San Francisco, CA – Unity Software Inc., a leader in creating interactive, real-time 3D content. (NYSE:U) announced the appointment of Alex Blum as its new Chief Operating Officer, effective November 1, 2024. The announcement was made in a regulatory filing with the Securities and Exchange Commission (SEC) on Monday.
Blum, who has served as senior vice president of corporate development since July 2024, will receive an annual salary of $525,000, plus a target bonus of 75% of base salary under the terms of the 2024 corporate bonus plan. He will also receive a one-time cash bonus of $25,000 in February 2025.
Under the company’s 2020 Stock Incentive Plan, Blum’s compensation package also includes 59,555 time-based restricted stock units (RSUs) and a time-based option to purchase 39,703 shares of common stock. RSUs vest quarterly over four years, while stock options vest monthly over the same period. However, this is conditional on Blum continuing to work at Unity.
Blum, who has held a variety of roles in technology, brings a wealth of experience to his new role at Unity. Prior to joining the company, he served as an investor and advisor to several privately held technology companies. From January 2015 to April 2021, Blum served as Executive Chairman of Tru Optik, a connected TV advertising data management platform, until its acquisition by TransUnion. His experience also includes the role of Vice President of Product for Audience Business at AOL.
Blum, 62, earned a bachelor’s degree in mechanical engineering from the University of Colorado at Boulder and an MBA from Seattle University. As part of his executive compensation, he will also participate in Unity’s Executive Retirement Plan, as detailed in the company’s proxy statement filed on April 18, 2024.
Unity’s appointment of Blum as COO reflects the company’s commitment to leadership and growth in the packaged software industry. Details of the appointment and compensation agreement are based on the press release.
In other recent news, Unity software has seen a series of notable developments. The company appointed Steve Collins as its new chief technology officer. Collins brings a wealth of experience from his previous roles at King and Havok, and his appointment is expected to accelerate Unity’s product innovation.
Unity Software’s second quarter revenue fell 16% year-over-year to $449 million. However, the company expects strategic sales growth and improved profitability by the end of the year. Unity has also released Unity 6, a new version that offers improved performance and features aimed at improving the speed and efficiency of game development.
The company has made significant changes to its pricing model, eliminating the criticized ‘runtime fee’ and introducing per-seat price increases for its Unity Pro and Enterprise products. These adjustments are expected to impact the revenue growth of the Create segment in 2025 and 2026.
Analysts are also active. Wells Fargo is initiating coverage of Unity Software, assigning an Equal Weight rating and a $20.00 price target. Other companies such as HSBC, Macquarie, Stifel and Morgan Stanley have also adjusted their price targets to reflect their differing views on Unity’s future performance. Oppenheimer maintained a Perform rating on Unity Software, citing a mixed outlook for mobile game sales. These are the latest trends in Unity software.
InvestingPro Insights
As Unity Software (NYSE:U) welcomes Alex Blum as its new COO, investors can find additional context in the latest financial data and expert insights. According to InvestingPro, Unity’s market capitalization is $8.23 billion, reflecting its significant position in the interactive real-time 3D content industry.
Despite the company’s innovative positioning, InvestingPro tips highlight that Unity is currently unprofitable over the past 12 months, with a P/E ratio of -10.1. This demonstrates the company’s focus on growth and talent acquisition, as seen in Blum’s appointment and compensation package. However, analysts are predicting that Unity will achieve profitability this year, suggesting the potential for financial improvement in the future.
As of Q2 2024, Unity’s trailing 12-month revenue was $2.06 billion, representing a notable revenue growth of 14.13% over the same period. This growth trajectory supports the company’s strategy of investing in top-tier executive talent to ensure future success.
For investors who want a more comprehensive analysis, InvestingPro offers seven additional tips that can provide valuable insight into Unity’s financial health and market position. These tips can help you make a more informed decision about Unity stock by considering recent executive changes along with real-time indicators.
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