Unity Software Inc. U shares rallied in the extended session Wednesday after the game-engine and app-monetization company’s outlook and results exceeded Wall Street expectations. Unity Software shares surged more than 10% after hours, following a 1.6% gain in the regular session to close at $28.74. Unity forecast revenue of $510 million to $520 million for the second quarter, and raised the lower end of its full-year guidance to $2.08 billion — from a previous forecast revenue $2.05 billion — and kept the high end at $2.2 billion for the year. Analysts surveyed by FactSet had estimated revenue of $502.8 million for the second quarter, and revenue of $2.14 billion for the year. “While we are not forecasting a recovery in the in-game ads market in 2023, we believe it is possible when the economy improves,” the company told shareholders in a letter. The company reported a first-quarter loss of $250.9 million, or 67 cents a share, compared with $182 million, or 60 cents a share, in the year-ago period, and did not provide a per-share adjusted figure. Revenue rose to $500.4 million from $320.1 million in the year-ago quarter. Analysts had forecast an unadjusted loss of 73 cents shares — or, an adjusted net loss of 3 cents a share — on revenue of $480.9 million. “For the balance of 2023, we expect revenue to grow faster than the markets in which we compete, with steady and meaningful continued progress on profitability,” the company said in a letter to shareholders. Shares rallied alongside those of AppLovin Corp. APP, which reported a better-than-expected forecast and revenue.
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