Unity Software (U) 10-Q 8 Aug 24 2024 Q2 Quarterly report Financial data

Cover

Cover - shares	6 Months Ended
	Jun. 30, 2024	Aug. 01, 2024
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Jun. 30, 2024
Document Transition Report	false
Entity File Number	001-39497
Entity Registrant Name	UNITY SOFTWARE INC.
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	27-0334803
Entity Address, Address Line One	30 3rd Street
Entity Address, City or Town	San Francisco
Entity Address, State or Province	CA
Entity Address, Postal Zip Code	94103‑3104
City Area Code	415
Local Phone Number	638-9950
Title of 12(b) Security	Common stock, $0.000005 par value
Trading Symbol	U
Security Exchange Name	NYSE
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		396,857,800
Amendment Flag	false
Document Fiscal Year Focus	2024
Document Fiscal Period Focus	Q2
Entity Central Index Key	0001810806
Current Fiscal Year End Date	--12-31

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Current assets:
Cash and cash equivalents	$ 1,267,957	$ 1,590,325
Accounts receivable, net	573,220	611,723
Prepaid expenses and other	142,889	122,843
Total current assets	1,984,066	2,324,891
Property and equipment, net	112,080	140,887
Goodwill	3,166,304	3,166,304
Intangible assets, net	1,230,716	1,406,745
Other assets	190,568	204,614
Total assets	6,683,734	7,243,441
Current liabilities:
Accounts payable	12,693	14,517
Accrued expenses and other	264,469	307,704
Publisher payables	388,253	385,113
Deferred revenue	176,127	186,769
Total current liabilities	841,542	894,103
Convertible notes	2,237,245	2,711,750
Long-term deferred revenue	10,173	6,015
Other long-term liabilities	178,198	217,195
Total liabilities	3,267,158	3,829,063
Commitments and Contingencies (Note 7)
Redeemable noncontrolling interests	226,056	225,797
Stockholders' equity:
Common stock, $0.000005 par value: Authorized shares - 1,000,000 and 1,000,000; Issued and outstanding shares - 395,444 and 384,872	2	2
Additional paid-in capital	6,682,060	6,259,479
Accumulated other comprehensive loss	(8,898)	(5,009)
Accumulated deficit	(3,488,478)	(3,071,830)
Total Unity Software Inc. stockholders' equity	3,184,686	3,182,642
Noncontrolling interest	5,834	5,939
Total stockholders' equity	3,190,520	3,188,581
Total liabilities and stockholders' equity	$ 6,683,734	$ 7,243,441

CONDENSED CONSOLIDATED BALANC_2

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Jun. 30, 2024	Dec. 31, 2023
Statement of Financial Position [Abstract]
Common stock, par value (USD per share)	$ 0.000005	$ 0.000005
Common stock, authorized (in shares)	1,000,000,000	1,000,000,000
Common stock, issued (in shares)	395,444,000	384,872,000
Common stock, outstanding (in shares)	395,444,000	384,872,000

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Income Statement [Abstract]
Revenue	$ 449,259	$ 533,478	$ 909,639	$ 1,033,839
Cost of revenue	108,875	158,827	253,262	320,791
Gross profit	340,384	374,651	656,377	713,048
Operating expenses
Research and development	208,935	267,955	491,663	548,435
Sales and marketing	169,854	209,131	400,479	425,258
General and administrative	91,015	89,017	268,584	185,791
Total operating expenses	469,804	566,103	1,160,726	1,159,484
Loss from operations	(129,420)	(191,452)	(504,349)	(446,436)
Interest expense	(5,829)	(6,142)	(11,864)	(12,271)
Interest income and other income (expense), net	10,457	9,061	87,100	22,676
Loss before income taxes	(124,792)	(188,533)	(429,113)	(436,031)
Provision for (benefit from) Income taxes	946	4,791	(11,897)	10,996
Net loss	(125,738)	(193,324)	(417,216)	(447,027)
Net loss attributable to noncontrolling interest and redeemable noncontrolling interests	(164)	(1,164)	(568)	(1,836)
Net loss attributable to Unity Software Inc.	$ (125,574)	$ (192,160)	$ (416,648)	$ (445,191)
Basic net loss per share attributable to Unity Software Inc. (USD per share)	$ (0.32)	$ (0.51)	$ (1.07)	$ (1.18)
Diluted net loss per share attributable to Unity Software Inc. (USD per share)	$ (0.32)	$ (0.51)	$ (1.07)	$ (1.18)
Weighted-average shares used in computation of basic net loss per share (in shares)	392,537	380,355	389,844	378,145
Weighted-average shares used in computation of diluted net loss per share (in shares)	392,537	380,355	389,844	378,145

CONDENSED CONSOLIDATED STATEM_2

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Statement of Comprehensive Income [Abstract]
Net loss	$ (125,738)	$ (193,324)	$ (417,216)	$ (447,027)
Other comprehensive loss, net of taxes:
Change in foreign currency translation adjustment	(1,393)	(12,155)	(4,854)	(8,998)
Change in unrealized gains (losses) on derivative instruments	0	616	0	289
Other comprehensive loss	(1,393)	(11,539)	(4,854)	(8,709)
Comprehensive loss	(127,131)	(204,863)	(422,070)	(455,736)
Net loss attributable to noncontrolling interest and redeemable noncontrolling interests	(164)	(1,164)	(568)	(1,836)
Foreign currency translation attributable to noncontrolling interest and redeemable noncontrolling interests	(255)	(2,506)	(965)	(1,857)
Comprehensive loss attributable to noncontrolling interest and redeemable noncontrolling interests	(419)	(3,670)	(1,533)	(3,693)
Comprehensive loss attributable to Unity Software Inc.	$ (126,712)	$ (201,193)	$ (420,537)	$ (452,043)

CONDENSED CONSOLIDATED STATEM_3

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) $ in Thousands	Total	Unity Software Inc. Stockholders' Equity	Common Stock	Additional Paid-In Capital	Accumulated Other Comprehensive Loss	Accumulated Deficit	Noncontrolling Interest
Beginning balance (in shares) at Dec. 31, 2022			374,243,196
Beginning balance at Dec. 31, 2022	$ 3,534,566	$ 3,528,268	$ 2	$ 5,779,776	$ (1,691)	$ (2,249,819)	$ 6,298	[1]
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of common stock from employee equity plans (in shares)			3,569,851
Issuance of common stock from employee equity plans	41,944	41,944		41,944
Issuance of common stock for settlement of RSUs (in shares)			5,477,580
Stock‑based compensation expense	327,543	327,543		327,543
Net loss	(445,316)	(445,191)				(445,191)	(125)	[1]
Adjustments to redeemable noncontrolling interest	368	368		368
Other comprehensive loss	(6,979)	(6,852)			(6,852)		(127)	[1]
Ending balance (in shares) at Jun. 30, 2023			383,290,627
Ending balance at Jun. 30, 2023	3,452,126	3,446,080	$ 2	6,149,631	(8,543)	(2,695,010)	6,046	[1],[2]
Beginning balance (in shares) at Mar. 31, 2023			378,373,685
Beginning balance at Mar. 31, 2023	3,466,296	3,460,000	$ 2	5,962,358	490	(2,502,850)	6,296	[2]
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of common stock from employee equity plans (in shares)			2,094,090
Issuance of common stock from employee equity plans	19,973	19,973		19,973
Issuance of common stock for settlement of RSUs (in shares)			2,822,852
Stock‑based compensation expense	161,098	161,098		161,098
Net loss	(192,239)	(192,160)				(192,160)	(79)	[2]
Adjustments to redeemable noncontrolling interest	6,202	6,202		6,202
Other comprehensive loss	(9,204)	(9,033)			(9,033)		(171)	[2]
Ending balance (in shares) at Jun. 30, 2023			383,290,627
Ending balance at Jun. 30, 2023	$ 3,452,126	3,446,080	$ 2	6,149,631	(8,543)	(2,695,010)	6,046	[1],[2]
Beginning balance (in shares) at Dec. 31, 2023	384,872,000		384,871,561
Beginning balance at Dec. 31, 2023	$ 3,188,581	3,182,642	$ 2	6,259,479	(5,009)	(3,071,830)	5,939	[1]
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of common stock from employee equity plans (in shares)	3,865,467		4,416,613
Issuance of common stock from employee equity plans	$ 37,302	37,302		37,302
Issuance of common stock for settlement of RSUs (in shares)			6,156,124
Stock‑based compensation expense	386,966	386,966		386,966
Net loss	(416,687)	(416,648)				(416,648)	(39)	[1]
Adjustments to redeemable noncontrolling interest	(1,687)	(1,687)		(1,687)
Other comprehensive loss	$ (3,955)	(3,889)			(3,889)		(66)	[1]
Ending balance (in shares) at Jun. 30, 2024	395,444,000		395,444,298
Ending balance at Jun. 30, 2024	$ 3,190,520	3,184,686	$ 2	6,682,060	(8,898)	(3,488,478)	5,834	[1],[2]
Beginning balance (in shares) at Mar. 31, 2024			390,396,930
Beginning balance at Mar. 31, 2024	3,189,988	3,184,125	$ 2	6,554,787	(7,760)	(3,362,904)	5,863	[2]
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of common stock from employee equity plans (in shares)			1,904,693
Issuance of common stock from employee equity plans	11,305	11,305		11,305
Issuance of common stock for settlement of RSUs (in shares)			3,142,675
Stock‑based compensation expense	117,678	117,678		117,678
Net loss	(125,585)	(125,574)				(125,574)	(11)	[2]
Adjustments to redeemable noncontrolling interest	(1,710)	(1,710)		(1,710)
Other comprehensive loss	$ (1,156)	(1,138)			(1,138)		(18)	[2]
Ending balance (in shares) at Jun. 30, 2024	395,444,000		395,444,298
Ending balance at Jun. 30, 2024	$ 3,190,520	$ 3,184,686	$ 2	$ 6,682,060	$ (8,898)	$ (3,488,478)	$ 5,834	[1],[2]
[1] (1) Excludes redeemable noncontrolling interests. (1) Excludes redeemable noncontrolling interests.

