Following the latest round of layoffs at Unity Technologies – the sixth in recent years – the company has released its financial report for Q4 and fiscal year 2024, showing a decline in revenue and profits across nearly all metrics compared to last year’s financial results.
Framed by Unity CEO Matt Bromberg as having “exceeded expectations on both revenue and profit” – also known as “we messed up, just not as badly as we thought we would” – the report reveals a sharp decline in the company’s Q4 revenue, which fell to $457 million from $609 million in Q4 2023, a 25% drop.
Create Solutions revenue for the quarter was $152 million, down from $290 million the previous year, while Grow Solutions revenue slipped to $305 million from $319 million. Meanwhile, revenue from the company’s strategic portfolio saw a slight increase, reaching $442 million compared to $423 million in Q4 2023, up 4% year-on-year.
When it comes to yearly results, Unity Technologies reports a total revenue of $1,813 million in 2024, down 17% year-on-year. Create Solutions revenue fell 29% to $614 million, while Grow Solutions revenue declined 10% to $1,199 million. Strategic portfolio revenue dipped to $1,723 million from $1,733 million, a 1% decrease year-on-year.
The company’s gross profit for FY2024 was $1,332 million, down from $1,453 million in 2023. The report cites the studio’s “portfolio reset,” the termination of its agreement with Wētā FX, and declines in Grow Solutions revenue as the main reasons for the uninspiring financial performance compared to the previous year.
Previously, 80 Level obtained an internal announcement from Bromberg to Unity employees, revealing the company’s 2025 strategy focused on live services, AI, ads, and “fidelity for ubiquity,” an initiative that aims to help customers reach the broadest audience across platforms and devices rather than prioritize achieving the highest quality graphics on the market. For Q1 2025, Unity forecasts revenue between $405 million and $415 million – even lower than in Q4 2024 – and it remains to be seen whether this new strategy will help the company surpass its projections and improve upon last year’s performance.
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