Unity Software Inc. (NYSE: U), is the world’s leading platform for creating and operating interactive, real-time 3D (RT3D) content. Today announced third quarter 2021 revenue of $286.3 million, which is up 43% from the same period in 2020 and ahead of guidance. The company is increasing full-year revenue guidance.

Unity makes game engine tools for developing and monetizing games and apps for mobile devices, PCs, and consoles. It has also expanded into sports broadcasts, movie and TV show production, and commercials.
Unity said it sees an expanded total available market of $45 billion, up from $29 billion in 2020. As demand for immersive, real-time 3D experiences grows. Unity has hit 40%-plus growth in six of the last eight quarters.
“We closed out the quarter with great momentum,” said John Riccitiello, CEO of Unity, in a call with analysts.
He said the non-gaming business is growing even faster than games, and he said Unity extended its market share lead over rivals (like Epic Games) in virtual reality and mobile games.
Additionally, Unity announced today it has entered into a definitive agreement to acquire Weta Digital. Specifically its award-winning engineering talent and artist pipeline, tools, and technology.
This acquisition is designed to put the most exclusive and sophisticated visual effects (VFX) tools into the hands of millions of creators and artists around the world. Once integrated onto the Unity platform, enable the next generation of RT3D creativity.
Third Quarter 2021 Financial Highlights
Revenue was $286.3 million, an increase of 43% from the third quarter of 2020.
Create Solutions and Operate Solution’s revenue was $83.7 million and $185.0 million, respectively. An increase of 34% and 54%, respectively, from the third quarter of 2020. Strategic Partnerships and Other revenue were $17.6 million, a decrease of 3% from the third quarter of 2020.
Loss from operations was $126.8 million, or 44% of revenue, compared to a loss from operations of $141.7 million, or 71% of revenue, in the third quarter of 2020.
Non-GAAP loss from operations was $12.1 million, or 4% of revenue, compared to a non-GAAP loss from operations of $8.4 million, or 4% of revenue, in the third quarter of 2020.
Basic and diluted net loss per share was $0.41, compared to basic and diluted net loss per share of $0.97 in the third quarter of 2020.
Basic and diluted non-GAAP net loss per share was $0.06. As compared to basic and diluted non-GAAP net loss per share of $0.09 in the third quarter of 2020.
973 customers each generated more than $100,000 of revenue in the trailing 12 months as of September 30, 2021, compared to 739 as of September 30, 2020.
Dollar-based net expansion rate as of September 30, 2021, was 142% as compared to 144% as of September 30, 2020.
Net cash provided by operating activities was $43.6 million for the third quarter of 2021. As compared to net cash provided by operating activities of $20.6 million for the same period last year. Free cash flow in the third quarter of 2021 was $34.2 million, compared to $10.9 million for the same period last year. Cash, cash equivalents, and restricted cash were $766.3 million as of September 30, 2021, compared to $1.8 billion as of September 30, 2020.
About Unity
Unity is the world’s leading platform for creating and operating interactive, real-time 3D content. Our platform provides a comprehensive set of software solutions to create, run, and monetize interactive, real-time 2D and 3D content for mobile phones, tablets, PCs, consoles, and augmented and virtual reality devices. We serve customers of all sizes, at every stage of maturity, from individual creators to large enterprises. For more information, visit unity.com.