drive software it expects slower growth in the second and fourth quarters as it rebuilds its data, but expects to be profitable by the end of the year, CEO John Riccitiello told CNBC’s Jim Cramer on Wednesday.
“We brought our guide down, and what it’s all about is [a] self-inflicted wound. We did some things on the advertising side of the business that reduced the accuracy of our models. It’ll take us a couple of quarters to fix and we’ll have slower growth for a couple of quarters while we fix that,” Riccitiello said in an interview on “bad money.”
Unity missed top-tier expectations in its latest quarter and lowered its revenue guidance. The company cited flaws with its Audience Pinpointer tool in its Operate business and said it expects the business impact to be around $110 million this year.
Shares of the video software developer fell 37.05% on Wednesday, hitting a new 52-week low earlier in the day.
“We know that our shares were much higher nine months ago at the height of the market. And my feeling is that we probably spent 10% more on our business because of a kind of euphoria that goes with that.” Riccitiello said, adding that the company cut its spending by $100 million compared to its original plan in response.
“What that allows us to do is bring profitability from future years to this year. By the end of this year in the fourth quarter, we expect to be profitable,” he added.
Riccitiello also said that Apple Privacy Changes they weren’t a noticeable headwind in their final quarter. “That’s largely digested, so that’s not really the problem… That’s been incorporated into our guidance this year,” he said.
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