Latest news with #MatthewBromberg
Yahoo
11-06-2025
- Business
- Yahoo
U Q1 Earnings Call: Unity Highlights AI Ad Platform Progress Amid Lower Revenue Outlook
Game engine maker Unity (NYSE:U) beat Wall Street's revenue expectations in Q1 CY2025, but sales fell by 5.5% year on year to $435 million. On the other hand, next quarter's revenue guidance of $420 million was less impressive, coming in 1.9% below analysts' estimates. Its non-GAAP profit of $0.24 per share was significantly above analysts' consensus estimates. Is now the time to buy U? Find out in our full research report (it's free). Revenue: $435 million vs analyst estimates of $416.8 million (5.5% year-on-year decline, 4.4% beat) Adjusted EPS: $0.24 vs analyst estimates of $0.11 (significant beat) Revenue Guidance for Q2 CY2025 is $420 million at the midpoint, below analyst estimates of $428 million EBITDA guidance for Q2 CY2025 is $72.5 million at the midpoint, below analyst estimates of $79.05 million Market Capitalization: $10.33 billion Unity's first quarter performance reflected the early impact of its AI-driven advertising platform, Unity Vector, and strong adoption of Unity 6 in its Create segment. CEO Matthew Bromberg credited the company's 'accelerated rollout of Vector ahead of schedule,' which delivered a 15% to 20% increase in installs and in-app purchase value on iOS compared to previous models. Management pointed to double-digit subscription growth in Create, particularly from non-gaming industries, as another positive factor, and emphasized that transitioning away from low-margin professional services has improved the revenue mix. CFO Jarrod Yahes highlighted disciplined cost management—especially in general and administrative and sales and marketing expenses—as a key contributor to margin improvement. For the coming quarter, Unity's guidance reflects a cautious stance, shaped by a mix of internal transitions and ongoing industry challenges. Management noted that although Unity Vector has begun to yield higher advertiser returns, the financial benefits will take time to be fully visible as legacy ad products are phased out. Bromberg stated, 'Our confidence in the future of our Grow business has never been stronger,' but also cautioned that the company is 'being prudent about how we're guiding this business' given its early stage. Yahes explained that increased cloud costs from operating both legacy and new ad models will normalize in the second half, supporting better profitability. Management also acknowledged the broader macroeconomic environment but said gaming's resilience and the focus on performance-based advertising should buffer major impacts. Unity's leadership attributed Q1 results to rapid AI ad platform deployment, strong subscription momentum, and deliberate resource reallocation. Management also identified a multi-quarter transition period as a significant factor affecting near-term results. AI-powered ad platform rollout: The full migration of Unity's ad network to the new AI-driven Vector platform was completed ahead of schedule. Management reported that Vector delivered a 15% to 20% lift in installs and in-app purchase value for iOS advertisers compared to the legacy system. Initial Android results are tracking similarly. Shift toward high-margin subscriptions: The Create segment saw double-digit year-over-year subscription growth, offsetting declines in low-margin professional services. Subscription revenue now comprises nearly 80% of Create, with industry verticals outside gaming contributing meaningfully to growth. Resource reallocation to Vector: Unity aggressively shifted investment toward machine learning and cloud infrastructure to support Vector, while reducing costs in general and administrative and sales and marketing. R&D spending increased, but management expects these costs to normalize as legacy ad models are retired. Non-strategic revenue runoff: CFO Jarrod Yahes clarified that sequential declines in Create are primarily due to planned reductions in non-core revenue streams, which now account for under 2% of total revenue, providing a clearer focus on core growth areas. Platform expansion beyond gaming: Management highlighted new customers in healthcare, industrial training, and digital twins, citing consistent revenue growth from non-gaming verticals for nine consecutive quarters. These emerging use cases are now the fastest-growing part of Unity's subscription business. Unity's near-term outlook is shaped by ongoing migration to its AI ad platform, normalization of costs, and continued uptake of core subscription products. AI-driven ad business ramp: Management expects Unity Vector to drive long-term revenue growth as advertisers see higher returns and shift budgets to the platform. However, in the immediate term, overall Grow segment revenue is tempered by declines in legacy ad products as customer spending transitions to Vector. Normalization of cloud and R&D costs: With the completion of the Vector migration, Unity anticipates cloud and R&D expenses will decrease in the second half of the year, supporting margin improvement. CFO Jarrod Yahes noted that operating leverage from high gross margins should enable profitability as ad business scales. Industry diversification and new pricing: The company is seeing early success from expanding Create into new industry verticals and implementing price improvements. Management expects these trends, along with continued seat growth, to support double-digit subscription revenue growth through 2025. Looking ahead, the StockStory team will monitor (1) the pace at which advertisers increase spend on Unity Vector and whether it sustains its reported performance gains, (2) the impact