Unity Software's second quarter revenue of $546.5M beat estimates, as Strategic Grow revenue surged 63%.

Unity Software reported second quarter revenue of $546.5 million and adjusted EPS of $0.28, beating analyst expectations of $510.9 million and $0.24, respectively. The results were driven by continued strength in the company's Strategic Grow segment, which accelerated to 63% year-over-year growth, offsetting the planned wind-down of non-strategic businesses.

Key Highlights

• Strategic Grow revenue was $329.0 million, up 63% year-over-year, significantly outpacing the 51% growth analysts had projected.
• Total revenue grew 24% year-over-year to $546.5 million, while adjusted EBITDA increased to $160 million, expanding the margin to 29% from 21% a year ago.
• The company guided for third quarter Strategic Revenue of $540 million to $550 million, implying strong year-over-year growth of 44% to 47%.