Companies that are firing on all cylinders shouldn’t have to engage in a “strategic reset” to pacify shareholders. Yet here we are as Unity Software (U) reinvents themselves in an attempt to control costs and reinvigorate revenue growth. Almost a year ago today, we expressed concerns about the company in an aptly titled piece, Unity Stock: Some Concerns Around Metrics. We concluded that 2024 better start showing some revenue growth to prove the acquisition of ironSource had merit. Let’s look past the lack of investor decks and focus on what Unity looks like now that they’ve completed their strategic reset.
We are exiting businesses where we do not believe that we can provide unique value to customers or generate a sound return to investors.
Unity – late 2023
The New Strategery
A major event transpired since our last update on Unity. For reasons unknown the company introduced a new pricing model of which the details don’t matter. What matters is the reaction of their developer community which was nothing short of devastating. In a matter of days, the company backtracked on their planned pricing changes but the damage was already done. Shortly afterwards, Unity’s controversial CEO, John Riccitiello, decided to “retire” and handed the reigns over to an interim CEO who admitted in a shareholder letter that the company was currently doing too much, not achieving synergi
