Unity Software’s stock plunges nearly 30% on weak revenue guidance

Unity Software Inc.’s. stock
U,
-4.47%
plummeted 29.3% in extended trading Tuesday after the software company reported fiscal first-quarter results that were largely in line with Wall Street analysts’ forecasts, but issued poor second-quarter and fiscal year revenue guidance. Unity reported a net loss of $177.6 million, or 60 cents a share, compared with a net loss of $107.5 million, or 39 cents a share, in the year-ago quarter. Adjusted earnings were a loss of 8 cents a share. Revenue increased 36% to $320.1 million from $234.8 million a year ago. Analysts surveyed by FactSet had expected on average a net loss of 8 cents a share on revenue of $321 million. However, Unity said it expected Q2 revenue of between $290 million and $295 million, while analysts polled by FactSet anticipate $360 million on average. For the fiscal year, Unity is projecting $1.35 billion to $1.43 billion; analysts polled by FactSet predict $1.5 billion. Shares of Unity have sunk 66% this year, while the broader S&P 500 index
SPX,
+0.25%
has declined 16%.