U - Earnings call transcript Q4 2021

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Richard Davis

Started Abruptly] …operate business. This call will have a similar structure to past calls. John and Luis will provide a business overview. Then we’ll answer kind of the three questions that we’ve received the most from investors and analysts. And then we will open up the call to panelists to open Q&A and we plan to wrap the call up within an hour.

I through start, statement. Safe we before will our run Harbor Now

conference be to I so about expectations remind future which like this know, as goals, of participants items, all financial uncertainties we like during As and trends, you assumptions. for I’d business we’d outlook, -- market including forward-looking making statements, to risks, industry say, that performance subject call, statements similar will opportunities, are to and

risks and And You in more that can to about these update forward-looking our and sec.gov. find Factors revise Risk at our differ any of obligation statements. we uncertainties section take may information the everyone no we or actual filings results remind

reconciliations discussion GAAP And can today Now, press financial available which results. the between of be non-GAAP tab. earnings release, we non-GAAP issued Investor the also today was our found discussing will and financial a be Relations of non-GAAP limitations on under earlier our financial our our measures website is in and and measures

that, let over John. call to me the turn with now So,

John Riccitiello

afternoon. delivered So, and good great out October XXXX to We thanks, with momentum. quarter, another really to Richard, December good close

margin XXX end months, a to addition XXX each earlier. over revenue of quarter, XX% the grew generating expansion of XXX up of non-GAAP the customers customers scale year, from XXXX year reaching X.X%, dollar growth, rate XX our XXX% million at at the the our basis and trailing $XXX,XXX of before. that in Underpinning the minus year-over-year revenue our and operating points For from year was expanding $XXX a healthy net

margins and year a net X.X%, were of minus basis a R&D, an operating With gross billion, grew business. and from For the full margins our revenue largest year, net being XX% margin non-GAAP inherently ours ago. expense healthy a points is from -- XXX very improvement high a year $X.X earlier of

to Unity by to continue gain we improve driven execution been operating scale. These margins be to have continue the and will team. as results and to committed continuing We’re excellence by

a very us based across enter on have our in and customer gives which our XXXX on and business We economics. built outlook. metrics strong We Operate, with confidence momentum both structural foundation Create healthy

we expanding is revenue from to acquisitions. be in represents very and year, strategic growth positioned to $X.XXX growing billion XX% And XX% expect even billion, the internal well with and For we market, $X.XXX further innovation grow between Unity believe between a we and XXXX. are which fast which

above for expect I’m As why we’ve optimistic non-GAAP even said revenue XX% let that, margin grow about Unity’s and very to personally the expand XXXX. long-term sequentially, before, breaking basis explain operating we me to expect a within With prospects. on

a estimated addressable in of was Create market billion total massive for Operate. and the participate $XX we IPO, our with tailwind. First, At time we our significant market

XD many new Our as current believe markets best gaming, massive to immersive, more is creates from engaging time emerging world new entertainment, growth opens interactive more and non-real sectors. from and real This other that is many architecture, to non-interactive opportunities come. for to e-commerce, a decades time, for automotive, compete, media offering by opportunity XD, to use our billion. the we to estimate extend markets is new we from new $XX plus of growth that in to addition is of This the users We driven transitions cases. expansion and which

growing, great tailwinds. big So, point market, number rapidly one,

well in a on leader capitalize Unity is leader, to trends. very and the real-time Second, we’re is these XD positioned

in sectors share of all a and our across industries. growing market multiple and strong We have

AR/VR. and Real-time and XD winning. During in Unity within XXXX, market, market market expanded we segments large growing growing in this share the gaming the is our fastest fast growing is mobile,

even business growing is faster. non-gaming Our

advantages. With develop significant is As many with is companies, We platform designed embedded to once structural compete deploy industries. platforms launch, don’t Unity ongoing and multiple and upside drive and -- application other we going across unity, we to design other creators we to there help The unlike creators runtime believe customers have add to customers. ideation, is monetization, our -- lifecycle through designed hosting from and to -- of growth. analytics as the a entire

we leadership two, continue number point So we’ll position do think and and is strong it that. to we’ll our growing

with products expanding new innovation acquisitions. we’re Third, our addressable strategic around and market

their by Unity a for cross-platform launching as more acquisition our expand solve and Services For solutions over most introduces two Unity share on creators customer We response These pathway continue Weta terms. and for moved a initiatives games. specific adding originally existing solve our expected problems are the dozen tools. anywhere addressable our to create total more and and development continue our market. most our markets Digital, product capabilities artist increase Weta addressable recently, of and customers been own to we’ve address Parsec and world’s value that innovating industry examples north More most the needs. problems. are from Digital from of freely customer customers to Parsec, with a any companies tools play of platforms decade, and to and gaming serviceable to the of of and us. through services own the Multiplayer and to With platform creates some to any to help unifies from and Services we device any also creating new empowers few work challenging to and powerful creative the on increase Gaming Unity and operating addition simplify great points the -- Unity inspiring pain

have reduce four. their and is this commitment. unique earlier, artists requires operational our us endure to said as value believe increasing test a aim number that will Building creators process the our platform, we I’ve their we time, and center add takes of of time. and strategic point of total to And our market. very to that focus as at building process, platform the We ease significant to the We we this while Now value platform addressable where our offer complexity increasing and platform onramp.

