Unity Reports Fourth Quarter and Fiscal Year 2024 Financial Results
"The Company’s fourth quarter results meaningfully exceeded expectations on both revenue and profit, underscoring our progress in building a new Unity,” said
“The successful launch of Unity 6, the appeal of our new pricing model, and the progress we’re making in AI for our advertising customers are providing a lot of optimism for the future,” Bromberg continued.
Fourth Quarter 2024 Results:
-
Revenue was
$457 million , compared to$609 million in the fourth quarter 2023. -
Revenue from our strategic portfolio was
$442 million , compared to$423 million , up 4% year-over-year. -
Create Solutions revenue was
$152 million , compared to$290 million in the fourth quarter 2023. -
Grow Solutions revenue was
$305 million , compared to$319 million in the fourth quarter 2023. -
GAAP net loss was
$123 million , with a margin of (27)%. -
Adjusted EBITDA was
$106 million , with a margin of 23%. -
Net cash provided by operating activities was
$112 million . -
Free Cash Flow was
$106 million .
Full Year 2024 Results:
-
Revenue was
$1,813 million , compared to$2,187 million for the full year 2023. -
Revenue from our strategic portfolio was
$1,723 million , compared to$1,733 million , down 1% year-over-year. -
Create Solutions revenue was
$614 million , compared to$859 million for the full year 2023. -
Grow Solutions revenue was
$1,199 million , compared to$1,328 million for the full year 2023. -
GAAP net loss was
$664 million , with a margin of (37)%. -
Adjusted EBITDA was
$390 million , with a margin of 21%. -
Net cash provided by operating activities was
$316 million . -
Free Cash Flow was
$286 million .
Fourth Quarter Results
Revenue
Revenue was
Create Solutions revenue was
Grow Solutions revenue was
Basic and Diluted Net Loss per share
Basic and diluted net loss per share was
Net Loss and Net Cash Provided by Operating Activities
Net loss for the quarter was
Net loss margin was (27)%, compared to (42)% in the fourth quarter of 2023, due to decreases in our personnel-related costs.
Net cash provided by operating activities for the quarter was
Adjusted EBITDA and Free Cash Flow
Adjusted EBITDA for the quarter was
Free Cash Flow for the quarter was
Full Year 2024 Results
Revenue
Revenue was
Create Solutions revenue was
Grow Solutions revenue was
Basic and Diluted Net Loss per share
Basic and diluted net loss per share was
Net Loss and Net Cash Provided by Operating Activities
Net loss for the year was
Net loss margin of (37)%, compared to (38)% in the full year 2023, due to decreases in our personnel-related costs, and the gain on repurchase of our convertible notes.
Net cash provided by operating activities for the year was
Adjusted EBITDA and Free Cash Flow
Adjusted EBITDA for the year was
Free Cash Flow for the year was
Liquidity
As of
Q1 2025 Guidance1
-
Revenue of
$405 to$415 million . -
Adjusted EBITDA of
$60 to$65 million .
About Unity
Unity [NYSE: U] offers a suite of tools to create, market and grow games and interactive experiences across all major platforms from mobile, PC, and console, to extended reality (XR). For more information, visit Unity.com.
