NYSE$U

Unity Software Inc. · Q1 2022 earnings

Q1 2022 earnings · · Investor relations

Briefing

Unity delivered record quarterly revenue, up 36% year-over-year, with Create over-performing and Operate experiencing slower growth.

Unity announced record quarterly revenue of $320.1 million for Q1 2022, a 36% increase year-over-year. The growth was driven by Create Solutions, which grew by 65%, while Operate Solutions experienced slower growth. The company is focused on accelerating growth in Operate and driving sustainable profitability.

  • Revenue was $320.1 million, an increase of 36% from the first quarter of 2021.
  • Create Solutions revenue was $116.4 million, an increase of 65%.
  • Operate Solutions revenue was $184.0 million, an increase of 26%.
  • Basic and diluted net loss per share was $0.60, compared to basic and diluted net loss per share of $0.39 in the first quarter of 2021.

Headline financials

Total Revenue

$320M

Previous: $235M+36.4%
EPS (adj)

-$0.08

Previous: -$0.10+20.0%
Capital Expenditures

-$14.9M

Previous: -$11.7M-27.1%
Free Cash Flow

-$192M

Previous: -$119M-61.5%
Net Income

-$178M

Previous: -$107M-65.2%
Operating Income

-$171M

Previous: -$111M-54.3%
Gross Profit

$226M

Previous: $176M+28.5%
Cash & Equivalents

$1.34B

Previous: $1.12B+19.6%
Total Assets

$4.95B

Previous: $2.65B+86.6%
Stock-Based Comp

$103M

Previous: $64.4M+60.5%

Revenue & EPS history

Unity · Revenue · Quarterly

$320M

Q1 2022+36.4%vs Q1 2021
Beat estimate in 5 of 10 quarters(50%)
ActualEstimate

Revenue by segment

Unity · $300M total across 2 segments · Q1 2022

  • Grow Solutions
    $184M+25.5%
  • Create Solutions
    $116M+65.3%

Forward guidance

Unity is providing the following guidance for the second quarter and lowering guidance for the full year ending December 31, 2022 due to challenges with monetization products that we expect to impact 2022.

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 2022

Historical avgQ1 2022

+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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