FinFree4Ever t1_jdyj616 wrote on March 28, 2023 at 2:58 AM

Reply to comment by mazarax in What is going on with Unity stock by Artuhan

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 on March 28, 2023 at 2:59 AM

So, yahoo finance numbers are bogus, then?

FinFree4Ever t1_jdyk8cn wrote on March 28, 2023 at 3:06 AM

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 on March 28, 2023 at 3:14 AM

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 on March 28, 2023 at 3:18 AM

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.