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CONDENSED CONSOLIDATED BALANCE SHEETS |
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(In thousands, except par share data) |
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(Unaudited) |
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As of |
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|
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Assets |
|
|
||||
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Current assets: |
|
|
||||
|
Cash and cash equivalents |
$ |
1,517,672 |
|
$ |
1,590,325 |
|
|
Accounts receivable, net |
|
573,884 |
|
|
611,723 |
|
|
Prepaid expenses and other |
|
133,795 |
|
|
122,843 |
|
|
Total current assets |
|
2,225,351 |
|
|
2,324,891 |
|
|
Property and equipment, net |
|
98,819 |
|
|
140,887 |
|
|
|
|
3,166,304 |
|
|
3,166,304 |
|
|
Intangible assets, net |
|
1,066,235 |
|
|
1,406,745 |
|
|
Other assets |
|
180,698 |
|
|
204,614 |
|
|
Total assets |
$ |
6,737,407 |
|
$ |
7,243,441 |
|
|
Liabilities and stockholders' equity |
|
|
||||
|
Current liabilities: |
|
|
||||
|
Accounts payable |
$ |
13,948 |
|
$ |
14,517 |
|
|
Accrued expenses and other |
|
294,951 |
|
|
307,704 |
|
|
Publisher payables |
|
394,284 |
|
|
385,113 |
|
|
Deferred revenue |
|
186,304 |
|
|
186,769 |
|
|
Total current liabilities |
|
889,487 |
|
|
894,103 |
|
|
Convertible notes |
|
2,238,922 |
|
|
2,711,750 |
|
|
Long-term deferred revenue |
|
16,846 |
|
|
6,015 |
|
|
Other long-term liabilities |
|
165,004 |
|
|
217,195 |
|
|
Total liabilities |
|
3,310,259 |
|
|
3,829,063 |
|
|
Commitments and contingencies |
|
|
||||
|
Redeemable noncontrolling interests |
|
230,627 |
|
|
225,797 |
|
|
Stockholders' equity: |
|
|
||||
|
Common stock, |
|
|
||||
|
Authorized shares - 1,000,000 and 1,000,000 |
|
|
||||
|
Issued and outstanding shares - 409,393 and 384,872 |
|
2 |
|
|
2 |
|
|
Additional paid-in capital |
|
6,936,038 |
|
|
6,259,479 |
|
|
Accumulated other comprehensive loss |
|
(9,425 |
) |
|
(5,009 |
) |
|
Accumulated deficit |
|
(3,735,944 |
) |
|
(3,071,830 |
) |
|
|
|
3,190,671 |
|
|
3,182,642 |
|
|
Noncontrolling interest |
|
5,850 |
|
|
5,939 |
|
|
Total stockholders' equity |
|
3,196,521 |
|
|
3,188,581 |
|
|
Total liabilities and stockholders' equity |
$ |
6,737,407 |
|
$ |
7,243,441 |
|
|
|
||||||||||||
|
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS |
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|
(In thousands, except per share amounts) |
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|
(Unaudited) |
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Three Months Ended |
Year Ended |
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|
|
2024 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
|
|
Revenue |
$ |
457,099 |
|
$ |
609,268 |
|
$ |
1,813,255 |
|
$ |
2,187,317 |
|
|
Cost of revenue |
|
115,537 |
|
|
261,582 |
|
|
480,853 |
|
|
733,722 |
|
|
Gross profit |
|
341,562 |
|
|
347,686 |
|
|
1,332,402 |
|
|
1,453,595 |
|
|
Operating expenses |
|
|
|
|
||||||||
|
Research and development |
|
217,970 |
|
|
265,150 |
|
|
924,830 |
|
|
1,053,588 |
|
|
Sales and marketing |
|
175,747 |
|
|
215,367 |
|
|
752,649 |
|
|
834,625 |
|
|
General and administrative |
|
71,499 |
|
|
126,129 |
|
|
410,072 |
|
|
398,176 |
|
|
Total operating expenses |
|
465,216 |
|
|
606,646 |
|
|
2,087,551 |
|
|
2,286,389 |
|
|
Loss from operations |
|
(123,654 |
) |
|
(258,960 |
) |
|
(755,149 |
) |
|
(832,794 |
) |
|
Interest expense |
|
(5,839 |
) |
|
(6,155 |
) |
|
(23,542 |
) |
|
(24,580 |
) |
|
Interest income and other income (expense), net |
|
9,108 |
|
|
20,840 |
|
|
111,558 |
|
|
59,529 |
|
|
Loss before income taxes |
|
(120,385 |
) |
|
(244,275 |
) |
|
(667,133 |
) |
|
(797,845 |
) |
|
Provision for (benefit from) Income taxes |
|
2,138 |
|
|
9,710 |
|
|
(2,846 |
) |
|
28,477 |
|
|
Net loss |
|
(122,523 |
) |
|
(253,985 |
) |
|
(664,287 |
) |
|
(826,322 |
) |
|