CONDENSED CONSOLIDATED STATEM_4

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023
Operating activities
Net loss	$ (417,216)	$ (447,027)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation and amortization	203,219	220,639
Stock-based compensation expense	381,276	320,562
Gain on repayment of convertible note	(61,371)	0
Impairment of property and equipment	21,918	0
Other	15,383	1,521
Changes in assets and liabilities, net of effects of acquisitions:
Accounts receivable, net	38,066	1,633
Prepaid expenses and other	(19,815)	22,849
Other assets	(2,386)	24,311
Accounts payable	(460)	(3,069)
Accrued expenses and other	(40,301)	(33,727)
Publisher payables	3,140	328
Other long-term liabilities	(34,636)	(37,802)
Deferred revenue	(5,814)	(27,674)
Net cash provided by operating activities	81,003	42,544
Investing activities
Purchases of short-term investments	0	(212)
Proceeds from principal repayments and maturities of short-term investments	0	102,673
Purchases of non-marketable investments	0	(500)
Purchases of intangible assets	(360)	0
Purchases of property and equipment	(15,956)	(28,468)
Net cash provided by (used in) investing activities	(16,316)	73,493
Financing activities
Repayments of convertible note	(414,999)	0
Proceeds from issuance of common stock from employee equity plans	37,302	41,944
Net cash provided by (used in) financing activities	(377,697)	41,944
Effect of foreign exchange rate changes on cash, cash equivalents, and restricted cash	(9,460)	(8,785)
Increase (decrease) in cash, cash equivalents, and restricted cash	(322,470)	149,196
Cash, cash equivalents, and restricted cash, beginning of period	1,604,267	1,505,688
Cash, cash equivalents, and restricted cash, end of period	1,281,797	1,654,884
Supplemental disclosure of cash flow information:
Cash paid for interest	10,000	10,389
Cash paid for income taxes, net of refunds	16,307	5,746
Cash paid for operating leases	26,658	20,206
Supplemental disclosures of non‑cash investing and financing activities:
Assets acquired under operating lease	$ 13,859	$ 37,293

Accounting Policies

Accounting Policies	6 Months Ended
	Jun. 30, 2024
Accounting Policies [Abstract]
Accounting Policies	Accounting Policies Basis of Presentation and Consolidation We prepared the accompanying unaudited condensed consolidated financial statements in accordance with United States ("U.S.") generally accepted accounting principles ("GAAP") and applicable rules and regulations of the Securities and Exchange Commission ("SEC") for interim financial reporting. The condensed consolidated financial statements include the accounts of Unity Software Inc., its wholly owned subsidiaries, and entities consolidated under the voting interest model. We have eliminated all intercompany balances and transactions. Certain information and footnote disclosures normally included in the financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations. In our opinion, all adjustments, which include normal recurring adjustments necessary for a fair presentation, have been included. The results of operations for the periods presented are not necessarily indicative of the results to be expected for the full year or other periods. The unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes included in our 2023 Annual Report on Form 10-K. Use of Estimates The preparation of condensed consolidated financial statements in conformity with GAAP requires management to make certain estimates, judgments, and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, as well as the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates, and such differences could be material to our financial position and results of operations. Employee Separation and Restructuring Costs In January 2024, we committed to a plan to eliminate approximately 25% of our workforce, and we mutually agreed to the departure of the founders of ironSource Ltd. Following these announcements, we incurred incremental employee separation costs of approximately $201 million in the six months ended June 30, 2024, which included $128 million of incremental stock-based compensation. Of the incremental employee separation costs, $15 million are within cost of revenue, $44 million are within research and development, $52 million are within sales and marketing, and $90 million are within general and administrative. Additionally, in November 2023, we committed to a plan to reassess our real estate footprint. We incurred $38 million of restructuring costs, primarily related to office closures in the six months ended June 30, 2024.

Revenue

Revenue	6 Months Ended
	Jun. 30, 2024
Revenue from Contract with Customer [Abstract]
Revenue	Revenue The following table presents our revenue disaggregated by source, which also have similar economic characteristics (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 Create Solutions $ 150,777 $ 193,110 $ 314,447 $ 380,479 Grow Solutions 298,482 340,368 595,192 653,360 Total revenue $ 449,259 $ 533,478 $ 909,639 $ 1,033,839 The following table presents our revenue disaggregated by geography, based on the invoice address of our customers (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 United States $ 130,843 $ 141,905 $ 269,962 $ 274,899 Greater China (1) 62,063 69,750 121,753 129,298 EMEA (2) 164,064 188,219 330,834 374,943 APAC (3) 81,119 119,107 165,155 226,635 Other Americas (4) 11,170 14,497 21,935 28,064 Total revenue $ 449,259 $ 533,478 $ 909,639 $ 1,033,839 (1) Greater China includes China, Hong Kong, and Taiwan. (2) Europe, the Middle East, and Africa ("EMEA") (3) Asia- Pacific , excluding Greater China ("APAC") (4) Canada and Latin America ("Other Americas") Accounts Receivable, Net Accounts receivable are recorded at the original invoiced amount, net of allowances for uncollectible amounts. We estimate losses on uncollectible amounts based on expected losses, including our historical experience of actual losses. The estimated losses on uncollectible amounts are recorded in general and administrative expense on our condensed consolidated statements of operations. As of June 30, 2024 and December 31, 2023, the allowance for uncollectible amounts was $19.3 million and $16.9 million, respectively. For the six months ended June 30, 2024 and 2023, the provision for uncollectible amounts was $5.3 million and $7.8 million, respectively. Sales Commissions Sales commissions that have a benefit beyond one year are capitalized and amortized on a straight-line method over the expected period of benefit, which is generally three years. As of June 30, 2024, capitalized commissions, net of amortization, included in prepaid expenses and other and other assets were $6.5 million and $5.2 million, respectively. As of December 31, 2023, capitalized commissions, net of amortization, included in prepaid expenses and other and other assets were $6.8 million and $4.8 million, respectively. During the three and six months ended June 30, 2024, we recorded amortization costs of $2.3 million and $4.7 million in sales and marketing expenses, as compared to $2.5 million and $5.0 million during the three and six months ended June 30, 2023, respectively. Contract Balances and Remaining Performance Obligations Contract assets (unbilled receivables), primarily included in accounts receivable, net, are recorded when revenue is earned in advance of customer billing schedules. Unbilled receivables totaled $22.3 million and $31.3 million as of June 30, 2024 and December 31, 2023, respectively. Of this total as of June 30, 2024, $8.3 million was included in Other Long-Term Assets on our consolidated balance sheets. Contract liabilities (deferred revenue) relate to payments received in advance of performance under the contract. Revenue recognized during the six months ended June 30, 2024 that was included in the deferred revenue balances at January 1, 2024 was $124.7 million. Additionally, we have performance obligations associated with commitments in customer contracts to perform in the future that had not yet been recognized in our consolidated financial statements. For contracts with original terms that exceed one year, those commitments not yet recognized as of June 30, 2024, were $352 million and relate primarily to Create Solutions subscriptions, Enterprise Support, and Strategic Partnerships. These commitments generally extend over the next one

