Unity revenue drops 16% to $449m during Q2

Unity has released its financial results for the three months ended June 30, 2024, showing a decrease in revenue which "exceeded previous guidance" of between $420 million and $425 million for Q2.

It also announced the departure of CFO Luis Visoso, who joined the firm in 2021, and the appointment of current chief accounting officer Mark Barrysmith as interim CFO, followed by another two executive hires.

The numbers

• Total revenue: $449 million (down 16% year-over-year)
• Create Solutions revenue: $129 million (up 4%)
• Grow Solutions revenue: $296 million (down 9%)
• Net loss: $126 million (compared to $193 million for same quarter last year)

The highlights

Create Solutions was the biggest revenue for Unity's business this quarter, which came primarily from game subscriptions (which grew 14%) and industries – the latter making up 18% of Create Solutions total revenue.

As highlighted during an earnings call, industries is currently Unity's fastest growing segment having grown by 59% year-over year.

Growth Solutions saw a slight decrease, but returned to sequential growth after two quarters of revenue declines. This was driven "by product improvements and seasonality," Visolo noted.

Unity CEO Matthew Bromberg also highlighted the addition of two new customers outside of games in this segment, including Audi and beverage company Diaego.

Looking ahead, Unity's strategic revenue forecast is that it will generate between $415 million and $420 million for the third quarter, which represents a year-on-year decline of up to 6%.

For the full year, it has adjusted its guidance to between $1.68 million to $1.69 million compared to $1.76 million to $1.8 million previously. This represents a decrease of up to 3%.

"While we're seeing positive impacts from the improvements being made to our ad network and level-play products, we now believe that it will take us longer to see their full impact on revenue growth," Visoso noted.

Elsewhere, Unity announced the hire of Jim Payne as CPO for advertising. Payne co-founded mobile in-app ad server MoPub, which was acquired by AppLovin from Twitter for $1 billion in 2021.

Alex Blum was also hired as SVP of corporate development. He has previous experience as an investor and advisor, most recently for phone call captioning app Nagish.