speed, thousands tens developer hours and of of devoted We scalability, ease-of-use. to deliver have stability

built We with We to their market. And plan healthy critical and have us we where ever not relationships team in roadmaps. more business very to the the Monetization creators hire since. this and with stopped and machine. the an lastly, is of Unity across is XXXX We years, an share challenges we innovating by Unity, innovation innovators. solve amazing great partnerships point net have example. a differentiators entered more in and platforms player best scientists products and product brightest -- and with focus in up and coming features operate shows developer’s in their the retention up the trusted interest on of In product are all major These to contribute new improving long-term the have We consistently our has offering this shown ensure these a the mind services, rate. dollar-based success. they leaders, data engineers, and experience.

we Unity’s significant market As IDFA executed challenge share, this when consistently where a of making including difference is examples is we year, last with of environment. for a one many innovation gained creators. result, have This excellence in

will excited what we’ve achieved Unity about of create. and so proud we I’m can I’m the and at future that Now far

and in market internal large executing acquisition. are and with expanding a We excellence we growing that are innovation strategically through

and defensible We that to our has better. getting keeps customers significant value on platform have a

I acquisition. to over with Ziva share the This of latest huge is we before the call and Now, to believe it’s magic turn Luis, got want Unity. you our I potential.

running of even human for part vision all lifelike a scalable imaginable, on of but it’s making animal me, kind realistic makes today skill any real-time of share. powerful state-of-the-art Company not my effortless virtual virtual of enough regardless learning, we created about by have real-time or I’m Unity’s or in realistic I an excited for leadership and But and Representative Hi. artists, the Unidentified a to are technology want now and machine with Unity. amazing humans for character Let’s like And I’m me. accessible I’m powered simulation, you this more I’m character share by simulation Unity creation, in partnership. Ziva to what level. of have stylized. family. deep monster news Ziva’s just along Ziva Dynamics. show today. knowledge announce creators to deformation creature, some and in shared that Ziva, Unity with and biomechanical

but to I’m the done to incredible will Ziva, and whirlwind As create serving Ziva’s you so like allow many like to It’s It’s tools any Ziva the couldn’t thank your over just passion a teams, journey, and Ziva creators been all seven together, digital artists engines and will and it without Unity of that of continue art. you past acquiring Unity characters grow want me. support to digital has dedication have we learned the democratize By we innovative for much years. our technology. start. best-in-class certain. further your We use

Luis Visoso

Thank you, John.

So to to being I and impressed many normal times be video amazing continue human many, back am technology. I’ve the here. watched by real a this

the compared quarter of year-over-year, accelerated fourth So let’s fee XX% fourth These things license fall growth, for revenue prior we million year-over-year. you $X.X when as In very quarter quarter of has strong the our begin XX% Weta year the quarter. financial behind our Revenue acquisition increased highlights. for XX%. earlier of million Revenue initial the can in performance $XXX expected $X key for in growth the to closed for by quarter, with results came the we from full if as year’s our expect increased prudently the have billion the above would and constructing risk opportunities. strongly. than the Resource increase continue guidance, by would quarter revenue and fourth assess XX% significantly Create execution of beat guidance more this the Since again, excluding beat risk Unity way. to FX, guidance perform to Weta Operate every for include XX% team, year guidance

This revenue to an revenue delivered is delivered the an a quarter for year XX% Create’s year-over-year a XX% Partnerships the total customers another revenue grew earlier. IDFA year of Importantly, prior quarter year, this quarter million help environment. a full with for million an from full increase and growth, their growth. as XX% of in bringing from year-over-year to strong Operate $XX million, $XXX Create earlier. increase revenue the XX% year, the X% our year, full increase we performance XX% and the year $XXX brings Strategic in from accelerated challenging fourth broad-based, of deliver again

We this see strong continue success to customer quarter.

for to ago, in year year meaningful the customers and $X,XXX a accounted trailing expansion a more $XXX,XXX revenue of million. revenue in quarter for in fourth net rate of the $XX operating XX% customers. based non-GAAP grow our to loss XX XXX%, in generated the fourth quarter, in from XXXX, which with from the quarter a We off of fourth the $XXX compares million was XXXX XX% closer operating $XX year months this generating total dollar ago the from of million from quarter fourth customers reflecting than earlier. a more of continue the quarter XXX% loss Revenue Our quarter to we in fourth up same of non-GAAP million our partnership

for year the full from non-GAAP XXX margin fourth minus points quarter X.X%, expanded earlier. minus margin a Our operating XXXX. the improvement brings basis points to basis non-GAAP of year XXX from operating was an X.X%, This

for minus non-GAAP operating of performance XX% initial significantly of in above the Our to minus guidance year our came X%. margin

