Q1 2021 2021 Guidance Guidance -------------- --------------- Revenue (in millions) $210 -- $220 $950 -- $970 Year-over-year revenue growth 26% -- 32% 23% -- 26% Non-GAAP loss from operations (in millions) ($30) -- ($40) ($90) -- ($105) Non-GAAP operating margin (14%) -- (19%) (9)% -- (11%) Weighted-average fully diluted shares outstanding 324M-- Software built with Unity worked on day one across new silicon, game consoles, and more. Unity developers launched game titles on the same day as each new generation of Microsoft and Sony Interactive Entertainment consoles. These releases were the result of years of partnership and collaboration with Microsoft and Sony Interactive Entertainment, ensuring that Unity developers were ready for the new hardware, not only at launch, but at every step of development. Titles made with Unity included Morkredd, an Xbox X|S Console Exclusive, and Haven and Overcooked 2: All You Can Eat, for both PlayStation5 and Xbox X|S. Also in the fourth quarter, the release of Apple's M1 chipset and the Microsoft HoloLens 2 Development Edition both included Unity technology deeply integrated, rounding out the variety of new platform types on which developers can deploy and operate real-time 3D ("RT3D") applications. -- Unity introduced Forma, which is designed to transform how businesses create and market their products to consumers. In late 2020, we introduced Unity Forma, a purpose-built tool that streamlines the creation of configurable, photorealistic digital marketing content, including high-definition product rendering and videos, as well as interactive 3D experiences (like car configurators, for example) that bring products to life online. Additionally, Unity acquired RestAR, a Tel Aviv-based computer vision and deep learning company that enables fashion brands, online retailers, and marketers to scan and render physical consumer products in high-quality 3D, using only a mobile device. Used in synergy with Forma, we believe that RestAR will extend the power of interactive RT3D technology to marketers of all types by generating a digital twin of any product or object in 3D. -- Unity's Operate Solutions services, including Monetization, Game Services, and a Multiplayer Suite, continued steady growth. For example, MatchMaker, launched in March 2020, is already being used in games like Fall Guys: Ultimate Knockout, Worms Rumble, and Medal of Honor: Above and Beyond. The service connects game players with applicable cloud resources and is designed to ensure that players are matched appropriately for the best play experience. In fact, Respawn Entertainment released Medal of Honor: Above and Beyond in December 2020 leveraging Unity's Multiplay, MatchMaker, Game Backend, and Vivox voice services. We also introduced the Game Growth Program, an accelerator program providing select mobile, free-to-play game developers technology support, resources, and user acquisition funding to effectively scale their games. -- Engagement and market share grew in 2020. In 2020, we saw improvement in three interrelated and revealing metrics. Games made with Unity accounted for 71% of the top 1,000 mobile games in the fourth quarter of 20201. Monthly active end users who consumed content created or operated with Unity reached, on average, 2.7 billion per month in the fourth quarter of 2020, up 63% from a year earlier2. Lastly, applications built with Unity were downloaded, on average, five billion times per month in the fourth quarter of 2020, up 41% from last year.-- Revenue was $772.4 million, an increase of 43% from 2019. -- Create Solutions, Operate Solutions, and Strategic Partnerships and Other revenue was $231.3 million, $471.2 million, and $70.0 million, respectively, an increase (decrease) of 37%, 61%, and (12)%, respectively, from 2019. -- Loss from operations was $274.8 million, or 36% of revenue, compared to loss from operations of $150.7 million, or 28% of revenue, in 2019. Our 2020 full year GAAP results were impacted by an increase in stock-based compensation expense, including a one-time charge of $47.8 million associated with the recognition of restricted stock unit expense in connection with our initial public offering ("IPO"), as well as a charge of $63.6 million related to the donation of 750,000 shares of our common stock to a charitable foundation after the closing of our IPO in our third quarter. -- Non-GAAP loss from operations was $50.6 million, or 7% of revenue, compared to a non-GAAP loss from operations of $91.8 million, or 17% of revenue, in 2019. -- Basic and diluted net loss per share was $1.66, compared to basic and diluted net loss per share of $2.39 in 2019. -- Basic and diluted non-GAAP net loss per share was $0.39, compared to basic and diluted non-GAAP net loss per share of $1.95 in 2019. -- Net cash provided by operating activities was $19.9 million for 2020, compared to net cash used in operating activities of $67.9 million in the prior year. Free cash flow in 2020 was $(20.2) million, compared to $(95.0) million in 2019.