Unity Software Inc U shares are trading higher in Wednesday's after-hours session after the company reported a top-line beat and issued strong guidance.

What Happened: Unity said first-quarter revenue increased 56% year-over-year to $500 million, which beat average analyst estimates of $480.9 million, according to Benzinga Pro.

The company reported a GAAP net loss of $254 million. Adjusted EBITDA came in at $32 million, which was ahead of provided guidance of $7 million to $12 million.

"For the balance of 2023, we expect revenue to grow faster than the markets in which we compete, with steady and meaningful continued progress on profitability," the company said in a letter to shareholders.

Unity sees second-quarter revenue in a range of $510 million to $520 million, versus estimates of $508.46 million. The company expects full-year revenue to be between $2.08 billion and $2.2 billion, versus estimates of $2.13 billion.

Unity also highlighted the decision to cut 8% of its workforce, reduce managerial layers to become more effective and trim the total number of Unity offices over time to concentrate people and teams together.

Management will hold a conference call to discuss these results at 5 p.m. ET.

See Also: Beyond Meat Takes A Bite Out Of Losses And Shares Surge

U Price Action: Unity has a 52-week range of $21.22-$58.62.

The stock was up 12.3% after hours at $32.16 at the time of writing, according to Benzinga Pro.

Photo: Joshua Woroniecki from Pixabay.