the flow second the minus minus is lease in Free taxes million million gross timing impacted margin quarter. efficiencies Free cloud Our margin a sales improvements up and respective to agreement XX%, XX for and quarter points which basis Francisco, in general and non-GAAP gross and margin points The of and mainly the prior payroll flow and of leverage cash from normal Non-GAAP working costs. periods. margin are four in cash non-GAAP $XX by year capital including the in for administrative in hosting gross of San margin one-time and quarter-to-quarter marketing, comes charge year the was recorded for basis full a their XX% driven from are XXX $XX improvements costs. by quarter terminate fluctuations. expansion year we

addressable remote once in for this by reducing Excluding our three high the and cash closed market democratizes Weta this year have would which with finally, Ziva, SyncSketch, priorities. Digital, strategic creation flow close the we December, the the $X.XXX convertible for review X%. and to increased all collaboration, enables of creativity. state-of-the-art which free added margin integrated by creators we tools December continue and cost, quarter, feedback in in secure of incredibly flexibility And and a XD share. our our creators. asset to between cloud-based, simulation key next-generation us platform effortless financial purchase in that the learning. exclusive We billion we leveraging minus time percent Acquisitions expanded millions artists we the enables acquisitions capabilities closed Unity real-time sophisticated biomechanical an put charge advance of enable quality and hands an been of of around coupon onto which and artists world. and November, rapid $XXX.XX character with five-year per and zero aggregate And conversion issuing Last, machine notes by closed

We call call also costs with from $XXX.XX entered issuance a notes purchase the transaction of into price the billion per by issuance debt potential cap and notes The of net share. dilution used cash a a transactions. net were cap reduce to to cap the caused proceeds $X.XX

into guidance. had a dig little go year. bit Operate Let’s a terrific we before deeper in

with from millions person constantly games large game and about the two stay innovate the their our team engaged. to passion to passionate players who their making development publishers with players partnering customers of competitive pursue to We’re need who of keep

Over the game Operate more launches. XXX,XXX than the supported past team year,

With Our strength the is them that access to launch easier solid for. games, enabling increasingly it XX% of gamers almost even to growing recent Multiplayer are suite, in the unity we which gaming. customers segment harnessing services, experience our making Multiplayer developers are the power fast of of of are the gaming tap into for cross-platform looking our

on that our constantly make products We without enabling investment customers strong analytics win in and we’re also for our and guesswork. Pinpointer and and insights innovating, manual performance decisions. campaign market, Audience learning strong improving To to our them optimizing sophisticated form as return from a competitive models, generating highly and delivers customer’s machine saw models, actionable performance campaigns to our tools such our

we’re interactions. monetization XXXX, I the launched out, has for as Mediation, market. a service As providing years, the been five that community about quarter. our last of experiences estimate result, business Multiplayer we growing Innovation, each social we fast Unity and want on over infrastructure last synchronous for as which call also consistently including to twice vibrant focused

and to optimizing interface help revenue ad experience. game network manage build Our and streams demand by easily performing strong the their from editor offering includes they and formats waterfall partners developers bidding and same best within their build

our the in including publishers. launch, seeing of top the some strong We’re top of in since including -- short traction the period initial market time some of

well Now top reach moving to Create, platform to on continues providers. grow games, within Unity increasing our with tier as publishers, as

multi-platform Riot During Syndicate key in with the developed Station Nintendo games publishers Xbox fourth and such published Legends of top Windows and on Play King, built simultaneously collaboration Sony quarter, across Ruined Unity, Forge League PC, story, Switch, One. launch as X Airship a

the Unity AAA partnership a many with on share MMO market Another mobile their example our and games. multi-platform XXXX. within partnerships is other enabled [inaudible] This in top expand to games X,XXX

day to win also of and capabilities are gaming. Now developers enabling that XD outside every use love the real-time game us

expect cases, build Unity and long-term strategy. as to our continue progress use industries make digital to into embedded and Software across partnerships is customer’s We

total represents of non-gaming in XX% Our up over XX% revenue, grew XXXX business now Create year-over-year in XX% and XXXX. from our

enable electric provides is We industrial and large manufacturer global car institution a our XXX with a Unity actual also will is view. to interactive partnership considers me give sellers Unity an believe this factory Unity Let of Motors machinery eBay in car and shopping offering the initiative retailers. that manufacturing drive manufacturer, changer. to experience advantage with competitive with they and innovating this management, partnering next-generation simulation help its the large for starting sneakers. partnering in Unity sellers also productivity few degree Japan, This greater doing our a process. is the a And is with are a business is with to an plant others. examples. manufacturer digital enhance proprietary shop to game experience China, you with item buyer also partnering Hyundai with and and education a well. connect many twin Hyundai showcase actual technology confidence, with

large our a strengthening car Germany. in with partnership We’re manufacturer very

competitive an give selling customers capabilities, advantages expected. need may I real-time not as the design to integration progressing develop tools and rendering solutions them. is update for have We visualization on want the our and them that versus to XD The you on our deal most at of our boarded Our December Weta. close off the employees. beginning work our approach are shelf what

