John Riccitiello, Unity Software's CEO and chairman, is leaving the company

Unity Software Inc. said late Monday that John Riccitiello will retire as president, chief executive and chairman of the game-engine and ad-monetization company he took public at the height of the COVID pandemic.

Unity U, -1.49% appointed James Whitehurst as interim CEO; Roelof Botha, lead independent director of Unity’s board, has been appointed chairman. The board said it would initiate a search for a new CEO.Riccitiello, who will leave the company altogether, “will continue to advise Unity to ensure a smooth transition.” Unity shares declined as much as 2.5% after hours, following a 1.5% decline in the regular session to close at $29.70.

The company also reaffirmed its third-quarter outlook. Back in August, Unity forecast revenue of $540 million to $550 million, citing a flat game-ads market and a continued soft market in China. Analysts surveyed by FactSet, at the time, had estimated revenue of $549 million, and now forecast $555 million.At Monday’s close, Unity shares were up 3.9% year to date, while the S&P 500 index SPX is up 12.9%, and the tech-heavy Nasdaq Composite COMP is up 28.8%.

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Unity Software’s Chairman, CEO John Riccitiello leaving companyWallace Witkowski came to MarketWatch from the Associated Press in New York, where he covered the business of Big Pharma, after covering FDA regulation of many of the same companies, as well as medical devices, in the Washington, D.C., area. Based in San Francisco, his current focus is on the more exciting world of semiconductors, videogames and cybersecurity, when he's not churning out earnings coverage. Follow him on Twitter at: wmwitkowski.
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