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EX - 99.1 2 a2021q3ex - 991.htm EX - 99.1 Unity Announces Third Quarter 2021 Financial Results Q3 revenue up 43 % year - over - year , exceeding expectations ; company raises guidance and announces intent to acquire Weta Digital Exhibit 99.1 SAN FRANCISCO , Calif . , Nov 9 , 2021 – Unity Software Inc. ( NYSE : U ) , 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 . 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 , and once integrated onto the Unity platform , enable the next generation of RT3D creativity . " Unity's strong performance this quarter was driven by innovation in data science , vertical growth and making significant strides in bringing RT3D technologies and tools to as many creators and artists as possible , " said John Riccitiello , President and Chief Executive Officer , Unity . " And today we are proud to announce our intentions to acquire Weta Digital as we aim to bring their dozens of tools and assets to creators around the world . This sends a powerful message : all types of creators and digital artists can turn to Unity to create rich , interactive content and build experiences regardless of industry . " " We delivered another strong quarter in Q3 2021 with $ 286 million in revenue , continuing to add new customers and expanding our business within existing customers . The strong momentum gives us the confidence to raise our revenue growth guidance to 40 % for the full year , " said Luis Visoso , Chief Financial Officer , Unity . " Bringing Weta Digital into the Unity family will materially advance our relevance with artists , and increase our addressable market , setting us up well for our long term growth prospects . " Third Quarter 2021 Financial Highlights Revenue was $ 286.3 million , an increase of 43 % from the third quarter of 2020 . Create Solutions and Operate Solutions 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 was $ 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 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 , 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 , 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 . 1