award the With expertise available and tools The and are cloud. tools such in as be class games, world largest to and the on opportunities Manuka, Barbershop, within animation artists real-time productize Lumberjack, to CityBuilder working more. will deep We’re advertising. Loki, XD, winning Squid, Unity’s many creators this HighDef, film,

productizing take As these years. two mentioned, tools will approximately

momentum. guidance, good business on entering we’re Now with XXXX to

For billion the growth. XX% $X.XXX to billion $X.XXX we’re full to guiding year, revenue to or XX% year-over-year revenue

we $XX XXXX. last quarter, to contribute communicated or to As incremental million in revenue million Weta XXXX $XX in expect approximately FX

will this We on the stream revenue Create. report

the year for million with Our XX% first full million. quarter to consistent for revenue $XXX is $XXX or to growth XX% the guidance expectation of

to the to full million. which improve we to represents operating the loss basis end $X.X more to operations the year-over-year non-GAAP as and at million incremental $XX This by operating margins $XX year, of For of a expenses high normal million, assumes expect minus XXX points working we range, return travel.

the at XXXX. the XXX first $XX between improvement quarter, million end operating million. range, high expect of expected $XX and basis quarter we an loss first of margins points X%, For of from is of operating non-GAAP the the minus Non-GAAP

XXX We’re for QX. shares million fully diluted forecasting

half year balance to first of second For we revenue in half the for historical for our full the XX%. the XX% to and about modeling XXXX of and account the purposes line account performance, expect with

XXXX. than in Create faster a expect rate to at grow Operate We

full year, flow, For full free includes expect in we FX first fees of from quarter XXXX. Weta payment of years for the license cash which four positive the

Difficulty] XX% on to [Technical XXXX. break over a With expect that, revenue to to the back We above let Unity’s the continue Richard. even turn call me non-GAAP basis long-term and within

Richard Davis

much. very Thanks Okay.

open up call, the call the questions So, we’ll just but live okay, before in ask… to bit, a

John Riccitiello

Richard here. still are you

Luis Visoso

Richard. lost We you

John Riccitiello

Richard, Interesting. here. you are

Luis Visoso

here? You’re mute. you on Are

Richard Davis

not I’m mute. on says It

John Riccitiello

hear can Okay. We you Richard.

Richard Davis

don’t any there, host. by Okay. what the happened I In know getting case, worries. no muted Yeah.

we to send to just right we thought to down Okay, them called asked answer the the questions the live questions call, most analysts some bit, questions. to but call up open three -- go And of we’ll We the in we’ll panelists. their best before provoking a I now. will us after our that, from that

my in So shorter. much In a but be course, on probably comes crosscurrents, of question, business is that a to for the Rangan there’s out and it to quickly we’ll that’s just from trends. Kash kind question to the playing an understatement lot of Goldman industries, happening Sachs. XD on, world, mind, Unity of and first these XD, John cross-multiple at two-hour models where new transitions this can good almost software say and But a they’re the conversation, of I keep kind capitalize think, how frame so

John Riccitiello

So, great it a question. is

many industries. XD and to one experiences -- they’re in seeing expectation going one people dozens so of part our now. it call my real-time to metaverse. said it this real-time launching technology number industry-after-industry, to going expand from experiences, It’s XD of be interactive we’re headline times the fold. some to interactive prior is of many is, a But that is IPO So use I’ve is

it’s keep Now, hard almost track. to

with as to rate Unity, the is is continuing of our of and platform part take course, increase we’re that. that part expand, gaming of onto substantially Second artists bringing to industry revenue

revenue, role? that. our Lewis, of to We headline of I sorts revenue lots different are most this experiences we from first, of So people ratable all is, and think good from XD Rush of in all what’s things these built. striking Our and the the make lots gold in ways generate of technology underlying are it’s role Gold real-time a number doing subscription analogy one, where

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ways. industry looking certainly necessarily to money there’s to the so, nuggets building of products, for companies mentioned And and operate. I create picks those noise lot We deploying crypto, products that. with both are shovels of that serving there not and of generate a we’re out help entire those we’re about also gold, both and products collection multiple in

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Richard Davis

the Great. philosophy about Lane had economic -- Thanks of a how kind growth and question Luis, scale, at very of financial think economies much. we Parker good And Stifel profitability. our about

down touched a be your but if you more great? You a it smidge drill on on that’d prepared on, remarks, maybe bit just

Luis Visoso

question. Richard. Yeah. great you, A Thank

to the decisions is if very ideas at level, the make we create a which is framework in simple, So, investment creators shareholders. invest use to and high our our I I that think think, we value most those to

this So so about we’ve creators in talked far lot call. a

time three more and of a the shareholders make the expansion shareholder revenue that creation, growth, bit shareholder is for revenue margin little of efficiency, in, three will value So particular free about flow us at drivers one this this is difference in the point time, cash let me growth. that spend or biggest

about think a market. we just and it, $XX operate $X.X billion Just billion we at crossed

is we too business we X% rate the about and So small take way have momentum. are a of market. The

is the that biggest So driver.

think about XX%, a of growing years, Just of flow versus the cash XX% that. difference CAGR XX% at over and the versus several potential

