U Q2 2021 Earnings

Call Details

• Call Title: Unity Software Inc. Q2 2021 Earnings Call
• Date: August 10, 2021 at 9:00 PM UTC
• Management Team:
  • John Riccitiello (CEO, President and Chairman)
  • Luis Visoso (Senior Vice President and Chief Financial Officer)

Call Summary

Financial Performance

• Company reported Q2 2021 revenue of $274 million, which management stated was a 48% year-over-year increase.
• Create revenue was $72 million, representing 31% year-over-year growth versus prior year.
• Operate revenue was $183 million, which was reported as up 63% year-over-year.
• Strategic partnerships revenue was $18 million, which was reported as up 9% year-over-year.
• There were 888 customers generating more than $100,000 of revenue in the trailing 12 months as of June 30, 2021, up from 716 a year earlier.
• Dollar-based net expansion rate was reported at 142%, which the company said was equal to the prior year.
• Employee headcount was 4,613 at quarter end versus 3,379 a year ago.
• The company completed acquisitions including Metaverse Technologies (Pixis) in Q2 and closed SpeedTree in July, and announced a definitive agreement to acquire Parsec expected to close in Q3.

Guidance

• Company raised full-year revenue guidance by $45 million and provided a new full-year revenue range of $1.045 billion to $1.060 billion, which management stated represents 35% to 37% growth year over year.
• Company expects Q3 revenue of $260 million to $265 million, representing 29% to 32% year-over-year growth.
• Company reduced its full-year non-GAAP loss guidance from a range of $90 million to $100 million to a range of $55 million to $65 million.
• Company expects Q3 non-GAAP operating loss to be between $15 million and $20 million.
• Company forecasted 327 million fully diluted shares outstanding for the quarter and 328 million for the full year.
• Company reiterated target to reach non-GAAP profitability in 2023 while continuing to invest in R&D and product initiatives.