NYSE$U
Unity Software Inc. · Q3 2021 earnings
Q3 2021 earnings · · Investor relations
Briefing
Reported a 43% year-over-year revenue increase and announced intent to acquire Weta Digital.
Unity's Q3 2021 revenue reached $286.3 million, a 43% increase year-over-year, exceeding expectations. The company raised its full-year revenue guidance and announced the acquisition of Weta Digital to enhance its platform with advanced VFX tools.
- Revenue was $286.3 million, an increase of 43% from the third quarter of 2020.
- Create Solutions and Operate Solutions revenue was $83.7 million and $185.0 million, respectively, an increase of 34% and 54%, respectively, from the third quarter of 2020.
- Basic and diluted net loss per share was $0.41, compared to basic and diluted net loss per share of $0.97 in the third quarter of 2020.
- Dollar-based net expansion rate as of September 30, 2021 was 142% as compared to 144% as of September 30, 2020.
Headline financials
Revenue & EPS history
Unity · Revenue · Quarterly
$286M
Revenue by segment
Unity · $269M total across 2 segments · Q3 2021
- Grow Solutions$185M—68.9%
- Create Solutions$83.7M—31.1%
Forward guidance
Unity is providing the following guidance for the fourth quarter and raising guidance for the full year ending December 31, 2021.
Tailwinds
- Q4 2021 Revenue Guidance: $285 - $290 million
- 2021 Revenue Guidance: $1,080 - $1,085 million
- Q4 2021 Year-over-year revenue growth: 29% - 32%
- 2021 Year-over-year revenue growth: 40%
- Fully diluted shares outstanding: 329M
Headwinds
- Q4 2021 Non-GAAP loss from operations: ($20) - ($25) million
- 2021 Non-GAAP loss from operations: ($59) - ($64) million
- Q4 2021 Non-GAAP operating margin: (7%) - (9%)
- 2021 Non-GAAP operating margin: (5%) - (6%)
- A reconciliation of non-GAAP guidance measures to corresponding GAAP measures is not available on a forward-looking basis without unreasonable effort due to the uncertainty of expenses that may be incurred in the future
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 Q3 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
| 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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