Unity Software Inc. (NYSE: U) saw its stock soar 11.67% in intraday trading following the release of its second-quarter earnings report, which significantly exceeded analyst expectations. The game development platform provider delivered strong financial results and an optimistic outlook, boosting investor confidence despite previous market challenges.

Unity reported adjusted earnings of $0.18 per share for Q2, substantially outperforming the analyst consensus estimate of -$0.27. While this represents a slight decrease from the $0.22 per share reported in the same period last year, the better-than-expected result has clearly resonated with investors. The company's revenue for the quarter came in at $440.9 million, beating analyst estimates of $427.8 million, despite a modest 1.85% year-over-year decline.

Adding to the positive sentiment, Unity provided an encouraging outlook for the third quarter, projecting revenue in the range of $440 million to $450 million. The company also reported impressive free cash flow of $127 million for Q2 and an adjusted EBITDA of $90 million, surpassing the IBES estimate of $76.8 million. Notably, Unity's CEO Matt Bromberg highlighted the success of their new AI platform, Unity Vector, which is "transforming our growth prospects, delivering 15% sequential growth in the Unity Ad Network during the second quarter." This focus on AI innovation appears to be a key driver of investor enthusiasm, potentially opening up new growth avenues for the company.