The future of Unity — cars, and metaverses?

The game engine developer Unity Software Inc. (U) expects long—term double-digit revenue growth. Is the company able to maintain high growth rates for a long time? Unity Software CEO Luis Visoso has stated that his company will probably be able to keep an increase in revenue of at least 30% per year for a long time. This news attracted the attention of investors, as the forecast is hugely ambitious. 

Such growth is not uncommon for young companies, but a multi-year increase in revenue at such a pace is rare. Currently, the focus is on the possible benefits of Unity from developing metaverse technologies. Unity’s business is on a piece of software called a “3D graphics engine.” For instance, the company has a way of turning building plans into 3D models for virtual reality (VR). Unity also has tools to make video games and virtual reality apps.

Already, all the tools are in demand, and at the end of last year, their value increased along with the sales of millions of Oculus Quest 2 VR glasses. Even if we assume that the idea of metaverses will not give financial returns quickly, video games and VR applications will remain as a new addressable market. Another new fast-growing market is solutions for cars, about what Ffin.ru I told you earlier. 

Multimedia interfaces in cars are becoming more and more complex. In the future, new AR applications to appear, as well as applications for robot cars that perform the functions of entertainment centers and mobile offices. Metaverses and cars can provide sales growth in the Unity creative solutions segment. Now, this segment brings about 26% of revenue and has the most significant potential for growth.