My best Metaverse client to buy and hold

Unity system (U -4.18%) has established himself as a leader in the sports industry. Its platform allows developers to build and distribute 3D visuals across project types, with real -time tools. In the years to come, as this technology continues, Unity’s development engine is likely to become a valuable resource in building the metaverse.

That said, there are a number of other reasons why this archive is useful. In this Hold back video, recorded at Nov. 29, Motley Fool Trevor Jennewine shares his thoughts on Unity, highlighting his strong competitive edge and great sales time.

About Trevor Jennewine: I think most people are probably familiar with Unity, but if you’re not, it’s a knowledge development tool. Its platform is used by professional professionals such as game developers, writers, designers, filmmakers, to build 2D and 3D visuals in real time. That information is generated in a variety of ways, smartphones, tablets, gaming consoles, reality systems.

That’s the value proposition with Unity. Before Unity was an option, usually, in order to build those high -end image applications, engineers had to build the development tools, and then the application had to be redesigned for each site. If you want to make your game work between IOS, Android, PlayStation, and others, there will be more features for each new platform. But with Unity, you build it all at once, and it can be installed between 20 different sites.

Then I shared the experience of connection and real time. That’s the only answer and it quickly changes the user interface. You can think of it like a TV show. You can’t change what’s going on on the TV, but in a video game you can change the virtual world. But on the developer side, it’s a fixed, real -time technology that allows developers to view and edit information at the same time. So speed up the development process.

Unity divides its business into two parts. There are practical solutions and practical solutions. Creating solutions is a software development tool; This is the product, a group of tools for graphics, animation, sound. And all of that will help developers create and edit those immersive 2D and 3D visuals. In that part, Unity makes money through registration fees.

On the other side of the business are solutions. This is a combination of tools that allow customers to run and monetize their game. This includes things like Unity Ads, an in-app advertising site; Unity IAP, an in-app store. Then there are some things like deltaDNA, which are their tools for the evaluation and communication management of consumers. The goal is to help developers understand how users interact with their game and then improve user engagement. Unity has a full, end-to-end suite for these knowledge developers, and the scale of the industry gives it a serious look.

As you can see on the slide there, Unity has truly established itself as a leader in the gaming industry: 71% of the top 1,000 mobile games are made with Unity, and 94% of game development studios. top 100 customers from Unity. That scale allows Unity to capture 50 billion in-app data points every day. Then his machine learning models can better capture the ads, they see better information and even increase engagement, they help the industry achieve the gameplay – in order to improve and the edge competes against itself.

Just to paint a picture of the business competition, on the production side, Unity competes with the Unreal Engine from Epic Games. There are several 3D design software vendors as well Autodesk, Adobe. And then on the job management side, they compete with other industries like that Microsoft, Amazon, [Alphabet‘s] Ramadan, Tencenta [Meta Platform‘s] Facebook. But like I said, they have an important position in the game industry, but they have a threshold in applications outside of the game.

I like to look at their quick sales time. In the video game industry, the industry contributes $ 12 billion. The most interesting thing they released was Unity Gaming Services. This is a new platform to integrate their traditional manufacturing solutions. But it also adds new features to help make cross-platform, multiplayer games easier. That’s a really common place in the video game industry right now, so there’s a lot of room to grow in the game industry. But more time out of the game: $ 17 billion there. For example, authors can use Unity to extend the design of buildings. They can work with designers and construction teams. Car manufacturers can use it to design new cars with speed. Filmmakers can use Unity to create scenes and quickly edit them.

Then one interesting product was announced by the company: They participate in live entertainment and sports. They released something called Unity Metacast, a real 3D game. It does this by using volumetric technology to capture and process relevant information from sporting events. They joined the UFC [Ultimate Fighting Championship]. Imagine watching a fight in your own home. The way they explain this is that you can see the event from any angle and distance. You can take a unique look, and you can see the technology used in football games, baseball games, soccer games. It’s interesting what they do in life sports and sports.

Weta Digital has it again. It is the visual profession behind TV shows and similar movies Avatar, Games of Thrones, Lord of the Rings. They’re bringing those visual aids into the house. Like I said, Unity also invests in its market time at $ 29 billion. The driver thinks the number could go up frequently.

One of the reasons I like this group so much is that it has some growing opportunities in interesting places. Intelligence: Unity has just released Simulation Pro. Its platform can serve as a simulation machine, an efficient physical simulation machine capable of generating synthetic data. It can then be used to customize AI features for autonomous vehicles or autonomous robots. So they have a foothold in the AI ​​industry.

The Unity platform is the leading solution for building data for augmentation and virtual reality applications, and virtual reality is integrated into the metaverse. I think Unity will be a big player in helping to create the metaverse. There’s a lot to like about this company, and I put some money metrics in there to cover things up.

Last year, the company had $ 1 billion in revenue. That rose to 43%. Free cash flow has not been good in the last 12 months, but they have done good free cash flow in the last quarter. More importantly, they have $ 1.3 billion in short -term investments in the fund. No long -term debt. He played an important role in the sports industry in my opinion – they had money to burn when they expanded their business. And then the last data point I put in there was their increase of 142% in the last quarter. That’s a very strong increase. That shows that in the past year, the retailer spent an additional 42% on Unity’s platform. So they’re getting their customer to spend more time, it’s always good to know.

Suzanne Frey, an officer at Alphabet, is a member of The Motley Fool’s board of directors. Teresa Kersten, a LinkedIn employee, a Microsoft member, is a member of The Motley Fool’s board of directors. Randi Zuckerberg, former director of market development and spokesperson for Facebook and sister of Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool’s board of directors. John Mackey, CEO of Whole Foods Market, a member of Amazon, is a member of The Motley Fool’s board of directors. No. Trevor Jennewine of Adobe Inc. and Amazon. Motley Fool owns and promotes Alphabet (A shares), Alphabet (C shares), Amazon, Autodesk, Meta Platforms, Inc., Microsoft, Tencent Holdings, and Unity Software Inc. Motley Fool recommends Adobe Inc. and encourage these options. : long January 2022 $ 1,920 phone on Amazon and short January 2022 $ 1,940 phone on Amazon. Motley Fool has an advertising policy.

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