SAN FRANCISCO, CA – Unity Software Inc . (NYSE:U), a leading platform for creating and operating interactive, real-time 3D content, has announced the appointment of a new Chief Financial Officer (CFO) and disclosed its financial results for the third quarter of 2024.
Jarrod Yahes, aged 49, will take on the role of Senior Vice President and CFO starting January 1, 2025, succeeding Mark Barrysmith, who has been serving as the Interim CFO. Yahes, with a past tenure as CFO at Shutterstock (NYSE:SSTK) Inc., brings extensive financial leadership experience to Unity.
In connection with his appointment, Yahes will receive an annual base salary of $525,000 and is eligible for a cash incentive bonus plan with a target of 75% of his base salary. Additionally, he will receive a sign-on bonus of $400,000 and an award of restricted stock units valued at $12 million, vesting over time with continuous employment.
The transition of CFO roles aligns with Unity's financial reporting for the quarter ending September 30, 2024. While specific financial details were not disclosed in the press release, a shareholder letter attached to the 8-K filing, dated today, contains the comprehensive financial results.
Barrysmith will continue his responsibilities as the Senior Vice President and Chief Accounting Officer after Yahes assumes the CFO position. This organizational change is part of Unity's strategic efforts to strengthen its leadership team and financial operations.
The announcement, based on a press release statement, underscores Unity's commitment to transparency and governance, as well as its ongoing growth in the prepackaged software industry.
In other recent news, Unity Software (ETR:SOWGn) has experienced significant developments. The company appointed Alex Blum as its new Chief Operating Officer and Steve Collins as its new Chief Technology Officer, aiming to bolster its leadership team.
Unity Software also reported a 16% year-over-year decrease in Q2 revenue, landing at $449 million, but anticipates strategic revenue growth and improved profitability later in the year.
The company launched Unity 6, a new version with enhanced performance and features designed to improve game development speed and efficiency. Unity Software also made significant changes to its pricing model, eliminating its criticized 'runtime fee' and introducing per-seat price increases for its Unity Pro and Enterprise offerings.
These adjustments are expected to impact the revenue growth of the Create segment in the years 2025 and 2026.
Analysts have been active, with Wells Fargo (NYSE:WFC) initiating coverage on Unity Software, assigning an Equal Weight rating and a price target of $20.00. Other firms such as HSBC, Macquarie, Stifel, and Morgan Stanley (NYSE:MS) have adjusted their price targets for Unity, reflecting varied outlooks on the company's future performance.
Oppenheimer maintained its Perform rating on Unity Software, citing a mixed outlook for mobile gaming revenues. These are the recent developments for Unity Software.
InvestingPro Insights
Unity Software's recent appointment of a new CFO comes at a critical time for the company, as reflected in the latest financial data and market trends. According to InvestingPro data, Unity's market capitalization stands at $8.85 billion, indicating its substantial presence in the software industry. The company's revenue for the last twelve months as of Q2 2024 reached $2.06 billion, with a notable growth rate of 14.13% over the same period.
Despite this growth, Unity faces profitability challenges. The company's operating income for the last twelve months was negative $820.33 million, resulting in an operating income margin of -39.76%. This aligns with an InvestingPro Tip highlighting that Unity has not been profitable over the last twelve months. However, another InvestingPro Tip suggests that analysts predict the company will be profitable this year, potentially signaling a turnaround.
Unity's stock has shown significant volatility, with a strong return of 55.56% over the last three months, as noted in the InvestingPro data. This performance is particularly noteworthy given the challenging market conditions many tech companies have faced. The appointment of a new CFO with a substantial compensation package, including stock awards, 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, InvestingPro offers 8 additional tips for Unity Software, providing deeper insights into the company's financial health and market position.
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