Source : investing , Friday, 15/11/2024
San Francisco, California – Unity Software Inc. (NYSE:U), a leading platform for creating and playing real-time interactive three-dimensional content, has announced the appointment of a new Chief Financial Officer (CFO) and revealed its financial results for the third quarter of 2024.
Jarrod yahs, 49, will assume the role of Senior Vice President and Chief Financial Officer effective January 1, 2025, succeeding Mark barismith.
who was serving as interim CFO. Yahs brings extensive financial leadership experience to Unity Software, where he previously served as Chief Financial Officer at Shutterstock Inc.
In connection with his appointment, yahis will receive an annual base salary of $525,000 and be eligible for an incentive cash bonus plan with a target rate of 75% of his base salary. In addition, he will receive a $400,000 signing bonus and a $12 million bonus from the restricted equity units, maturing over time as employment continues.
The CFO transition coincides with Unity’s financial report for the quarter ended September 30, 2024. While no specific financial details were disclosed in the press release, the shareholder letter accompanying the 8-K report, dated today, contains the comprehensive financial results.
Barsmith will continue his responsibilities as Senior Vice President and Head of Accounting after Yahs assumes the role of Chief Financial Officer. This organizational change is part of Unity’s strategic efforts to strengthen its leadership team and financial operations.
In other recent news, Unity Software has seen major developments. The company has appointed Alex Bloom as its new Chief Operating Officer and Steve Collins as its new Chief Technology Officer.
with the aim of strengthening its leadership team.
Unity Software also reported a 16% decline in second-quarter year-on-year revenue, to $449 million.
but expects strategic revenue growth and improved profitability later in the year.
The company has launched Unity 6, a new version with improved performance and features designed to improve the speed and efficiency of game development. Unity Software also made significant changes to its pricing model.
eliminating critically “runtime fees” and introducing price increases per seat for its Unity Pro and Enterprise offerings.
These adjustments are expected to impact construction revenue growth in 2025 and 2026.
Analysts were active, as Wells Fargo began covering Unity Software.
with an Equal Weight rating and a target price of $20.00. Other companies such as HSBC, Macquarie, Stifel and Morgan Stanley have adjusted their prices targeted for Unity, reflecting divergent views on the company’s future performance.
Oppenheimer maintained Perform rating for Unity Software, citing a mixed view of mobile gaming revenue. These are the latest developments of Unity Software.
Unity Software’s appointment of a new CFO comes at a crucial time for the company, as evidenced by the latest financial data and market trends. According to Investing Pro data, Unity’s market capitalization is $8.85 billion, indicating its significant presence in the software industry. The company’s revenue for the past twelve months through the second quarter of 2024 was $2.06 billion.
with a growth rate Remarkable 14.13% during the same period.
Despite this growth, Unity faces challenges in profitability. The company’s operating income for the past twelve months was negative $820.33 million.
resulting in an operating income margin of -39.76%. This is in line with Investing Pro’s advice highlighting that Unity has not been profitable over the past twelve months. However, another tip from Investing Pro suggests noted that analysts expect the company to be profitable this year.
which could signal a shift in trend.
Unity stock has shown significant volatility, with a strong return of 55.56% over the past three months.
as noted in Investing Pro data. This performance is particularly noticeable given the challenging market conditions faced by many tech companies. The appointment of a new CFO with a large compensation package, including the granting of shares.
may be seen as a strategic move to drive financial improvements and capitalize on the company’s recent market momentum.
For investors seeking a more comprehensive analysis, Investing Pro offers 8 additional tips for Unity Software.
providing deeper insights into the company’s financial health and market position.
