NYSE$U

Unity Software Inc. · Q2 2021 earnings

Q2 2021 earnings · · Investor relations

Briefing

Revenue increased, driven by new customers and expanded business with existing customers, and full-year guidance was raised.

Unity's Q2 2021 revenue reached $273.6 million, a 48% increase year-over-year, surpassing expectations and marking the 11th consecutive quarter of 30% or greater growth. The company is increasing its full-year guidance for 2021.

  • Revenue was $273.6 million, an increase of 48% from the second quarter of 2020.
  • Create Solutions, Operate Solutions, and Strategic Partnerships and Other revenue was $72.4 million, $182.9 million, and $18.3 million, respectively, an increase of 31%, 63%, and 9%, respectively, from the second quarter of 2020.
  • Basic and diluted net loss per share was $0.53, compared to basic and diluted net loss per share of $0.21 in the second quarter of 2020.
  • Dollar-based net expansion rate as of June 30, 2021 was 142% as compared to 142% as of June 30, 2020.

Headline financials

Total Revenue

$274M

Previous: $184M+48.4%
EPS (adj)

-$0.02

Previous: -$0.42+95.2%
Capital Expenditures

-$18.6M

Previous: $11.7M-258.4%
Free Cash Flow

-$167M

Previous: $4.87M-3524.9%
Net Income

-$148M

Previous: -$27.4M-442.4%
Operating Income

-$149M

Previous: -$24.8M-500.5%
Gross Profit

$216M

Previous: $144M+50.0%
Cash & Equivalents

$1B

Previous: $476M+110.6%
Total Assets

$2.66B

No prior period
Stock-Based Comp

$74.9M

Previous: $12M+526.2%

Revenue & EPS history

Unity · Revenue · Quarterly

$274M

Q2 2021+48.4%vs Q2 2020
Beat estimate in 5 of 10 quarters(50%)
ActualEstimate

Revenue by segment

Unity · $255M total across 2 segments · Q2 2021

  • Grow Solutions
    $183M+63.0%
  • Create Solutions
    $72.4M+30.9%

Forward guidance

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

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 Q2 2021

Historical avgQ2 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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