Unity revenue reaches $500m during Q1 2023
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Unity has released its financial results for the three months ended March 31, 2023, with strong revenues for the quarter but losses on the rise year-on-year.
In the shareholder letter published alongside the results, Unity noted a strong Q1 2023 which exceeded revenue guidance previously shared (the company was expecting revenues of $480 million).
Looking at Create Solutions (Unity's business vertical that includes its games engine and "strategic partnerships"), revenue was up year-on-year.
"Given that our Strategic Partnership quarterly revenue is impacted by the timing of large deals, we are also providing our Create Solutions revenue excluding Strategic Partnerships, which was $170 million, up 17% year-over-year," the report read.
"This rate of growth is slower than our recent performance, as Weta is now in the base, and a slower rate of growth in Professional Services (PS) as we reduce our reliance on PS to drive adoption of digital twins."
Unity acquired VFX platform Weta Digital in November 2021 for $1.6 billion.
The report also noted "key wins within games," pointing to Unity's partnership with the Talking Tom & Friends titles developer Outfit7 (over 20 billion downloads) as well as Second Dinner's Marvel Snap reaching 18 million downloads during Q1 2023.
The report also addressed the recent news of 600 staff being laid off, which it described as "efforts to be more productive, streamlined and nimble as we continue to position Unity for long-term and profitable growth in an evolving economic environment."
The company also noted its strong position in the growing AI space, saying: "We embraced AI years ago and see the adoption of
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