Unity Software Inc

Latest Results (20.12.2024):

Revenue Performance

In the third quarter of 2024, Unity Software Inc. reported revenue from its strategic portfolio amounting to $429 million. This figure represents a 2% decrease year-over-year but a 1% increase sequentially from the second quarter. The revenue exceeded the company's guidance range of $415 to $420 million, showcasing a stronger-than-expected performance.

Create Solutions Revenue

Unity Software Inc.'s create solutions revenue from its strategic portfolio reached $132 million in Q3 2024. This marks a 5% increase year-over-year and a 2% rise quarter-over-quarter. The growth was primarily driven by a 12% year-over-year increase in subscription revenue, highlighting the company's expanding customer base and successful monetization strategies.

Growth Solutions Revenue

For the third quarter of 2024, Unity Software Inc. reported growth solutions revenue of $298 million from its strategic portfolio. This represents a 5% decline year-over-year but a 1% increase quarter-over-quarter, indicating a slight recovery from the previous quarter's performance. The sequential growth suggests a positive trend in the company's growth solutions segment.

Adjusted EBITDA and Cash Flow

Unity Software Inc. achieved an adjusted EBITDA of $92 million in Q3 2024, surpassing the guidance range of $75 to $80 million. The company also generated $115 million in free cash flow during the quarter, reflecting an 11% increase from the previous year's $104 million. These results demonstrate Unity's strong operational efficiency and cash generation capabilities.

Guidance and Outlook

Unity Software Inc. has raised its full-year guidance for its strategic portfolio, projecting revenue between $1,703 million to $1,708 million, up from the previous range of $1,680 million to $1,690 million. The company also anticipates adjusted EBITDA of $363 to $368 million, compared to the prior guidance of $340 to $350 million. For Q4 2024, Unity expects revenue of $422 to $427 million and adjusted EBITDA of $79 to $84 million, reflecting cautious optimism amid ongoing market challenges.