What's Going On With Unity Software Stock After Hours?

Unity Software Inc U shares are volatile in Monday's after-hours session after the company announced a CEO transition.

What Happened: Unity announced that John Riccitiello will retire as chairman, president and CEO, effective immediately. Riccitiello will continue to work in an advisory role to help ensure a smooth transition.

"It's been a privilege to lead Unity for nearly a decade and serve our employees, customers, developers and partners, all of whom have been instrumental to the Company's growth," Riccitiello said.

"I look forward to supporting Unity through this transition and following the Company's future success."

James Whitehurst has been appointed as interim president and CEO and Roelof Botha has been named chairman. The board also said it will launch a search process to select a permanent CEO of Unity.

The news came after Unity faced backlash over changes to its Runtime Fee policy. The company walked back the policy changes after it received pushback from its community of creators. 

Unity also reaffirmed its previously announced third-quarter guidance on Monday. The company is set to report third-quarter financial results after the market close on Nov. 9. Analysts are looking for EPS of 9 cents and revenue of $554.84 million, according to estimates from Benzinga Pro.

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U Price Action: Unity shares initially traded about 2% lower on the news before recovering most of the losses. The stock was trading flat after hours at publication time, per Benzinga Pro.

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Photo: StockSnap from Pixabay.