Unity: Mobile Game Engagement at an All-Time High
Unity delivered a very strong quarter, easing investors' concern over the impact of iOS privacy change. Revenue reaccelerated to 48% YoY, the dollar-based net expansion rate stayed at 142%, and the management raised its full-year revenue growth guidance again to 35-37% YoY. Unity also announced the acquisition of remote streaming technology company Parsec for $320 million in cash.
By segment, Unity's Create revenue was up 31% to $72 million, while Unity's Operate revenue was up 63% to $183 million. Management believes that the "seat-based" Create segment still has enormous growth potential despite the high penetration. The confidence mainly comes from the new gaming technology such as VR/AR and metaverse, which require five times more artists than technologists. On the other hand, Unity's "usage-based" Operate segment benefited from a)strong mobile game engagement and b) Unity's unique strength in competing with other advertising networks for its extensive in-house proprietary data.
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"We're actually very pleased with the engagement metrics that we see. Globally, we are seeing more unique active users than ever before. And if I look back and look at 2020, the pandemic spike that started to decline a little bit in the fall of 2020, but then quickly ramped back up over the wintertime and led to 2021 having an all-time high unique user count globally. "-- Luis Visoso, Unity CFO
"It seems like the world may be moving into more of a closed and silent platform based on first-party data. Here we have the advantage. We've got our own proprietary data." -- John Riccitiello, Unity CEO
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