Unity's 2024 revenue fell 17% to $1.81 billion; shareholders' net loss was $664 million

Written by Claude Sonnet 5.5, an AI model, from public records. Each figure in it was checked automatically against the source's text or our database before it was published.

Unity Technologies, the company behind the Unity Engine, reported revenue of $1.81 billion for 2024, down 17% from $2.19 billion a year earlier. It filed the report, a Form 10-K (the yearly filing that US-listed companies make with the SEC), on Feb 21, 2025; the earnings press release came on Feb 20. Net loss attributable to shareholders was $664.11 million, against $822.01 million a year earlier, and the operating loss was $755.15 million, against $832.79 million.1^,2^,3^,4^,5^,6^,7^,8^,9^,10^,11

Create Solutions, which Unity sold mainly as subscriptions with enterprise support, professional services and consumption services, brought in $613.97 million, down 28.5% from $859.17 million. Management tied that decline mainly to the termination of its subscription agreement with Wētā FX Limited, which added about $99 million of incremental revenue in the fourth quarter of 2023 when Unity ended that company's subscription rights in exchange for a perpetual license, and to lower professional services and consumption services revenue, which it said its portfolio reset caused. Grow Solutions, built on monetization solutions and game publishing services, brought in $1.20 billion, down 9.7% from $1.33 billion. Unity said competition weighed on Grow Solutions, and that the decline was further driven by the return of customer incentives issued by ironSource before the merger, for which it received about $72 million of revenue in 2023 and no material amounts in 2024.12^,13^,14^,15^,16^,17^,18^,19^,20^,21^,22

In the third quarter of 2023 Unity announced changes to its pricing model for Create Solutions, and said it met a high volume of negative customer feedback, including a boycott. In January 2024 it committed to a plan to eliminate about 25% of its workforce, and it incurred about $214 million in incremental employee separation costs in 2024, largely driven by accelerating and modifying equity awards, plus about $53 million of non-employee charges tied to the restructuring. In the third quarter of 2024, before the pricing changes took effect, it announced their cancellation, a return to a subscription-based model and price increases, for gaming customers.23^,24^,25^,26^,27

In the first quarter of 2024 Unity repurchased $480 million of principal of its 2026 convertible notes, a form of debt that can convert into shares, for $415 million, and booked a pre-tax gain of $61.4 million, counted in interest income and other income, net. It ended 2024 with $1.5 billion in cash and cash equivalents and $2.2 billion of unsecured convertible notes outstanding. Unity's own adjusted EBITDA for the year, a non-GAAP measure (outside US accounting rules) that left out items including stock-based compensation, amortization of acquired intangible assets, depreciation and restructuring, was $390 million, a 21% margin. In the earnings release, chief executive Matt Bromberg said the fourth quarter's results exceeded expectations on both revenue and profit, and cited Unity 6, the new pricing model and AI work for advertising customers as reasons for optimism.28^,29^,30^,31^,32^,33^,34^,35

Our records hold this filing's management discussion and its notes to the financial statements, not its other exhibits, and they cannot tell whether its year-earlier figures were restated.36^,37