Unity's Q2 revenue sees an 80% year-on-year jump

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Unity has released its financial results for the three months that ended June 30, 2023, and saw revenues grow significantly thanks in large part to the numbers reflecting the addition of IronSource to the business last November.

Here's what you need to know for the firm's Q2 performance.

The numbers:

• Revenue: $533 million (up 80% year-on-year)
• Net loss: $193 million (compared to $204 million last year)
• Create Solutions revenue: $193 million (up 17% year-on-year)
• Grow Solutions revenue: $340 million (up 157% year-on-year)

The Highlights:

Unity noted its Q2 2023 exceeded the revenue guidance it previously shared of $510 million to $520 million.

Core subscription services drove revenue growth for Create Solutions, Unity's business division that includes its games engine and "strategic partnerships."

"This quarter, Create Solutions delivered significant innovation and business model enhancements across our product lines. We continue to reduce our reliance on professional services as we build a scalable and profitable business," said the letter.

The firm also noted that industries beyond games represent 30% of its Create Solutions earnings.

Unity also said that it will be shifting its business operations for the division. It said, "We made the decision to be less professional service centric and increase our focus on subscription and consumption models to scale a profitable business, leveraging our partnerships such as Capgemini and Booz Allen."

"Given that our Strategic Partnership quarterly revenue is impacted by the timing of large deals, we are also providing our Create Solutions revenue excluding Strategic Partnerships, which was $170 million, up 17% year-over-year," the report read.

Regarding its Grow Solutions sector, the engine maker said that it improved its use of AI technology implementation. Among the programs mentioned, it highlighted June's reveal of AI tools Unity Muse and Unity Sentis.

Unity has not posted a net profit to date, although it has been reporting positive EBITDA since last year's fourth quarter, and the second quarter saw that figure continue to grow.

The report projects that Q3 2023 will generate revenue of $540 million to $550 million, a 67% to 70% increase year-on-year.

Unity added, "For the year, we are taking into account our good first-half execution balanced against an ongoing uncertain economic environment."

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