Unity Software Inc. (U) witnessed a remarkable surge of 15.04% in pre-market trading on Thursday, driven by the company's solid fourth-quarter results that exceeded analysts' expectations on both revenue and profitability.
Despite issuing first-quarter revenue guidance below Wall Street expectations, Unity Software's stock rallied, as investors focused on the company's robust performance in the previous quarter. For the first quarter, Unity forecasted revenue in the range of $405 million to $415 million, falling short of the consensus estimate of $436.6 million.
However, the company's strong fourth-quarter results, which included revenue of $457 million, beating analysts' expectations, and a narrower-than-expected loss per share, outweighed concerns over the lower Q1 revenue outlook. Unity's ability to deliver profitability, with an expected adjusted EBITDA between $60 million and $65 million in the first quarter, also contributed to the stock's upward momentum.