Unity reveals its Q3 financials as results “exceed guidance”

• The company’s total revenue for the third quarter was $447 million
• Revenue from its strategic portfolio reached $429 million, down 2% year over year

Unity has shared its latest financials, stating that third-quarter results have “exceeded guidance.” 

The company’s total revenue for the third quarter was $447 million, down 18% year over year, while revenue from its strategic portfolio reached $429 million, down 2% year over year. 

Net losses for the quarter fell to $125 million, compared to $126 million in the second quarter of this year. Adjusted EBITDA for the total company for the same quarter reached $92 million, despite a guidance of $75 to $80 million. 

Unity stated that its non-strategic portfolio was at $17 million during the third quarter, down 84% year over year as a result of its “portfolio reset.” It also claimed that “we expect revenue from our non-strategic portfolio in the fourth quarter to continue to decline compared to the third quarter.”

Company focus

Unity’s strategic portfolio guidance for the fourth quarter is $422 to $427 million, and adjusted EBITDA is between $79 and $84 million for the total company. Guidance was raised due to “better than expected performance in Q3.” The company expects 488 million fully diluted shares at the end of the fourth quarter.

Outside of its financials, Unity has seen many changes throughout the past year, including changes in its leadership. Matt Bromberg was named president, and the company just hired Jarrod Yahes as its new CFO.

In addition to staff changes, Unity’s controversial Runtime Fee was cancelled, and pricing changes were introduced that will be in effect as of January 1st for all new and existing Unity Pro and Enterprise customers. 

The company also recently launched Unity 6, the latest platform version designed to be quicker and more efficient. We recently spoke with Unity’s VP of product, Ryan Ellis, who told us that “the less our customers have to do in terms of optimisation, the more time they can spend on creativity.”

Unity 6 and the cancellation of the Runtime Fee mark significant changes for the company as it heads into 2025. 

“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. While we’re just at the beginning of our journey to transform the company, we’re energised by our progress and the response from our customers and the community,” said president and chief executive officer Matt Bromberg in the company’s shareholder letter. 

“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.”