Unity Reports Q3 Revenue Growth Amid Deepening Losses

Unity has announced its Q3 financial results, showcasing a year-over-year revenue increase driven by its game engine business, offset by declines in other areas and a significant operating loss. Although the company has yet to achieve a profitable quarter since its founding in 2004, the latest loss is nearly double that of the same period last year. Key highlights include: Revenue of $322.9 million, up 13% year-over-year; Operate solutions revenue down 7% to $171.7 million; Create Solutions revenue up 54% to $128.6 million; and a loss from operations of $239.6 million, compared to $126.8 million in Q3 2021. The Create Solutions segment, which includes the Unity game engine, saw the most significant revenue growth. Strategic Partnerships and Other revenues rose 28% year-over-year to $22.6 million. Notable events during the quarter included the completion of the IronSource merger, new pricing for Unity Pro and Unity Enterprise, and the launch of new features for Game Server Hosting and Matchmaker. The number of developers using Unity's engine who generated over $100,000 in revenue in the 12 months ended September 30 increased to 1,075. CEO John Riccitiello described the quarter as 'solid, with very strong results in Create.' CFO Luis Visoso noted that the results were in line with guidance and that the company is taking a cautious approach in the fourth quarter due to the current economic environment. Unity expects up to $445 million in revenue in the final quarter, with non-GAAP income of up to $15 million, and forecasts non-GAAP losses of $88-98 million for the full fiscal year, with revenues of up to $1.39 billion.