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Jun 30, 2024
Unity Q2 2024 Earnings Report
Second quarter results exceeded guidance for both revenue and Adjusted EBITDA.
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
Unity Revenue by Segment
Revenue by Segment
Create Solutions Revenue
CapyFin.comGrow Solutions Revenue
CapyFin.com 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 ξ4% to ξ6% 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.
Revenue & Expenses
Visualization of income flow from segment revenue to net income