of normalizing cloud and R&D costs on margins as legacy ad models are fully retired, and (3) the continued expansion and retention of non-gaming industry customers in the Create segment. Developments in product pricing and successful delivery of new platform features will also be critical for validating Unity's growth strategy. Unity currently trades at a forward price-to-sales ratio of 5.7×. Should you double down or take your chips? Find out in our full research report (it's free). Donald Trump's victory in the 2024 U.S. Presidential Election sent major indices to all-time highs, but stocks have retraced as investors debate the health of the economy and the potential impact of tariffs. While this leaves much uncertainty around 2025, a few companies are poised for long-term gains regardless of the political or macroeconomic climate, like our Top 6 Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025). Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-small-cap company Comfort Systems (+782% five-year return). Find your next big winner with StockStory today. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Reuters
02-06-2025
- Business
- Reuters
Canada's aviation firm CAE taps Northrop Grumman's Matthew Bromberg as CEO
June 2 (Reuters) - Canadian aviation and defense technology company CAE ( opens new tab, said on Monday it tapped Northrop Grumman's (NOC.N), opens new tab Matthew Bromberg as its new chief executive officer. Bromberg, set to join on August 13, will be succeeding Marc Parent, who has been at the helm since 2009 and had announced his departure in November last year. Bromberg has been working as the head of global operations for Northrop Grumman since 2022 and has also worked for RTX Corp (RTX.N), opens new tab, leading its military engine business. The appointment follows activist investor Browning West in December pushing to have a say in hiring CAE's new top boss, after building a 4.3% stake in the company. CAE also announced that former Air Canada CEO Calin Rovinescu will become executive chairman of the board, while the past CEO of Hydro-Quebec Sophie Brochu will serve as lead independent director.
Bloomberg
02-06-2025
- Business
- Bloomberg
Activist Browning West Leads CAE to Reset With New CEO Bromberg
Investment firm Browning West LP says flight simulator company CAE Inc. should be able to double its profit over the next three to four years under the direction of a new chief executive officer. CAE hired Northrop Grumman executive Matthew Bromberg to run the company and named former Air Canada CEO Calin Rovinescu as executive chair in a revamp of its leadership team. The shares jumped more than 4%.
Globe and Mail
02-06-2025
- Business
- Globe and Mail
CAE names Northrop Grumman executive Matthew Bromberg as next CEO
Canadian pilot training company CAE Inc. CAE-T has named Northrop Grumman Corp. executive Matthew Bromberg as its next chief executive officer, capping a four-month search process ahead the coming retirement of current CEO Marc Parent. Mr. Bromberg, a military veteran who served as a submarine officer in the U.S. Navy, currently leads Northrop Grumman's global operations as vice-president. He'll take over Aug.13 after Mr. Parent's departure, Montreal-based CAE said in a statement Monday. Former Air Canada Chief Executive Calin Rovinescu, named CAE chairman in February, will become executive chairman and energy industry executive Sophie Brochu will serve as lead independent director, the company said. The announcement follows a mini board shakeup in February that saw four new directors added, including Peter Lee of U.S. investment firm Browning West. Browning West is best known in Canada as the firm that led a successful campaign to re-instate the ousted co-founder and CEO of Gildan Activewear Inc., Glenn Chamandy. Browning West disclosed in December that it had amassed a 4.3-per-cent economic interest in CAE and asked for a formal role in the succession planning. An agreement was subsequently struck giving Mr. Lee a board seat and making him co-chair of the CEO selection committee. Mr. Bromberg also worked for Raytheon Technologies for more than 20 years, leading Pratt & Whitney's military engines unit. Earlier in his career, he worked as an investment banker with Goldman Sachs and led several key acquisitions and divestitures at United Technologies. The incoming CEO 'ticks the key experience boxes' necessary to lead CAE, National Bank analyst Cameron Doerksen said in a research note Monday. 'We believe CAE has a meaningful opportunity to streamline its operations to improve capital efficiency and free cash flow, and we expect this will be a key focus for the incoming CEO,' the analyst said.
Yahoo
02-06-2025
- Business
- Yahoo
Canada's aviation firm CAE taps Northrop Grumman's Matthew Bromberg as CEO
(Reuters) -Canadian aviation and defense technology company CAE, said on Monday it tapped Northrop Grumman's Matthew Bromberg as its new chief executive officer. Bromberg, set to join on August 13, will be succeeding Marc Parent, who has been at the helm since 2009 and had announced his departure in November last year. Bromberg has been working as the head of global operations for Northrop Grumman since 2022 and has also worked for RTX Corp, leading its military engine business. The appointment follows activist investor Browning West in December pushing to have a say in hiring CAE's new top boss, after building a 4.3% stake in the company. CAE also announced that former Air Canada CEO Calin Rovinescu will become executive chairman of the board, while the past CEO of Hydro-Quebec Sophie Brochu will serve as lead independent director. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
