Core Viewpoint - Unity Software Inc. is considered one of the best metaverse stocks to buy, with analysts believing that the recent selloff is overdone and that the current valuation supports a potential rebound [1][2]. Group 1: Company Performance and Growth - Citizens reiterated a Market Outperform rating on Unity Software with a price target of $37, indicating confidence in the stock's recovery potential [1]. - The company's products, particularly Vector, contributed to 56% of revenue growth in Q4 2025, with Vector itself growing 70% year-over-year in January [2]. - Unity's Commerce Platform is currently in testing and is expected to compete effectively with app stores for in-app purchases, which could enhance revenue streams [3]. Group 2: Market Position and Developer Infrastructure - Unity provides a foundational real-time 3D development platform that supports the creation and monetization of immersive content across various sectors, including gaming and industrial applications [5]. - The company's developer infrastructure is designed to prevent developers from needing to build their own game engines, allowing them to focus on unique gameplay elements [4].

Core Viewpoint - Unity Software Inc's stock is experiencing a positive movement following Citizens' reaffirmation of its Market Outperform rating and a price target of $37, indicating a potential recovery after a significant decline [1] Business Performance - Citizens highlighted signs of stabilization in Unity's business, particularly noting the strong performance of its Vector advertising product, which is expected to drive future growth [2][3] - Vector accounted for 56% of fourth-quarter 2025 Grow revenue and achieved a year-over-year growth of 70% in January, suggesting a robust growth trajectory [3] Strategic Focus - Unity is intentionally shifting its focus towards the Vector product while downplaying other advertising products, indicating a strategic pivot to capitalize on its strengths [3] - The company's new Commerce Platform is expected to become a significant revenue driver, offering a web-based checkout system that competes with traditional app-store payment flows [4] Market Dynamics - Concerns regarding generative AI undermining Unity's core business are downplayed, as most developers are likely to prefer Unity's infrastructure for gameplay and creative differentiation [5] - Unity is exploring strategic options for its China business, including a potential sale valued at over $1 billion, which could unlock capital or streamline operations [5] Technical Analysis - Currently, Unity's stock is positioned below key moving averages, indicating a bearish trend, trading 0.9% below its 20-day SMA, 38.2% below its 50-day SMA, and 45.1% below its 100-day SMA [6] - The RSI is at 36.04, suggesting a neutral but slightly oversold condition, while the MACD indicates some bullish momentum, tempered by the overall bearish positioning [7] - Key support is identified at $17.00, with resistance around $23.00, indicating potential for further declines if support is tested [8] Long-term Performance - Over the past 12 months, Unity's stock has declined by 6.42%, reflecting a challenging environment, with current positioning at 13.1% of its 52-week range, closer to lows than highs [9]

Crypto Payments - MoonPay launches a commerce platform [1] - The platform enables global crypto payments for products and services [1]

Financial Data and Key Metrics Changes - The company reported an annualized advertising revenue run rate exceeding $1 billion, marking a rapid achievement in this segment [9][12] - The net revenue margin expanded as anticipated, with the take rate in Q2 aligning with expectations and projected to be higher in the second half of the year [59][61] Business Line Data and Key Metrics Changes - New verticals are growing significantly faster than the core restaurant business, with increased selection and improved product quality contributing to higher engagement and order frequency [29][32] - DashPass had a solid quarter, with more new consumers joining the platform and existing cohorts engaging at higher levels [39][42] Market Data and Key Metrics Changes - The international business is experiencing strong growth, with all-time high monthly active users (MAUs) driven by product improvements and the introduction of new categories [77][80] - The U.S. market continues to show resilience, with ongoing strength in new customer cohorts and order frequency hitting all-time highs [49][56] Company Strategy and Development Direction - The company is focused on enhancing product offerings and user experience, with a long-term view on improving customer satisfaction and retention [10][52] - The acquisition of Symbiosis is aimed at scaling advertising opportunities while maintaining a best-in-class consumer experience [12][13] - The company is exploring AI applications to improve user experience and operational efficiencies [20][24] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term growth potential, emphasizing the importance of continuous product improvement to capture a larger market share [51][54] - The company remains committed to maximizing long-term margin dollars rather than short-term unit margins, focusing on sustainable growth [45][62] Other Important Information - The company is investing in automation and efficiency improvements across its operations, aiming to drive leverage in its business model [70][72] - The partnership with CocoRobotics for sidewalk robots is progressing, with potential for future expansion in autonomous delivery [105] Q&A Session Summary Question: Insights on DashPass user growth - Management highlighted that the key to DashPass growth is making the product more useful, with a focus on increasing benefits for users [99][100] Question: Updates on the retail business and unit economics - The retail segment is in early stages but growing rapidly, with significant potential for future development [114] Question: Impact of AI on operational efficiencies - Management discussed plans to leverage AI for improving user experience and operational processes, indicating a strategic shift towards more efficient operations [20][24] Question: Performance of new verticals and customer growth - New verticals are contributing significantly to customer growth, with both new and existing cohorts showing increased engagement [30][34] Question: Updates on the integration of Deliveroo - Management anticipates closing the Deliveroo acquisition in Q4, subject to regulatory review, and plans to integrate it with a focus on product experience [44]