Unity announced a new CFO as part of Q3 financials in which it beat revenue and profitability guidance, but posted an overall year-on-year revenue decline of 18%.
New CFO Jarrod Yahes joins from Shutterstock, where he held the same position. He joins the company on January 1 2025. The related SEC filing says his base salary will be $525k plus bonuses, with a signing-on fee of $400k plus up to $16m in Unity shares that will vest over several years.
Unity also said that in its Grow arm, work continues on a “fundamental rebuild” of its tech, and it has a new data platform in testing. As we reported recently, Unity has been having difficulty integrating adtech firm IronSource into the company after their $4.4bn merger.
As part of its continued restructuring, Unity breaks out reporting into its ‘strategic’ and ‘non-strategic’ portfolios, the latter of which dragged down the numbers overall.
Q3 2024 overall:
- Total company revenue was $447m, down 18% YoY
- Net loss was $125m, flat YoY
- Profitability as measured by adjusted EBITDA was $92m, beating guidance of $75-80m but down YoY from $94m
‘Strategic portfolio’ performance:
- $429m revenue, down 2% YoY, beating guidance of $415m-420m
- Create (engine) revenue was up 5% YoY to $132m, driven by 12% subscriptions growth
- Grow (adtech) revenue was down 5% YoY to $298m
‘Non-strategic portfolio’ performance:
- Down 84% YoY to $17m as a result of the ‘portfolio reset’
- Revenue is expected to decline in Q4
Unity added that it is raising full year revenue guidance for its strategic portfolio from $1.68-1.69bn to $1.7bn, and adjusted EBITDA from $340-350m to $363-368m.
“While we’re just at the beginning of our journey to transform the company, we’re energized by our progress and the response from our customers and the community,” said president and CEO Matt Bromberg in a shareholder letter.
“The opportunity is clear, the market wants us to succeed, and we believe we have everything we need to deliver consistent, sustainable growth and profitability in the years ahead.”