Financial Instruments

Financial Instruments	6 Months Ended
	Jun. 30, 2024
Investments, Debt and Equity Securities [Abstract]
Financial Instruments	Financial Instruments Cash, Cash Equivalents, and Restricted Cash Cash, cash equivalents, and restricted cash are recorded at fair value. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. To increase the comparability of fair value measures, the following hierarchy prioritizes the inputs to valuation methodologies used to measure fair value: • Level 1—Valuations based on quoted prices in active markets for identical assets or liabilities. • Level 2—Valuations based on quoted prices for similar assets and liabilities in active markets or inputs that are observable for the assets or liabilities, either directly or indirectly through market corroboration. • Level 3—Valuations based on unobservable inputs reflecting our own assumptions used to measure assets and liabilities at fair value. These valuations require significant judgment. The following table summarizes, by major security type, our cash, cash equivalents, and restricted cash that are measured at fair value on a recurring basis and are categorized using the fair value hierarchy (in thousands): June 30, 2024 December 31, 2023 Fair Value (1) Cash $ 978,584 $ 834,877 Level 1: Restricted cash and cash equivalents: Restricted cash $ 13,840 $ 13,942 Money market funds 93,976 502,754 Time deposits 195,397 252,694 Total restricted cash and cash equivalents $ 303,213 $ 769,390 Total cash, cash equivalents, and restricted cash $ 1,281,797 $ 1,604,267 (1) Due to the highly liquid nature of our investments, amortized cost approximates fair value. Nonrecurring Fair Value Measurements We hold equity investments in certain unconsolidated entities without a readily determinable fair value. These strategic investments represent less than a 20% ownership interest in each of the entities, and we do not have significant influence over or control of the entities. We use the measurement alternative to account for adjustments to these investments for observable transactions for the same or similar investments of the same issuer in any given quarter. If we determine an impairment has occurred, the investment is written down to the estimated fair value. As of June 30, 2024 and December 31, 2023, such equity investments totaled $33.6 million. No adjustments to the carrying value of these equity investments were recorded for the three and six months ended June 30, 2024 and 2023.

Investment in Unity China

Investment in Unity China	6 Months Ended
	Jun. 30, 2024
Noncontrolling Interest [Abstract]
Investment in Unity China	Investment in Unity China The results of Unity China, of which third-party investors hold a 20.5% ownership interest, are included in our condensed consolidated financial statements. Under certain conditions we may be required to repurchase the third-party interest in Unity China. The redeemable noncontrolling interests in Unity China are recorded as temporary equity on our condensed consolidated balance sheet. The following table presents the changes in redeemable noncontrolling interests (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 Balance at beginning of period $ 224,736 $ 225,376 $ 225,797 $ 219,563 Net loss attributable to redeemable noncontrolling interests (153) (1,086) (529) (1,712) Accretion for redeemable noncontrolling interests 2,867 3,676 5,942 6,374 Foreign currency translation and foreign exchange adjustments for redeemable noncontrolling interests (1,394) (12,217) (5,154) (8,476) Balance at end of period $ 226,056 $ 215,749 $ 226,056 $ 215,749

Leases

Leases	6 Months Ended
	Jun. 30, 2024
Leases [Abstract]
Leases	Leases We have operating leases for offices, which have remaining lease terms of up to nine years. Components of lease expense were as follows (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 Operating lease expense $ 10,579 $ 10,375 $ 20,832 $ 19,768 Variable lease expense 1,497 1,164 3,218 2,442 Sublease income (552) (440) (796) (824) Total lease expense $ 11,524 $ 11,099 $ 23,254 $ 21,386 Supplemental balance sheet information related to leases was as follows (in thousands, except weighted-average figures): As of Classification June 30, 2024 December 31, 2023 Operating lease assets Other assets $ 90,444 $ 113,256 Current operating lease liabilities Accrued expenses and other $ 36,065 $ 39,132 Long-term operating lease liabilities Other long-term liabilities 90,885 111,669 Total operating lease liabilities $ 126,950 $ 150,801 As of June 30, 2024 and December 31, 2023, our operating leases had a weighted-average remaining lease term of 4.7 and 5.1 years, respectively, and a weighted-average discount rate of 5.3% and 5.2%, respectively. In November 2023, we committed to a plan to reassess our real estate footprint, focusing on optimizing efficiency and reducing costs. In connection with this plan, during the three and six months ended June 30, 2024, we recorded $8.6 million and $12.2 million of impairment charges on operating lease assets, respectively. As of June 30, 2024, our lease liabilities were as follows (in thousands): Operating Leases Gross lease liabilities $ 143,358 Less: imputed interest 16,408 Present value of lease liabilities $ 126,950 As of June 30, 2024, we had entered into a lease that has not yet commenced with future minimum lease payments of $5.0 million which are not yet reflected on our consolidated balance sheet. This operating lease will commence in 2024 with a lease term of 3 years.

Borrowings

Borrowings	6 Months Ended
	Jun. 30, 2024
Debt Disclosure [Abstract]
Borrowings	Borrowings Convertible Notes As of June 30, 2024, we had $2.2 billion of unsecured convertible notes outstanding including $1.0 billion issued in November 2022 (the "2027 Notes") and $1.2 billion issued in November 2021 (the "2026 Notes"). The table below summarizes the principal and unamortized debt issuance costs and other material features of the Notes (in thousands): Carrying Amount as of Conversion Rate per Conversion Price Maturities Stated Interest Rates June 30, 2024 December 31, 2023 Convertible notes: Principal – 2026 Notes 3.2392 $ 308.72 2026 0.0% $ 1,245,232 $ 1,725,000 Principal – 2027 Notes 20.4526 $ 48.89 2027 2.0% 1,000,000 1,000,000 Unamortized debt issuance costs, net (7,987) (13,250) Net carrying amount $ 2,237,245 $ 2,711,750 Interest on the Notes is payable semi-annually in arrears. The combined interest expense on the Notes related to regular interest and the amortization of debt issuance cost was $5.8 million and $11.9 million for the three and six months ended June 30, 2024, respectively, and $1.1 million and $2.2 million for the three and six months ended June 30, 2023, respectively. As of June 30, 2024 and December 31, 2023, the estimated fair value of the 2027 Notes were approximately $1.0 billion and $1.3 billion, respectively, and the estimated fair value of the 2026 Notes were approximately $1.1 billion and $1.4 billion, respectively. The fair value of the 2027 Notes was based on a combination of a discounted cash flow and Black-Scholes option-pricing model. The fair value of the 2026 Notes was based on quoted prices as of that date. The 2026 Notes are convertible at the option of the holder if a conversion condition of the 2026 Notes is triggered. During the three and six months ended June 30, 2024, none of the conversion conditions of the 2026 Notes were triggered and the 2026 Notes were not convertible as of June 30, 2024. The holders of the 2027 Notes may elect to convert the notes prior to maturity. Any such conversion may be satisfied at our election with either cash, shares of our common stock, or a combination of cash and shares of our common stock. The conversion rates for the Notes is subject to customary adjustments for certain events as described in the indentures governing the Notes. The Notes are subject to additional terms. In connection with certain corporate events, as described in the Indentures, we will increase the conversion rate for a holder of the Notes who elects to convert those notes in connection with the event. Additionally, upon the occurrence of certain corporate events and subject to certain exceptions, as described in the Indentures, holders of the Notes may require us to repurchase all or a portion of their notes at a price equal to 100% of the principal amount to be repurchased, plus any accrued and unpaid interest to date. The 2026 Notes are also redeemable at our option if certain conditions are met, as described in the Indenture governing the 2026 Notes. As of June 30, 2024, no holders of the 2027 and 2026 Notes have exercised the conversion rights, and the if-converted value of the 2027 and 2026 Notes did not exceed the principal amount. Convertible Note Repurchase During the first quarter of 2024, the Company repurchased in privately negotiated transactions and extinguished a portion of the 2026 Notes, with a total principal balance of $480 million. The aggregate repurchase price for these notes was $415 million, resulting in pre-tax gains of $61.4 million, net of the write-off of unamortized issuance costs. The gain was included in Interest income and other income (expense), net, in the condensed consolidated statement of operations. Capped Call Transactions To reduce the potential dilutive effect of the 2026 Notes, in connection with their pricing, we entered into the Capped Call Transactions at a net cost of $48.1 million, with call options totaling approximately 5.6 million of our common shares, and with expiration dates ranging from September 18, 2026 to November 12, 2026. The strike price is $308.72, and the cap price is initially $343.02 per share, subject to adjustments in certain circumstances. The Capped Call Transactions are freestanding and are considered separately exercisable from the 2026 Notes. As of June 30, 2024, the Capped Call Transactions met the conditions for equity classification and were not in the money.

