Unity Software Inc. Files Q2 2024 10-Q Report

Ticker: U · Form: 10-Q · Filed: Aug 8, 2024 · CIK: 1810806

Sentiment: neutral

Topics: 10-Q, earnings, financials

TL;DR

Unity's Q2 10-Q is in. Check financials for latest performance.

AI Summary

Unity Software Inc. filed its 10-Q for the period ending June 30, 2024. The filing details financial performance and operational updates for the second quarter of 2024. Key financial figures and business developments are outlined within the report.

Why It Matters

This report provides investors and analysts with a detailed look into Unity's financial health and strategic direction for the second quarter of 2024, influencing investment decisions.

Risk Assessment

Risk Level: medium — 10-Q filings are standard for public companies, but the specific financial details and forward-looking statements within can carry inherent risks.

Key Players & Entities

FAQ

What is the reporting period for this 10-Q filing?

The Conformed Period of Report is 20240630, indicating the period ending June 30, 2024.

When was this 10-Q filed with the SEC?

The filing date (FILED AS OF DATE) is 20240808.

What is Unity Software Inc.'s fiscal year end?

Unity Software Inc.'s fiscal year ends on 1231.

What is the company's Standard Industrial Classification (SIC) code?

The SIC code is SERVICES-PREPACKAGED SOFTWARE [7372].

What is the company's SEC file number?

The SEC file number is 001-39497.

Filing Stats: 4,643 words · 19 min read · ~15 pages · Grade level 15.1 · Accepted 2024-08-08 16:52:10

Key Financial Figures

Filing Documents

—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 6 Notes to Condensed Consolidated Financial Statements 7

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 16

Quantitative and Qualitative Disclosures About Market Risk

Item 3. Quantitative and Qualitative Disclosures About Market Risk 26

Controls and Procedures

Item 4. Controls and Procedures 26

—OTHER INFORMATION

PART II—OTHER INFORMATION

Legal Proceedings

Item 1. Legal Proceedings 27

Risk Factors

Item 1A. Risk Factors 28

Unregistered Sales of Equity Securities and Use of Proceeds

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 61

Defaults Upon Senior Securities

Item 3. Defaults Upon Senior Securities 62

Mine Safety Disclosures

Item 4. Mine Safety Disclosures 62

Other Information

Item 5. Other Information 62

Exhibits

Item 6. Exhibits 63

SIGNATURES

SIGNATURES 65 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 June 30, 2024 December 31, 2023 Assets Current assets: Cash and cash equivalents $ 1,267,957 $ 1,590,325 Accounts receivable, net 573,220 611,723 Prepaid expenses and other 142,889 122,843 Total current assets 1,984,066 2,324,891 Property and equipment, net 112,080 140,887 Goodwill 3,166,304 3,166,304 Intangible assets, net 1,230,716 1,406,745 Other assets 190,568 204,614 Total assets $ 6,683,734 $ 7,243,441 Liabilities and stockholders' equity Current liabilities: Accounts payable $ 12,693 $ 14,517 Accrued expenses and other 264,469 307,704 Publisher payables 388,253 385,113 Deferred revenue 176,127 186,769 Total current liabilities 841,542 894,103 Convertible notes 2,237,245 2,711,750 Long-term deferred revenue 10,173 6,015 Other long-term liabilities 178,198 217,195 Total liabilities 3,267,158 3,829,063 Commitments and Contingencies (Note 7) Redeemable noncontrolling interests 226,056 225,797 Stockholders' equity: Common stock, $ 0.000005 par value: Authorized shares - 1,000,000 and 1,000,000 Issued and outstanding shares - 395,444 and 384,872 2 2 Additional paid-in capital 6,682,060 6,259,479 Accumulated other comprehensive loss ( 8,898 ) ( 5,009 ) Accumulated deficit ( 3,488,478 ) ( 3,071,830 ) Total Unity Software Inc. stockholders' equity 3,184,686 3,182,642 Noncontrolling interest 5,834 5,939 Total stockholders' equity 3,190,520 3,188,581 Total liabilities and stockholders' equity $ 6,683,734 $ 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 Six Months Ended June 30, June 30, 2024 2023 2024 2023 Revenue $ 449,259 $ 533,478 $ 909,639 $ 1,033,839

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