NYSE$U

Unity Software Inc. · Q1 2021 earnings

Q1 2021 earnings · · Investor relations

Briefing

Unity's Q1 2021 financial results were announced, revealing a 41% increase in revenue and exceeding expectations, leading to an increased 2021 revenue outlook.

Unity's Q1 2021 revenue reached $234.8 million, a 41% increase year-over-year. The company's performance was driven by the transition to real-time 3D content creation and operation. Unity raised its full year guidance by $50 million.

  • Revenue was $234.8 million, up 41% year-over-year.
  • Create Solutions, Operate Solutions, and Strategic Partnerships and Other revenue increased 51%, 40%, and 12%, respectively.
  • 837 customers generated more than $100,000 of revenue in the trailing 12 months.
  • Dollar-based net expansion rate was 140%.

Headline financials

Total Revenue

$235M

Previous: $167M+40.6%
EPS (adj)

-$0.10

Previous: -$0.12+14.6%
Capital Expenditures

-$11.7M

No prior period
Free Cash Flow

-$119M

No prior period
Net Income

-$107M

Previous: -$26.7M-301.9%
Operating Income

-$111M

Previous: -$27.4M-304.2%
Gross Profit

$176M

Previous: $135M+30.3%
Cash & Equivalents

$1.12B

No prior period
Total Assets

$2.65B

No prior period
Stock-Based Comp

$64.4M

No prior period

Revenue & EPS history

Unity · Revenue · Quarterly

$235M

Q1 2021+40.6%vs Q1 2020
Beat estimate in 5 of 10 quarters(50%)
ActualEstimate

Revenue by segment

Unity · $217M total across 2 segments · Q1 2021

  • Grow Solutions
    $147M+40.0%
  • Create Solutions
    $70.4M+51.1%

Forward guidance

Unity is providing the following guidance for the second quarter of and full year ending December 31, 2021.

Tailwinds

  • Q2 2021 Revenue (in millions): $240 - $245
  • Q2 2021 Year-over-year revenue growth: 30% - 33%
  • Q2 2021 Non-GAAP loss from operations (in millions): ($30) - ($40)
  • 2021 Revenue (in millions): $1,000 - $1,015
  • 2021 Year-over-year revenue growth: 29% - 31%

Headwinds

  • Q2 2021 Non-GAAP operating margin: (12%) - (17%)
  • Q2 2021 Weighted-average fully diluted shares outstanding: 329M
  • 2021 Non-GAAP loss from operations (in millions): ($90) - ($100)
  • 2021 Non-GAAP operating margin: (9)% - (10%)
  • 2021 Weighted-average fully diluted shares outstanding: 334M

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2021

Historical avgQ1 2021

+2.1%

Avg return

Earnings day

+3.9%

Avg return

5 days after

+5.8%

Avg return

30 days after

58%

14 / 24 earnings

Positive

+30.4%

Q4 2024

Best reaction

-39.9%

Q1 2022

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-1.8%-1.7%+6.9%
Q4 2025-26.3%-35.7%-33.1%
Q3 2025+18.1%+20.2%+27.6%
Q1 2025-3.1%+2.4%+17.9%
Q4 2024+30.4%+19.5%+0.4%
Q3 2024-5.4%-11.3%+27.9%
Q2 2024+11.6%+16.7%+13.9%
Q1 2024-10.0%-4.4%-28.3%
Q4 2023-0.8%-7.5%-13.7%
Q3 2023+3.6%+12.0%+25.5%
Q2 2023-9.2%-11.8%-18.1%
Q1 2023+14.8%+6.1%+28.4%
Q4 2022-12.7%-18.8%-21.3%
Q3 2022+17.1%+37.6%+42.8%
Q2 2022+11.7%+17.5%-22.1%
Q1 2022-39.9%-22.4%-18.0%
Q4 2021+6.5%+5.5%-12.7%
Q3 2021+8.2%+20.6%-14.2%
Q2 2020+18.2%+14.0%+26.1%
Q2 2021+10.1%+16.9%+21.7%
Q1 2021+3.3%+7.2%+23.6%
Q4 2020-13.3%-13.7%-36.7%
Q4 2019+9.6%+13.0%+49.9%
Q3 2020+8.7%+11.8%+44.4%
Q1 2020
Q3 2019
Q2 2019
Q1 2019

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