Unity Software Inc U stock tanked Thursday after the company reported its fourth-quarter financial results. The company’s 3D development platform helps create games and apps.

What Happened: Unity’s fourth-quarter revenue decreased 25% year-over-year to $457.1 million, which beat the consensus estimate of $433.17 million.

Also Read: Robinhood To Expands Crypto Offerings In Singapore In Push For Global Growth

The company reported a quarterly loss of 30 cents per share, which beat analyst estimates for a loss of 37 cents per share.

Create Solutions revenue came in at $152 million, down 47% on a year-over-year basis. Excluding the impact of $99 million of incremental revenue in the fourth quarter of 2023 from terminating an agreement with Wētā FX, revenue would have been down 20%.

Grow Solutions revenue totaled $305 million, down 5% year-over-year.  Excluding the impact of the return of customer incentives issued by ironSource before the merger, Grow Solutions’ revenue would have increased by 2%.

Cash provided by operations was $112.19 million in the quarter and free cash flow totaled $105.75 million.

Outlook: Unity expects first-quarter revenue in a range of $405 million to $415 million versus the consensus estimate of $439.54 million.

Unity Software stock plunged 33% in the last 12 months as it missed the EPS consensus estimates in at least four of the previous eight quarters.

U Price Action: U stock is trading 16% higher Thursday morning at $24.91.

Also Read:

• AMD Closing Competitive GPU Gap With Nvidia, Gains Market Share From Intel In Client And Server Markets: Analyst

Photo via Shutterstock.