Net income (loss) attributable to noncontrolling interest and redeemable noncontrolling interests |
|
204 |
|
|
(1,239 |
) |
|
(173 |
) |
|
(4,311 |
) |
|
Net loss attributable to |
|
(122,727 |
) |
|
(252,749 |
) |
|
(664,114 |
) |
|
(822,011 |
) |
|
Basic and diluted net loss per share attributable to |
$ |
(0.30 |
) |
$ |
(0.66 |
) |
$ |
(1.68 |
) |
$ |
(2.16 |
) |
|
Weighted-average shares used in computation of basic and diluted net loss per share |
|
405,172 |
|
|
381,788 |
|
|
395,951 |
|
|
380,457 |
|
|
|
|
|
|
|
||||||||
|
Net loss |
|
(122,523 |
) |
|
(253,985 |
) |
|
(664,287 |
) |
|
(826,322 |
) |
|
Change in foreign currency translation adjustment |
|
(8,102 |
) |
|
5,847 |
|
|
(5,544 |
) |
|
(4,556 |
) |
|
Change in unrealized gains on derivative instruments |
|
— |
|
|
— |
|
|
— |
|
|
289 |
|
|
Comprehensive loss |
$ |
(130,625 |
) |
$ |
(248,138 |
) |
$ |
(669,831 |
) |
$ |
(830,589 |
) |
|
Net income (loss) attributable to noncontrolling interest and redeemable noncontrolling interests |
|
204 |
|
|
(1,239 |
) |
|
(173 |
) |
|
(4,311 |
) |
|
Foreign currency translation attributable to noncontrolling interest and redeemable noncontrolling interests |
|
(1,664 |
) |
|
1,210 |
|
|
(1,128 |
) |
|
(949 |
) |
|
Comprehensive loss attributable to noncontrolling interest and redeemable noncontrolling interests |
|
(1,460 |
) |
|
(26 |
) |
|
(1,301 |
) |
|
(5,260 |
) |
|
Comprehensive loss attributable to |
$ |
(129,165 |
) |
$ |
(248,112 |
) |
$ |
(668,530 |
) |
$ |
(825,329 |
) |
|
|
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|
CONSOLIDATED STATEMENTS OF CASH FLOWS |
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|
(In thousands) |
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|
(Unaudited) |
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|
|
|
|
|
|
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|
Three Months Ended |
Year Ended |
||||||||||
|
|
|
|
||||||||||
|
|
|
2024 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
|
|
Operating activities |
|
|
|
|
||||||||
|
Net loss |
$ |
(122,523 |
) |
$ |
(253,985 |
) |
$ |
(664,287 |
) |
$ |
(826,322 |
) |
|
Adjustments to reconcile net loss to net cash provided by operating activities: |
|
|
|
|
||||||||
|
Depreciation and amortization |
|
103,161 |
|
|
232,254 |
|
|
408,980 |
|
|
563,916 |
|
|
Stock-based compensation expense |
|
110,356 |
|
|
180,953 |
|
|
596,249 |
|
|
648,696 |
|
|
Gain on repayment of convertible note |
|
— |
|
|
— |
|
|
(61,371 |
) |
|
— |
|
|
Impairment of property and equipment |
|
(83 |
) |
|
— |
|
|
22,791 |
|
|
— |
|
|
Other |
|
8,574 |
|
|
13,056 |
|
|
23,309 |
|
|
24,613 |
|
|
Changes in assets and liabilities, net of effects of acquisitions: |
|
|
|
|
||||||||
|
Accounts receivable, net |
|
1,896 |
|
|
(6,555 |
) |
|
37,359 |
|
|
21,791 |
|
|
Prepaid expenses and other |
|
746 |
|
|
(2,040 |
) |
|
(11,203 |
) |
|
20,314 |
|
|
Other assets |
|
(7,113 |
) |
|
11,514 |
|
|
(2,746 |
) |
|
45,047 |
|
|
Accounts payable |
|
652 |
|
|
(6,881 |
) |
|
742 |
|
|
(6,313 |
) |
|
Accrued expenses and other |
|
8,696 |
|
|
2,952 |
|
|
(6,671 |
) |
|
(21,069 |
) |
|
Publisher payables |
|
11,731 |
|
|
(23,147 |
) |
|
9,170 |
|
|
(60,509 |
) |
|
Other long-term liabilities |
|
(1,181 |
) |
|
12,017 |
|
|
(47,963 |
) |
|
(47,245 |
) |
|
Deferred revenue |
|
(2,720 |
) |
|
(88,035 |
) |
|
11,194 |
|
|
(128,219 |
) |
|
Net cash provided by operating activities |
|
112,192 |
|
|
72,103 |
|
|
315,553 |
|
|
234,700 |
|
|
Investing activities |
|
|
|
|
||||||||
|
Purchases of short-term investments |
|
— |
|
|
— |
|
|
— |
|
|
(212 |
) |
|
Proceeds from principal repayments and maturities of short-term investments |
|
— |
|
|
— |
|
|
— |
|
|
102,673 |
|
|
Purchases of non-marketable investments |
|
— |
|
|
— |
|
|
— |
|
|
(2,500 |
) |
|
Purchases of intangible assets |
|
— |
|
|
— |
|
|
(12,860 |
) |
|
— |
|
|
Purchases of property and equipment |
|
(6,442 |
) |
|
(11,361 |
) |
|
(29,549 |