Now to cash that doesn’t we’re not pay mean margins definitely and will. to we free flow, going attention

if so operating So at minus you what we our revenue, That’s non-GAAP XX.X% -- think same between right? we and margins In about to of same during XXXX, what from we’ve XXXX did. XXXX, X.X%. minus time, done the since the improved doubled our we -- period that

significant and similar flow. obviously, free on improvement, we made progress So cash

both been or three have actually all drivers. we So driving

Now, marketing invested very leverage sales important it, same gross able at we’ve in to how R&D. is G&A. understand, done been think time, we’ve we the actually to do in and have been we’ve heavily and I which and margin, efficiencies driving in because But that,

In percentage fact, our flat between time. that R&D which that held the XXXX, and XXXX budget during has in of -- revenue period we’ve of means doubled

So and least we just said, grow expect growth, Unity forward? now, in and to So going of in at revenue then can you terms what XXXX between can expect as XX% XX% thereafter. us XX% you from

sure progress improve are make in and cash make points we follow we’ll our even we’re thing operating continue very improvements. we progress last to their XXXX, apply operating on companies continue critical mid-term we And the balanced our both for businesses, margin, to produce one that make which shareholders. expect and which And continue HX, us. is and every I on creators do the that our to and we we the we make across profitable strategic We is makes dollars. in make portfolio called to say we this the everybody, it’s potential expect very non-GAAP to invest that in two doing and at flow other our very line project same to margins where use quick is, XXXX drive across generate become that where filters. that. that, investing driver we value methodology we’ll I’ll Filter margin And second is, -- of in look free -- for So break and sure created in in the to has a R&D We our ideas non-GAAP will The I do basically long-term. obviously, thing the by to that then basis own sure it’s sure short-term, make XXX much growth. that think in thereafter. HX, we’re sustainable time, HX, would in At we with number

So that that’s, overall, hope how clear. I Richard. would I to respond question, that’s

Richard Davis

helpful. super All No. That’s Great. right.

who runs you of we quarter, introduced the Whitten one do Create. we things So remember, the to like here management team, and Marc is highlight depth of last our

with at Morgan basically Stanley, platform? had is we approach thinking Unity by this that our some and Stephen the revolves around Matt the the some a and we’re dynamics questions consolidation General of first-party how of versus in Blair, similar of William of had on a Suisse. effort question Bhavan Operate be studio Vice theme. Cost Ju Ingrid to asked contextual studios are have Ingrid And area a who’s the Senior to add some that the at Solutions Manager Lestiyo, we’ve of questions handful you to quarter, invited -- might this hand at we’ve So President context But seeing seems of about side. is, an data Credit the these offered a of kind like, you so lot

Ingrid Lestiyo

here. everyone. to Glad Yeah. Hi, be

tech more or Even game unlike millions to That’s the majority XXX devices. there And use services. with companies, other an largest numerous ad provides out games approach there a a out Unity, contextual our companies claiming our few not X company So, are as game We ad of than tech advantages. engine billion have mobile quite billion any X and made same our the the reach. so. reach using

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Richard Davis

Thank right. up your up bunch there. you All see hands of so it we’ll much. a Well, to now virtual open

we’ll have Goldman number at Kash Rangan Sachs. So hand virtual one,

great. If a you be have question, that’d

Kash Rangan

that you’re update about expansion you on the versus could very John, give if you really about. an the into and really you’re just I enjoyed the the much results. audience excited Weta developer acquisition. designer us the know that Thank Hi. presentation, spectacular excited

I how are more the playing your even Just acquisition, Thank had that, you chance curious technology you’ve Design core play gauge wanted out a Operate do business? synergies how am can to and synergy the business and much. closed the the think since very to work? synergizing between Weta how you follow on you into do up you

Richard Davis

here on momentarily. be Should Sure.

John Riccitiello

a dead Talking on microphone camera. and at

for thanks question. So questions. Great the

my the and we liberated in art overwhelmed the Hollywood conversations that first is coolest have on a companies of people with. comes the late, want that name content of names conversations number having synergy one to I’m all But in if similar And is, by, pretty we of out the door the and the those are this out all going of folks of to I’m been with of had assets existed be people you not the really your I’ve of in say, creation, to game weather read is of all tool of the technology I we knocking lot of and tools. these industry. pilot conversations set. just of matter what rags, set all because that customer, and substantial. So It are The Kash want kind that that

And will, overstate Unity. ILM so to a is can’t there to use captive of not the if compete. -- aren’t tools tools wants you from now engaging really Weta want it’s ILM that’s does got, from interest they single use that I how company tools much now an

an ILM point I’m I’m them. not as Now, going to using to example.