Commitments and Contingencies

Commitments and Contingencies	6 Months Ended
	Jun. 30, 2024
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitments and Contingencies The following table summarizes our non-cancelable contractual commitments as of June 30, 2024 (in thousands): Total Remainder of 2024 2025‑2026 2027‑2028 Thereafter Operating leases (1) $ 148,332 $ 21,494 $ 65,856 $ 40,223 $ 20,759 Purchase commitments (2) 611,190 148,449 433,317 29,424 — Convertible note principal and interest (3) 2,315,232 10,000 1,285,232 1,020,000 — Total $ 3,074,754 $ 179,943 $ 1,784,405 $ 1,089,647 $ 20,759 (1) Operating leases consist of obligations for real estate, including leases that are not yet commenced. (2) The substantial majority of our purchase commitments are related to agreements with our data center hosting providers. (3) Convertible notes due 2026 and 2027. See Note 6, "Borrowings," above for further discussion. We expect to meet our remaining commitments. Legal Matters In the normal course of business, we are subject to various legal matters. We accrue a liability when management believes that it is both probable that a liability has been incurred and the amount of loss can be reasonably estimated. We also disclose material contingencies when we believe a loss is not probable but reasonably possible. Legal costs related to such potential losses are expensed as incurred. In addition, recoveries are shown as a reduction in legal costs in the period in which they are realized. With respect to our outstanding matters, based on our current knowledge, we believe that the resolution of such matters will not, either individually or in aggregate, have a material adverse effect on our business or our condensed consolidated financial statements. However, litigation is inherently uncertain, and the outcome of these matters cannot be predicted with certainty. Accordingly, cash flows or results of operations could be materially affected in any particular period by the resolution of one or more of these matters. Indemnifications In the ordinary course of business, we may provide indemnifications of varying scope and terms to customers, vendors, lessors, investors, directors, officers, employees and other parties with respect to certain matters. Indemnification may include losses from our breach of such agreements, services we provide, or third-party intellectual property infringement claims. These indemnifications may survive termination of the underlying agreement and the maximum potential amount of future indemnification payments may not be subject to a cap. As of June 30, 2024, there were no known events or circumstances that have resulted in a material indemnification liability to us and we did not incur material costs to defend lawsuits or settle claims related to these indemnifications. Letters of Credit We had $13.8 million and $13.9 million of secured letters of credit outstanding as of June 30, 2024 and December 31, 2023, respectively. These primarily relate to our office space leases and are fully collateralized by certificates of deposit which we record in restricted cash as other assets on our condensed consolidated balance sheets.

Stock-Based Compensation

Stock-Based Compensation	6 Months Ended
	Jun. 30, 2024
Share-Based Payment Arrangement [Abstract]
Stock-Based Compensation	Stock‑Based Compensation Stock-based compensation expense is as follows (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 Cost of revenue $ 7,911 $ 19,801 $ 24,717 $ 38,650 Research and development 56,908 71,058 144,646 147,541 Sales and marketing 22,282 34,680 86,253 70,197 General and administrative 28,298 31,999 125,660 64,178 Total stock-based compensation expense $ 115,399 $ 157,538 $ 381,276 $ 320,566 Included in the above expenses for the three and six months ended June 30, 2024, is $3 million and $97 million, respectively, of incremental stock-based compensation expense from modifications, primarily within general and administrative. These amounts predominately relate to the modification of awards held by the founders of ironSource Ltd. that departed in the first quarter of 2024. Stock Options A summary of our stock option, including price-vested options ("PVO"), activity is as follows: Options Outstanding Stock Weighted-Average Weighted-Average Balance as of December 31, 2023 31,541,466 $ 19.35 4.79 Granted 2,119,253 $ 22.50 Exercised (3,865,467) $ 6.04 Forfeited, cancelled, or expired (1,345,771) $ 52.00 Balance as of June 30, 2024 28,449,481 $ 19.85 4.31 The calculated grant-date fair value of stock options and PVOs granted, were estimated using the Black-Scholes option-pricing model and a Monte Carlo stimulation, respectively, with the following assumptions: Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 Expected dividend yield — — — — Risk-free interest rate 4.3% - 4.7% 3.8% 4.1% - 4.7% 3.8% - 4.2% Expected volatility 60.0% - 66.5% 56.3% 60.0% - 66.5% 54.7% - 56.3% Expected term (in years) 6.25 - 10.00 6.25 6.25 - 10.00 6.25 Fair value of underlying common stock $17.95 - $24.27 $35.84 $17.95 - $26.89 $29.33 - $35.84 Restricted Stock Units A summary of our restricted stock unit ("RSU"), including price-vested unit ("PVU"), activity is as follows: Unvested RSUs Number of Weighted-Average Unvested as of December 31, 2023 37,332,551 $ 38.31 Granted 3,996,991 $ 25.55 Vested (6,161,752) $ 43.62 Forfeited (6,924,178) $ 41.80 Unvested as of June 30, 2024 28,243,612 $ 34.49 Price-Vested Units and Price-Vested Options The vesting for each of the PVOs and PVUs is subject to the fulfillment of both a service period that extends up to four years and the achievement of a stock price hurdle during the relevant performance period that extends up to six Employee Stock Purchase Plan The fair value of shares offered under our Employee Stock Purchase Plan ("ESPP") was determined on the grant date using the Black-Scholes option pricing model. The following table summarizes the assumptions used and the resulting grant-date fair values of our ESPP: Six Months Ended June 30, 2024 2023 Expected dividend yield — — Risk-free interest rate 5.3% 5.2% Expected volatility 56.0% 94.5% Expected term (in years) 0.50 0.50 Grant-date fair value per share $9.11 $12.44 Additional information related to the ESPP is provided below (in thousands, except per share amounts): Six Months Ended June 30, 2024 2023 Shares issued under the ESPP 551,146 532,643 Weighted-average price per share issued $24.92 $25.87

Income Taxes

Income Taxes	6 Months Ended
	Jun. 30, 2024
Income Tax Disclosure [Abstract]
Income Taxes	Income Taxes Our tax provision for interim periods is determined using an estimated annual effective tax rate, adjusted for discrete items arising in that quarter. In each quarter, we update the estimated annual effective tax rate and make a year-to-date adjustment to the provision. The estimated annual effective tax rate is subject to volatility due to several factors, including variability in accurately predicting our pre-tax income or loss and the mix of jurisdictions to which they relate, intercompany transactions, changes in how we do business, and tax law developments. Our effective tax rate for the three and six months ended June 30, 2024 differs from the U.S. federal statutory tax rate of 21% primarily due to the need to record a valuation allowance on U.S. losses and to a lesser extent tax expense on foreign earnings taxed at different rates. In addition, during the first quarter of 2024, we recorded a tax benefit on foreign losses in connection with employee separation costs and we continued to restructure our tax operations which resulted in a reduction to our U.S. valuation allowance. Our effective tax rate for the three and six months ended June 30, 2023 differed from the U.S. federal statutory tax rate of 21% primarily due to the need to record a valuation allowance in the U.S. on losses and to a lesser extent, tax expense on foreign earnings taxed at different rates. In addition, the Company undertook certain tax restructuring efforts that enhanced our ability to offset deferred tax liabilities in the U.S. in future periods, thereby partially reducing the need for a valuation allowance. The realization of deferred tax assets is dependent upon the generation of sufficient taxable income of the appropriate character in future periods. We regularly assess the ability to realize our deferred tax assets and establish a valuation allowance if it is more-likely-than-not that some portion of the deferred tax assets will not be realized. In performing this assessment with respect to each jurisdiction, we review all available positive and negative evidence. Primarily due to our history of losses, we believe that it is more likely than not that the deferred tax assets of our U.S. federal, certain U.S. states, Denmark, U.K., and other non-U.S. jurisdictions will not be realized and we have maintained a full valuation allowance against such deferred tax assets. As of June 30, 2024, we had $185.9 million of gross unrecognized tax benefits, of which $30.7 million would impact the effective tax rate, if recognized. It is reasonably possible that the amount of unrecognized tax benefits as of June 30, 2024 could increase or decrease significantly as the timing of the resolution, settlement, and closure of audits is highly uncertain. We believe that we have adequately provided for any reasonably foreseeable outcome related to our tax audits and that any settlement will not have a material impact on our financial condition and operating results at this time.

