Unity adjusts its fiscal forecasts following Q3 2024 financial results that "exceed guidance"

Unity has unveiled its financial performance for the quarter ending on September 30, 2024, highlighting that its third-quarter outcomes surpassed predictions.

In terms of future projections, Unity anticipates its strategic portfolio will generate $422 to $427 million in revenue for the fourth quarter, with an adjusted EBITDA between $79 and $84 million for the entire company. The forecast for the full year has been updated, now estimated between $1.7 to $1.71 billion, up from the previous $1.68 to $1.69 billion.

Additionally, Unity has appointed Jarrod Yahes as the new chief financial officer.

Financial Overview

• Total revenue stood at $447 million, representing an 18% decline compared to the previous year.
• Create Solutions brought in $132 million, marking a 5% increase year-over-year.
• Grow Solutions recorded $298 million, a 5% decrease year-over-year.
• Net loss amounted to $125 million, remaining steady compared to the same period last year, and slightly decreased from $126 million in the preceding quarter.

Revenue from Unity's strategic portfolio saw a 2% year-over-year decline to $429 million, and its overall revenue experienced an 18% year-over-year drop to $447 million. However, the net loss improved to $125 million from $126 million in the previous quarter.

The rise in Create Solutions revenue is credited to a 12% growth in subscription revenue. Meanwhile, the non-strategic portfolio witnessed an 84% decline to $17 million, attributed to a "portfolio reset," and this decrease is projected to continue into the next quarter.

CEO and president Matt Bromberg commented, "The entire gaming ecosystem functions better when Unity is delivering on its commitment to provide developers and publishers what they need to make and market great games."

He further stated, "While we're just at the beginning of our journey to transform the Company, we're energized by our progress and the response from our customers and the community. The opportunity is clear, the market wants us to succeed, and we believe we have everything we need to deliver consistent, sustainable growth and profitability in the years ahead."

"As always, our deepest gratitude goes out to our customers, partners, employees, and investors for their unwavering support," he added.