Should You Buy This Mid Cap Stock-Unity

Acrobull Canada Advisory Inc.

April 08			2025
Name	Ticker	Sector/Industry		Market Cap	Risk Factor
Unity Software Inc.	NYSE-U	Technology		$7.067 Billion	Medium

Unity Software Inc. is an American video game software development company based in San Francisco. It was founded in Denmark in 2004 as Over the Edge Entertainment and changed itname in 2007.

Recent Highlights

Deal- Unity, the leading platform to create and grow games and interactive experiences, today announced it has developed a day-one release title for Nintendo Switch™ 2, Survival Kids, in close partnership with Konami Digital Entertainment B.V. (KONAMI), and built entirely on Unity 6 for Nintendo Switch 2.

The opportunity to develop Survival Kids with KONAMI has been an invaluable experience, giving us insights that will help us keep improving the performance and stability of the Unity Engine for all our customers,” said Adam Smith, VP of Unity Engine Product Management.

Third Quarter 2024 Highlights

Revenue was $457 million, down 25% year on year due to our portfolio reset.

Create Solutions' revenue was $152 million, down 47% year on year. Without the $99 million in income from the termination of a deal with Wētā FX limited in the fourth quarter of 2023 (the "Wētā FX termination"), revenue would have been 20% lower year-over-year. Our portfolio reset drove the year-over-year reduction, which was largely offset by a 15% increase in subscription income and a 50% increase in industry strategic revenue.

Adjusted EBITDA for the quarter was $106 million, with a margin of 23%, compared to $186 million in the fourth quarter of 2023, with a margin of 30%. Excluding the $102 million impact from the Wētā FX termination, and excluding $21 million in customer credits each in the fourth quarter of 2023, adjusted EBITDA would have been $63 million in the fourth quarter of 2023, with a margin of 13%. The better-than-expected adjusted EBITDA margin in the fourth quarter of 2024 was due to better cost control and higher-than-expected revenue.

Stock Observation- The company has reported stable financial results in the third quarter of 2024 and is expected to do well since it is one of the best-performing tech stocks in the industry. The RSI level for the stock is at 34, which shows oversold conditions.

Risk Involved- Financial performance of the company may have an impact on the company stock performance.

Considering all the factors and financials of the company Acrobull Canada Advisory Inc. maintains Customer Choose Buy for the stock.

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It is also advisable for the investors to consult with Financial Advisor, Broker or to seek any legal assistance as the research conducted by Acrobull Canada Advisory Inc. is factually based and recommendations are given in accordance with that, but it is imperative to understand that Acrobull Canada Advisory Inc. does not guarantee returns.

Acrobull Recommendation Based on Evaluation

Current Market Price	$17.25 USD
Acrobull Recommendation	Buy
Target Price	$20.42 USD
RSI Level	14 Day RSI 34
Total Shares Outstanding	409.66 Million
Shares held by Insiders Risk Factor Stop Loss	5.97% Medium 5%