Big day for $U (added 5% more)
Unity has been in very attractive price for few days. Today after hours is he earnings of $U and as an investor who is all in into Unity, it's a big day for me.
Gaurav Kotak @ Fincredible's avatar
Good luck. $U is a good company, but it is still trading at over >11x revenues so one of the most expensive SaaS companies out there even after the beat down. They better deliver else i wouldn't be surprised to see another 20-30% correction in the next month. The 5X multiple is the new 15 (or 20x) multiple.
Investor from Nepal πŸ‡³πŸ‡΅'s avatar
@gkotak I am expecting them to deliver as well
Gaurav Kotak @ Fincredible's avatar
@investor_from_nepal I wasn't expecting but for your sake hoping they deliver. Unfortunately looks not too be the case. I have a few that are down 60%+ as well (eg $RBLX) so feel the pain :(

Fwiw, I do think $U is marginally oversold
Investor from Nepal πŸ‡³πŸ‡΅'s avatar
@gkotak true, but we are in times like that... i skimmed, it doesn't look as bad but will look into more detail before making buy/sell/hold decision ;)
Strat Becker's avatar
Thoughts on results from today?
Investor from Nepal πŸ‡³πŸ‡΅'s avatar
@strat the real issue seems to be expected revenue from Operate in future > Unity Monetization > Audience PinPointer tool > bad data. My guess is it will increase cost and resources (to fix it) and decrease revenue (less accurate pinpointer tool). They seem to know what exactly is wrong (which is a good start to solving any issue).

So, I am currently accessing on if I should be buying more or just holding it. My thesis of 30%+ rev growth + market leader in interactive content creation is still holding true. I am concerned about cash positive business (being delayed). I am trying to reach out to experts to pinpoint the Audience PinPointer lack of accuracy issue, pun intended lol.

I had a contact with AI expert and according to him, if they are being honest about the issue, the issue should be fixed in 4-6 months (which is good). I am also trying to get more information on Unity Monetization (from developers who use it) and digging into ads bidding. So, still many questions to be asked here. Depending on answers, if the issue will be a long lasting one and impacting the company's rev and resources, I will make further decisions on coming week ;)
Strat Becker's avatar
@investor_from_nepal really appreciate your detail and thoughtfulness to all of this! Great to see an understanding and acknowledgement when things aren’t going according to plan as well, that humbleness is far too rare. All the best in contacting those experts too, that kind of leg work is always useful!
Investor from Nepal πŸ‡³πŸ‡΅'s avatar
@strat Thanks my man! Let's see what future holds.

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