Unity has released its financial results for Q4 and the full fiscal year, reporting a decline in revenue during the fourth quarter that exceeded its prior guidance of $422 million to $427 million. Despite this, the company surpassed its full-year revenue expectations, which had been estimated between $1.7 billion and $1.71 billion.
In Q4 2024, Unity generated $457 million in revenue, marking a 25% year-on-year decline. The Create Solutions segment, responsible for Unity’s engine, saw a significant 47% drop in revenue to $152 million. Meanwhile, the Grow Solutions segment, which includes Unity’s monetization services, recorded $305 million in revenue, down 5% year-on-year. However, the company reduced its net loss to $123 million compared to $254 million in the same quarter last year. For the full fiscal year, Unity reported $1.81 billion in revenue, down 17% year-on-year, with a net loss of $664 million—an improvement from its $826 million loss in 2023.
Unity attributed the revenue decline in both Q4 and the full year to its "portfolio reset." The company canceled its controversial runtime fee in September 2024 and appointed three new executives in the following months: CTO Steve Collins, COO Alex Blum, and CFO Jarrod Yahes. Additionally, earlier this month, reports surfaced of job cuts within the company, though the exact number of affected employees remains unclear.
In an email reportedly sent to staff and obtained by 80.lv, CEO Matthew Bromberg addressed the layoffs, describing them as "a response to choices [Unity was] making about what direction Unity will take in the future." Despite the overall revenue drop, Unity’s strategic portfolio, which includes its engine, cloud, and monetization segments, grew by 4% year-on-year, reaching $442 million.
"Unity's fourth quarter results meaningfully exceed expectations on both revenue and profit, underscoring our progress in building a new Unity," said Bromberg. "The successful launch of Unity 6, the appeal of our new pricing model, and the progress we're making in AI for our advertising customers are providing a lot of optimism for the future."
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