NYSE$U

Unity Software Inc. · Q1 2024 earnings

Q1 2024 earnings · · Investor relations

Briefing

Unity's first quarter results for 2024 showed mixed performance, with revenue exceeding expectations but a net loss reported.

Unity's Q1 2024 revenue reached $460 million, surpassing expectations, driven by growth in the Grow Solutions segment. However, the company reported a net loss of $291 million and is undergoing a restructuring program to enhance efficiency and profitability.

  • Revenue reached $460 million, exceeding the guidance.
  • Grow Solutions revenue grew 44% year-over-year.
  • Net loss was $291 million, impacted by restructuring charges.
  • The company is focused on profitable growth and efficiency improvements.

Headline financials

Total Revenue

$460M

Previous: $500M-8.0%
EPS

-$0.75

Previous: $0.06-1350.0%
Capital Expenditures

-$7.19M

Previous: -$14.4M+49.9%
Free Cash Flow

-$298M

Previous: -$267M-11.6%
Net Income

-$291M

Previous: -$253M-15.0%
Operating Income

-$375M

Previous: -$255M-47.0%
Gross Profit

$316M

Previous: $338M-6.6%
Cash & Equivalents

$1.18B

Previous: $1.59B-26.0%
Total Assets

$6.75B

Previous: $7.73B-12.7%
R&D Expense

$283M

No prior period
Stock-Based Comp

$266M

Previous: $163M+63.1%

Revenue & EPS history

Unity · Revenue · Quarterly

$460M

Q1 2024-8%vs Q1 2023
Beat estimate in 13 of 15 quarters(87%)
ActualEstimate

Revenue by segment

Unity · $544M total across 2 segments · Q3 2023

  • Grow Solutions
    $355M+106.8%
  • Create Solutions
    $189M+47.0%

Forward guidance

Unity expects revenue between $480 million and $490 million for the second quarter and anticipates achieving positive adjusted EBITDA for the full year.

Tailwinds

  • Expects Q2 revenue between $480M and $490M.
  • Anticipates positive adjusted EBITDA for the full year.
  • Focus on core business and strategic partnerships.
  • Expects to drive profitable growth.
  • Committed to innovation and platform development.

Headwinds

  • Macroeconomic uncertainty could impact performance.
  • Restructuring charges will affect profitability in the short term.
  • Integration of AI technologies poses challenges.
  • Competition in the gaming and development platform market.
  • Dependence on key partnerships for revenue generation.

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 2024

Historical avgQ1 2024

+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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