Unity Software Inc. Files 10-Q for Period Ending March 31, 2024

TL;DR

<b>Unity Software Inc. has submitted its Q1 2024 10-Q filing on May 9, 2024.</b>

AI Summary

Unity Software Inc. (U) filed a Quarterly Report (10-Q) with the SEC on May 9, 2024. Unity Software Inc. filed its 10-Q report for the period ending March 31, 2024. The filing covers the first quarter of fiscal year 2024. The company's headquarters are located at 30 3rd Street, San Francisco, CA. Unity Software Inc. operates in the Services-Prepackaged Software industry (SIC 7372). The filing was submitted on May 9, 2024.

Why It Matters

For investors and stakeholders tracking Unity Software Inc., this filing contains several important signals. This 10-Q filing provides the latest financial and operational details for Unity Software Inc. for the first quarter of 2024, crucial for investors to assess performance and future outlook. Understanding the specifics of this filing allows stakeholders to track the company's progress against its strategic goals and market position in the prepackaged software industry.

Risk Assessment

Risk Level: low — Unity Software Inc. shows low risk based on this filing. The filing is a standard quarterly report (10-Q) and does not contain immediate, significant new information that would drastically alter the risk profile.

Analyst Insight

Review the detailed financial statements and management's discussion and analysis within the 10-Q to understand Unity Software Inc.'s Q1 2024 performance and outlook.

Key Numbers

• 2024-03-31 — Reporting Period End Date (10-Q Filing)
• 2024-05-09 — Filing Date (10-Q Filing)
• 7372 — Standard Industrial Classification (Services-Prepackaged Software)

Key Players & Entities

• Unity Software Inc. (company) — Filer
• 30 3rd Street, San Francisco, CA (location) — Business Address
• May 9, 2024 (date) — Filing Date
• March 31, 2024 (date) — Reporting Period End Date
• 2024 (date) — Fiscal Year

FAQ

Industry Context

Unity Software Inc. operates in the prepackaged software industry, providing tools and services for creators of real-time 3D content.

Regulatory Implications

The filing is a standard 10-Q, adhering to SEC regulations for quarterly financial reporting by public companies.

What Investors Should Do

1. Analyze the financial statements for revenue, expenses, and profitability in Q1 2024.
2. Review the Management's Discussion and Analysis (MD&A) section for insights into business performance and future outlook.
3. Identify any significant changes in risk factors or legal proceedings mentioned in the report.

Key Dates

• 2024-03-31: Quarterly Period End — End of the reporting period for the 10-Q filing.
• 2024-05-09: Filing Date — Date the 10-Q report was officially submitted to the SEC.

Year-Over-Year Comparison

This is the initial 10-Q filing for the fiscal year 2024, following the 2023 annual report.

Key Financial Figures

• $0.000005 — ange on which registered Common stock, $0.000005 par value U The New York Stock Exchange

Filing Documents

• unity-20240331.htm (10-Q) — 1102KB
• exhibit101separationagreem.htm (EX-10.1) — 48KB
• exhibit102severanceagreeme.htm (EX-10.2) — 83KB
• exhibit103executiveseveran.htm (EX-10.3) — 75KB
• exhibit104offerletter-feli.htm (EX-10.4) — 21KB
• exhibit311-q12024.htm (EX-31.1) — 11KB
• exhibit312-q12024.htm (EX-31.2) — 11KB
• exhibit321-q12024.htm (EX-32.1) — 9KB
• image.jpg (GRAPHIC) — 8KB
• image1.jpg (GRAPHIC) — 4KB
• image2.jpg (GRAPHIC) — 8KB
• image3.jpg (GRAPHIC) — 6KB
• unity-20240331_g1.jpg (GRAPHIC) — 127KB
• 0001810806-24-000098.txt (&nbsp;) — 6015KB
• unity-20240331.xsd (EX-101.SCH) — 41KB
• unity-20240331_cal.xml (EX-101.CAL) — 68KB
• unity-20240331_def.xml (EX-101.DEF) — 166KB
• unity-20240331_lab.xml (EX-101.LAB) — 533KB
• unity-20240331_pre.xml (EX-101.PRE) — 370KB
• unity-20240331_htm.xml (XML) — 550KB

—FINANCIAL INFORMATION

PART I—FINANCIAL INFORMATION

Financial Statements (Unaudited)

Item 1. Financial Statements (Unaudited) 1 Condensed Consolidated Balance Sheets 1 Condensed Consolidated Statements of Operations 2 Condensed Consolidated Statements of Comprehensive Loss 3 Condensed Consolidated Statements of Stockholders' Equity 4 Condensed Consolidated Statements of Cash Flows 5 Notes to Condensed Consolidated Financial Statements 6