) |
|
(55,921 |
) |
|
Net cash provided by (used in) investing activities |
|
(6,442 |
) |
|
(11,361 |
) |
|
(42,409 |
) |
|
44,040 |
|
|
Financing activities |
|
|
|
|
||||||||
|
Repayments of convertible note |
|
— |
|
|
— |
|
|
(414,999 |
) |
|
— |
|
|
Repurchase and retirement of common stock |
|
— |
|
|
— |
|
|
— |
|
|
(250,000 |
) |
|
Proceeds from issuance of common stock from employee equity plans |
|
19,390 |
|
|
10,991 |
|
|
76,692 |
|
|
75,985 |
|
|
Net cash provided by (used in) financing activities |
|
19,390 |
|
|
10,991 |
|
|
(338,307 |
) |
|
(174,015 |
) |
|
Effect of foreign exchange rate changes on cash, cash equivalents, and restricted cash |
|
(13,227 |
) |
|
11,510 |
|
|
(11,223 |
) |
|
(6,146 |
) |
|
Increase (decrease) in cash, cash equivalents, and restricted cash |
|
111,913 |
|
|
83,243 |
|
|
(76,386 |
) |
|
98,579 |
|
|
Cash, cash equivalents, and restricted cash, beginning of period |
|
1,415,968 |
|
|
1,521,024 |
|
|
1,604,267 |
|
|
1,505,688 |
|
|
Cash, cash equivalents, and restricted cash, end of period |
$ |
1,527,881 |
|
$ |
1,604,267 |
|
$ |
1,527,881 |
|
$ |
1,604,267 |
|
About Non-GAAP Financial Measures
To supplement our consolidated financial statements prepared and presented in accordance with generally accepted accounting principles in
However, non-GAAP financial measures have limitations in their usefulness to investors because they have no standardized meaning prescribed by GAAP and are not prepared under any comprehensive set of accounting rules or principles. In addition, other companies, including companies in our industry, may calculate similarly-titled non-GAAP financial measures differently or may use other measures to evaluate their performance, all of which could reduce the usefulness of our non-GAAP financial measures as tools for comparison. As a result, our non-GAAP financial measures are presented for supplemental informational purposes only and should not be considered in isolation or as a substitute for our consolidated financial statements presented in accordance with GAAP.
We define adjusted EBITDA as GAAP net income or loss excluding benefits or expenses associated with stock-based compensation, amortization of acquired intangible assets, depreciation, acquisitions, restructurings and reorganizations, insurance reimbursement for legal expenses, interest, income tax, and other non-operating activities, which primarily consist of foreign exchange rate gains or losses. We define adjusted EBITDA margin as adjusted EBITDA as a percentage of revenue. We define adjusted gross profit as GAAP gross profit excluding expenses associated with stock-based compensation, amortization of acquired intangible assets, depreciation, and restructurings and reorganizations. We define adjusted gross margin as adjusted gross profit as a percentage of revenue.
We define non-GAAP cost of revenue as GAAP cost of revenue, excluding expenses associated with stock-based compensation, amortization of acquired intangible assets, depreciation, and restructurings and reorganizations. We define non-GAAP research and development expense as research and development expense, excluding expenses associated with stock-based compensation, amortization of acquired intangible assets, depreciation, and restructurings and reorganizations. We define non-GAAP sales and marketing expense as GAAP sales and marketing expense, excluding expenses associated with stock-based compensation, amortization of acquired intangible assets, depreciation, and restructurings and reorganizations. We define non-GAAP general and administrative expense as general and administrative expense excluding expenses associated with stock-based compensation, depreciation, acquisitions, restructurings and reorganizations, and insurance reimbursement for legal expenses. We define free cash flow as net cash provided by operating activities less cash used for purchases of property and equipment.
