Unity Technologies Reports Q2 2024 Revenue of $450 Million, Exceeding Expectations and Cutting Costs

Unity Technologies, the mobile game engine and infrastructure platform, exceeded expectations in Q2 2024 with revenues of nearly $450 million. Although this is a decrease from Q1’s revenue of $460 million, Unity has managed to cut its costs significantly, resulting in a net loss of $126 million, less than half of Q1’s losses. The company’s earnings before interest, taxes, depreciation, and amortization (EBITDA) also saw a significant increase of about 45% in Q2, reaching $113 million.

Compared to the same period in 2023, Unity’s revenue is down 16%, but the company has made considerable progress in reducing net losses by 35%. Unity’s Q2 2024 earnings report highlights its market position, with games accounting for 60% of consumer app spending and 70% of the top mobile games being built on Unity. The company’s ad business reaches over 1.5 billion individual gamers and delivers more than 65 billion impressions each month.

Unity CEO Matthew Bromberg expressed the company’s focus on execution, discipline, and accountability, with plans to accelerate product innovation, strengthen customer relationships, and add top talent to the team. Unity is preparing for the release of Unity 6 in the fall, which promises to be the most stable and high-performing version to date. Additionally, Unity is exploring non-gaming applications of its technology through partnerships with companies like Diageo, Audi, Rady Children’s Hospital, and Bosch Rexroth.

The earnings report also marks the first since the appointment of Matthew Bromberg as CEO in May, following the departure of former CEO John Riccitiello. Unity has undergone a leadership shakeup, with the appointment of Jim Payne as the new Chief Product Officer for advertising, alongside recent hire Alex Blum, SVP of corporate development. However, the company also announced the departure of its CFO, Luis Visoso.

Despite these positive developments, Unity has adjusted its guidance expectations for 2024, reducing it to $1,680 to $1,690 million, a 2-3% decrease year-on-year. Additionally, revenue expectations for the third quarter have been reduced by 4-6%.

In conclusion, Unity Technologies has shown resilience in cutting costs and reducing net losses, while also maintaining its market position as a leading mobile game engine and infrastructure platform. The company’s focus on product innovation, customer relationships, and talent acquisition, along with its exploration of non-gaming applications, demonstrate its commitment to future growth. However, Unity will need to navigate the challenges of reduced revenue expectations in the coming months.