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Total turnover: $429 million, down 2% year over year, up 1% sequentially from the second quarter.
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Create solutions revenue: $132 million, up 5% year-over-year, up 2% quarter-over-quarter.
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Subscription revenue growth: An increase of 12% year on year.
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Gross revenue from strategic portfolio: $298 million, down 5% year-over-year, up 1% quarter-over-quarter.
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Adjusted EBITDA: $92 million, compared with expectations of $75 to $80 million.
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Free cash flow: $115 million, up 11% from $104 million last year.
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Cash and cash equivalents: $1.4 billion at the end of the quarter.
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Revenue guidelines for the entire year: Increased from $1,703 million to $1,780 million.
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Adjusted full year EBITDA guidance: Increased to $363 to $368 million.
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Fourth quarter revenue guidance: $422 to $427 million.
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Adjusted EBITDA guidance for the fourth quarter: $79 to $84 million.
Release date: November 7, 2024
For the full earnings call transcript, please refer to the full earnings call transcript.
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Unity Software Inc (NYSE:U) beat third-quarter revenue expectations, reporting $429 million compared to expectations of $415 to $420 million.
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The company successfully launched Unity 6, which is described as the best performing and most stable version to date, indicating strong product development.
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Unity Software Inc (NYSE:U) has seen strong growth in the non-gaming sectors, with new key customer accounts such as KLM and Deutsche Bahn showing diversification.
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The company has made significant progress in rebuilding its machine learning and data infrastructure, with early positive test results.
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Unity Software Inc (NYSE:U) has strengthened its leadership team with experienced hires, including a new CTO and an incoming CFO, expected to drive future growth.
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Unity Software Inc (NYSE:U) Strategic Portfolio revenue fell 2% year over year, highlighting challenges in maintaining growth.
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The company faces continued caution regarding the timing of revenue recovery in its growth businesses due to uncertainty in market conditions.
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Additional computational costs are expected due to the training of new machine learning models, which could impact profitability.
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Unity Software Inc (NYSE:U) has faced customer relationship challenges due to previous pricing strategies, necessitating a repeal of runtime fees.
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The transition from Plus to Pro pricing and its impact on sales is expected to occur slowly, indicating a gradual realization of the benefits.
Q: What are Unity’s growth expectations for the next 3 to 5 years? A: Matthew Bromberg, CEO, expressed optimism about Unity’s long-term value and highlighted their unique position in the 3D content creation and interactive entertainment industry. He highlighted Unity’s role as a provider of tools that can fundamentally change content creation, enabling more efficient and innovative projects. Unity aims to leverage its platform to provide insights and tools that no other company can, driving growth beyond the mobile gaming industry.
