Unity Software Stock Slides On Q3 Earnings; Details

Unity Software Inc U reported third-quarter financial results after the close on Thursday. Here's a look at the key metrics from the quarter. 

What Happened: Unity said third-quarter revenue increased 69% year-over-year to $544 million, missing the consensus of $549.14M. The company reported a quarterly loss of 32 cents per share, beating the consensus for a loss of 49 cents.

Create Solutions revenue was $189 million, flat on a year-over-year basis. Grow Solutions revenue was $355 million, up 166% year-over-year. 

Adjusted EBITDA was $131 million in the third quarter. Unity generated $104 million in free cash flow during the quarter. 

"We experienced some revenue softness at the end of the quarter and in October from the runtime fee introduction, which is now mostly behind us," the company said in a letter to shareholders. 

Unity did not provide guidance for the fourth quarter, citing its ongoing comprehensive assessment that will likely include the discontinuation of certain products. The company said it will provide forward guidance for 2024 when it reports fourth-quarter results. 

Management will hold a conference call to discuss these results at 5 p.m. ET.

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U Price Action: Unity shares were down 12.60% after hours at $22.01 at the time of publication, according to Benzinga Pro.

Photo: Joshua Woroniecki from Pixabay.