Unity Reports Q4 2024 Revenue Drop Amid Strategic Changes

SAN FRANCISCO–(BUSINESS WIRE)–Unity Software Inc. (NYSE: U), a leader in creating and growing games and interactive experiences, released its financial results for the fourth quarter and full fiscal year ended December 31, 2024, showing a significant decline in revenue.

For the fourth quarter of 2024, Unity reported revenue of $457 million, down 25% compared to $609 million in the same quarter of 2023. Despite this drop, Matt Bromberg, Unity’s President and CEO, expressed optimism regarding the company’s future. “The Company’s fourth quarter results meaningfully exceeded expectations on both revenue and profit, underscoring our progress in building a new Unity,” Bromberg stated. “The successful launch of Unity 6, the appeal of our new pricing model, and advancements in AI for our advertising customers are providing a lot of optimism for the future.”

Unity’s portfolio reset impacted overall financial performance, with Create Solutions revenue plummeting 47% year-over-year to $152 million. Nevertheless, Bromberg noted that subscription revenue experienced robust growth of 15%, and Industry strategic revenue soared by 50% year-over-year.

For the full fiscal year 2024, Unity’s total revenue fell to $1.813 billion, a 17% decline from 2023’s $2.187 billion. The company reported a GAAP net loss of $664 million compared to a net loss of $826 million in the fiscal year 2023. Adjusted EBITDA for the year stood at $390 million, with a margin of 21%, reflecting strong operational adjustments amid challenging market conditions.

<p“Unity’s cash and cash equivalents as of December 31, 2024, totaled $1.528 billion, down from $1.604 billion a year prior,” the report indicated. The decrease primarily stemmed from $316 million in net cash generated from operations, counterbalanced by $338 million used in financing activities, mainly to repurchase convertible notes.

Growth in the Grow Solutions segment was less severe, seeing only a 5% reduction in revenue compared to the same period last year, landing at $305 million. Adjusted EBITDA for Q4 was $106 million and net cash provided from operating activities was $112 million, both of which exceeded analyst expectations.

Looking ahead to Q1 2025, Unity has forecasted revenue to be between $405 million and $415 million, along with an adjusted EBITDA between $60 million and $65 million. Bromberg’s outlook indicates a careful and strategic approach as the company navigates ongoing resets while aiming for sustained growth.

Unity Software, which emphasizes tools for developing games across various platforms—from mobile to console—continues to cultivate opportunities in its expanding market.