Unity Revenue Jumps 32% as Advertising Growth Drives Strong Q3 Results

Unity Software $U reported third-quarter revenue of $622 million, up 32% year over year and well above the $567 million analyst estimate. Earnings reached $0.25 per share against expectations of $0.05, while net income totaled $122 million.
Grow Solutions revenue increased 44% to $457 million, compared with 8% growth in Create Solutions to $165 million. Unity also reported 126% year-over-year growth in Vector, its advertising technology platform, and a 40% sequential increase.
Adjusted EBITDA reached $257 million, while free cash flow totaled $220 million. Operating cash flow came in at $224 million.
For the fourth quarter, Unity expects strategic revenue of $683 million to $691 million, plus approximately $5 million in non-strategic revenue. Adjusted EBITDA is projected at $290 million to $295 million.
The results show accelerating growth in Unity's advertising business alongside improved profitability and cash generation.