Unity reported a 35% increase in revenue for the fourth quarter of 2023, amounting to $609 million, with a special item of $99 million from a new licensing agreement with Wētā FX. Wētā FX is currently a subsidiary of Unity, while being owned by Peter Jackson. Excluding this item would result in a decrease in Unity’s revenue.
In the previous quarter, Unity incurred a GAAP loss of $254 million. The company has adjusted its revenue outlook for the current quarter specifically for the strategically growing business segment. This led to a 17% drop in Unity’s stock price after the earnings report.
Unity stated that the company is restructuring its organization to have appropriate costs, supporting improved financial status. This includes past actions such as a 25% employee layoff, reduction in cloud computing expenses, office space reductions, and adjustments in software licensing structures.
Source: Unity (pdf) and CNBC
TLDR: Unity’s Q4 2023 revenue increased by 35%, driven by a special item from a new licensing agreement. Despite incurring losses in the past quarter, the company is taking steps to optimize costs and support financial improvements.
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