NYSE$U

Unity Software Inc. · Q4 2021 earnings

Q4 2021 earnings · · Investor relations

Briefing

Unity's Q4 2021 earnings exceeded expectations, driven by strong execution and innovation.

Unity's Q4 2021 revenue reached $315.9 million, a 43% increase year-over-year, surpassing guidance. Full-year 2021 revenue was $1.1 billion, up 44% from the previous year. The company's growth was fueled by strong performance in both Create and Operate Solutions.

  • Q4 revenue increased by 43% year-over-year to $315.9 million.
  • Create Solutions revenue grew by 49% to $99.9 million.
  • Operate Solutions revenue increased by 45% to $194.6 million.
  • Dollar-based net expansion rate was 140% as of December 31, 2021.

Headline financials

Total Revenue

$316M

Previous: $220M+43.4%
EPS (adj)

-$0.05

Previous: -$0.10+50.0%
Capital Expenditures

$14M

Previous: $11.2M+24.8%
Free Cash Flow

-$53.5M

Previous: $3.57M-1600.4%
Net Income

-$162M

Previous: -$83.5M-93.6%
Operating Income

-$145M

Previous: -$80.8M-79.1%
Gross Profit

$242M

Previous: $168M+44.3%
Cash & Equivalents

$1.06B

Previous: $1.27B-17.0%
Total Assets

$4.84B

Previous: $2.67B+81.2%
Stock-Based Comp

$97.9M

Previous: $51.1M+91.6%

Revenue & EPS history

Unity · Revenue · Quarterly

$316M

Q4 2021+43.4%vs Q4 2020
Beat estimate in 5 of 10 quarters(50%)
ActualEstimate

Revenue by segment

Unity · $295M total across 2 segments · Q4 2021

  • Grow Solutions
    $195M+44.9%
  • Create Solutions
    $99.9M+49.3%

Forward guidance

Unity provided guidance for Q1 2022 with revenue expected to be between $315 million and $320 million, and for the full year 2022, revenue is expected to be between $1.485 billion and $1.505 billion.

Tailwinds

  • Q1 2022 revenue is projected to be between $315 million and $320 million.
  • Full year 2022 revenue is projected to be between $1.485 billion and $1.505 billion.
  • Year-over-year revenue growth is expected to be between 34% and 36%.
  • Non-GAAP loss from operations for Q1 2022 is expected to be between $(22) million and $(23) million.
  • Fully diluted shares outstanding are expected to be 343M for Q1 2022.

Headwinds

  • Non-GAAP loss from operations for the full year 2022 is expected to be between $(39) million and $(41) million.
  • Non-GAAP operating margin is expected to be (7)% for Q1 2022.
  • Non-GAAP operating margin is expected to be (3)% for the full year 2022.
  • A reconciliation of non-GAAP guidance measures to corresponding GAAP measures is not available on a forward-looking basis.
  • Expenses that may be incurred in the future and cannot be reasonably determined or predicted at this time, 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 Q4 2021

Historical avgQ4 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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