Management's Discussion and Analysis of Financial Condition and Results of Operations

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 15

Quantitative and Qualitative Disclosures About Market Risk

Item 3. Quantitative and Qualitative Disclosures About Market Risk 25

Controls and Procedures

Item 4. Controls and Procedures 25

—OTHER INFORMATION

PART II—OTHER INFORMATION

Legal Proceedings

Item 1. Legal Proceedings 26

Risk Factors

Item 1A. Risk Factors 27

Unregistered Sales of Equity Securities and Use of Proceeds

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 60

Defaults Upon Senior Securities

Item 3. Defaults Upon Senior Securities 61

Mine Safety Disclosures

Item 4. Mine Safety Disclosures 61

Other Information

Item 5. Other Information 61

Exhibits

Item 6. Exhibits 62

SIGNATURES

SIGNATURES 63 NOTE REGARDING FORWARD-LOOKING STATEMENTS AND RISK FACTOR SUMMARY This Quarterly Report on Form 10Q contains forward-looking statements about us and our industry that involve substantial risks and uncertainties. All statements other than statements of historical fact, including statements regarding our future results of operations or financial condition, business strategy and plans, and objectives of management for future operations are forward-looking statements. In some cases, you can identify forward-looking statements because they contain words such as "aim," "anticipate," "believe," "contemplate," "continue," "could," "estimate," "expect," "intend," "may," "plan," "potential," "predict," "project," "should," "target," "toward," "will," "would," or the negative of these words or other similar terms or expressions. You should not rely on forward-looking statements as predictions of future events. We have based the forward-looking statements contained in this Quarterly Report on Form 10Q primarily on our current expectations and projections about future events and trends that we believe may affect our business, financial condition, and operating results. Readers are cautioned that these forwardlooking statements are only predictions and are subject to risks, uncertainties, and assumptions that are difficult to predict, including those identified and discussed in greater detail below, under "Part II, Item 1A. Risk Factors" and summarized below. We have a history of losses and may not achieve or sustain profitability on a GAAP basis in the future. If we fail to successfully execute our plans to reset our portfolio to focus on our Strategic Portfolio and to right-size our investments, our business will be harmed. If we are not able to grow efficiently and manage our costs, we may not achieve profitability on a GAAP basis. We may fail to realize the possible synergies between our Create and Grow Solutions, including the benefits of the ironSourc

—FINANCIAL INFORMATION

PART I—FINANCIAL INFORMATION

Financial Statements

Item 1. Financial Statements UNITY SOFTWARE INC. CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands, except per share data) (Unaudited) As of March 31, 2024 December 31, 2023 Assets Current assets: Cash and cash equivalents $ 1,179,962 $ 1,590,325 Accounts receivable, net 621,184 611,723 Prepaid expenses and other 140,092 122,843 Total current assets 1,941,238 2,324,891 Property and equipment, net 122,783 140,887 Goodwill 3,166,304 3,166,304 Intangible assets, net 1,318,787 1,406,745 Other assets 204,151 204,614 Total assets $ 6,753,263 $ 7,243,441 Liabilities and stockholders' equity Current liabilities: Accounts payable $ 18,862 $ 14,517 Accrued expenses and other 302,207 307,704 Publisher payables 410,671 385,113 Deferred revenue 170,435 186,769 Total current liabilities 902,175 894,103 Convertible notes 2,236,415 2,711,750 Long-term deferred revenue 9,080 6,015 Other long-term liabilities 190,869 217,195 Total liabilities 3,338,539 3,829,063 Commitments and Contingencies (Note 7) Redeemable noncontrolling interests 224,736 225,797 Stockholders' equity: Common stock, $ 0.000005 par value: Authorized shares - 1,000,000 and 1,000,000 Issued and outstanding shares - 390,397 and 384,872 2 2 Additional paid-in capital 6,554,787 6,259,479 Accumulated other comprehensive loss ( 7,760 ) ( 5,009 ) Accumulated deficit ( 3,362,904 ) ( 3,071,830 ) Total Unity Software Inc. stockholders' equity 3,184,125 3,182,642 Noncontrolling interest 5,863 5,939 Total stockholders' equity 3,189,988 3,188,581 Total liabilities and stockholders' equity $ 6,753,263 $ 7,243,441 See accompanying Notes to Condensed Consolidated Financial Statements. Table of Contents Unity Software Inc. UNITY SOFTWARE INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands, except per share data) (Unaudited) Three Months Ended March 31, 2024 2023 Revenue $ 460,380 $ 500,361 Cost of revenue 144,387 161,964 Gross profit 315,993 3

View Full Filing

View this 10-Q filing on SEC EDGAR