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create are legion. can deploy, around the that DevOps So people problems and

we’ve of other And other is can them, were really also much the saw have huge problem, put tools simple it community into which creation it and not on share process, have so exciting new just accessible. you coming. in This so the and not making a of across been might the the UI, made our things model puts we people about who put that industries we and cloud, together, other just tools us people the which in part sense trained us is to of Weta Parsec, it be, the is I getting and use take improved this we entire next knew it it. them. we radical solve many when been we When business why did value creator massive Unity always what another think all into we with is like of while solve, we it things them solves But yet is, way what’s harm’s doing. going the pain is, what problems And integrate Unity

inside connecting Unity back question So other part Weta as of was two gets shareholders. for much it people really these that great and value Unity captive asset to This of parts it super that can trend dual is then WetaFX need accrue valuable more in tools proposition. of to an that the industries valuable huge our independent to it is a and and because

Kash Rangan

so Super compelling. you much. Thank

John Riccitiello

Kash. Thanks,

Richard Davis

over the Bhavan Blair. William

Bhavan Suri

and for spectacular bit. It was for Ingrid, team and guess echo quarter. let to John Kash. it’s Thanks, Hey. maybe me I a a little congrats question a

delve being different huge would between stuff initial five forward But guys to little okay, know to up those going lots how to I I the are we’re we to finding interoperate the years, from a John But in building the metaverse. love I not asked consoles side. the we’ve So you going Operate you games value and the got that’s if want data walk been you nuggets, the platform. we’re said, of nuggets through play think Kash to the or who you about be games, fast bit into a ends layer, developed and strategic question Unity. more. way

people might and able how layer, multi-XD imagine that about think five experience. multi-data across the years, that thinking year, years through me what seven road. to down multi-metaverse, these target like look six So this you’re Helped being

John Riccitiello

that. than fixed a it and is. usually typically stream It’s operating as sooner one video. than to what you It It -- have of is a Hopefully content big decompression it But compression you and It is a it’s on other model, a that’s most it part the might be that all is time change. any that doesn’t algorithm. thing. sort And something the an only software basically game by artifact, a today, it. it’s television or of content consume other

or go over used is compile little So just can over, air around. being bit move more whatever satellite it or technology to efficiently cable to or whatever, transmission that’s the

artists these artifacts to so going work technologists not the cinematographers, XXXX. a way with work in just I going way with going That’s the the the buried work. piece there, together is, are, And a that’s think, giant to Peter be of the together Jackson The of to be all going and that and It’s dead to all data. future a it’s it’s by data.

frame data remember, that on the that are into tools that operates what set that turn and to in being response next real-time in produced of a now data frame, Now, user is input.

I But might might from, different like be going want of Lumberjack on on Manuka things. consuming, stuff to that by you. a an to of you websites, whatever whatever that wanting or couch, that instead showed. an Everlane you your the seen that be like, data artifact, going to data of like rendering an gets the Moore come a will frame a it’s it’s version you Those all those you it’s shopping. tools us color to is, have put kinds system immersive sitting Now, and separated and that as metaverse Unity not or create got tools of picture, That’ll compose be be or if see Nike will you’re like your device operated AR/VR things on say, clothes or experience, on the as these see Christmas outcome kids, all things Peter to or that you or Metacast if you

really and create to data, frame tools these tools consume for So the sophisticated massive in real-time. amounts you of

consumes Unity be finally collaborate. to get five our They pretty -- always will It’s going be They seven simple. over go access games high-end high-end It’s years. will to it. be We tools, They The multiple time. of going to their will be? So operating to years, tools people at to systems in twins. users going will offering. create. been most high to an going the user create to up We’ve going editor where the simple this user what to it, finest They’re And years, creators, will and they in we is hotel building I or to be six same sophisticated there. where want will be connect cloud the there. down the car high-end to configurators simplify layers it. digital to film create They able or time or we’re have fidelity making believe and

business content is and The hard. think misery uniquely it it it be a are instance the space, workstation, value create works then ratable again -- kid not doesn’t in of can that and files describing. level cloud Mac get make game back and another maybe to and what for Where fidelity pieces business same it operate be or typically reassembling And tools way no of moving it. it’s or simple should workloads… they then out that it produce, matter Create can another high surrounds that customers really it positioned there’s a so we’re of a of trying data moving a they’re sometimes or is pushing another PC hosted it’s then DevOps I that PC and art on Operate, now game into simple side or your these and a Those they petabytes, it’s we’re to now, the and the school moved gigabytes for And created, So because and back same a a and then video to cloud and that or puts creation another, or a them onto whether it’s our what when digital the Unity level of business twin. But using one there, change. services complexity. around in movie around we’re moving

Bhavan Suri

operate? they Where

John Riccitiello

It’s a Yeah. just simpler. lot

that’s line the we’ve been is, describe of something sight We lot So a got it. have we of building complexities.

we’ve what now to no heard of a approaching, comes as this have years. works. been It because are the for simplicity while. longer for a closer we us get been while. we’re investor You’ve over disruption just The covering I a what it’s building. But

the to speak important Operate side, how is, Operate to question, Now, the one this Ingrid, do to self-serve and is to just of side? piece want in add of you this might major notion particular, Bhavan’s in which the

Ingrid Lestiyo

Bhavan. Thanks, Yeah.

