Unity reports $544 million in quarterly revenue and warns of possible layoffs
Unity Software increased its revenue by 69% to $544.2 million in the third quarter of 2023 compared to the same period in 2022. This is stated in a letter to the company’s shareholders.
“Our results in the third quarter were mixed. While revenue came in within guidance, we believe we can do better,” says the letter on Unity’s website.
The company reminded that it had forecast revenues of $540 million to $550 million for the third quarter. However, CNBC draws attention to the expectations of market analysts – according to their forecasts, Unity’s revenue should have amounted to $553.7 million.
In the third quarter of last year, the company’s revenue amounted to $323 million, and in the second quarter of this year it was $533 million.
The company also reported that a few weeks ago it started evaluating its product portfolio to focus on those that have the greatest value for customers. In addition, Unity is evaluating its cost structure.
In this regard, the company admits the possibility of staff reductions and the abandonment of some products. It is difficult for Unity to estimate the timing of these measures, and it also avoided forecasts for the fourth quarter and the entire current year.
Earlier, a scandal erupted around Unity when the company announced the introduction of a special fee called Runtime Fee. This angered game developers, so Unity was forced to reconsider its intentions. As a result, Unity CEO John Riccitiello resigned.