Submitted by Artuhan t3_12410vq in wallstreetbets
mazarax t1_jdxy9zr wrote
Reply to comment by [deleted] in What is going on with Unity stock by Artuhan
Come back?
A company that has never made a profit, ever?
A company that now has a $1B loss per year?
Ok, you do you, regard.
[deleted] t1_jdybmdt wrote
I’m long a small % and have no conviction whatsoever other than I should be allocated in this space. If you are right, don’t miss the opportunity to short it to zero.
FinFree4Ever t1_jdybobu wrote
They have been profitable since q4 2022 and will be profitable going forward as confirmed by their management who has a 100% guidance record.
mazarax t1_jdyddi7 wrote
Position_Emergency t1_je0zayn wrote
Yeah, he is talking bullshit.
A company $2.7B in debt tells its investors it made an EBITDA profit of $13 million dollars in a single quarter and we're supposed to think that's indicative of something resembling profitability?
Imagine what the interest payments on that debt are.
Oh, and $1 billion of the debt was taken on that very same "profitable" quarter!
Unity has no plausible roadmap for becoming profitable in the near to mid future let's be real.
I'm not saying it's a bad buy though given the insanity of the stock market...
mazarax t1_je173ke wrote
It is amazing, that difference! What they tell shareholders, and what they file with the SEC.
FinFree4Ever t1_jdyj616 wrote
Market has not realised it yet, since people are looking at EPS.
Unity has posted its first profitable quarter in the company's 18-year history, albeit on a non-GAAP basis. In a letter to shareholders, the company reported a non-GAAP operating profit of $13 million for the three months ended December 31, 2022.
Let me quote you the CFO’s statement on their earnings call on 22 Feb 2023: “Now what happens then is that we expect to significantly improve profitability in 2023. If you look at – we had a loss of $90 million non-GAAP in 2022 and we expect adjusted EBITDA to be about somewhere in the range of $230 million to $300 million in 2023, so very significant swing from one year to another. Now what’s interesting is in 2022, we were only profitable in Q4. In 2023, we expect obviously to be profitable every single quarter.”
mazarax t1_jdyjdjv wrote
So, yahoo finance numbers are bogus, then?
FinFree4Ever t1_jdyk8cn wrote
It’s all about different accounting standards. Their CFO is not lying.
Their acquisition of Iron Source is accretive, strengthens their balance sheet/cash flows and together with a recovery in advertising revenues, Unity will be extremely attractive in the coming years.
It’s a low risk, high reward play.
mazarax t1_jdyl5gn wrote
Hmm… I am skeptical. I believe it when I see a profitable year with GAAP.
Could it be you have Stockholm syndrome, with $U being your largest holding?
FinFree4Ever t1_jdylkli wrote
I only bought in, in the month of March 2023. It is undervalued, already non-gaap profitable and able to withstand any recession with broad macro winds in its favour.
Even if it recovers to 50% of its 2021 high, it is still a 3x from here.
Shorter_McGavin t1_je05te6 wrote
Sounds like you are butthurt over losing some money since buying 😂. The real upside is AR applications when Apple launches their AR glasses. Keep sleeping though 💤
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