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Dec 31, 2024
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.
Unity
Unity
Unity Revenue by Segment
Revenue by Segment
Create Solutions Revenue
CapyFin.comGrow Solutions Revenue
CapyFin.com 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