Net Loss per Share of Common St

Net Loss per Share of Common Stock	6 Months Ended
	Jun. 30, 2024
Earnings Per Share [Abstract]
Net Loss per Share of Common Stock	Net Loss per Share of Common Stock Basic and diluted net loss per share is the same for all periods presented because the effects of potentially dilutive items were antidilutive given our net loss in each period. The following table presents potentially dilutive common stock excluded from the computation of diluted net loss per share (in thousands) because the impact of including them would have been antidilutive: As of June 30, 2024 2023 Convertible notes 24,488 26,042 Stock options and PVOs 28,449 32,342 Unvested RSUs and PVUs 28,244 32,165

Pay vs Performance Disclosure

Pay vs Performance Disclosure - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Pay vs Performance Disclosure
Net Income (Loss)	$ (125,574)	$ (192,160)	$ (416,648)	$ (445,191)

Insider Trading Arrangements

Insider Trading Arrangements	3 Months Ended
	Jun. 30, 2024 shares
Trading Arrangements, by Individual
Material Terms of Trading Arrangement	The adoption or termination of contracts, instructions or written plans for the purchase or sale of our securities by our directors and officers (as defined in Rule 16a-1(f) under the Exchange Act) during the three months ended June 30, 2024, each of which is intended to satisfy the affirmative defense conditions of Rule 10b5-1(c) under the Exchange Act, were as follows: Name Title Action Date Adopted Expiration Date Aggregate # of Securities to be Purchased/Sold Carol Carpenter (1) Senior Vice President, Chief Marketing Officer (2) Adopted May 24, 2024 August 1, 2025 25,000 Marc Whitten (1) Chief Technology Officer, Create (3) Adopted May 28, 2024 December 31, 2024 264,570 (4) (1) Each of Ms. Carpenter's and Mr. Whitten's plans provides for the potential sale of our common stock currently held in account and future vesting events. The plans expire on the respective dates shown above, or upon the earlier completion of all authorized transactions under the plans. (2) Carol Carpenter resigned as our Senior Vice President and Chief Marketing Officer, effective as of June 30, 2024, and will serve as a Strategic Marketing Advisor and assist with the transition of her responsibilities until she departs from the Company, effective December 1, 2024. (3) Marc Whitten resigned as our Chief Product and Technology Officer, Create, effective as of June 1, 2024, and served as a Strategic Advisor until he resigned from that role on July 9, 2024. (4) Represents the maximum number of shares subject to the trading plan, only a portion of which would have been sold as the trading plan was designed to sell the net shares following the sell to cover of taxes for each vesting event for all remaining awards under his plan until December 31, 2024.
Non-Rule 10b5-1 Arrangement Adopted	false
Rule 10b5-1 Arrangement Terminated	false
Non-Rule 10b5-1 Arrangement Terminated	false
Carol Carpenter [Member]
Trading Arrangements, by Individual
Name	Carol Carpenter
Title	Senior Vice President, Chief Marketing Officer
Rule 10b5-1 Arrangement Adopted	true
Adoption Date	May 24, 2024
Expiration Date	August 1, 2025
Arrangement Duration	434 days
Aggregate Available	25,000
Marc Whitten [Member]
Trading Arrangements, by Individual
Name	Marc Whitten
Title	Chief Technology Officer, Create
Rule 10b5-1 Arrangement Adopted	true
Adoption Date	May 28, 2024
Expiration Date	December 31, 2024
Arrangement Duration	217 days
Aggregate Available	264,570

Accounting Policies (Policies)

Accounting Policies (Policies)	6 Months Ended
	Jun. 30, 2024
Accounting Policies [Abstract]
Basis of Presentation	Basis of Presentation and Consolidation
Consolidation	The condensed consolidated financial statements include the accounts of Unity Software Inc., its wholly owned subsidiaries, and entities consolidated under the voting interest model. We have eliminated all intercompany balances and transactions. Certain information and footnote disclosures normally included in the financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations. In our opinion, all adjustments, which include normal recurring adjustments necessary for a fair presentation, have been included. The results of operations for the periods presented are not necessarily indicative of the results to be expected for the full year or other periods. The unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes included in our 2023 Annual Report on Form 10-K.
Use of Estimates	Use of Estimates The preparation of condensed consolidated financial statements in conformity with GAAP requires management to make certain estimates, judgments, and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, as well as the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates, and such differences could be material to our financial position and results of operations.
Accounts Receivable, Net	Accounts Receivable, Net
Sales Commissions and Contract Balances and Remaining Performance Obligations	Sales Commissions
Cash, Cash Equivalents, and Restricted Cash	Cash, Cash Equivalents, and Restricted Cash Cash, cash equivalents, and restricted cash are recorded at fair value. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. To increase the comparability of fair value measures, the following hierarchy prioritizes the inputs to valuation methodologies used to measure fair value: • Level 1—Valuations based on quoted prices in active markets for identical assets or liabilities. • Level 2—Valuations based on quoted prices for similar assets and liabilities in active markets or inputs that are observable for the assets or liabilities, either directly or indirectly through market corroboration. • Level 3—Valuations based on unobservable inputs reflecting our own assumptions used to measure assets and liabilities at fair value. These valuations require significant judgment.

Revenue (Tables)

Revenue (Tables)	6 Months Ended
	Jun. 30, 2024
Revenue from Contract with Customer [Abstract]
Schedule of Revenue Disaggregated by Source	The following table presents our revenue disaggregated by source, which also have similar economic characteristics (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 Create Solutions $ 150,777 $ 193,110 $ 314,447 $ 380,479 Grow Solutions 298,482 340,368 595,192 653,360 Total revenue $ 449,259 $ 533,478 $ 909,639 $ 1,033,839
Schedule of Revenue Disaggregated by Geography	The following table presents our revenue disaggregated by geography, based on the invoice address of our customers (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 United States $ 130,843 $ 141,905 $ 269,962 $ 274,899 Greater China (1) 62,063 69,750 121,753 129,298 EMEA (2) 164,064 188,219 330,834 374,943 APAC (3) 81,119 119,107 165,155 226,635 Other Americas (4) 11,170 14,497 21,935 28,064 Total revenue $ 449,259 $ 533,478 $ 909,639 $ 1,033,839 (1) Greater China includes China, Hong Kong, and Taiwan. (2) Europe, the Middle East, and Africa ("EMEA") (3) Asia- Pacific , excluding Greater China ("APAC") (4) Canada and Latin America ("Other Americas")

Financial Instruments (Tables)

Financial Instruments (Tables)	6 Months Ended
	Jun. 30, 2024
Investments, Debt and Equity Securities [Abstract]
Schedule of Cash, Cash Equivalents, and Restricted Cash Measured at Fair Value on a Recurring Basis	The following table summarizes, by major security type, our cash, cash equivalents, and restricted cash that are measured at fair value on a recurring basis and are categorized using the fair value hierarchy (in thousands): June 30, 2024 December 31, 2023 Fair Value (1) Cash $ 978,584 $ 834,877 Level 1: Restricted cash and cash equivalents: Restricted cash $ 13,840 $ 13,942 Money market funds 93,976 502,754 Time deposits 195,397 252,694 Total restricted cash and cash equivalents $ 303,213 $ 769,390 Total cash, cash equivalents, and restricted cash $ 1,281,797 $ 1,604,267 (1) Due to the highly liquid nature of our investments, amortized cost approximates fair value.

