NYSE$U

Unity Software Inc. · Q2 2022 earnings

Q2 2022 earnings · · Investor relations

Briefing

Unity delivered revenue that was up 9% year-over-year, with strong performance in Create Solutions and progress in stabilizing Operate Solutions.

Unity's Q2 2022 financial results showed revenue of $297.0 million, a 9% increase year-over-year. Create Solutions performed strongly, while progress was made to stabilize Operate Solutions. The company is also pursuing a merger with ironSource and forming a new joint venture in China.

  • Revenue was $297.0 million, up 9% year-over-year.
  • Create Solutions revenue increased by 66% to $120.9 million.
  • Operate Solutions revenue decreased by 13% to $158.5 million.
  • Basic and diluted net loss per share was $0.69, compared to $0.53 in Q2 2021.

Headline financials

Total Revenue

$297M

Previous: $274M+8.6%
EPS (adj)

-$0.18

Previous: -$0.02-800.0%
Capital Expenditures

-$30.4M

Previous: -$18.6M-63.6%
Free Cash Flow

-$235M

Previous: -$167M-40.5%
Net Income

-$204M

Previous: -$148M-37.6%
Operating Income

-$198M

Previous: -$149M-32.5%
Gross Profit

$200M

Previous: $216M-7.2%
Cash & Equivalents

$1.16B

Previous: $1B+16.0%
Total Assets

$4.84B

Previous: $2.66B+81.8%
Stock-Based Comp

$118M

Previous: $74.9M+57.8%

Revenue & EPS history

Unity · Revenue · Quarterly

$297M

Q2 2022+8.6%vs Q2 2021
Beat estimate in 13 of 15 quarters(87%)
ActualEstimate

Revenue by segment

Unity · $279M total across 2 segments · Q2 2022

  • Grow Solutions
    $159M-13.3%
  • Create Solutions
    $121M+67.0%

Forward guidance

Unity is providing the following guidance for the third quarter and for the full year ending December 31, 2022.

Tailwinds

  • Q3 2022 Revenue Guidance: $315 million - $335 million
  • Q3 2022 Year-over-year revenue growth: 10% - 17%
  • Q3 2022 Non-GAAP loss from operations: ($35) million - ($50) million
  • Q3 2022 Non-GAAP operating margin: (10%) - (16%)
  • Q3 2022 Fully diluted shares outstanding: 375M

Headwinds

  • Full Year 2022 Revenue Guidance: $1,300 million - $1,350 million
  • Full Year 2022 Year-over-year revenue growth: 17% - 22%
  • Full Year 2022 Non-GAAP loss from operations: ($95) million - ($115) million
  • Full Year 2022 Non-GAAP operating margin: (7%) - (9%)
  • Full Year 2022 Fully diluted shares outstanding: 376M

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 2022

Historical avgQ2 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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