Unity Software Inc. (NYSE:U) experienced a significant pre-market plunge of 7.09% on Wednesday, as traders positioned themselves ahead of the company's fourth-quarter earnings report.

The San Francisco-based software company is scheduled to release its quarterly results before the opening bell. Analysts expect Unity to report a loss of 21 cents per share, an improvement from the 30-cent loss in the same period last year, with revenue projected at $492.82 million compared to $457.1 million a year ago.

The stock movement comes despite several Wall Street analysts recently upgrading their ratings and price targets for Unity Software, and follows a 5.6% gain in the previous trading session. The company also announced the appointment of gaming and technology veteran Bernard Kim as an independent director to its Board of Directors, effective May 1.