Unity Software Inc. reports a third‑quarter 2024 performance that surpassed guidance, driven by strategic portfolio growth and renewed pricing initiatives. Revenue from the strategic portfolio reached $429 million, a 2% decline YoY but above the $415–$420 million guidance, while Create Solutions revenue grew 5% YoY to $132 million, largely due to a 12% increase in subscription revenue. Grow Solutions revenue fell 5% YoY to $298 million, yet rose 1% QoQ. Total company revenue declined 18% YoY to $447 million, largely from a sharp drop in Grow Solutions and the portfolio reset. Non‑strategic portfolio revenue fell 84% YoY to $17 million, with a continued downward trend expected.
Adjusted EBITDA for the quarter was $92 million, exceeding the $75–$80 million guidance and representing a 24% margin. Net loss remained at $125 million, unchanged from the prior quarter. Guidance for Q4 projects strategic portfolio revenue of $422–$427 million and Adjusted EBITDA of $79–$84 million, while full‑year strategic portfolio revenue is now forecast at $1.703–$1.708 billion and Adjusted EBITDA at $363–$368 million, up from previous ranges.
Key initiatives highlighted include the cancellation of the Runtime Fee for gaming customers, a return to seat‑based subscriptions with new pricing effective January 2025, and the launch of Unity 6. The company also announced new CTO Steve Collins and CFO Jarrod Yahes, reinforcing leadership for product innovation and financial stewardship. Investments in a rebuilt machine‑learning stack and data infrastructure are underway, with early live‑data testing showing promising ROI improvements for advertising customers. The letter emphasizes Unity’s ambition to remain the global platform of choice across the entire game‑development lifecycle, supported by a growing subscription base and expanding non‑gaming verticals such as VR training for airlines and railways.
