By Jon Swartz
Unity Software Inc.’s stock initially slipped more than 6% in after-hours trading Thursday after the maker of video-gaming software reported fiscal third-quarter results. The stock, however, rebounded Friday, rising 13%.
Unity /zigman2/quotes/221035391/composite U -1.14% , which went public in September, reported a net loss of $144.7 million, or 97 cents a share, compared with a net loss of $45.8 million, or 76 cents a share, in the year-ago quarter. The company reported a non-GAAP net loss per share of 9 cents.
Revenue soared 53% to $200.8 million from $130.9 million a year ago.
“We have big ambitions” beyond traditional gaming and into markets such as industrial, automotive, and entertainment, Unity Chief Executive John Riccitiello said during a Zoom /zigman2/quotes/211319643/composite ZM -7.85% call with analysts following the results announcement.
“Growth is coming across the board,” Unity Chief Financial Officer Kim Jabal told MarketWatch. She said the company continues to see expanded use in vertical markets like the automotive and construction industries as it develops visualization tools.
The San Francisco-based company did report better-than-expected revenue, and offered full-year guidance of between $752 million and $756 million, implying a year-over-year gain of 39% to 40%.
Analysts surveyed by FactSet had expected a loss of 15 cents a share on revenue of $186.9 million.
The results were the first for Unity, whose so-called UPO unique public offering in late September sidestepped the typical lockdown period for most employees. Developed with input from underwriter Credit Suisse and consultant Lise Buyer, the plan allowed workers to sell as much 15% of shares on the first day of trading, when they typically would have to wait months to sell.
The company’s product is similar to the Unreal Engine from Epic Games Inc., whose legal imbroglio with Apple Inc. /zigman2/quotes/202934861/composite AAPL -4.17% and Alphabet’s /zigman2/quotes/202490156/composite GOOGL -4.27% /zigman2/quotes/205453964/composite GOOG -4.00% Google has raised the profile of Unity. Unity filed its S-1 with the Securities and Exchange Commission on Aug. 24, shortly after Epic was booted from both app stores for disputing the 30% cut those tech giants get from carrying games like “Fortnite.” In its S-1, Unity said it believes it addresses a total market of about $29 billion “across both gaming and other industries.”
Read more: Exclusive: Behind the scenes of Unity’s unique IPO in the middle of a pandemic
Unity claims 94 of the top-100 game-developing companies use the company’s technology as they convert to real-time 3D tools.
Unity’s stock has nearly doubled since its Sept. 18 debut at $52 a share. The broader S&P 500 index /zigman2/quotes/210599714/realtime SPX -0.54% has climbed 9.5% in 2020.