Unity Q2 2024 Earnings Report
Key Takeaways
Unity's Q2 2024 revenue was $449 million, a 16% decrease year-over-year, driven by portfolio changes. The GAAP net loss was $126 million, an improvement from $193 million in Q2 2023. Adjusted EBITDA for the total company was $113 million, compared to $88 million in the same quarter last year.
Second quarter results exceeded guidance for both revenue and Adjusted EBITDA.
GAAP net loss for the quarter was $126 million as compared to a net loss of $193 million in the second quarter of 2023.
Adjusted EBITDA for the total company for the quarter was $113 million compared to an Adjusted EBITDA for the total company of $88 million in the same quarter last year.
Company is guiding revenue for our strategic portfolio to $415 to $420 million for the third quarter.
Unity
Unity
Forward Guidance
For the third quarter, Unity is guiding revenue for its strategic portfolio to $415 to $420 million, down 4% to 6% year-over-year, and Adjusted EBITDA to $75 to $80 million for the total company. For the full year, new revenue guidance for strategic portfolio is $1,680 to $1,690 million, a decrease of 2% to 3% year-over-year. New Adjusted EBITDA guidance is $340 to $350 million.
Positive Outlook
- Expect revenue growth in Create in the second half to come principally from game subscriptions and continued growth in Industries.
- Believe that there are greater efficiencies to be gained over time through a more disciplined execution.
- Closed the second quarter with 476.5 million fully diluted shares as compared to our second quarter fully diluted share count in guidance of 478 million.
- Expect 488 million fully diluted shares at the end of the third and fourth quarters.
- Net year-over-year dilution will be around 2%.
Challenges Ahead
- Guiding revenue for our strategic portfolio to $415 to $420 million, down 4% to 6% year-over-year for Q3.
- Reduction in guidance represents a more cautious approach to the recovery in our Grow Solutions business.
- Investments in fundamental product enhancements will take some time to manifest in sustainable increased performance.
- New revenue guidance for our strategic portfolio is $1,680 to $1,690 million compared to $1,760 to $1,800 million previously.
- Lower expected Adjusted EBITDA is largely due to lower projected revenues, partially offset via incremental cost savings.