Gaming is enjoying a hot streak. Even without the Pandemic, the gaming industry was doing quite well. With people forced indoors and schools shut down for most of Spring and beyond, gaming has become a critical entertainment option. The recent fracas between Epic Games and Apple has also created a buzz around gaming, although for the wrong reasons.
In this environment, a gaming platform company Unity Software is going public tomorrow. It’s like AWS for Gaming. They provide infrastructure to create gaming content and also host the content on their platform. In this aspect, they compete with Epic Games (creator of Fortnite and the Unreal Engine).
Revenue growth has been impressive. In 2019, they had revenue of $542M. In the first six months of 2020, they made $351M. They are also a profitable company with impressive margins of 78% in 2019 and 79% in first six months of 2020.
While Games is a leading offering, the company positions itself as a platform for creating and hosting 3D content for verticals such as Architecture, Media & Entertainment and Auto, Transportation, Manufacturing segments.
We estimate that in 2019, on a global basis, 53% of the top 1,000 mobile games on the Apple App Store and Google Play and over 50% of such mobile games, PC games and console games combined were made with Unity.Unity S-1
I like how this company is taking advantage of secular trends of explosion of Compute power, proliferation of platforms and devices, cloud based distribution, and ubiquitous broadband connectivity.
A true public SaaS company for Gaming is finally here.