Mar 31, 2021

Unity Q1 2021 Earnings Report

Unity's Q1 2021 financial results were announced, revealing a 41% increase in revenue and exceeding expectations, leading to an increased 2021 revenue outlook.

Key Takeaways

Unity's Q1 2021 revenue reached $234.8 million, a 41% increase year-over-year. The company's performance was driven by the transition to real-time 3D content creation and operation. Unity raised its full year guidance by $50 million.

Revenue was $234.8 million, up 41% year-over-year.

Create Solutions, Operate Solutions, and Strategic Partnerships and Other revenue increased 51%, 40%, and 12%, respectively.

837 customers generated more than $100,000 of revenue in the trailing 12 months.

Dollar-based net expansion rate was 140%.

Total Revenue
$235M
Previous year: $167M
+40.6%
EPS
-$0.1
Previous year: -$0.117
-14.6%
Dollar-Based Net Expansion Rate
140%
Previous year: 133%
+5.3%
Customers Contributing $100K+ Revenue
837
Previous year: 668
+25.3%
Gross Profit
$176M
Previous year: $135M
+30.3%
Cash and Equivalents
$1.12B
Free Cash Flow
-$101M
Total Assets
$2.65B

Unity

Unity

Forward Guidance

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

Positive Outlook

  • Q2 2021 Revenue (in millions): $240 - $245
  • Q2 2021 Year-over-year revenue growth: 30% - 33%
  • Q2 2021 Non-GAAP loss from operations (in millions): ($30) - ($40)
  • 2021 Revenue (in millions): $1,000 - $1,015
  • 2021 Year-over-year revenue growth: 29% - 31%

Challenges Ahead

  • Q2 2021 Non-GAAP operating margin: (12%) - (17%)
  • Q2 2021 Weighted-average fully diluted shares outstanding: 329M
  • 2021 Non-GAAP loss from operations (in millions): ($90) - ($100)
  • 2021 Non-GAAP operating margin: (9)% - (10%)
  • 2021 Weighted-average fully diluted shares outstanding: 334M