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|
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|
Non-GAAP Reconciliation |
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(In thousands) |
||||||||||||
|
|
|
|
|
|
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|
Three Months Ended |
Year Ended |
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|
|
|
|
||||||||||
|
|
|
2024 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
|
|
Adjusted EBITDA reconciliation |
|
|
|
|
||||||||
|
Revenue |
$ |
457,099 |
|
$ |
609,268 |
|
$ |
1,813,255 |
|
$ |
2,187,317 |
|
|
GAAP net loss |
$ |
(122,523 |
) |
$ |
(253,985 |
) |
$ |
(664,287 |
) |
$ |
(826,322 |
) |
|
Add: |
|
|
|
|
||||||||
|
Stock-based compensation expense |
$ |
110,203 |
|
$ |
180,953 |
|
$ |
469,128 |
|
$ |
648,696 |
|
|
Amortization of intangible assets expense |
$ |
88,465 |
|
$ |
219,647 |
|
$ |
353,371 |
|
$ |
515,489 |
|
|
Depreciation of property and equipment |
$ |
14,696 |
|
$ |
12,606 |
|
$ |
55,609 |
|
$ |
48,427 |
|
|
Restructuring and reorganization costs |
$ |
16,398 |
|
$ |
31,396 |
|
$ |
266,855 |
|
$ |
70,373 |
|
|
Acquisition-related costs |
$ |
— |
|
$ |
— |
|
$ |
— |
|
$ |
888 |
|
|
Legal settlement costs |
$ |
— |
|
$ |
— |
|
$ |
— |
|
$ |
(3,250 |
) |
|
Interest expense |
$ |
5,839 |
|
$ |
6,155 |
|
$ |
23,542 |
|
$ |
24,580 |
|
|
Interest income and other expense, net |
$ |
(9,108 |
) |
$ |
(20,840 |
) |
$ |
(111,558 |
) |
$ |
(59,529 |
) |
|
Income tax expense |
$ |
2,138 |
|
$ |
9,710 |
|
$ |
(2,846 |
) |
$ |
28,477 |
|
|
Adjusted EBITDA |
$ |
106,108 |
|
$ |
185,642 |
|
$ |
389,814 |
|
$ |
447,829 |
|
|
GAAP net loss margin |
|
(27 |
)% |
|
(42 |
)% |
|
(37 |
)% |
|
(38 |
)% |
|
Adjusted EBITDA margin |
|
23 |
% |
|
30 |
% |
|
21 |
% |
|
20 |
% |
|
|
|
|
|
|
||||||||
|
Adjusted gross profit reconciliation |
|
|
|
|
||||||||
|
GAAP gross profit |
$ |
341,562 |
|
$ |
347,686 |
|
$ |
1,332,402 |
|
$ |
1,453,595 |
|
|
Add: |
|
|
|
|
||||||||
|
Stock-based compensation expense |
|
9,685 |
|
|
21,972 |
|
|
43,566 |
|
|
80,213 |
|
|
Amortization of intangible assets expense |
|
27,293 |
|
|
139,754 |
|
|
108,580 |
|
|
243,690 |
|
|
Depreciation expense |
|
2,372 |
|
|
2,839 |
|
|
9,613 |
|
|
10,480 |
|
|
Restructuring and reorganization costs |
|
117 |
|
|
10,447 |
|
|
15,154 |
|
|
13,510 |
|
|
Adjusted gross profit |
$ |
381,029 |
|
$ |
522,698 |
|
$ |
1,509,315 |
|
$ |
1,801,488 |
|
|
GAAP gross margin |
|
75 |
% |
|
57 |
% |
|
73 |
% |
|
66 |
% |
|
Adjusted gross margin |
|
83 |
% |
|
86 |
% |
|
83 |
% |
|
82 |
% |
|
|
|
|
|
|
||||||||
|
Operating expenses reconciliation |
|
|
|
|
||||||||
|
Cost of revenue |
|
|
|
|
||||||||
|
GAAP cost of revenue |
$ |
115,537 |
|
$ |
261,582 |
|
$ |
480,853 |
|
$ |
733,722 |
|
|
Stock-based compensation expense |
|
(9,685 |
) |
|
(21,972 |
) |
|
(43,566 |
) |
|
(80,213 |
) |
|
Amortization of intangible assets expense |
|
(27,293 |
) |
|
(139,754 |
) |
|
(108,580 |
) |
|
(243,690 |
) |
|
Depreciation expense |
|
(2,372 |
) |
|
(2,839 |
) |
|
(9,613 |
) |
|
(10,480 |
) |
|
Restructuring and reorganization costs |
|
(117 |
) |
|
(10,447 |
) |
|
(15,154 |
) |
|
(13,510 |
) |
|
Non-GAAP cost of revenue |
$ |
76,070 |
|
$ |
86,570 |
|
$ |
303,940 |
|
$ |
385,829 |
|
|
GAAP cost of revenue as a percentage of revenue |
|
25 |
% |
|
43 |
% |
|
27 |
% |
|
34 |
% |
|
Non-GAAP cost of revenue as a percentage of revenue |