Investment in Unity China (Tabl

Investment in Unity China (Tables)	6 Months Ended
	Jun. 30, 2024
Noncontrolling Interest [Abstract]
Schedule of Changes in Redeemable Noncontrolling Interests	The following table presents the changes in redeemable noncontrolling interests (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 Balance at beginning of period $ 224,736 $ 225,376 $ 225,797 $ 219,563 Net loss attributable to redeemable noncontrolling interests (153) (1,086) (529) (1,712) Accretion for redeemable noncontrolling interests 2,867 3,676 5,942 6,374 Foreign currency translation and foreign exchange adjustments for redeemable noncontrolling interests (1,394) (12,217) (5,154) (8,476) Balance at end of period $ 226,056 $ 215,749 $ 226,056 $ 215,749

Leases (Tables)

Leases (Tables)	6 Months Ended
	Jun. 30, 2024
Leases [Abstract]
Schedule of Components of Lease Expense	Components of lease expense were as follows (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 Operating lease expense $ 10,579 $ 10,375 $ 20,832 $ 19,768 Variable lease expense 1,497 1,164 3,218 2,442 Sublease income (552) (440) (796) (824) Total lease expense $ 11,524 $ 11,099 $ 23,254 $ 21,386
Schedule of Supplemental Balance Sheet Information Related to Leases	Supplemental balance sheet information related to leases was as follows (in thousands, except weighted-average figures): As of Classification June 30, 2024 December 31, 2023 Operating lease assets Other assets $ 90,444 $ 113,256 Current operating lease liabilities Accrued expenses and other $ 36,065 $ 39,132 Long-term operating lease liabilities Other long-term liabilities 90,885 111,669 Total operating lease liabilities $ 126,950 $ 150,801
Schedule of Lease Liabilities	As of June 30, 2024, our lease liabilities were as follows (in thousands): Operating Leases Gross lease liabilities $ 143,358 Less: imputed interest 16,408 Present value of lease liabilities $ 126,950

Borrowings (Tables)

Borrowings (Tables)	6 Months Ended
	Jun. 30, 2024
Debt Disclosure [Abstract]
Schedule of Principal and Unamortized Debt Issuance Costs and Other Material Features of Notes	The table below summarizes the principal and unamortized debt issuance costs and other material features of the Notes (in thousands): Carrying Amount as of Conversion Rate per Conversion Price Maturities Stated Interest Rates June 30, 2024 December 31, 2023 Convertible notes: Principal – 2026 Notes 3.2392 $ 308.72 2026 0.0% $ 1,245,232 $ 1,725,000 Principal – 2027 Notes 20.4526 $ 48.89 2027 2.0% 1,000,000 1,000,000 Unamortized debt issuance costs, net (7,987) (13,250) Net carrying amount $ 2,237,245 $ 2,711,750

Commitments and Contingencies (

Commitments and Contingencies (Tables)	6 Months Ended
	Jun. 30, 2024
Commitments and Contingencies Disclosure [Abstract]
Schedule of Non-Cancelable Contractual Commitments	The following table summarizes our non-cancelable contractual commitments as of June 30, 2024 (in thousands): Total Remainder of 2024 2025‑2026 2027‑2028 Thereafter Operating leases (1) $ 148,332 $ 21,494 $ 65,856 $ 40,223 $ 20,759 Purchase commitments (2) 611,190 148,449 433,317 29,424 — Convertible note principal and interest (3) 2,315,232 10,000 1,285,232 1,020,000 — Total $ 3,074,754 $ 179,943 $ 1,784,405 $ 1,089,647 $ 20,759 (1) Operating leases consist of obligations for real estate, including leases that are not yet commenced. (2) The substantial majority of our purchase commitments are related to agreements with our data center hosting providers. (3) Convertible notes due 2026 and 2027. See Note 6, "Borrowings," above for further discussion.

Stock-Based Compensation (Table

Stock-Based Compensation (Tables)	6 Months Ended
	Jun. 30, 2024
Share-Based Payment Arrangement [Abstract]
Schedule of Stock-Based Compensation Expense	Stock-based compensation expense is as follows (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 Cost of revenue $ 7,911 $ 19,801 $ 24,717 $ 38,650 Research and development 56,908 71,058 144,646 147,541 Sales and marketing 22,282 34,680 86,253 70,197 General and administrative 28,298 31,999 125,660 64,178 Total stock-based compensation expense $ 115,399 $ 157,538 $ 381,276 $ 320,566
Schedule of Stock Option Activity	A summary of our stock option, including price-vested options ("PVO"), activity is as follows: Options Outstanding Stock Weighted-Average Weighted-Average Balance as of December 31, 2023 31,541,466 $ 19.35 4.79 Granted 2,119,253 $ 22.50 Exercised (3,865,467) $ 6.04 Forfeited, cancelled, or expired (1,345,771) $ 52.00 Balance as of June 30, 2024 28,449,481 $ 19.85 4.31
Schedule of Grant-Date Fair Value of Stock Options Granted	The calculated grant-date fair value of stock options and PVOs granted, were estimated using the Black-Scholes option-pricing model and a Monte Carlo stimulation, respectively, with the following assumptions: Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 Expected dividend yield — — — — Risk-free interest rate 4.3% - 4.7% 3.8% 4.1% - 4.7% 3.8% - 4.2% Expected volatility 60.0% - 66.5% 56.3% 60.0% - 66.5% 54.7% - 56.3% Expected term (in years) 6.25 - 10.00 6.25 6.25 - 10.00 6.25 Fair value of underlying common stock $17.95 - $24.27 $35.84 $17.95 - $26.89 $29.33 - $35.84
Schedule of Restricted Stock Unit Activity	A summary of our restricted stock unit ("RSU"), including price-vested unit ("PVU"), activity is as follows: Unvested RSUs Number of Weighted-Average Unvested as of December 31, 2023 37,332,551 $ 38.31 Granted 3,996,991 $ 25.55 Vested (6,161,752) $ 43.62 Forfeited (6,924,178) $ 41.80 Unvested as of June 30, 2024 28,243,612 $ 34.49
Schedule of Grant-Date Fair Values of ESPP	The following table summarizes the assumptions used and the resulting grant-date fair values of our ESPP: Six Months Ended June 30, 2024 2023 Expected dividend yield — — Risk-free interest rate 5.3% 5.2% Expected volatility 56.0% 94.5% Expected term (in years) 0.50 0.50 Grant-date fair value per share $9.11 $12.44
Schedule of Additional Information Related to ESPP	Additional information related to the ESPP is provided below (in thousands, except per share amounts): Six Months Ended June 30, 2024 2023 Shares issued under the ESPP 551,146 532,643 Weighted-average price per share issued $24.92 $25.87

Net Loss per Share of Common _2

Net Loss per Share of Common Stock (Tables)	6 Months Ended
	Jun. 30, 2024
Earnings Per Share [Abstract]
Schedule of Antidilutive Securities Excluded from Computation of Diluted Net Loss Per Share	The following table presents potentially dilutive common stock excluded from the computation of diluted net loss per share (in thousands) because the impact of including them would have been antidilutive: As of June 30, 2024 2023 Convertible notes 24,488 26,042 Stock options and PVOs 28,449 32,342 Unvested RSUs and PVUs 28,244 32,165

Accounting Policies (Details)

Accounting Policies (Details) - USD ($) $ in Millions	1 Months Ended	6 Months Ended
	Jan. 31, 2024	Jun. 30, 2024
Restructuring Cost and Reserve [Line Items]
Percentage of reduction in workforce	25%
Cost of revenue
Restructuring Cost and Reserve [Line Items]
Employee separation costs		$ 15
Research and development
Restructuring Cost and Reserve [Line Items]
Employee separation costs		44
Sales and marketing
Restructuring Cost and Reserve [Line Items]
Employee separation costs		52
General and administrative
Restructuring Cost and Reserve [Line Items]
Employee separation costs		90
Employee Severance
Restructuring Cost and Reserve [Line Items]
Employee separation costs		201
Stock-Based Compensation
Restructuring Cost and Reserve [Line Items]
Employee separation costs		128
Facility Closing
Restructuring Cost and Reserve [Line Items]
Restructuring costs		$ 38

