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Upturn AI SWOT - About
U 
Unity Software Inc (U)
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Upturn Advisory Summary
06/30/2025: U (1-star) has a low Upturn Star Rating. Not recommended to BUY.
Upturn Star Rating
Not Recommended Performance
These Stocks/ETFs, based on Upturn Advisory, consistently fall short of market performance, signaling caution before investing.
Number of Analysts
29 Analysts rated it
Highly popular stock, broad analyst coverage, trusted insights, strong investor interest.
1 Year Target Price $25.49
1 Year Target Price $25.49
| 12 | Strong Buy |
| 4 | Buy |
| 13 | Hold |
| 0 | Sell |
| 0 | Strong Sell |
Analysis of Past Performance
Type Stock | Historic Profit -30.89% | Avg. Invested days 22 | Today’s Advisory Consider higher Upturn Star rating |
Upturn Star Rating | Upturn Advisory Performance  3.0 | Stock Returns Performance  1.0 |
| Profits based on simulation | Last Close 06/30/2025 |
Key Highlights
Company Size Large-Cap Stock | Market Capitalization 10.11B USD | Price to earnings Ratio - | 1Y Target Price 25.49 |
Price to earnings Ratio - | 1Y Target Price 25.49 | ||
Volume (30-day avg) 29 | Beta 2.35 | 52 Weeks Range 13.89 - 30.88 | Updated Date 06/30/2025 |
52 Weeks Range 13.89 - 30.88 | Updated Date 06/30/2025 | ||
Dividends yield (FY) - | Basic EPS (TTM) -1.12 |
Analyzing Revenue: Products, Geography and Growth
Revenue by Products
Product revenue - Year on Year
Revenue by Geography
Geography revenue - Year on Year
Earnings Date
Report Date - | When - | Estimate - | Actual - |
Profitability
Profit Margin -25.21% | Operating Margin (TTM) -27.91% |
Management Effectiveness
Return on Assets (TTM) -3.66% | Return on Equity (TTM) -13.18% |
Valuation
Trailing PE - | Forward PE 1111.11 | Enterprise Value 10800666352 | Price to Sales(TTM) 5.65 |
Enterprise Value 10800666352 | Price to Sales(TTM) 5.65 | ||
Enterprise Value to Revenue 6.04 | Enterprise Value to EBITDA -50.66 | Shares Outstanding 415695008 | Shares Floating 327047749 |
Shares Outstanding 415695008 | Shares Floating 327047749 | ||
Percent Insiders 4.82 | Percent Institutions 84.67 |
Analyst Ratings
Rating 5 | Target Price 25.49 | Buy 4 | Strong Buy 12 |
Buy 4 | Strong Buy 12 | ||
Hold 13 | Sell - | Strong Sell - | |
Strong Sell - |
Upturn AI SWOT
Unity Software Inc
Company Overview
History and Background
Unity Software Inc. was founded in Copenhagen in 2004. Originally focused on game development tools for Mac, it has evolved into a leading platform for creating and operating interactive, real-time 3D (RT3D) content.
Core Business Areas
- Create Solutions: Provides tools and services for content creators, including game developers, artists, architects, and automotive designers, to build interactive 2D and 3D experiences.
- Operate Solutions: Offers services that enable content creators to grow and engage their user base, monetize their content, and optimize their operations. Includes Unity Ads, Unity Gaming Services (UGS), and Multiplay (server hosting).
Leadership and Structure
John Riccitiello (CEO) stepped down in October 2023 and was replaced by Interim CEO James M. Whitehurst. Matthew Bromberg was appointed CEO on May 15, 2024. The company operates with a functional organizational structure, with key departments including R&D, Sales, Marketing, and Operations.
Top Products and Market Share
Key Offerings
- Unity Editor: A real-time 3D development platform for creating interactive content. Unity holds significant market share in the game development market, especially for mobile games. Estimates range from 30-50% market share in mobile gaming engine usage. Competitors include Unreal Engine (EPIC).
- Unity Ads: A monetization platform for mobile games. Revenue is generated through ad placements. Competitors include Google AdMob and IronSource (acquired by Unity, now LevelPlay).
- Unity Gaming Services (UGS): A suite of tools and services for game developers, including multiplayer, analytics, and cloud services. A growing offering that aims to compete with larger cloud providers. Competitors include Amazon GameLift, Google Cloud Platform, Microsoft Azure PlayFab.
Market Dynamics
Industry Overview
The industry consists of real-time 3D development platforms, game engines, and associated services for content creation and monetization. It is a rapidly growing market driven by increasing demand for interactive content across various industries.
Positioning
Unity is positioned as a leading platform for creating and operating interactive, real-time 3D content, particularly in the gaming market. The company seeks to expand its presence in other industries such as automotive, architecture, and manufacturing. Unity has historically held a greater market share among smaller and indie developers due to its accessible pricing and ease of use.
