Today's video focuses on Unity Software (U -7.88%) earnings, reported on Nov. 9, after the market closed. Here are some highlights from the video.
- Third-quarter revenue was $286.3 million, up 43% year over year (YOY) and 4.6% quarter over quarter. Revenue growth was driven by its create solutions segment, up 34% YOY, and its operate solutions segment, up 54% YOY.
- Unity has entered a definitive agreement to acquire Weta Digital studio, including its tools, pipeline, technology, and engineering talent. Weta Digital is a VFX studio that has helped make numerous blockbuster movies and series like Lord of the Rings and Game of Thrones. The tools and technology will fall under Unity's create solutions segment.
- For the full year, Unity expects YOY growth of roughly 40%, an increase from its previous 36% guidance. During the earnings call, leadership seemed very excited about the company's future and its ability to grab more business for its real-time 3D solutions.
Click the video below for my full thoughts and analysis.
*Stock prices used were the closing prices of Nov. 9, 2021. The video was published on Nov. 9, 2021.