Unity’s CEO says we “expect to be profitable” in the fourth quarter after a difficult quarter

unit software he expects slower growth in the second and fourth quarters as he rebuilds his data, but expects to be profitable at the end of the year, chief executive John Riccitiello told CNBC’s Jim Cramer Wednesday.

“We lowered our driving and what it is [a] self-inflicted wound. We did a few things on the advertising side of the business that reduced the accuracy of our models. It will take a couple of quarters to fix it and we will have slower growth for a couple of quarters as we fix it, “Riccitiello said in an interview with”crazy money. “

Unity missed frontline expectations last quarter and lowered its revenue guide. The company cited flaws in its Audience Pinpointer tool in its Operate business and said it expects the impact to the business to be approximately $ 110 million this year.

Shares of the video software developer tumbled 37.05% on Wednesday, hitting a new 52-week low earlier in the day.

“We know our shares were much higher nine months ago at the peak of the market. And my feeling is that we probably spent around 10% more on our business due to some kind of euphoria that comes with it,” Riccitiello said. claimed, adding that the company reduced spending by $ 100 million from its original plan in response.

“What it allows us to do is take profitability from future years to this year. At the end of this year to the fourth quarter, we expect to be profitable,” he added.

Riccitiello also said it Apple’s privacy changes there weren’t a noticeable headwinds in the last quarter. “This is largely digested, so that’s not really the problem … This was included in our guide this year,” she said.

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