NYSE$U
Unity Software Inc. · Q4 2024 earnings
Q4 2024 earnings · · Before market open · Investor relations
Briefing
Unity's fourth quarter results meaningfully exceeded expectations on both revenue and profit.
Unity reported Q4 2024 revenue of $457 million, a 25% decrease year-over-year. The company posted a GAAP net loss of $123 million with a net loss margin of 27%. Adjusted EBITDA was $106 million with a margin of 23%. Free cash flow was $106 million.
- Revenue declined 25% year-over-year to $457 million, impacted by a portfolio reset.
- Net loss improved to $123 million from $254 million in Q4 2023.
- Adjusted EBITDA was $106 million with a 23% margin, exceeding expectations.
- Free cash flow improved significantly to $106 million.
Headline financials
Revenue & EPS history
Unity · Revenue · Quarterly
$457M
Revenue by segment
Unity · $544M total across 2 segments · Q3 2023
- Grow Solutions$355M+106.8%65.3%
- Create Solutions$189M+47.0%34.7%
Forward guidance
Unity expects Q1 2025 revenue between $405 million and $415 million, with adjusted EBITDA in the range of $60 million to $65 million.
Tailwinds
- Revenue guidance of $405M–$415M reflects stabilization.
- Adjusted EBITDA guidance of $60M–$65M.
- Better cost control measures improving profitability.
- Continued growth in subscription and industry strategic revenue.
- Launch of Unity 6 and AI advancements expected to drive adoption.
Headwinds
- Revenue is expected to be lower than prior year Q1.
- Macroeconomic conditions could impact ad spend.
- Competition in gaming and ad monetization remains high.
- China’s gaming regulations pose ongoing challenges.
- Execution risks in the portfolio restructuring strategy.
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 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
| 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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