NYSE$U
Unity Software Inc. · Q1 2023 earnings
Q1 2023 earnings · · Investor relations
Briefing
Unity had a strong start to the year, exceeding revenue and adjusted EBITDA guidance.
Unity reported a strong first quarter with revenue of $500 million, up 56% year-over-year. The company exceeded its revenue guidance and adjusted EBITDA also came in ahead of expectations. Unity is raising the low-end of its full-year revenue and adjusted EBITDA guidance ranges.
- First quarter revenue was $500 million, up 56% year-over-year.
- GAAP net loss was $254 million.
- Adjusted EBITDA was $32 million, exceeding guidance.
- The company is raising the low-end of its full-year revenue and adjusted EBITDA guidance ranges.
Headline financials
Revenue & EPS history
Unity · Revenue · Quarterly
$500M
Revenue by segment
Unity · $500M total across 2 segments · Q1 2023
- Grow Solutions$313M+70.1%62.6%
- Create Solutions$187M+60.7%37.4%
Forward guidance
For the second quarter, revenue is guided to $510 to $520 million, an increase of 72% to 75% year-over year and adjusted EBITDA from $50 to $60 million. The revenue guide for the year is $2.08 to $2.2 billion, an increase of 50% to 58% year-over year and the adjusted EBITDA guide is $250 to $300M.
Tailwinds
- Revenue is guided to $510 to $520 million, an increase of 72% to 75% year-over year.
- Adjusted EBITDA is guided from $50 to $60 million.
- Revenue guide for the year is $2.08 to $2.2 billion, an increase of 50% to 58% year-over year.
- Adjusted EBITDA guide for the year is $250 to $300M.
- The ads market will be relatively flat quarter-over-quarter and that Unity will continue to gain share and perform ahead of the market.
Headwinds
- A reconciliation of non-GAAP guidance measures to corresponding GAAP measures is not available on a forward-looking basis.
- The guidance is taking into account the stronger than expected first quarter and the ongoing uncertain economic environment.
- The shares estimates do not include the impact of any additional share buyback.
- Uncertainty of expenses that may be incurred in the future and cannot be reasonably determined or predicted at this time
- These factors could be material to Unity’s results computed in accordance with GAAP.
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 2023
+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
| Quarter | Report date | Reaction (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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