Unity Software Inc. (NYSE: U) shares surged more than 10% in intra-day trading on Wednesday after the company reported stronger-than-expected third-quarter results and issued optimistic guidance for the final quarter of the year.
The software developer posted earnings per share of $0.20, far exceeding expectations for a loss of $0.23. Revenue climbed to $471 million from $447 million a year earlier, surpassing consensus estimates of $453 million.
Create Solutions revenue rose to $152 million from $147 million a year ago, while Grow Solutions revenue increased to $318 million from $299 million. Adjusted EBITDA came in at $109 million, reflecting a 23% margin.
For the fourth quarter, Unity forecast revenue between $480 million and $490 million, ahead of Wall Street’s projection of $475 million. The company anticipated mid-single-digit sequential growth in its Grow business and high-single-digit year-over-year growth in Create, excluding non-strategic revenue.
