Unity records revenue of over 82 billion yen in Q3 2023, an increase of 69% year-on-year, but falls short of expectations and layoffs are possible
Unity Technologies, known for developing the game engine Unity, has announced its financial report for the third quarter of 2023. According to this, revenue increased 69% year-on-year to $544.2 million (approximately 82.37 billion yen), but it was lower than the analyst forecast of $553.7 million (approximately 83.8 billion yen). The company is currently considering ways to make further improvements, including reducing the number of employees.
Q3 2023 SHAREHOLDER LETTER
(PDF file)
Unity (U) Q3 earnings report 2023
Unity is probably going to do layoffs - The Verge
https://www.theverge.com/2023/11/9/23954709/unity-layoffs-q3-earnings-runtime-program
According to the report, Unity has shown steady growth in the last five quarters, and in the second quarter of 2023, it will reach $533 million (approximately 80.69 billion yen), an 80% increase compared to the same period last year. And the revenue announced this time for the third quarter of 2023 was $544.2 million (approximately 82.37 billion yen), an increase of 69% compared to the same period last year.
However, this figure falls short of the $553.7 million (approximately 83.8 billion yen) revenue for the third quarter of 2023 that analysts expected, and to describe it in one word, it is 'sluggish.' CNBC reports that the stock price fell 15% in after-hours trading following the earnings report.
A large portion of the increase in revenue was due to the acquisition of mobile advertising company ironSource. Net loss decreased from $250 million (approximately 37.85 billion yen) in the previous fiscal year to $124.1 million (approximately 18.79 billion yen).
The slow growth in the Create Solutions division, which includes game development tools, is said to be due to a decline in revenue due to gaming regulations in China.
A major event in the third quarter was the issue of price revisions in September 2023, which ultimately led to the resignation of CEO John Riccitiello.
Unity, which is in turmoil due to price revision issues, announces the resignation of CEO John Riccitiello - GIGAZINE
Regarding this, Unity wrote, ``While we did not expect the introduction of Unity Runtime Fee to be easy, it caused friction with our customers and created headwinds in the short term.'' We predict that the impact will be minimal in 2024 and will increase as customers release games.
In addition, in the fourth quarter of 2023, the company plans to introduce a new plan that includes business suspension, personnel reduction, and office space reduction.
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