Unity has released its financial results for the three months ended June 30, 2024, showing a decline in revenue that “exceeded prior guidance” of between $420 million and $425 million for the second quarter.
It also announced the departure of CFO Luis Visoso, who joined the firm in 2021, and the appointment of current CFO Mark Barrysmith as interim CFO, followed by two other executive hires.
The numbers
- Total revenue: $449 million (down 16% from the previous year)
- Generate revenue from solutions: $129 million (up 4%)
- Solutions for revenue growth: $296 million (down 9%)
- Net loss: $126 million (compared to $193 million in the same quarter last year)
Highlights
Create Solutions was the largest revenue stream for Unity’s business this quarter, driven primarily by gaming subscriptions (up 14%) and industrials, the latter accounting for 18% of Create Solutions’ total revenue.
As highlighted during an earnings call, industries is currently Unity’s fastest-growing segment, having grown 59% year-over-year.
Growth Solutions experienced a slight decline, but returned to sequential growth after two quarters of revenue declines. This was due “to product improvements and seasonality,” Visolo said.
Unity CEO Matthew Bromberg also highlighted the addition of two new customers outside the gaming sector to the segment, including Audi and beverage company Diaego.
Looking ahead, Unity's strategic revenue guidance is for Q3 revenue of $415 million to $420 million, down as much as 6% year-over-year.
For the full year, it has revised its forecast to between $1.68 million and $1.69 million, compared with the previously forecast $1.76 million and $1.8 million, a decrease of up to 3%.
“While we are seeing positive impacts from the improvements being made to our ad network and leveling products, we now believe it will take longer to see their full impact on revenue growth,” Visoso said.
Separately, Unity announced the hiring of Jim Payne as chief advertising officer. Payne co-founded mobile app ad server MoPub, which AppLovin acquired from Twitter for $1 billion in 2021.
Alex Blum has also been hired as senior vice president of corporate development. He has previous experience as an investor and advisor, most recently at phone call captioning app Nagish.