|
17 |
% |
|
14 |
% |
|
17 |
% |
|
18 |
% |
|
|
|
|
|
|
||||||||
|
Research and development |
|
|
|
|
||||||||
|
GAAP research and development expense |
$ |
217,970 |
|
$ |
265,150 |
|
$ |
924,830 |
|
$ |
1,053,588 |
|
|
Stock-based compensation expense |
|
(58,077 |
) |
|
(76,001 |
) |
|
(240,556 |
) |
|
(290,160 |
) |
|
Amortization of intangible assets expense |
|
(17,737 |
) |
|
(28,734 |
) |
|
(69,345 |
) |
|
(84,022 |
) |
|
Depreciation expense |
|
(7,025 |
) |
|
(5,608 |
) |
|
(26,686 |
) |
|
(21,994 |
) |
|
Acquisition-related costs |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
Restructuring and reorganization costs |
|
(1,892 |
) |
|
(1,284 |
) |
|
(54,460 |
) |
|
(23,588 |
) |
|
Non-GAAP research and development expense |
$ |
133,239 |
|
$ |
153,523 |
|
$ |
533,783 |
|
$ |
633,824 |
|
|
GAAP research and development expense as a percentage of revenue |
|
48 |
% |
|
44 |
% |
|
51 |
% |
|
48 |
% |
|
Non-GAAP research and development expense as a percentage of revenue |
|
29 |
% |
|
25 |
% |
|
29 |
% |
|
29 |
% |
|
|
|
|
|
|
||||||||
|
Sales and marketing |
|
|
|
|
||||||||
|
GAAP sales and marketing expense |
$ |
175,747 |
|
$ |
215,367 |
|
$ |
752,649 |
|
$ |
834,625 |
|
|
Stock-based compensation expense |
|
(20,898 |
) |
|
(38,189 |
) |
|
(95,171 |
) |
|
(143,461 |
) |
|
Amortization of intangible assets expense |
|
(43,435 |
) |
|
(51,159 |
) |
|
(175,446 |
) |
|
(187,777 |
) |
|
Depreciation expense |
|
(3,199 |
) |
|
(2,450 |
) |
|
(11,567 |
) |
|
(8,756 |
) |
|
Restructuring and reorganization costs |
|
(5,135 |
) |
|
(98 |
) |
|
(56,888 |
) |
|
(9,059 |
) |
|
Non-GAAP sales and marketing expense |
$ |
103,080 |
|
$ |
123,471 |
|
$ |
413,577 |
|
$ |
485,572 |
|
|
GAAP sales and marketing expense as a percentage of revenue |
|
38 |
% |
|
35 |
% |
|
42 |
% |
|
38 |
% |
|
Non-GAAP sales and marketing expense as a percentage of revenue |
|
23 |
% |
|
20 |
% |
|
23 |
% |
|
22 |
% |
|
|
|
|
|
|
||||||||
|
General and administrative |
|
|
|
|
||||||||
|
GAAP general and administrative expense |
$ |
71,499 |
|
$ |
126,129 |
|
$ |
410,072 |
|
$ |
398,176 |
|
|
Stock-based compensation expense |
|
(21,543 |
) |
|
(44,791 |
) |
|
(89,835 |
) |
|
(134,862 |
) |
|
Depreciation expense |
|
(2,100 |
) |
|
(1,709 |
) |
|
(7,743 |
) |
|
(7,197 |
) |
|
Acquisition-related costs |
|
— |
|
|
— |
|
|
— |
|
|
(888 |
) |
|
Restructuring and reorganization costs |
|
(9,254 |
) |
|
(19,567 |
) |
|
(140,353 |
) |
|
(24,216 |
) |
|
Insurance reimbursement for legal settlement |
|
— |
|
|
— |
|
|
— |
|
|
3,250 |
|
|
Non-GAAP general and administrative expense |
$ |
38,602 |
|
$ |
60,062 |
|
$ |
172,141 |
|
$ |
234,263 |
|
|
GAAP general and administrative expense as a percentage of revenue |
|
16 |
% |
|
21 |
% |
|
23 |
% |
|
18 |
% |
|
Non-GAAP general and administrative expense as a percentage of revenue |
|
8 |
% |
|
10 |
% |
|
10 |
% |
|
11 |
% |
|
|
|
|
|
|
||||||||
|
Free Cash Flow reconciliation |
|
|
|
|
||||||||
|
Net cash provided by operating activities |
$ |
112,192 |
|
$ |
72,103 |
|
$ |
315,553 |
|
$ |
234,700 |
|
|
Less: |
|
|
|
|
||||||||
|
Purchases of property and equipment |
|
(6,442 |
) |
|
(11,361 |
) |
|
(29,549 |
) |
|
(55,921 |
) |
|
Free cash flow |
|
105,750 |
|
|
60,742 |
|
|
286,004 |
|
|
178,779 |
|
|
|
|
|
|
|
||||||||
|
Net cash provided by (used in) investing activities |
|
(6,442 |
) |
|
