Unity Q4 2024 Earnings Report

Unity's fourth quarter results meaningfully exceeded expectations on both revenue and profit.

Key Takeaways

Unity reported Q4 2024 revenue of $457 million, a 25% decrease year-over-year. The company posted a GAAP net loss of $123 million with a net loss margin of 27%. Adjusted EBITDA was $106 million with a margin of 23%. Free cash flow was $106 million.

Revenue declined 25% year-over-year to $457 million, impacted by a portfolio reset.

Net loss improved to $123 million from $254 million in Q4 2023.

Adjusted EBITDA was $106 million with a 23% margin, exceeding expectations.

Free cash flow improved significantly to $106 million.

Total Revenue

$457M

Previous year: $609M

-25.0%

EPS

-$0.3

Previous year: -$0.66

-54.5%

Gross Profit

$342M

Previous year: $348M

-1.8%

Cash and Equivalents

$1.52B

Previous year: $1.59B

-4.6%

Free Cash Flow

$106M

Previous year: $60.7M

+74.5%

Total Assets

$6.74B

Previous year: $7.24B

-7.0%

Unity Revenue

Unity EPS

Unity Revenue by Segment

Forward Guidance

Unity expects Q1 2025 revenue between $405 million and $415 million, with adjusted EBITDA in the range of $60 million to $65 million.

Positive Outlook

Revenue guidance of $405M–$415M reflects stabilization.
Adjusted EBITDA guidance of $60M–$65M.
Better cost control measures improving profitability.
Continued growth in subscription and industry strategic revenue.
Launch of Unity 6 and AI advancements expected to drive adoption.

Challenges Ahead

Revenue is expected to be lower than prior year Q1.
Macroeconomic conditions could impact ad spend.
Competition in gaming and ad monetization remains high.
China’s gaming regulations pose ongoing challenges.
Execution risks in the portfolio restructuring strategy.

Revenue & Expenses

Visualization of income flow from segment revenue to net income