09:53 AM EDT, 07/19/2024 (MT Newswires) -- Unity Software ( U ) is likely to face competitive pressures and uncertain growth in H2, keeping most investors on the sidelines for now, Oppenheimer said in a note Friday.

The investment bank said investors are wary about the company potentially lowering its 2024 guidance and management can ease concerns by providing updates on its data integration efforts, timing of game engine price increases, and the action plans of the new chief executive officer.

Oppenheimer expects the company to report Q2 revenue of about $430 million, below the $438 million consensus and 5% lower year on year. The company is scheduled to report Q2 results on Aug. 8.

For Q3, Oppenheimer said it expects Unity to post revenue of $439 million, lower than the $459 million consensus and flat year on year.

"We expect its near- and medium-term growth to be challenged by negative macro headwinds as well as execution related to an increasingly complex product portfolio for non-gaming, enterprise customers," according to the note.

Oppenheimer has a perform rating on the Unity stock.

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