Unity revenue falls 25% in Q4 as engine and ads segments see declines

Unity revenue fell by 25% year-over-year to $457 million in Q4 2024 with the company blaming its “portfolio reset” for the decline.

Create Solutions revenue – which includes game engine sales – decreased by 47% Y/Y to $152m. Excluding the impact of approximately $99m in incremental revenue from terminating its Weta FX agreement, the company said sales would have been down 20% Y/Y. Revenue from Unity’s “strategic portfolio” was $442m, up 4% Y/Y.

Grow Solutions revenue, which includes its ads business, declined by 5% Y/Y. Unity claimed revenue for the division was impacted by customer incentives issue by IronSource prior to the merger, which completed in November 2022. It said revenue would have risen 2% Y/Y otherwise.

Following a series of layoffs and company restructuring, Unity cut its losses for the quarter to $123m from $254m in Q4 2023.

Net loss for the quarter was $123m, compared to $254m in Q4 2023. Adjusted EBITDA was $106m, down from $186m the year prior.

2024 financials

Total revenue for the year fell by 17% to $1.8 billion, which Unity said was driven by restructuring, the Weta FX termination and decreases in Grow Solutions revenue. Revenue from its “strategic portfolio” was $1.7bn, down 1% Y/Y.

Create Solutions revenue was down 29% Y/Y to $614m. Grow Solutions revenue, meanwhile, decreased 10% Y/Y to $1.2bn.

Unity’s Q1 2025 guidance forecasts between $405m to $415m in revenue and an adjusted EBITDA of $60 to $65m.

“The company’s fourth quarter results meaningfully exceeded expectations on both revenue and profit, underscoring our progress in building a new Unity,” said Unity CEO Matt Bromberg.

“The successful launch of Unity 6, the appeal of our new pricing model, and the progress we’re making in AI for our advertising customers are providing a lot of optimism for the future.”