Unity Software Reports Q4 Revenue Drop

By Tamara Parker • Thursday, February 20 15:30 • Permanent Link

Unity, the leading platform for creating and growing games and interactive experiences, has reported its financial results for the fourth quarter and fiscal year ended December 31, 2024. The company's fourth quarter revenue was $457 million, significantly down from $609 million in the same period in 2023. Revenue from the strategic portfolio was $442 million, up 4% year-over-year, while create solutions revenue was $152 million, down from $290 million in the fourth quarter of 2023. Grow solutions revenue was $305 million, down from $319 million in the same period last year.

The GAAP net loss for the fourth quarter was $123 million, with a margin of (27)%, while adjusted EBITDA was $106 million, with a margin of 23%. Notably, the net cash provided by operating activities for the quarter was $112 million, and the free cash flow was $106 million.

For the full year 2024, the revenue was $1,813 million, compared to $2,187 million in 2023. Revenue from the strategic portfolio was $1,723 million, down 1% year-over-year, while create solutions revenue was $614 million, compared to $859 million for the full year 2023. Grow solutions revenue was $1,199 million, down from $1,328 million in the previous year.

The GAAP net loss for the full year was $664 million, with a margin of (37)%, while adjusted EBITDA was $390 million, with a margin of 21%. The net cash provided by operating activities for the year was $316 million, and the free cash flow was $286 million.

Unity's cash and cash equivalents, and restricted cash as of December 31, 2024, stood at $1,528 million, a decrease from $1,604 million in the previous year. The decrease was primarily driven by $316 million of net cash provided by operating activities, offset by $338 million used in financing activities, primarily for the repurchase of convertible notes, and $42 million used in investing activities.

Looking ahead, Unity has provided guidance for the first quarter of 2025, with an expected revenue of $405 to $415 million and adjusted EBITDA of $60 to $65 million.

The market has reacted to these announcements by moving the company's shares 27.1% to a price of $27.29. If you want to know more, read the company's complete 8-K report here.

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