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Our Unity stock analysis looks at what the acquisition of ironSource has resulted in. The answer? Well, not the revenue growth we were hoping for. The combined companies are only expected to grow revenues 3 to 9 percent in 2023, so we're keen to see if 2024 brings all the synergies that were expected with this acquisition. One major problem with $U stock is that investors aren't provided with quarterly earnings decks so they can easily monitor the company's progress. Instead, we're provided with a shareholder update letter which includes several metrics that are weakening over time - net retention rate and customers spending more than $100,000 a year.

Going forward, no more of this pro forma stuff. If Unity doesn’t see strong revenue growth next year, we can assume that a) the 2 + 2 = 5 synergy stuff failed to transpire and b) the company may be reaching maximum growth in their space. What we may see then is an increased focus on profitability in an attempt to sweep the growth problems under the rug. In the meantime, analysts seem preoccupied with AI, and Unity seems eager to oblige them. We might have been able to forgive the company for not presenting investors with quarterly metrics, but add to that the uncertainty surrounding the merger’s success, several key SaaS metrics on the decline, and slowing revenue growth, and we can hardly say that Unity stock is one of the most compelling stocks we own.

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