Unity’s latest financial report shows both ups and downs for the fourth quarter and the full year of 2024. The company made $457 million in Q4, which is 25% less than the previous year. However, despite the drop, Unity still earned more than its expected revenue of $422-427 million.
Financial Performance Breakdown
Unity’s Create Solutions division, which handles its core engine technology, made $152 million in Q4, down 47% from the previous year. However, there were some positive signs, subscription revenue grew by 15%, and industry strategic revenue jumped by 50%. The Grow Solutions division performed better, bringing in $305 million, with only a small 5% drop compared to last year.
In 2024, Unity made a total of $1.81 billion, which was higher than its expected range of $1.7-1.71 billion, even though it was 17% less than in 2023. The company also cut its net loss to $664 million, an improvement from the $826 million loss it had the previous year.
Strategic Changes and Future Direction
In 2024, Unity made big changes, including a portfolio reset and the removal of its controversial runtime fee in September. The company also strengthened its leadership team, bringing in Steve Collins as CTO, Alex Blum as COO, and Jarrod Yahes as CFO between October and November.
CEO Matthew Bromberg shared some positive updates, including the successful launch of Unity 6 in October 2024. The new version has been downloaded 2.8 million times, with 38% of active users upgrading. Unity’s key business areas, engine, cloud, and monetization, also held strong, bringing in $442 million in Q4, a 4% increase.
Unity is moving its advertising network to Unity Vector, a more advanced AI-powered platform. This new system uses self-learning AI to improve performance tracking and customer results. The transition will start in late Q1 2025 and is expected to be completed by the end of Q2.
For the full year, Unity’s Create Solutions brought in $614 million, down 29%, but saw growth in subscription and strategic revenue. Grow Solutions earned $1.19 billion, a 10% drop from the previous year. The company also reduced staff as part of its restructuring, though it hasn’t shared exact numbers.
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