Unity's guidance is weak, leading to a sink.

• Unity provided a disappointing first-quarter forecast in its earnings report.
• The company announced that it would only give revenue guidance for its "strategic portfolio," consisting of its engine, cloud, and monetization business units.
• Fourth-quarter revenue jumped 35% from a year earlier.

On Monday, the gaming software company's shares plummeted 17% in extended trading after issuing weaker-than-expected guidance for the current quarter.

Here’s how the company did:

• The loss of 66 cents per share may not be comparable to the 46-cent loss predicted by analysts, according to LSEG, formerly known as Refinitiv.
• According to LSEG, the actual revenue was $609 million, which exceeded the analysts' expectation of $596 million.

Analysts predicted first-quarter adjusted earnings of $113 million for Unity, but the company expects to fall short with earnings ranging from $45 million to $50 million.

The company announced that it would only provide revenue guidance for its "strategic portfolio," consisting of its engine, cloud, and monetization business units, going forward. In January, Unity announced that it would eliminate 1,800 jobs as part of a corporate restructuring plan that included ending non-strategic efforts, such as professional services and the Luna marketing business.

The company announced that its strategic portfolio first-quarter guidance would fall between $415 million and $420 million, lower than the analysts' predicted total first-quarter revenue of $534 million.

Unity announced in a shareholder letter that it is adjusting its cost structure to maintain a healthy financial position. This includes reducing its workforce by approximately 25%, as well as implementing cost savings measures such as cloud hosting, office footprint consolidation, and software license optimization.

Fourth-quarter revenue for Unity increased by 35% from $451 million to $616 million, while its net loss decreased from $288 million to $254 million.

In October, Unity's CEO, John Riccitiello, retired and was replaced by James Whitehurst as interim CEO. This occurred after Unity announced a pricing change that caused dissatisfaction among video game developers.

Unity stated in its shareholder letter that it is dedicated to enhancing shareholder value by promoting revenue growth, expanding margins, and generating free cash flow, and it believes that the measures it has implemented in recent months will set it up for success in the future.

WATCH: Unity Software cutting 25% of workforce