Jun 30, 2022

Unity Q2 2022 Earnings Report

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

Key Takeaways

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.

Total Revenue
$297M
Previous year: $274M
+8.6%
EPS
-$0.18
Previous year: -$0.02
+800.0%
Dollar-Based Net Expansion Rate
121%
Previous year: 142%
-14.8%
Customers Contributing $100K+ Revenue
1.09K
Previous year: 888
+22.2%
Gross Profit
$200M
Previous year: $216M
-7.2%
Cash and Equivalents
$1.16B
Previous year: $1B
+16.0%
Free Cash Flow
-$58.3M
Previous year: -$33.5M
+74.1%
Total Assets
$4.84B
Previous year: $2.66B
+81.8%

Unity

Unity

Forward Guidance

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

Positive Outlook

  • 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

Challenges Ahead

  • 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