Design Software Stocks Q4 Teardown: Unity (NYSE:U) Vs The Rest
Quarterly earnings results are a good time to check in on a company’s progress, especially compared to its peers in the same sector. Today we are looking at Unity (NYSE:U) and the best and worst performers in the design software industry.
The demand for rich, interactive 2D, 3D, VR and AR experiences is growing, and while the ubiquitous metaverse might still be more of a buzzword than a real thing, what is real is the demand for the tools to create these experiences, whether they are games, 3D tours or interactive movies.
The 6 design software stocks we track reported a mixed Q4. As a group, revenues beat analysts’ consensus estimates by 1.9% while next quarter’s revenue guidance was in line.
Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 14.3% since the latest earnings results.
Unity (NYSE:U)
Started as a game studio by three friends in a Copenhagen apartment, Unity (NYSE:U) is a software as a service platform that makes it easier to develop and monetize new games and other visual digital experiences.
Unity reported revenues of $457.1 million, down 25% year on year. This print exceeded analysts’ expectations by 5.9%. Overall, it was a satisfactory quarter for the company with an impressive beat of analysts’ billings estimates but revenue guidance for next quarter missing analysts’ expectations significantly.
Unity pulled off the biggest analyst estimates beat but had the slowest revenue growth of the whole group. Even though it had a relatively good quarter, the market seems discontent with the results. The stock is down 7.8% since reporting and currently trades at $19.71.
Is now the time to buy Unity? Access our full analysis of the earnings results here, it’s free .
Best Q4: Autodesk (NASDAQ:ADSK)
Founded in 1982 by John Walker and growing into one of the industry's behemoths, Autodesk (NASDAQ:ADSK) makes computer-aided design (CAD) software for engineering, construction, and architecture companies.
Autodesk reported revenues of $1.64 billion, up 11.6% year on year, in line with analysts’ expectations. The business had a very strong quarter with full-year guidance of accelerating revenue growth and a solid beat of analysts’ EBITDA estimates.
The stock is down 7.8% since reporting. It currently trades at $260.26.
Is now the time to buy Autodesk? Access our full analysis of the earnings results here, it’s free .
Weakest Q4: PTC (NASDAQ:PTC)
Used to design the Airbus A380 and Boeing 787 Dreamliner commercial airplanes, PTC’s (NASDAQ:PTC) software-as-service platform helps engineers and designers create and test products before manufacturing.