Unity (U) Q1 Earnings Report 2023 –

Shares of Unity software Soared more than 11% in extended trading on Wednesday after the company released first-quarter results that beat analysts’ sales expectations and raised its full-year sales forecast.

Here’s how the company did it:

• Loss per share: Loss of 67 cents, not comparable to estimates
• revenue: $500 million versus $480 million expected by analysts, according to Refinitiv

The video game software developer’s revenue rose 56% year over year for the quarter. Unity reported a net loss of $254 million, or 67 cents a share, compared to a net loss of $178 million, or 60 cents a share, in the year-ago period. Total losses for the quarter were $251 million, compared to $182 million for the same period last year.

Unity said it expects revenue of $510 million to $520 million for the second quarter, ahead of analyst estimates of $509 million. For the full year, Unity expects sales of between $2.08 billion and $2.20 billion. The company said it raised the low end of its revenue guidance by $30 million after the first quarter was “stronger than expected.”

Founded in 2004, Unity has grown into a major player in game development over the past decade, providing developers with tools to create 3D titles for phones, consoles and web without having to code for each platform .

Unity said in a press release that the company got off to a “strong start” to 2023 and expects to grow faster than its peers this year. The company added that it is “well positioned” to capitalize on AI, as it already offers four applications and services that support the technology.

“We made AI choices years ago and view the adoption of AI tools as accelerating our business because of our structural and sustainable competitive advantages,” Unity said in the press release.

Unity also reaffirmed its commitment to “Excellence in Execution,” a set of action plans that will help it achieve its “long-term strategies and win-win goals.” As part of that initiative, the company earlier this month announced plans to cut about 600 jobs, or 8% of its workforce, according to a company filing with the SEC.

Unity said it will restructure “certain teams” and the layoffs will help the company position itself for “long-term and profitable growth.” A company spokesman declined to provide CNBC with further details at the time.

“We anticipate these decisions will strengthen Unity and prepare us for even stronger long-term profitable growth,” the company said of the layoffs on Wednesday.

Unity will hold its quarterly conference call with investors at 5:00 p.m. EST.