Unity is celebrating a record quarter, exceeding guidance of $510 - $520 million to generate $533 million in revenue, representing an 80% year-on-year increase.
Adjusted EBITDA also rose significantly, standing at $99 million compared to $32 million in the previous quarter and -$31 million in the same period last year. The company is operating at a margin of 18.5%.
The company estimates that revenue growth exceeded the markets the company competes in, and expects to continue this trend throughout the year.
“When I look at Unity today, I really feel fantastic about the company and where it's heading,” said CEO, president, and executive chairman John Riccitiello. “And there's a number of factors that make me feel great about Unity both near term, but really importantly, long term for revenue growth and profit growth in a way that's super healthy, and I believe will deliver in huge ways for our customers and our shareholders”
Growth and creation
The company’s Create Solutions saw second quarter revenue of $193 million, representing a year-on-year increase of 17%. This was driven by the company’s core subscription business, which increased 22% year-on-year outside of China. The service delivered significant innovation and business model enhancements across Unity’s product lines.
Unity’s Grow Solutions saw a strong quarter, with industry leaders such as Supercell and Sega joining Unity’s LevelPlay service.
Meanwhile, Unity’s subsidiary publisher Supersonic brought its portfolio to ninety games with the addition of five new titles.
Looking forward, Unity is forecasting $540 million to $550 million in the third quarter of 2023, representing a 67% - 70% year-on-year increase. The company is working on the assumption that the game ads market will remain relatively stable throughout the year, as opposed to seeing seasonal peaks and troughs. However, the company also expects a continuation of a soft market in China, suggesting that it still has reservations about the health of the country’s gaming industry.
We listed Unity as one of the top 50 mobile game makers of 2022. We’ll be unveiling our list for 2023 at our Top 50 Mobile Game Makers event at Gamescom on August 22.