Unity Software(US:U)2025-05-07 11:54Revenue Performance - Revenue for Q1 2025 was $435 million, a decrease of 6% year-over-year from $460 million in Q1 2024[4] - Create Solutions revenue was $150 million, down 8% year-over-year, while Grow Solutions revenue was $285 million, down 4% year-over-year[4][5] - Revenue for Q1 2025 was $435 million, a decrease of 5.5% compared to $460.38 million in Q1 2024[29] Net Loss and Earnings - Net loss for the quarter was $78 million, significantly improved from a net loss of $291 million in Q1 2024, resulting in a net loss margin of (18)% compared to (63)%[7][8] - Basic and diluted net loss per share was $0.19, compared to $0.75 for the same period in 2024[6][8] - GAAP net loss for Q1 2025 was $77.91 million, significantly improved from a net loss of $291.48 million in Q1 2024[29] EBITDA and Profit Margins - Adjusted EBITDA for Q1 2025 was $84 million, with a margin of 19%, up from $79 million and a margin of 17% in Q1 2024[10] - Adjusted EBITDA for Q1 2025 was $83.94 million, representing an increase of 6.1% from $78.52 million in Q1 2024[29] - GAAP gross profit for Q1 2025 was $321.04 million, compared to $315.99 million in Q1 2024, resulting in a GAAP gross margin of 74%[29] - Adjusted gross profit for Q1 2025 was $359.10 million, slightly down from $376.58 million in Q1 2024, maintaining an adjusted gross margin of 82%[29] Cash Flow and Operating Activities - Net cash provided by operating activities was $13 million, a turnaround from net cash used of $7 million in Q1 2024[9][10] - Free cash flow for the quarter was $7 million, compared to negative $15 million in Q1 2024[10] - Free cash flow for Q1 2025 was $7.31 million, a recovery from a negative free cash flow of $14.56 million in Q1 2024[33] - As of March 31, 2025, cash and cash equivalents totaled $1,552 million, an increase of $24 million from $1,528 million at the end of 2024[12] Guidance and Future Outlook - Q2 2025 revenue guidance is projected to be between $415 million and $425 million, with adjusted EBITDA expected to be between $70 million and $75 million[15] - Unity expects to enhance its platform and accelerate product innovation, with a focus on opportunities in the AR and VR gaming market[34] Expenses - Research and development expenses for Q1 2025 were $220.63 million, down from $282.73 million in Q1 2024, representing 51% of revenue[31] - Sales and marketing expenses for Q1 2025 were $162.01 million, reduced from $230.63 million in Q1 2024, accounting for 37% of revenue[31] Market Positioning - The early success of Unity Vector and strong demand for Unity 6 highlight the company's strategic positioning in the game development market[2]