Today I cover Unity Software $U stock, which has an IPO launch the week of September 14. Unity Software IPO. Should You Buy Unity Software Stock? Is U Unity a stock to buy now?

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Unity Software (U) intends to raise $950 million from the sale of its common stock in an IPO, according to an amended registration statement.

The company provides a platform for creating 3D content for a variety of industries.

Unity has produced an enviable revenue growth trajectory while turning in the direction of lowered operating losses and cash burn.

San Francisco, California-based Unity was founded to develop a platform to enable users to create 3D games, media & entertainment content, architecture, engineering & construction visualizations, and automotive, transportation and manufacturing content.

Management is headed by president and Chief Executive Officer Mr. John Riccitiello, who has been with the firm since November 2013 and was previously CEO at Electronic Arts (EA) and Managing Director at private equity firm Elevation Partners.

Unity Software does:
Create Solutions - content creation suite
Operate Solutions - grow and monetize user base

According to a 2020 market research report by ResearchAndMarkets, the global gaming industry is expected to grow at a CAG of 12% from 2020 to 2025.

The immersive gaming segment is expected to generate $4.5 billion by the end of 2020.

E-sports and fantasy sites have continued to attract gaming investment as they represent 'immense potential.'

Also, the report forecasts that the console segment is expected to see 'significant growth' during the forecast period.

Major competitive or other industry participants include:

For its Create Solutions system:

Epic Games
Chukong Technologies
For its Operate Solutions system:

Amazon
Facebook
Google
Microsoft
Tencent

Unity’s recent financial results can be summarized as follows:

Growing topline revenue
Increasing gross profit and gross margin
Significant operating losses but lowered negative operating margin
Sharply reduced cash used in operations

U intends to sell 25 million shares of common stock at a midpoint price of $38.00 per share for gross proceeds of approximately $950 million, not including the sale of customary underwriter options.

Assuming a successful IPO at the midpoint of the proposed price range, the company’s enterprise value at IPO would approximate $10.5 billion.

Resources:
https://www.thestreet.com/ipo/news/un...
   • The Heretic short film | Unity  
   • Awe-inspiring games made with Unity  
https://techcrunch.com/2020/09/10/how...
https://techcrunch.com/2020/08/24/uni...


Disclaimer:
I have been investing in the stock market for over 20 years, but I am not a financial advisor or a legal professional, and I am not providing financial or legal advice. The information provided is for informational purposes only. It should not be considered legal or financial advice. You should consult with an attorney or other professional to determine what may be best for your individual needs. FIRED Up Wealth and Eric Cuka do not make any guarantee or other promise as to any results that may be obtained from using our content. No one should make any investment decision without first consulting his or her own financial advisor and conducting his or her own research and due diligence. Past performance is no guarantee of future results.

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