Is Unity Software's Growth Slowdown a Permanent Problem?
The honeymoon phase between investors and Unity Software (NYSE: U) is done and gone. After the first-quarter 2022 earnings update, shares have crashed over 80% from all-time highs and trade below where the stock made its debut in public trade in 2020. Q1 earnings were great, but revenue guidance for full-year 2022 was downgraded as much as $135 million compared to the outlook provided at the start of the year.
But is the slowdown in growth permanent? Unity doesn't think so. In fact, excluding a one-time impact to sales primarily surrounding one particular product, management says its 3D creation platform is quite healthy and can sustain 30% annual growth for many years. Here's why.
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Source Fool.com
