Oppenheimer initiates Unity Software (NYSE:U) with an Outperform rating and $103 price target, calling the company a “proven success story, run by a visionary management team.”
The firm says Unity is successfully taking share in the $12B video game market and “beginning to see adoption of real-timer 3D content creation,” a $17B market.
Key quote: “Unity operates as a leader in a fast growing, massive video game market with substantial optionality outside of its established market segments to benefit from a proliferation of real-time 3D content applications.”
Credit Suisse starts Unity at Outperform and a $120 price target, viewing Unity as a “highly unique software platform selling into rapidly transforming and growing end markets, with multiple paths to potential revenue upside.”
Key quote: “Today, gaming represents the vastmajority of revenues, although the runway in non-gaming verticals remains significant. While nascent, industries such as Film (virtual studios/movie sets), Architecture, Engineering and Construction (building design and simulation) are rapidly embracing RT3D content. We size this combined market opportunity at $26bn globally and it is evolving rapidly. Under this framework Unity is currently ~3% penetrated, offering ample runway for growth.”
Unity Software shares are up 0.5% pre-market to $90.46.
Other bullish Unity initiations: Goldman Sachs, $100 price target; Piper Sandler, $112.
Hold/Neutral starts: BofA, $96; Barclays, $97; Stifel, $80.
Previously: Unity Software opening indication continues to rise at $73-$75, +44% from IPO (Sep. 18 2020)
The team of Doug Clinton and Steve Van Sloun at Loup Ventures made a bullish case for Unity Software (NYSE: U), a company in which they have owned a stake since before the IPO in a blog post.
“Unity is on the road to becoming the next great creative software company,” Clinton and Van Sloun said.
Unity offers three major elements for a long-term thesis, the tech venture capitalists said: gaming as a social network, physical and virtual worlds merging and the growth of augmented and virtual reality.
Loup Ventures compared Unity to Adobe Inc (NASDAQ: ADBE) and Autodesk Inc (NASDAQ: ADSK), two publicly traded creative software companies.
Adobe, Autodesk Parallels: Loup Ventures notes that many of Unity’s customers are also using Adobe Creative Cloud and Autodesk products like AutoCAD, Revit and Maya.
Loup Ventures believes Unity has a shot at hitting the market caps of Adobe and Autodesk in the long term.
Current valuations show Unity trading at 24.6x enterprise value/2021 revenue estimates compared to 15.5x for Adobe and 11.8x Autodesk.
“Unity deserves a higher multiple in part as it is growing twice as fast as Adobe and Autodesk,” Clinton and Van Sloun said.
Unity’s revenue was up 39% in the first half of 2020, compared to 14% and 17% increases from Adobe and Autodesk, respectively.
Related Link: Unity Software Opens Well Above IPO Price
Unity’s Growing Subscriber Base: Unity Software will have to add 3.3 million paid subscribers and 10.1 million paid subscribers to match the respective totals of Autodesk and Adobe.
Those figures are based on an average revenue per subscriber of $880.50 for Unity Software, Loup Ventures said.
The average revenue per subscriber figure from Unity is much higher than the $435.10 and $695.53 seen from Adobe and Autodesk, respectively.
Video game platform Roblox has confidentially filed for an IPO, according to a company statement to Bloomberg.
The number of shares and price for the offering weren’t revealed.
Last week, Reuters reported that Roblox would seek an $8B valuation, double the valuation during a $450M private investing round in February.
Roblox makes freemium games and operates Roblox Studio, a free game creation system that competes with recently listed Unity Software (NYSE:U).
Previously: Unity competitor Roblox considering U.S. IPO – Reuters (Oct. 01 2020)
Unity paid a Lead Backend Engineer in California a salary of $225,000
Engines require engineers. A majority of the jobs Unity hired for from overseas candidates were engineering positions. These workers help determine the broad swath of what Unity’s software can do. Some were common positions in software development, like backend engineers who work behind the scenes. Others were more idiosyncratic, like a “Robotics Simulations Engineer.”
Backend Engineer: $140,000 – $117,770
Backend Engineer, Monetization: $140,000 – $117,770
Backend Software Engineer, Golang: $159,000 – $137,259
Dev Ops Engineer: $120,000 – $81,141
Engineering Manager: $175,000 – $160,701
Full Stack Engineer, Monetization: $140,000 – $119,122
Full Stack Engineer, Monetization Engineering: $165,000 – $137,259
Lead Backend Engineer: $225,000 – $156,749
Lead engineer: $140,000 – $117,770
Lead Virtual Reality Engineer: $190,032 – $153,795
Machine Learning Engineer: $160,000 – $113,381
Machine Learning Graphics Engineer: $165,000 – $140,670
Robotics Simulations Engineer: $130,000 – $104,291
Senior Data Engineer, Monetization: $205,000 – $168,958
Senior Engineer, Monetization: $200,000 – $156,749
Senior Software Development Engineer in Test: $190,000 – $156,749
Senior Software Engineer, Machine Learning: $185,210 – $137,259
Software Development Engineer in Test: $175,600 – $153,795
Software Development Engineer in Test, Cloud Live Production: $150,000 – $124,134
Software Development in Test, Platform Foundation: $190,200 – $156,749
Software Engineer: $158,000 – $101,546
Software Engineer, Backend: $150,000 – $122,824
Software Engineer, Data: $142,000 – $117,770
Software Engineer, Desktop: $120,000 – $101,546
Software Engineer, Distributed Systems: $132,000 – $82,000
Software Engineer, Machine Learning: $167,500 – $122,824
Software Engineer, Monetization: $145,000 – $117,770
Software Engineer, Monetization DevOps: $140,000 – $117,770
Staff Data Engineer, Monetization: $200,000 – $156,749
UI Tools Engineer: $135,000 – $101,546