couple things. of a So

will -- we experience if and next always Multiplayer a think in to we kind metaverse of some concurrent data be of going think thing the coming those on if about together I behavior. which John users the times bad renditions there’s be With of have an talked that’s like of form all experiences. it some of experience think millions an that, destination, one will true, renditions about about front,

those that need use whatever, we you the sure obviously, need able will run set would moderation are -- experience engagement that need users. solution moderate they make want engage and requires games. running in that creator serve to their engagement similar intelligent et to the to most be tools, to experiences of with their our cetera, that data developers requires, And campaigns, all successful that in the of So data monetization intelligence whoever relevant to of some and is and monetization today

Bhavan Suri

detailed for it. That appreciate response. Thanks you. helpful. was I it, guys. it. Got Got Thank the really

Richard Davis

Morgan Cost Stanley. Matt at

Matt Cost

Thanks. Great.

think it can’t audio. says on that’s right. all but I video I’ll do my get I on it

that, says So well, I a it side, guess just Create the on there’s video.

still guys me? you hear So

Richard Davis

Yeah.

John Riccitiello

We hear this one. Yeah.

Matt Cost

Okay. Cool.

that. about for It sec. a Sorry froze

back acceleration. add you side, think strengthened quarter bigger I was biggest Create and Weta, something in quarters. quarter there it points two that you the changed I quarter, are $X the past ever. you had dollar in mean, even you was looks out is has XXXX basis if point would specific up the last drivers that the Create I on really for strongest it then it had already any put real which So like million you done, guess, to was

John Riccitiello

to digital But we’ve is, first the might to want level high a some add Luis, give this. that and on gotten scale to I’ll applications, to twins finally non-gaming and verticals. you

of And early product a so now are we’re as going substantive lot about, mean, and how more traction product to part get we we traction it. talked getting I

a which to were multi-platform hit say, that was wanting Riot of to increase have under and go-to-market. to it’s starting I really productivity see. simplify adjust and And with The market nice underlying we’ve tech the of stuff that And on about, console to done happen our announcements, as help they other lastly, to think, and year happens Unity. R&D talking I and it’s companies now to regularity the see a job with I get Create. I part products to point things didn’t we’ve features And little took in Hyundai then to -- producing to ago. I’d individual see inclusive product a Marc side customers then with in be like here in the do I’m we the major use we an what of looking non-gaming that they’re lines you happy you to want is, But third-party admit now seen, level or produce clarify out But really like that. about Whitten’s but now you fit like, see the feel be trend good see frankly some longer you here leadership

build to a a cycle to are while. these in while because you it the while took a little seeing on side, So some with of sales be up market, things execution catch take the can

Luis Visoso

John. Thanks, Yeah.

which getting both terrific. good we what games, said is with games outside to in traction Just complement in line and earlier, just of and we’re

from from we’re our you I AAA think me was it pretty coming more to healthy across we and customers gains share non-gaming more a right? quarter. market good within And heard way in all the games, expanded say the really So that’s base. these covering a Now games as as Board. And earlier, you

Now of some stories. the I success talked about

lot industry, auto drive of So industry, with a mean, twins to machine we’ll continue right? auto digital in seeing of I traction and Now lot to manufacturers, the really from a we’re to that. a education,

opportunity that ahead. lot a more Now there we think is

because always right, there a Now where struggled not we’ll we will have be bad. every quarter quarter perfect,

very today. with Very, happy happy. we are very where We’re

John Riccitiello

that’s What And put basically IoT. cameras that are we in Metacast for some we those are The videos, a doing? the of you that twin. have there stuff out seen digital of the sports

We’re on presenting a the how back. XXX and to imagine and instance sport, dynamic it twin, depending consuming that XX it as is. you the we’re then data the cameras, look at digital that when of look But

If applications you about most as looked painting. companies, move twin at they coming out digital a of as fast

you -- see and there the being folks Now that’s People of and some industries. what starting they’re in off they competitive think coming can space their get what nothing’s a dynamism see. like model. static internalized are I It’s by already advantage datasets really happening They with it’s it. data a the they across has multiple off to

Luis Visoso

about… We don’t enough talk

Matt Cost

Great. Okay.

Luis Visoso

we’ve … been and XXX% massive. our sustain very net able rate now time both Create few and companies mean, pretty just to a long to able Operate. it are I and achieve for that expansion that is and have

customers, to So very, just new as very we healthy there to add we add wanted continue that piece.

Matt Cost

Thanks, Fair. guys.

Richard Davis

of so Thanks Piper. much. Brent Bracelin

Brent Bracelin

think, with the Thank team look the down you. here. the Obviously, of just there’s the Operate. part here. into products. ask I drill suite, Great we to But want Operate question the investors about eight ahead I at and ad talking of add-on lot if I I’ll They’re Gaming time all business. spent Unity in Services go see to a beta.

they more to and drivers share. for become the incremental Can new Operate? gaining ad beyond how obviously we which those should around business really just on in growth early the any are for XXXX? for think color the levers What’s John. ads, try of through about in offering some Just you growth add-ons? of to Are levers these think seeds to growth XXXX, Maybe trying Ingrid feedback kind

