Dec 31, 2021

Unity Q4 2021 Earnings Report

Unity's Q4 2021 earnings exceeded expectations, driven by strong execution and innovation.

Key Takeaways

Unity's Q4 2021 revenue reached $315.9 million, a 43% increase year-over-year, surpassing guidance. Full-year 2021 revenue was $1.1 billion, up 44% from the previous year. The company's growth was fueled by strong performance in both Create and Operate Solutions.

Q4 revenue increased by 43% year-over-year to $315.9 million.

Create Solutions revenue grew by 49% to $99.9 million.

Operate Solutions revenue increased by 45% to $194.6 million.

Dollar-based net expansion rate was 140% as of December 31, 2021.

Total Revenue
$316M
Previous year: $220M
+43.4%
EPS
-$0.05
Previous year: -$0.1
-50.0%
Gross Profit
$242M
Previous year: $168M
+44.3%
Cash and Equivalents
$1.06B
Previous year: $1.27B
-17.0%
Free Cash Flow
-$53.5M
Previous year: $3.57M
-1600.4%
Total Assets
$4.84B
Previous year: $2.67B
+81.2%

Unity

Unity

Unity Revenue by Segment

Forward Guidance

Unity provided guidance for Q1 2022 with revenue expected to be between $315 million and $320 million, and for the full year 2022, revenue is expected to be between $1.485 billion and $1.505 billion.

Positive Outlook

  • Q1 2022 revenue is projected to be between $315 million and $320 million.
  • Full year 2022 revenue is projected to be between $1.485 billion and $1.505 billion.
  • Year-over-year revenue growth is expected to be between 34% and 36%.
  • Non-GAAP loss from operations for Q1 2022 is expected to be between $(22) million and $(23) million.
  • Fully diluted shares outstanding are expected to be 343M for Q1 2022.

Challenges Ahead

  • Non-GAAP loss from operations for the full year 2022 is expected to be between $(39) million and $(41) million.
  • Non-GAAP operating margin is expected to be (7)% for Q1 2022.
  • Non-GAAP operating margin is expected to be (3)% for the full year 2022.
  • A reconciliation of non-GAAP guidance measures to corresponding GAAP measures is not available on a forward-looking basis.
  • Expenses that may be incurred in the future and cannot be reasonably determined or predicted at this time, could be material to Unity’s results computed in accordance with GAAP.

Revenue & Expenses

Visualization of income flow from segment revenue to net income