-- Revenue was $220.3 million, an increase of 39% from the fourth quarter of 2019. -- Create Solutions, Operate Solutions, and Strategic Partnerships and Other revenue was $66.9 million, $134.3 million, and $19.1 million, respectively, an increase (decrease) of 39%, 55%, and (19)%, respectively, from the fourth quarter of 2019. -- Loss from operations was $80.8 million, or 37% of revenue, compared to loss from operations of $48.6 million, or 31% of revenue, in the fourth quarter of 2019. Our fourth quarter 2020 results were impacted by an increase in stock-based compensation expense. -- Non-GAAP loss from operations was $20.1 million, or 9% of revenue, compared to a non-GAAP loss from operations of $23.9 million, or 15% of revenue, in the fourth quarter of 2019. -- Basic and diluted net loss per share was $0.31, compared to basic and diluted net loss per share of $0.97 in the fourth quarter of 2019. -- Basic and diluted non-GAAP net loss per share was $0.10, compared to basic and diluted non-GAAP net loss per share of $0.79 in the fourth quarter of 2019. -- 793 customers each generated more than $100,000 of revenue in the trailing 12 months as of December 31, 2020, compared to 600 as of December 31, 2019. -- Dollar-based net expansion rate as of December 31, 2020 was 138% compared to 133% as of December 31, 2019. -- Net cash provided by operating activities was $14.8 million for the fourth quarter of 2020, compared to net cash provided by operating activities of $0.9 million for the same period last year. Free cash flow in the fourth quarter of 2020 was $3.6 million, compared to $(9.7) million for the same period last year. Cash, cash equivalents, and restricted cash were $1.3 billion as of December 31, 2020 compared to $0.1 billion as of December 31, 2019.SAN FRANCISCO--(BUSINESS WIRE)--February 04, 2021--
Unity Announces Fourth Quarter and Full Year 2020 Financial Results
Fourth quarter revenue of $220.3 million, up 39% year-over-year
Monthly active end users, downloads, and mobile market share hit record levels
Unity Software Inc. (NYSE: U), the world's leading platform for creating and operating interactive, real-time 3D content, today announced results for the fourth quarter and year ended December 31, 2020.
"Unity achieved record fourth quarter and full year 2020 revenues in an unprecedented and fast changing technological and economic environment," said John Riccitiello, President and Chief Executive Officer of Unity. "As the leader in creating and operating tools for the world of real-time 3D content, we continue to invest with the intent to capture what we believe is a substantial opportunity ahead in 2021 and years beyond."
"Our fourth quarter revenue of $220.3 million, a 39% increase year-over-year, substantiates our focus on innovation and our powerful go-to-market strategy," said Kim Jabal, Chief Financial Officer of Unity. "Our full year 2021 revenue outlook is a range of $950 million to $970 million, with non-GAAP operating margin of (9)% to (11)%, demonstrating the continued growth in our business and our dedication to a path to free cash flow break-even."
Fourth Quarter 2020 Financial Highlights
Full Year 2020 Financial Highlights
Recent Business Highlights
Unity is providing the following guidance for the first quarter of and full year ending December 31, 2021.
Unity has not reconciled its expectations as to non-GAAP loss from operations and non-GAAP operating margin to their GAAP equivalents because stock-based compensation expense, employer tax related to employee stock transactions, and non-cash charitable contribution expense cannot be reasonably determined or predicted at this time. Accordingly, a reconciliation is not available, although it is important to note that these factors could be material to Unity's results computed in accordance with GAAP.
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