Total Addressable Market (TAM)
The estimated TAM for Unity is estimated to be $45 Billion in 2023 and positioned to capture a larger share of market through expansion in multiple verticals such as gaming, industrial, and entertainment.
Upturn SWOT Analysis
Strengths
- Large and active developer community
- Extensive asset store
- Cross-platform compatibility
- Strong brand recognition in gaming
- Ecosystem of integrated services
Weaknesses
- Pricing controversy with runtime fee announcement in 2023, damaged reputation.
- Historically lower graphics fidelity compared to Unreal Engine
- Profitability challenges
- Integration complexities across different services
Opportunities
- Expansion into non-gaming industries (automotive, architecture, manufacturing)
- Growth in XR (augmented and virtual reality)
- Increasing demand for real-time 3D content
- Further development of cloud-based services
- AI Assisted creative development
Threats
- Intense competition from Unreal Engine and other platforms
- Economic downturn affecting customer spending
- Changes in mobile platform policies (e.g., app store fees)
- Open source alternatives
- Data privacy regulations
Competitors and Market Share
Key Competitors
- EPIC (Private)
- ADSK
- GIB (Private)
Competitive Landscape
Unity's strength lies in its ease of use and broad cross-platform compatibility, making it popular among indie developers. However, Unreal Engine offers higher graphical fidelity, and is favored for high-end games. Furthermore Unity operates as Platform as a Service while some others have a software as a service model which increases revenue.
Major Acquisitions
Weta Digital
- Year: 2021
- Acquisition Price (USD millions): 1625
- Strategic Rationale: Acquisition of Weta Digital, a visual effects company, allows Unity to bolster its tool set and technology to compete more effectively in animation and cinematic tools.
IronSource
- Year: 2022
- Acquisition Price (USD millions): 4400
- Strategic Rationale: Acquisition of IronSource aimed to strengthen Unity's advertising and monetization capabilities, though it was met with mixed reactions due to potential conflicts of interest and concerns about anti-competitive practices.
Growth Trajectory and Initiatives
Historical Growth: Unity experienced rapid revenue growth in the past, driven by the increasing adoption of its platform in the gaming industry.
Future Projections: Analysts predict revenue growth to continue, driven by expansion into new markets and the increasing demand for real-time 3D content. Estimates vary depending on the successful navigation of profitability issues and competition.
Recent Initiatives: Recent initiatives include strategic acquisitions to expand service offerings, the implementation of AI Tools and restructuring efforts to improve efficiency.
Summary
Unity Software is a leading platform for creating real-time 3D content, with a large developer community and strong presence in the gaming industry. The company faces challenges related to profitability and competition from Unreal Engine. Expansion into non-gaming industries and development of cloud-based services present opportunities for growth, while economic uncertainty and changes in platform policies pose potential threats. Unity's high debt and lack of profitability are a concern.
Peer Comparison
Sources and Disclaimers
Data Sources:
- Unity Software Inc. Annual Reports
- Market Research Reports
- Analyst Estimates
Disclaimers:
This analysis is for informational purposes only and does not constitute financial advice. Market conditions and company performance are subject to change. Investors should conduct their own due diligence before making any investment decisions.
AI Summarization is directionally correct and might not be accurate.
Summarized information shown could be a few years old and not current.
Fundamental Rating based on AI could be based on old data.
AI-generated summaries may have inaccuracies (hallucinations). Please verify the information before taking action.
About Unity Software Inc
Exchange NYSE | Headquaters San Francisco, CA, United States | ||
IPO Launch date 2020-09-18 | CEO, President & Director Mr. Matthew Samuel Bromberg J.D. | ||
Sector Technology | Industry Software - Application | Full time employees 4987 | Website https://unity.com |
Full time employees 4987 | Website https://unity.com | ||
Unity Software Inc. operates a platform to create and grow games and interactive experiences for mobile phones, PCs, consoles, and extended reality devices in the United States, China, Hong Kong, Taiwan, Europe, the Middle East, Africa, the Asia Pacific, Canada, and Latin America. The company's platform offers artificial intelligence solutions that support developers through the entire development lifecycle, which includes prototyping, live service operation, user acquisition, and monetization. It also provides Create Solutions, a set of tools and services used to build, ship, and run real-time 2D and 3D content; and Grow Solutions, which allows customers to grow and engage their user base and monetize their content. In addition, the company offers enterprise support and consumption services; professional services, including consulting, platform integration, training, and custom application and workflow development services; and advertising and game publishing services. It provides its solutions directly through its online store, field sales operations, independent distributors, and resellers. The company serves enterprises, mid-market companies, and government and non-profit institutions; mid-sized, small, and independent businesses; and individuals across various industries. Unity Software Inc. was founded in 2004 and is headquartered in San Francisco, California.
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