Unity's net loss decreased to $193 million in Q2, with Grow Solutions revenue up 157% year-over-year

Unity has released its financial report for the second quarter ended June 30. The company is showing strong revenue growth, while its net loss continues to decrease.

Unity report for Q2 2023: net loss of $193 million, Grow Solutions revenue up 157% YoY

Financial highlights

  • According to its Q2 report, Unity reached $533 million in revenue in the quarter, up 80% year-over-year.
  • Create Solutions (engine, subscriptions, etc.) reached $193 million in revenue, up 17% year-over-year (driven by Unity’s subscription business).
  • Grow Solutions (ads, monetization) reached $340 million in revenue, up 157% year-over-year
  • Unity’s loss from operations was $191 million, or 36% of total revenue.
  • The company’s net loss was $193 million, which is an improvement from $204 million in the same period last year.
  • Adjusted EBITDA remains positive, growing $136 million year-over-year to $99 million.
  • Unity expects to generate $540-550 million in revenue in the next quarter. It also increased its full-year guidance to $2.1-2.2 billion.

The integration of ironSource and Unity is “progressing as planned.” As CEO John Riccitiello said during an earnings call, prior to the merger, both companies were major players on the data side. “The gap on Unity’s data was no visibility on the mediation component, which is a very important part, where advantage lived if we had a very strong ROAS [return on ad spend] we’ll set. And so we took two large data sets and pulled them together under one roof, which allows us to target users better.”

Unity continues to implement different AI solutions, including the recently launched Unity Sentis and Unity Muse. According to CFO Luis Felipe Visoso, the company is now also using “AI and machine learning to strengthen our algorithms to deliver better ROI [return on investment] for our customers.”

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