U Q3 2022 Earnings

Call Details

• Call Title: Unity Software Inc. Q3 2022 Earnings Call
• Date: November 9, 2022 at 10:00 PM UTC
• Management Team:
  • John Riccitiello (CEO, President and Chairman)
  • Luis Visoso (CFO)
  • Richard Davis (Head of Investor Relations)

Call Summary

Financial Performance

• Company reported total revenue of $323M in Q3 2022, up 13% year over year.
• Create revenue was $129M in Q3 2022, up 54% year over year.
• Operate revenue was $172M in Q3 2022, down 7% year over year and up 8% sequentially.
• Strategic partnerships and other revenue was $23M in Q3 2022, up 28% year over year.
• Non-GAAP loss from operations was -$37M for Q3 2022, which was at the better end of the guided range.
• Cash flow from operations was -$70M in Q3 2022, inclusive of an $18M payment to a publisher and a $10M M&A cash payment.

Guidance

• Company guided Q4 2022 revenue of $425M to $445M, representing a 35% to 41% increase year over year and including IronSource results.
• Company guided full year 2022 revenue of $1.365B to $1.385B, representing 23% to 25% year-over-year growth.
• Company guided Q4 2022 non-GAAP operating income of $5M to $15M.
• Company stated implied full year non-GAAP operating income is between -$88M and $98M as presented on the call.
• Company expects to be cash flow positive and break even in the fourth quarter of 2022.
• Company reiterated a longer-term target to be at a $1.0B EBITDA run-rate by the end of 2024.