Unity Q3 2021 Earnings Report
Key Takeaways
Unity's Q3 2021 revenue reached $286.3 million, a 43% increase year-over-year, exceeding expectations. The company raised its full-year revenue guidance and announced the acquisition of Weta Digital to enhance its platform with advanced VFX tools.
Revenue was $286.3 million, an increase of 43% from the third quarter of 2020.
Create Solutions and Operate Solutions revenue was $83.7 million and $185.0 million, respectively, an increase of 34% and 54%, respectively, from the third quarter of 2020.
Basic and diluted net loss per share was $0.41, compared to basic and diluted net loss per share of $0.97 in the third quarter of 2020.
Dollar-based net expansion rate as of September 30, 2021 was 142% as compared to 144% as of September 30, 2020.
Unity
Unity
Forward Guidance
Unity is providing the following guidance for the fourth quarter and raising guidance for the full year ending December 31, 2021.
Positive Outlook
- Q4 2021 Revenue Guidance: $285 - $290 million
- 2021 Revenue Guidance: $1,080 - $1,085 million
- Q4 2021 Year-over-year revenue growth: 29% - 32%
- 2021 Year-over-year revenue growth: 40%
- Fully diluted shares outstanding: 329M
Challenges Ahead
- Q4 2021 Non-GAAP loss from operations: ($20) - ($25) million
- 2021 Non-GAAP loss from operations: ($59) - ($64) million
- Q4 2021 Non-GAAP operating margin: (7%) - (9%)
- 2021 Non-GAAP operating margin: (5%) - (6%)
- A reconciliation of non-GAAP guidance measures to corresponding GAAP measures is not available on a forward-looking basis without unreasonable effort due to the uncertainty of expenses that may be incurred in the future