Unity Software, has announced that in fourth quarter of 2020 their revenue reflects as $220.3 million, a 39 per cent increase year-over-year.
“Unity achieved record fourth quarter and full year 2020 revenues in an unprecedented and fast changing technological and economic environment.As the leader in creating and operating tools for the world of real-time 3D content, we continue to invest with the intent to capture what we believe is a substantial opportunity ahead in 2021 and years beyond,” said Unity president and chief executive officer John Riccitiello.
“Our fourth quarter revenue of $220.3 million, a 39per cent increase year-over-year, substantiates our focus on innovation and our powerful go-to-market strategy.Our full year 2021 revenue outlook is a range of $950 million to $970 million, with non-GAAP operating margin of (9)per cent to (11)per cent, demonstrating the continued growth in our business and our dedication to a path to free cash flow break-even,” said Unity Chief Financial Officer Kim Jabal.
Fourth Quarter 2020 Financial Highlights
- Revenue was $220.3 million, an increase of 39 per cent from the fourth quarter of 2019.
- Create Solutions, Operate Solutions, and Strategic Partnerships and Other revenue was $66.9 million, $134.3 million, and $19.1 million, respectively, an increase (decrease) of 39per cent, 55per cent, and (19)per cent, respectively, from the fourth quarter of 2019.
- Loss from operations was $80.8 million, or 37per cent of revenue, compared to loss from operations of $48.6 million, or 31per cent of revenue, in the fourth quarter of 2019. Their fourth quarter 2020 results were impacted by an increase in stock-based compensation expense.
- Non-GAAP loss from operations was $20.1 million, or 9per centof revenue, compared to a non-GAAP loss from operations of $23.9 million, or 15per cent of revenue, in the fourth quarter of 2019.
- Basic and diluted net loss per share was $0.31, compared to basic and diluted net loss per share of $0.97 in the fourth quarter of 2019.
- Basic and diluted non-GAAP net loss per share was $0.10, compared to basic and diluted non-GAAP net loss per share of $0.79 in the fourth quarter of 2019.
- 793 customers each generated more than $100,000 of revenue in the trailing 12 months as of 31December 2020, compared to 600 as of 31December, 2019.
- Dollar-based net expansion rate as of 31December 2020 was 138per cent compared to 133per cent as of 31December, 2019.
- Net cash provided by operating activities was $14.8 million for the fourth quarter of 2020, compared to net cash provided by operating activities of $0.9 million for the same period last year. Free cash flow in the fourth quarter of 2020 was $3.6 million, compared to $(9.7) million for the same period last year. Cash, cash equivalents, and restricted cash were $1.3 billion as of 31December, 2020 compared to $0.1 billion as of 31December, 2019.
Full Year 2020 Financial Highlights
- Revenue was $772.4 million, an increase of 43per cent from 2019.
- Create Solutions, Operate Solutions, and Strategic Partnerships and Other revenue was $231.3 million, $471.2 million, and $70.0 million, respectively, an increase (decrease) of 37per cent, 61per cent, and (12)per cent, respectively, from 2019.
- Loss from operations was $274.8 million, or 36per cent of revenue, compared to loss from operations of $150.7 million, or 28per cent of revenue, in 2019. Their 2020 full year GAAP results were impacted by an increase in stock-based compensation expense, including a one-time charge of $47.8 million associated with the recognition of restricted stock unit expense in connection with their initial public offering (“IPO”), as well as a charge of $63.6 million related to the donation of 750,000 shares of their common stock to a charitable foundation after the closing of their IPO in their third quarter.
- Non-GAAP loss from operations was $50.6 million, or 7per cent of revenue, compared to a non-GAAP loss from operations of $91.8 million, or 17per cent of revenue, in 2019.
- Basic and diluted net loss per share was $1.66, compared to basic and diluted net loss per share of $2.39 in 2019.
- Basic and diluted non-GAAP net loss per share was $0.39, compared to basic and diluted non-GAAP net loss per share of $1.95 in 2019.
- Net cash provided by operating activities was $19.9 million for 2020, compared to net cash used in operating activities of $67.9 million in the prior year. Free cash flow in 2020 was $(20.2) million, compared to $(95.0) million in 2019.