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Unity Software Q4'24 Earnings Highlights

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๐Ÿ”น Adj EPS: ($0.30) (Est. ($0.37)) ๐ŸŸข

๐Ÿ”น Revenue: $457M (Est. $432.91M) ๐ŸŸข; DOWN -25% YoY


Q1'25 Guidance:

๐Ÿ”น Revenue: $405Mโ€“$415M (Est. $436.6M) ๐Ÿ”ด

๐Ÿ”น Adjusted EBITDA: $60Mโ€“$65M


Segment Performance:

Create Solutions:

๐Ÿ”น Revenue: $152M (DOWN -47% YoY)

๐Ÿ”ธ Adjusted for Wฤ“tฤ FX termination (~$99M in Q4 2023), revenue decline narrows to -20% YoY

๐Ÿ”น Subscription Revenue Growth: +15% YoY

๐Ÿ”น Industry Strategic Revenue Growth: +50% YoY


Grow Solutions:

๐Ÿ”น Revenue: $305M (DOWN -5% YoY)

๐Ÿ”ธ Adjusted for customer credits (~$21M in Q4 2023), revenue UP +2% YoY


Key Financial Metrics (Q4 FY2024):

๐Ÿ”น GAAP Net Loss: -$123M (vs. -$254M YoY)

๐Ÿ”น Net Loss Margin: (27)% (vs. (42)% YoY)

๐Ÿ”น Free Cash Flow: $106M (UP from $61M YoY)

๐Ÿ”น Net Cash from Operating Activities: $112M (vs. $72M YoY)

๐Ÿ”น Cash & Cash Equivalents: $1.53B


Strategic & Shareholder Updates:

๐Ÿ”ธ Unity 6 Launch: Strong adoption contributing to future optimism

๐Ÿ”ธ New Pricing Model: Positive reception and increased engagement

๐Ÿ”ธ AI Integration: Significant advancements for advertising customers

๐Ÿ”ธ Portfolio Reset: Impacted year-over-year growth but streamlined operations


Management Commentary:

๐Ÿ”ธ CEO Matt Bromberg: "Our Q4 results exceeded expectations in both revenue and profitability, reflecting our efforts to build a stronger Unity. With the success of Unity 6, a new pricing model, and growing AI integration, weโ€™re optimistic about our future and committed to delivering value to our customers and shareholders."

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