Revenue - Schedule of Revenue D

Revenue - Schedule of Revenue Disaggregated by Source (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Disaggregation of Revenue [Line Items]
Revenue	$ 449,259	$ 533,478	$ 909,639	$ 1,033,839
Create Solutions
Disaggregation of Revenue [Line Items]
Revenue	150,777	193,110	314,447	380,479
Grow Solutions
Disaggregation of Revenue [Line Items]
Revenue	$ 298,482	$ 340,368	$ 595,192	$ 653,360

Revenue - Schedule of Revenue_2

Revenue - Schedule of Revenue Disaggregated by Geography (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Disaggregation of Revenue [Line Items]
Revenue	$ 449,259	$ 533,478	$ 909,639	$ 1,033,839
United States
Disaggregation of Revenue [Line Items]
Revenue	130,843	141,905	269,962	274,899
Greater China
Disaggregation of Revenue [Line Items]
Revenue	62,063	69,750	121,753	129,298
EMEA
Disaggregation of Revenue [Line Items]
Revenue	164,064	188,219	330,834	374,943
APAC
Disaggregation of Revenue [Line Items]
Revenue	81,119	119,107	165,155	226,635
Other Americas
Disaggregation of Revenue [Line Items]
Revenue	$ 11,170	$ 14,497	$ 21,935	$ 28,064

Revenue - Accounts Receivable,

Revenue - Accounts Receivable, Net (Narrative) (Details) - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Dec. 31, 2023
Revenue from Contract with Customer [Abstract]
Accounts receivable, allowances	$ 19.3		$ 16.9
Provision for uncollectible amounts	$ 5.3	$ 7.8

Revenue - Sales Commissions (Na

Revenue - Sales Commissions (Narrative) (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023	Dec. 31, 2023
Disaggregation of Revenue [Line Items]
Capitalized contract cost, amortization period	3 years		3 years
Capitalized contract cost, amortization	$ 2.3	$ 2.5	$ 4.7	$ 5
Prepaid Expenses and Other Current Assets
Disaggregation of Revenue [Line Items]
Capitalized contract costs	6.5		6.5		$ 6.8
Other Assets
Disaggregation of Revenue [Line Items]
Capitalized contract costs	$ 5.2		$ 5.2		$ 4.8

Revenue - Contract Balances (Na

Revenue - Contract Balances (Narrative) (Details) - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2024	Dec. 31, 2023
Capitalized Contract Cost [Line Items]
Unbilled receivables	$ 22.3	$ 31.3
Revenue recognized	124.7
Other Noncurrent Assets
Capitalized Contract Cost [Line Items]
Unbilled receivables	$ 8.3

Revenue - Remaining Performance

Revenue - Remaining Performance Obligations (Narrative) (Details) $ in Millions	6 Months Ended
	Jun. 30, 2024 USD ($)
Disaggregation of Revenue [Line Items]
Revenue, remaining performance obligation, amount	$ 352
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-07-01
Disaggregation of Revenue [Line Items]
Revenue, remaining performance obligation, amount	$ 203
Revenue, remaining performance obligation, percentage	58%
Recognition period	12 months
Minimum
Disaggregation of Revenue [Line Items]
Commitment term	1 year
Maximum
Disaggregation of Revenue [Line Items]
Commitment term	5 years

Financial Instruments - Schedul

Financial Instruments - Schedule of Cash, Cash Equivalents, and Restricted Cash Measured at Fair Value on a Recurring Basis (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023	Jun. 30, 2023	Dec. 31, 2022
Debt Securities, Available-for-sale [Line Items]
Cash	$ 978,584	$ 834,877
Restricted cash and cash equivalents:
Total cash, cash equivalents, and restricted cash	1,281,797	1,604,267	$ 1,654,884	$ 1,505,688
Level 1:
Restricted cash and cash equivalents:
Restricted cash	13,840	13,942
Total restricted cash and cash equivalents	303,213	769,390
Level 1: | Money market funds
Restricted cash and cash equivalents:
Cash equivalents	93,976	502,754
Level 1: | Time deposits
Restricted cash and cash equivalents:
Cash equivalents	$ 195,397	$ 252,694

Financial Instruments - Narrati

Financial Instruments - Narrative (Details) - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2024	Dec. 31, 2023
Debt Securities, Available-for-sale [Line Items]
Equity investments	$ 33.6	$ 33.6
Maximum
Debt Securities, Available-for-sale [Line Items]
Ownership interest less than	20%

Investment in Unity China - Nar

Investment in Unity China - Narrative (Details)	Jun. 30, 2024
Third Party Investors | Unity China
Noncontrolling Interest [Line Items]
Noncontrolling interest, percentage sold	20.50%

Investment in Unity China - Sch

Investment in Unity China - Schedule of Changes in Redeemable Noncontrolling Interests (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Increase (Decrease) in Temporary Equity [Roll Forward]
Balance at beginning of period	$ 224,736	$ 225,376	$ 225,797	$ 219,563
Net loss attributable to redeemable noncontrolling interests	(153)	(1,086)	(529)	(1,712)
Accretion for redeemable noncontrolling interests	2,867	3,676	5,942	6,374
Foreign currency translation and foreign exchange adjustments for redeemable noncontrolling interests	(1,394)	(12,217)	(5,154)	(8,476)
Balance at end of period	$ 226,056	$ 215,749	$ 226,056	$ 215,749

Leases - Narrative (Details)

Leases - Narrative (Details) - USD ($) $ in Millions	3 Months Ended	6 Months Ended
	Jun. 30, 2024	Jun. 30, 2024	Dec. 31, 2023
Lessee, Lease, Description [Line Items]
Operating lease, weighted average remaining lease term	4 years 8 months 12 days	4 years 8 months 12 days	5 years 1 month 6 days
Operating lease, weighted average discount rate, percent	5.30%	5.30%	5.20%
Operating lease, impairment loss	$ 8.6	$ 12.2
Lease not yet commenced future payment	$ 5	$ 5
Lessee, operating lease, lease not yet commenced, term	3 years	3 years
Maximum
Lessee, Lease, Description [Line Items]
Operating lease term (up to)	9 years	9 years

Leases - Schedule of Components

Leases - Schedule of Components of Lease Expense (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Leases [Abstract]
Operating lease expense	$ 10,579	$ 10,375	$ 20,832	$ 19,768
Variable lease expense	1,497	1,164	3,218	2,442
Sublease income	(552)	(440)	(796)	(824)
Total lease expense	$ 11,524	$ 11,099	$ 23,254	$ 21,386

Leases - Schedule of Supplement

Leases - Schedule of Supplemental Balance Sheet Information Related to Leases (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Leases [Abstract]
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration]	Other assets	Other assets
Operating lease assets	$ 90,444	$ 113,256
Operating Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration]	Accrued expenses and other	Accrued expenses and other
Current operating lease liabilities	$ 36,065	$ 39,132
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible Enumeration]	Other long-term liabilities	Other long-term liabilities
Long-term operating lease liabilities	$ 90,885	$ 111,669
Total operating lease liabilities	$ 126,950	$ 150,801

Leases - Schedule of Lease Liab

Leases - Schedule of Lease Liabilities (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Leases [Abstract]
Gross lease liabilities	$ 143,358
Less: imputed interest	16,408
Present value of lease liabilities	$ 126,950	$ 150,801

Borrowings - Convertible Notes

Borrowings - Convertible Notes (Narrative) (Details) - USD ($) $ in Millions	1 Months Ended	3 Months Ended		6 Months Ended
	Nov. 30, 2022	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023	Dec. 31, 2023
Principal – 2026 Notes
Debt Instrument [Line Items]
Debt face amount		$ 1,200		$ 1,200
Convertible Debt
Debt Instrument [Line Items]
Debt face amount		2,200		2,200
Convertible Debt | 2026 and 2027 Notes
Debt Instrument [Line Items]
Interest expense related to amortization of debt		5.8	$ 1.1	11.9	$ 2.2
Convertible Debt | Principal – 2026 Notes
Debt Instrument [Line Items]
Debt instrument, fair value		1,100		1,100		$ 1,400
Convertible Debt | Principal – 2027 Notes
Debt Instrument [Line Items]
Debt face amount		1,000		1,000
Debt instrument, fair value		$ 1,000		$ 1,000		$ 1,300
Redemption price percentage	100%

