Tuna Cetin
Unity Software Inc has announced its second quarter financial results on Tuesday, reporting a revenue of $297 million, up 9% from Q2 2021. While its Create Solutions generated $120.9 million, with a 66% Y/Y increase, its Operate Solutions revenue fell 13% to $158.5 million.
The company reported a net operating loss of $197 million, accounting for 67% of total revenue. Meanwhile it’s net loss was $204.158 million and net loss per share stood at $0.68.
Also Read: Unity’s in-app purchase revenue grew 32% in 2022
“The second quarter of 2022 was consistent with our guidance with strong performance in Create Solutions,” said Unity President & CEO John Riccitiello “We are encouraged by the progress we are making to get Operate Solutions back on stable footing.”
During a call with investors, John Riccitiello started his speech by addressing AppLovin’s offer to acquire Unity in an all stock deal, for $20 billion.
”Before we dive in, I want to address what everyone is aware of, the AppLovin proposal,” said Unity CEO. ”I acknowledge we received a proposal, and I want you to know that we aren’t going to make any comments at this time.”
Earlier last month, the cross-platform game engine announced a merger deal with Israeli app business company ironSource, which is expected to close during Unity’s fourth quarter in 2022. While AppLovin’s offer would require Unity to end its merger deal, the company’s chief financial officer Luis Felipe Visoso made statements that could be a sign of Unity’s standing regarding the offer.
”We’re confident that the ironSource merger will make us stronger as we offer our customers an end-to-end platform that will benefit creators and shareholders,” said Unity CFO during the call.
The company expects its revenue to be around $315-335 million in the third quarter and $368-398 million in the fourth quarter of this year. It also lowered its full year revenue guidance from $1.35 – $1.45 billion to $1.3 – $1.35 billion.
At the end of June, Kotaku reported that the company laid off 4% of its employees in order to cut its costs, joining tech companies that either paused hiring or announced layoffs amidst rising recession fears, including Google, Meta, Twitter, Shopify, Niantic and many others.
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