John Riccitiello

of to same She we a just And hour admit, be this one-on-one I with of me going did an room. fun to I’m one. want I this whiteboard. it, Ingrid hour the to take let the part with it’s my last ago. spent didn’t in speak to So runs all that. And on her but

surfaces, they problems. they revenue they’re All synergistic, in they how into of solve how people the plug how how together, draw services,

this works going it’s and just but Unity to more to of think I appreciated parts us well allow is well of scale. one how how the important less

it’s points. to of do And components One things, high all just to level services, are, all principal impossible different vendors different have a mess. way. couple those It’s some is games five sets, types, data a that run three, the typically these all two, data they of four,

solve mess. so a And we

All all of we just maniacally Ingrid called hit revenue implementation. that magic-magic And pretty self-serve, connect require works. a is it these love to things tricky service and a Multiplayer. button producing on they focused

might in you there. want take Ingrid, a So little parade because to I’m front it to from taking a break, of. it’s fun stand

Ingrid Lestiyo

John. you, Thank Oh!

-- first alluded services Services to one one to you platform, one John’s So, into And Unity combined point is Gaming the first, feed let dashboard, XX that about login. actually, me just editor. self-serve, launch cross-platform few of simple the Multiplayer for so, clicks Multiplayer it are just we from with made quickly games. a our Americans so playing developers games to simple XX% all eight

it to hard, is just sizes, then their in there from for too that need – an have games So we like reduces resources to the They studios engineer, the vision. hire realize like developers. are but seeing now is studios. at size From these network engineers. us interest a Unity till and the of And access all that security building small-to-mid they army to risks of platform the ours

are think also So a exciting feature helpful. than and positive, we’ve to seen of in that need the and is in than further really still had thousands I work round they started Services have early performance platform. us has of this is Gaming do three the And but of months. makes going as some less We ever they’ve sets what the to been And lot for feedback really space. seeing studios projects out Unity using we really that excited these smaller before

Brent Bracelin

and been the eight and have thanks busy, of for seeing XX again question. Project my study you implies instead really you so great taking

Ingrid Lestiyo

Thank you.

John Riccitiello

Thank you, Brent.

Richard Davis

have one up and question Well, Thank have is Martin There go. -- for you we time at one from Oppenheimer. it. Yang. last you. There right. Get All

Martin Yang

tools. have you about digital taking providing Thank digital venues creation now question. to a their lot direct question my around for more for through creators you think And you monetize do Unity? My creations How is avatar. Hi.

John Riccitiello

pieces lot there’s of lot a that. of in A --

A portfolio. When truly that the Weta thing to the I that a a movies avatars, the can the just Ziva, with Weta have that. second I the of water the are think you I swimsuit lady, don’t hand, think, mean, me look stuff we a one all throwing things acquisition want bit and at average just and show my Let in for young than not. Marvel idea other more do the of more our to of currency fun to market some want I seems one --I and like we’re by the is have now are exist. a with in lot to my with But the gotten that that is, idea creator avatar, Look to dynamic want really lot an than she create avatar. in it sword tools. probably little have think at going on I created in deserves RPG going doesn’t Avatar my things people of try we that’s up am saw if

Unity. do can anything You in

creation that are see amount is sense on of huge a side. going my to we So that

again, But see going asset this. to I creations. also more ask you You’re comes of some these interesting when what’s directly think to it didn’t something,

And a is own way. interesting played game of strength is real-time smart assets enabling blockchain. in might an have know in that have to the Now hot the JPEGs and that a the most on assets really can want consumer What’s XD are one things who NFT’s Utility. a setting printed asset resilience. and Utility, a just trail that up how we’re for has these them today on Anybody

So can underlying built registries upon the value of traded. and be

of lot opportunity. so And see a we

see a and looks look bit out miserable doing a like, Ponzi of lot of there little some things also We charlatans will them like pretty some it schemes.

way, the wide is the realize are to s eyes to of world our with we Unity’ part multiple creators of truly -- them the landmine. things having landmines. a opportunity the one get place we on creators stepping our that open, help is filled And platforms. to we when in we so huge And And suffer good thing enabled that started without believe

come the It’s most it for consuming it mean, is that like content on took to tools and platform year loss like, and Unity, tools some another out to built to expensive, for from platform resulted make of time was another that in a platform. platform it and with Before content the for one Android. do I game Supercell of Clans, took, they like, the best in was massive companies just them Clash world opportunity. things

about our them area clear for we the eyes we’ve that help so, about, our you’re solve lots these got ways help And customers. solve we problems our of one and we think has creators and wide can problems and asking open

Martin Yang

very you Thank much.

John Riccitiello

right. All

Richard Davis

talk to if that’d John, you to just Well, much. good Stanley close like, Morgan of want It’s let conferences I’ll very so you this be to great. But Wolfe be quarter. have thank [ph], about. John you conclude. Diawu lot we’ll up, a of know, things kind just But and the at Berenberg,

John Riccitiello

Well, those Coast. hey, Good being enjoyed on right. All it. us But today. we you Coast. Good everybody. to for East West We did the the with hope you Thanks of afternoon evening too. on

again. thanks So

Luis Visoso

everyone. Thank you,

Unity Software (U) 4 Feb 222021 Q4 Earnings call transcript