409664992 | Shares Floating 317154082 | ||
Percent Insiders 5.97 | Percent Institutions 77.66 |
Analyst Ratings
Rating 3.69 | Target Price 22.51 | Buy 4 | Strong Buy 10 |
Buy 4 | Strong Buy 10 | ||
Hold 13 | Sell - | Strong Sell 2 | |
Strong Sell 2 |
Upturn AI SWOT
Unity Software Inc
Company Overview
History and Background
Unity Software Inc. was founded in Copenhagen in 2004. Initially focused on creating a more accessible game engine, Unity quickly gained traction due to its ease of use and cross-platform capabilities. It went public in September 2020.
Core Business Areas
- Create Solutions: Provides a comprehensive set of tools and services for creators to develop 2D and 3D content, including game development, animation, and visual effects.
- Grow Solutions: Offers solutions to help creators acquire, engage, and monetize their content, including advertising, user acquisition, and analytics tools.
Leadership and Structure
John Riccitiello previously served as CEO; however, he departed in October 2023. James M. Whitehurst was appointed interim CEO and President. The company operates with a functional organizational structure, focusing on technology, product development, sales, and marketing.
Top Products and Market Share
Key Offerings
- Unity Engine: A real-time 3D development platform used to create video games, simulations, and other interactive content. Unity holds a significant market share in mobile gaming engine market (estimated 45%). Competitors include Unreal Engine (Epic Games), Cocos2d-x and GameMaker Studio 2.
- Unity Ads: An advertising platform for mobile games, enabling developers to monetize their games through in-app advertising. Competitors include Google AdMob and ironSource.
- Unity Analytics: A platform for tracking and analyzing player behavior in games, providing insights for improving game design and monetization. Competitors include Firebase Analytics and GameAnalytics.
Market Dynamics
Industry Overview
The gaming and interactive content creation industry is experiencing rapid growth, driven by increasing demand for mobile games, VR/AR experiences, and real-time 3D applications. The Metaverse and digital twins are also emerging as key growth areas.
Positioning
Unity is a leading provider of real-time 3D development platforms, well positioned in the gaming and industrial sectors. It enjoys a strong community of developers, broad platform support, and an established ecosystem.
Total Addressable Market (TAM)
The TAM for Unity is estimated to be over $45 billion, including gaming, AEC (Architecture, Engineering, and Construction), automotive, and media & entertainment. Unity is targeting this TAM by expanding its platform capabilities and industry solutions.
Upturn SWOT Analysis
Strengths
- Large and active developer community
- Cross-platform compatibility
- Strong brand recognition
- Extensive asset store
- Versatile engine applicable across multiple industries
Weaknesses
- Pricing structure controversies (recent runtime fee proposal)
- Profitability concerns
- Dependence on the gaming industry
- Complexity for beginner developers
Opportunities
- Growth in VR/AR market
- Expansion into non-gaming industries (e.g., automotive, AEC)
- Metaverse development
- Strategic partnerships with hardware manufacturers
Threats
- Competition from Unreal Engine (Epic Games)
- Economic downturn affecting game development budgets
- Changes in mobile platform policies
- Negative perception due to pricing changes
Competitors and Market Share
Key Competitors
- EPIC (N/A)
- ADSK
- GOOG
Competitive Landscape
Unityu2019s advantages lie in its cross-platform support, ease of use, and large community. Unreal Engine (Epic Games) offers superior graphics capabilities but can be more complex. Autodesk offers similar functionality but its engine is focused on industries other than Gaming.
Major Acquisitions
IronSource
- Year: 2022
- Acquisition Price (USD millions): 4400
- Strategic Rationale: To provide creators with a comprehensive platform to create, publish, and monetize their content.
Growth Trajectory and Initiatives
Historical Growth: Unity has experienced rapid revenue growth over the past several years, driven by the expanding gaming market and its increasing adoption in non-gaming industries.
Future Projections: Analysts expect Unity to continue growing revenue, driven by its expansion into new markets and its increasing market share. However, profitability is expected to remain a challenge in the short term.
Recent Initiatives: Recent strategic initiatives include partnerships with automotive manufacturers, expansion of its cloud gaming services, and the development of new tools for VR/AR content creation.
Summary
Unity is a leading real-time 3D development platform with a strong position in the gaming market and expanding into other industries. Its growth trajectory is promising, but the company faces profitability challenges and stiff competition from Epic Games. Controversies surrounding pricing models have damaged trust. Expanding into new markets and maintaining a strong developer community are critical for future success. Continued losses must be curtailed.
Similar Companies
- ADSK
- GOOG
- MSFT
Sources and Disclaimers
Data Sources:
- Company Filings
- Industry Reports
- Analyst Estimates
Disclaimers:
The information provided is for informational purposes only and should not be considered financial advice. Investment decisions should be made based on individual circumstances and consultation with a financial advisor.
AI Summarization is directionally correct and might not be accurate.
Summarized information shown could be a few years old and not current.
Fundamental Rating based on AI could be based on old data.
AI-generated summaries may have inaccuracies (hallucinations). Please verify the information before taking action.
About Unity Software Inc
Exchange NYSE | Headquaters San Francisco, CA, United States | ||
IPO Launch date 2020-09-18 | CEO, President & Director Mr. Matthew Samuel Bromberg J.D. | ||
Sector Technology | Industry Software - Application | Full time employees 4987 | Website https://unity.com |
Full time employees 4987 | Website https://unity.com | ||
Unity Software Inc. operates a platform to create and grow games and interactive experiences for mobile phones, PCs, consoles, and extended reality devices in the United States, China, Hong Kong, Taiwan, Europe, the Middle East, Africa, the Asia Pacific, Canada, and Latin America. The company's platform offers artificial intelligence solutions that support developers through the entire development lifecycle, which includes prototyping, live service operation, user acquisition, and monetization. It also provides Create Solutions, a set of tools and services used to build, ship, and run real-time 2D and 3D content; and Grow Solutions, which allows customers to grow and engage their user base and monetize their content. In addition, the company offers enterprise support and consumption services; professional services, including consulting, platform integration, training, and custom application and workflow development services; and advertising and game publishing services. It provides its solutions directly through its online store, field sales operations, independent distributors, and resellers. The company serves enterprises, mid-market companies, and government and non-profit institutions; mid-sized, small, and independent businesses; and individuals across various industries. Unity Software Inc. was founded in 2004 and is headquartered in San Francisco, California.
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