Borrowings - Schedule of Princi

Borrowings - Schedule of Principal and Unamortized Debt Issuance Costs and Other Material Features of Notes (Details) $ / shares in Units, $ in Thousands	6 Months Ended
	Jun. 30, 2024 USD ($) $ / shares	Dec. 31, 2023 USD ($)
Debt Instrument [Line Items]
Net carrying amount	$ 2,237,245	$ 2,711,750
2026 and 2027 Notes | Convertible Debt
Debt Instrument [Line Items]
Unamortized debt issuance costs, net	(7,987)	(13,250)
Net carrying amount	$ 2,237,245	2,711,750
Principal – 2026 Notes | Convertible Debt
Debt Instrument [Line Items]
Conversion ratio	0.0032392
Conversion price (USD per share) | $ / shares	$ 308.72
Stated Interest Rates	0%
Principal	$ 1,245,232	1,725,000
Principal – 2027 Notes | Convertible Debt
Debt Instrument [Line Items]
Conversion ratio	0.0204526
Conversion price (USD per share) | $ / shares	$ 48.89
Stated Interest Rates	2%
Principal	$ 1,000,000	$ 1,000,000

Borrowings - Convertible Note R

Borrowings - Convertible Note Repurchase (Narrative) (Details) - USD ($) $ in Thousands	3 Months Ended	6 Months Ended
	Mar. 31, 2024	Jun. 30, 2024	Jun. 30, 2023
Debt Instrument [Line Items]
Pre-tax gains		$ 61,371	$ 0
Principal – 2026 Notes | Convertible Debt
Debt Instrument [Line Items]
Repurchased principal amount	$ 480,000
Aggregate repurchase price	415,000
Pre-tax gains	$ 61,400

Borrowings - Capped Call Transa

Borrowings - Capped Call Transactions (Narrative) (Details) - Principal – 2026 Notes $ / shares in Units, shares in Millions, $ in Millions	1 Months Ended
	Nov. 30, 2021 USD ($) $ / shares shares
Debt Instrument [Line Items]
Net cost incurred | $	$ 48.1
Number of common shares (in shares) | shares	5.6
Strike price (USD per share)	$ 308.72
Cap price (USD per share)	$ 343.02

Commitments and Contingencies -

Commitments and Contingencies - Schedule of Non-Cancelable Contractual Commitments (Details) $ in Thousands	Jun. 30, 2024 USD ($)
Operating leases
Total	$ 148,332
Remainder of 2024	21,494
2025‑2026	65,856
2027‑2028	40,223
Thereafter	20,759
Purchase commitments
Total	611,190
Remainder of 2024	148,449
2025‑2026	433,317
2027‑2028	29,424
Thereafter	0
Convertible note principal and interest
Total	2,315,232
Remainder of 2024	10,000
2025‑2026	1,285,232
2027‑2028	1,020,000
Thereafter	0
Total
Total	3,074,754
Remainder of 2024	179,943
2025‑2026	1,784,405
2027‑2028	1,089,647
Thereafter	$ 20,759

Commitments and Contingencies_2

Commitments and Contingencies - Narrative (Details) - USD ($) $ in Millions	Jun. 30, 2024	Dec. 31, 2023
Letter of Credit
Long-term Purchase Commitment [Line Items]
Letter of credit outstanding	$ 13.8	$ 13.9

Stock-Based Compensation - Sche

Stock-Based Compensation - Schedule of Stock-Based Compensation Expense (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total stock-based compensation expense	$ 115,399	$ 157,538	$ 381,276	$ 320,566
Cost of revenue
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total stock-based compensation expense	7,911	19,801	24,717	38,650
Research and development
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total stock-based compensation expense	56,908	71,058	144,646	147,541
Sales and marketing
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total stock-based compensation expense	22,282	34,680	86,253	70,197
General and administrative
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total stock-based compensation expense	$ 28,298	$ 31,999	$ 125,660	$ 64,178

Stock-Based Compensation - Narr

Stock-Based Compensation - Narrative (Details) - USD ($) $ in Millions	1 Months Ended		3 Months Ended	6 Months Ended
	May 31, 2024	Oct. 31, 2022	Jun. 30, 2024	Jun. 30, 2024
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Incremental stock expense			$ 3	$ 97
Price-Vested Options
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Award requisite service period		4 years
Award performance period	6 years
Price-Vested Units
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Award requisite service period		4 years
Award performance period		7 years

Stock-Based Compensation - Sc_2

Stock-Based Compensation - Schedule of Stock Option Activity (Details) - $ / shares	6 Months Ended	12 Months Ended
	Jun. 30, 2024	Dec. 31, 2023
Stock Options Outstanding
Beginning balance (in shares)	31,541,466
Granted (in shares)	2,119,253
Exercised (in shares)	(3,865,467)
Forfeited, cancelled, or expired (in shares)	(1,345,771)
Ending balance (in shares)	28,449,481	31,541,466
Weighted-Average Exercise Price
Beginning balance (USD per share)	$ 19.35
Granted (USD per share)	22.50
Exercised (USD per share)	6.04
Forfeited, cancelled, or expired (USD per share)	52
Ending balance (USD per share)	$ 19.85	$ 19.35
Weighted-Average Remaining Contractual Term (In Years)
Options outstanding, Weighted average remaining contractual term	4 years 3 months 21 days	4 years 9 months 14 days

Stock-Based Compensation - Sc_3

Stock-Based Compensation - Schedule of Grant-Date Fair Value of Stock Options Granted (Details) - Stock options and PVOs - $ / shares	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Expected dividend yield	0%	0%	0%	0%
Risk-free interest rate minimum	4.30%		4.10%	3.80%
Risk-free interest rate maximum	4.70%		4.70%	4.20%
Risk-free interest rate		3.80%
Expected volatility minimum	60%		60%	54.70%
Expected volatility maximum	66.50%		66.50%	56.30%
Expected volatility		56.30%
Expected term (in years)		6 years 3 months		6 years 3 months
Fair value of underlying common stock (USD per share)		$ 35.84
Minimum
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Expected term (in years)	6 years 3 months		6 years 3 months
Fair value of underlying common stock (USD per share)	$ 17.95		$ 17.95	$ 29.33
Maximum
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Expected term (in years)	10 years		10 years
Fair value of underlying common stock (USD per share)	$ 24.27		$ 26.89	$ 35.84

Stock-Based Compensation - Sc_4

Stock-Based Compensation - Schedule of Restricted Stock Unit Activity (Details) - Unvested RSUs and PVUs	6 Months Ended
	Jun. 30, 2024 $ / shares shares
Number of Shares
Unvested at beginning of period (in shares) | shares	37,332,551
Granted (in shares) | shares	3,996,991
Vested (in shares) | shares	(6,161,752)
Forfeited (in shares) | shares	(6,924,178)
Unvested at end of period (in shares) | shares	28,243,612
Weighted-Average Grant-Date Fair Value
Unvested at beginning of period (USD per share) | $ / shares	$ 38.31
Granted (USD per share) | $ / shares	25.55
Vested (USD per share) | $ / shares	43.62
Forfeited (USD per share) | $ / shares	41.80
Unvested at end of period (USD per share) | $ / shares	$ 34.49

Stock-Based Compensation - Sc_5

Stock-Based Compensation - Schedule of Grant-Date Fair Values of ESPP (Details) - Employee Stock Purchase Plan - $ / shares	6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected dividend yield	0%	0%
Risk-free interest rate	5.30%	5.20%
Expected volatility	56%	94.50%
Expected term (in years)	6 months	6 months
Grant-date fair value per share (USD per share)	$ 9.11	$ 12.44

Stock-Based Compensation - Sc_6

Stock-Based Compensation - Schedule of Additional Information Related to ESPP (Details) - Employee Stock Purchase Plan - $ / shares	6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares issued under the ESPP (in shares)	551,146	532,643
Weighted-average price per share issued (USD per share)	$ 24.92	$ 25.87

Income Taxes (Details)

Income Taxes (Details) $ in Millions	Jun. 30, 2024 USD ($)
Income Tax Disclosure [Abstract]
Unrecognized tax benefits	$ 185.9
Unrecognized tax benefits that would impact effective tax rate	$ 30.7

Net Loss per Share of Common _3

Net Loss per Share of Common Stock (Details) - shares shares in Thousands	6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023
Convertible notes
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share (in shares)	24,488	26,042
Stock options and PVOs
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share (in shares)	28,449	32,342
Unvested RSUs and PVUs
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share (in shares)	28,244	32,165