Fri, Feb 21, 9:39 PM (64 days ago)
**Unity Software Inc. (Ticker: U) 2024 10-K Summary** **Financial Performance**: Unity reported total revenue of $1,813,255, down from $2,187,317 in 2023. The company incurred a net loss of $664,287 compared to a loss of $826,322 the previous year. **Revenue Breakdown**: Revenue from Create Solutions was $613,966, while Grow Solutions generated $1,199,289. The decline in revenue was attributed to a significant drop in Create Solutions following the termination of a contract with Wētā FX and competitive pressures in advertising impacting Grow Solutions. **Operating Expenses**: Total operating expenses were $2,087,551, with R&D expenses at $924,830 and Sales & Marketing at $752,649. Employee separation costs due to workforce reductions were approximately $214 million. **Earnings per Share**: Basic and diluted loss per share was $(1.68), reflecting ongoing operational challenges. **Strategic Overview**: Unity is focusing on its "Strategic Portfolio," which includes the Unity Engine and Monetization solutions, while exiting non-core businesses. **Future Outlook**: The company expects continued revenue challenges in 2025 due to the transition to a new machine learning stack, but aims for gradual improvement as the model matures. **Risk Factors**: Key risks include intense competition, reliance on advertising revenue, and potential difficulties in retaining customers amidst changing pricing strategies. **Financial Condition**: As of December 31, 2024, Unity held $1.5 billion in cash and cash equivalents, indicating a solid liquidity position despite ongoing losses.