Unity has been able to drive a strong dollar-based net expansion rate, even as it increases its customer base. 31% of its revenues come from the creation software itself, but the vast majority, at 60% of revenues, comes from “operate solutions” which is usage-based and essentially gives Unity profit sharing. Unity’s business model is quite attractive. While Unity is primarily known for powering gaming companies - its customers include 94 of the top 100 game development companies - it is also used by companies in non-gaming sectors such as the auto OEM sector, where its customers include 10 of the top 10 auto OEMs. Unity can be considered a “picks and shovel” type company due to the fact that it is platform agnostic and being able to deploy across over 20 platforms. Unity’s platform provides a comprehensive set of software solutions to create, run and monetize interactive, real-time 2D and 3D content for mobile phones, tablets, PCs, consoles, and augmented and virtual reality devices. Creators, ranging from game developers and architects to automotive designers, filmmakers, and more use Unity to make their creations come to life. Unity is the world’s leading platform for creating and operating interactive, real-time 3D (RT3D) content. In Unity’s own words, the company describes itself as follows: The stock has since come down and is trading around $103 per share - still 50% higher than its opening day price and 98% higher than its IPO price. Since then, the stock has been on a roller coaster, trading as high as $175 at one point. Investors may wish to take note that Unity’s IPO took place at a raised valuation in an already healthy-valued market. After raising its pricing range to between $44 and $48, the company priced its IPO at $52 before closing up 32% at $68.56 on its first day of trading. Unity completed its initial public offering on Friday, September 18th. Due to excessive overvaluation, I am neutral on the stock. Even now, the valuation may still pose a significant risk, as Wall Street seems to be counting on accelerating growth rates. Unity appears set to grow both from adding new customers to its 3D platform as well as through growth from existing customers. Like many other tech-story stocks, Unity saw its stock price bid up to astronomical levels before coming crashing back down this year, perhaps due to rising interest rates. Unity ( NYSE: U) is a technology company which recently came public late last year. Photo by Charley Gallay/Getty Images Entertainment via Getty Images
0 kommentar(er)
