US Stock Market Move | Q3 financial report significantly exceeds expectations, Unity Software (U.US) rises over 11%.

On Wednesday, Unity Software (U.US) stock price rose, as of the time of writing, the stock increased by over 11%, reaching $39.94. The company's third-quarter financial report, released by the company, was significantly better than market expectations, causing investor sentiment to rise significantly. The report showed that for the third quarter ending September 30, Unity's adjusted earnings per share were $0.20, significantly higher than the Wall Street expectation of $0.17. Quarterly revenue increased by 5% year-on-year, reaching $4.71 billion, also surpassing the market estimate of $4.50 billion. In terms of business segments, Create Solutions' revenue was $1.52 billion, higher than the $1.47 billion in the same period last year, while Grow Solutions revenue increased from $2.99 billion to $3.18 billion, showing steady expansion of the core product line. Adjusted EBITDA for the third quarter was $109 million, operating cash flow reached $155 million, and free cash flow was $151 million, all reflecting improvements in the company's profitability and healthy cash flow situation. Unity CEO Matthew Bromberg said, "Thanks to the drive of Unity Vector AI and the continued growth of the Create business, third-quarter revenue and adjusted EBITDA significantly exceeded expectations. As consumer demand for interactive entertainment content continues to rise, Unity is also entering a new growth cycle." Looking ahead to the fourth quarter, the company expects revenue to be between $4.80 billion and $4.90 billion, higher than analysts' previous estimate of $4.73 billion; adjusted EBITDA is expected to be between $110 million and $115 million, continuing to reflect management's confidence in profitability.