In the past three years, revenues have grown at a 43% compound annual growth rate (CAGR) to reach $1.1 billion in 2021. It has built a strong brand and a gigantic, loyal customer base with a 99% customer retention rate. In fact, in 2021, 70% of the top 1,000 mobile games and 50% of all video games were made with Unity. Within the mobile gaming software space, Unity has a strong first-mover advantage. The gaming industry has grown at double-digit numbers in the past five years and was worth ~$214 billion by the end of 2021. Market-Leading Brand with an Impressive Customer Base ![]() Further, there is still no clarity on when the firm will become profitable. Despite that, the company is not yet profitable. The company crossed the $1 billion milestone in revenues in 2021 with an impressive 43.8% year-over-year growth rate. ![]() Investors should consider buying the stock based on its huge competitive moat and high long-term profitability prospects.īased in the U.S., Unity is the worlds largest software platform that is used to create video games. However, the stock has gained 24% over the past month and is on the verge of a turnaround. The uncertain macro situation made investors downgrade high-growth, money-losing tech companies like Unity. ![]() It is trading far below its high of $200 seen in November 2021. Over the past year, the stock has lost 80% of its market capitalization. With the overall tech space bloodbath in recent months, one stock that has taken a massive hit is Unity Software ( NYSE:U).
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