The earnings call highlighted several positive developments, including exceeding revenue and adjusted EBITDA guidance, strong growth in subscription revenue, and successful leadership changes. Unity's expansion beyond gaming and notable adoption of Unity 6 further strengthen its position. However, challenges such as a decline in overall and growth solutions revenue as well as cautious revenue recovery were noted. Overall, the positive achievements and strategic progress outweigh the reported challenges.

Company Guidance

During Unity's Q3 2024 earnings call, the company provided guidance that exceeded expectations, with third-quarter revenue reaching $429 million, surpassing the guidance range of $415 million to $420 million. The strategic portfolio's Create Solutions revenue increased by 5% year-over-year to $132 million, while Growth Solutions revenue was $298 million, down 5% year-over-year but up 1% quarter-over-quarter. Adjusted EBITDA stood at $92 million, also exceeding the guidance of $75 million to $80 million. Unity raised its full-year revenue guidance for the strategic portfolio to $1.73 billion to $1.78 billion, up from the previous $1.68 billion to $1.69 billion, and adjusted EBITDA to $363 million to $368 million, up from $340 million to $350 million. For Q4, the company guided revenue between $122 million to $427 million and adjusted EBITDA between $79 million to $84 million, highlighting continued caution on the timing of revenue recovery in their growth business.

Exceeding Revenue and Adjusted EBITDA Guidance

Unity reported third-quarter revenue of $429 million, exceeding the guidance range of $415 million to $420 million. Adjusted EBITDA was $92 million, surpassing the guidance of $75 million to $80 million.

Growth in Subscription Revenue

Create solutions revenue increased by 5% year-over-year, with subscription revenue growing by 12% year-over-year.

Successful Launch of Unity 6

Unity 6 has been downloaded over 500,000 times, indicating strong adoption and favorable reception.

Strategic Leadership Hires

Unity appointed a new CTO, Steve Collins, and a new CFO, Jared Gas, to strengthen its leadership team.

Expansion Beyond Gaming

Unity secured key new customer accounts in non-gaming sectors, including KLM and Deutsche Bahn, for VR and simulation applications.

Positive Free Cash Flow

Unity generated $115 million in free cash flow in Q3, up 11% from the previous year.

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Unity Software (U) Earnings, Revenues Date & History

The upcoming earnings date is based on a company’s previous reporting, and may be updated when the actual date is announced

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U Earnings History

Report Date	Fiscal Quarter	Forecast / EPS	Last Year's EPS	EPS YoY Change	Slides	Play Transcript
Nov 12, 2020	2020 (Q3)	- / -0.09	-0.387	76.74% (+0.30)	―	―
Feb 04, 2021	2020 (Q4)	- / -0.10	-0.189	47.09% (+0.09)	―	―
May 11, 2021	2021 (Q1)	-0.12 / -0.10	-0.208	51.92% (+0.11)	―	―
Aug 10, 2021	2021 (Q2)	-0.10 / -0.02	-0.09	77.78% (+0.07)	―	―
Nov 09, 2021	2021 (Q3)	-0.06 / -0.06	-0.09	33.33% (+0.03)	―	―
Feb 03, 2022	2021 (Q4)	-0.07 / -0.05	-0.1	50.00% (+0.05)	―	―
May 10, 2022	2022 (Q1)	-0.08 / -0.08	-0.1	20.00% (+0.02)	―	―
Aug 09, 2022	2022 (Q2)	-0.21 / -0.18	-0.02	-800.00% (-0.16)	―	―
Nov 09, 2022	2022 (Q3)	-0.15 / -0.14	-0.06	-133.33% (-0.08)	―
Feb 22, 2023	2022 (Q4)	0.01 / -0.01	-0.05	72.00% (+0.04)	―

The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.

Beat

Missed

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U Earnings-Related Price Changes

Report Date	Price 1 Day Before	Price 1 Day After	Percentage Change
Nov 07, 2024	$22.21	$20.50	-7.70%
Aug 08, 2024	$14.36	$15.54	+8.22%
May 09, 2024	$24.16	$21.69	-10.22%
Feb 26, 2024	$33.04	$31.02	-6.11%

Earnings announcements can affect a stock’s price. This table shows the stock's price the day before and the day after recent earnings reports, including the percentage change.

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