U Q1 2023 Earnings

Call Details

• Call Title: Unity Software Inc. Q1 2023 Earnings Call
• Date: May 10, 2023 at 9:00 PM UTC
• Management Team:
  • John Riccitiello (CEO, President and Chairman)
  • Luis Visoso (CFO)
  • Richard Davis (Head of Investor Relations)

Call Summary

Financial Performance

• The company beat the high end of its revenue guide by $20M for Q1 2023 on a non-GAAP basis.
• The company beat the high end of its adjusted EBITDA guide by $20M and reported a $55M adjusted EBITDA improvement versus Q1 2022.
• Unity stated that commentary and figures on the call focus on non-GAAP measures unless otherwise noted and that GAAP reconciliations are in the shareholder letter and SEC filings.
• CREAT reported 14% growth including strategic partnerships and 17% growth excluding strategic partnerships for the period discussed.
• The company reported $1.6B of cash on the balance sheet at quarter end.
• Unity reiterated a commitment to a $1.0B adjusted EBITDA run rate by the end of 2024.
• The company described early realized revenue synergies post-IronSource that are already driving growth in the quarter-to-date.

Guidance

• Q2 guidance was described as being above consensus for both revenue and adjusted EBITDA.
• The company raised the low end of its full-year revenue guidance by $30M compared to prior guidance.
• The company raised the low end of its full-year adjusted EBITDA guidance by $20M compared to prior guidance.
• Executives characterized the full-year guide as prudent given macroeconomic volatility and described confidence in accelerating growth and profitability through the year.
• Senior executives stated they expect to continue to perform better than the market for the balance of the year.
• No specific full-year revenue or adjusted EBITDA dollar figures beyond the adjustments to the low end were disclosed on the call.
• Guidance commentary was anchored to non-GAAP metrics and to continued realization of synergies between Create and Grow businesses.