Unity Technologies has released its financial report for the second quarter of 2024. The results were below expectations.
The company’s total revenue for the three months was $449 million, down 16% from the same period last year. It appears Unity overestimated its strength for the quarter.
However, not everything is so bad. The Create Solutions division, which develops tools for creating games and applications, showed a slight increase of 4%, earning $129 million. But Grow Solutions, responsible for monetization and promotion of projects, fell by 9%, bringing in $296 million.
It’s also interesting that Create Solutions has become Unity’s top revenue source for the first time. This is due to a 14% increase in gaming subscriptions and success in the industrial segment. The latter grew by a whopping 59% compared to last year and now accounts for 18% of the division’s revenue. It seems that Unity has found a gold mine outside of the gaming industry.
In terms of moving beyond gaming, Unity has landed two major clients from other industries: carmaker Audi and alcohol giant Diageo, showing that the company’s technology is finding applications in a wide range of industries.
Despite the overall decline in performance, there is some good news: the company’s net loss decreased from $193 million in the second quarter of last year to $126 million this year.
As for the future, the company is cautious. For the third quarter of 2024, Unity forecasts revenue in the region of $415-420 million, which could mean a decrease of up to 6% compared to last year. The full-year forecast has also been revised downwards: now it expects $1.68-1.69 billion, which is 3% less than previous estimates.
