Unity reports net loss of over $200 million, representing 68.7% of company’s revenue
Unity has issued a financial report for the second quarter ended June 30. Despite seeing strong revenue growth, the company’s losses also increased year-over-year.
Financial data
- Unity reported revenue of $297 million, which is up 9% year-over-year.
- Create Solutions (engine) was the only division to show growth, increasing by 66% year-over-year to $120.9 million.
- It is worth noting that Create Solutions revenue outside of video games accounted for 40% of the division’s total revenue.
- Operate Solutions and Strategic Partnership divisions reached $158.5 million (down 13%) and $17.7 million (down 2%) in revenue, respectively.
- Unity reported a loss from operations of $197.7 million, which is up 32.2% year-over-year. It accounts for 67% of the company’s quarterly revenue.
- Net loss was $204.15 million, up 37.6% year-over-year. It represents 68.7% of Unity’s total revenue.
Other takeaways from the report
- Unity announced a new joint venture in China valued at $1 billion. The company partnered with local tech companies like Alibaba, China Mobile, and Doujin Group to grow its business in the country.
- “Together with our sustained investment, these partners will help Unity China unlock new local technology development, provide strategic support, and drive deeper engagement as preferred customers,” Unity’s statement reads.
- CEO John Riccitiello refused to provide any details about AppLovin’s proposal to merge with Unity. “I acknowledge we received a proposal, and I want you to know that we aren’t going to make any comments at this time,” he said during an earnings call.
- Instead, Riccitiello went on to talk about Unity’s announced merger with ironSource. He noted that the combined company is “expected to reflect a roughly 50-50 revenue mix between our creation and growth technologies and services.”
- However, the ironSource deal must be terminated if Unity accepts AppLovin’s proposal.