(11,361 |
) |
|
(42,409 |
) |
|
44,040 |
|
|
Net cash provided by (used in) financing activities |
|
19,390 |
|
|
10,991 |
|
|
(338,307 |
) |
|
(174,015 |
) |
Cautionary Statement Regarding Forward-Looking Statements
This press release and the earnings call referencing this press release contain “forward-looking statements,” as that term is defined under federal securities laws, including, but not limited to, statements regarding Unity’s outlook and future financial performance, including: (i) Unity’s ability to further enhance its platform, accelerate product innovation and enhance financial performance; (ii) expectations regarding the release of Vector, including anticipated timing for the rollout on iOS and Android and the impact on financial results, as well as expectations regarding Vector’s improvements over time and Unity’s ability to mature the product and operate it at scale; (iii) plans to allocate R&D to the highest impact initiatives, complement revenue growth with ongoing margin expansion, drive growth and to be prudent stewards of shareholder capital; (iv) near term expected uses of capital; (v) plans to focus on per share returns and reduce shareholder dilution from stock-based compensation; (vi) expectations regarding revenue from non-strategic portfolio and stock-based compensation expense for 2025; (vii) Unity’s opportunity to gradually de-lever over the next several years; and (viii) Unity’s financial guidance for the first quarter 2025.
The words “aim,” “believe,” “may,” “will,” “estimate,” “continue,” “intend,” “expect,” “plan,” “project,” and similar expressions are intended to identify forward-looking statements. These forward-looking statements are subject to risks, uncertainties, and assumptions. If the risks materialize or assumptions prove incorrect, actual results could differ materially from the results implied by these forward-looking statements. Risks include, but are not limited to, those related to: (i) the impact of macroeconomic conditions, such as inflation, high interest rates, and limited credit availability which could further cause economic uncertainty and volatility; (ii) competition in the advertising market and Unity’s ability to compete effectively; (iii) ongoing restrictions related to the gaming industry in
Source:
_________________________________
1 These statements are forward-looking and actual results may differ materially. Refer to the “Forward-Looking Statements” safe harbor section below for information on the factors that could cause our actual results to differ materially from these forward-looking statements.
We have not reconciled our estimates for non-GAAP financial measures to GAAP due to the uncertainty and potential variability of expenses that may be incurred in the future. As a result, a reconciliation is not available without unreasonable effort and we are unable to address the probable significance of the unavailable information. We have provided a reconciliation of other GAAP to non-GAAP financial measures in the financial statement tables for our third quarter non-GAAP results included in this shareholder letter.
View source version on businesswire.com: https://www.businesswire.com/news/home/20250220165070/en/
Investor Relations :
ir@unity3d.com
investors.unity.com/
Media Relations :
UnityComms@unity3d.com
investors.unity.com/resources/contact-media-relations/
Source:
