And we have kind of those two pieces. And it’s just a time to get those kind of fully pulled together to have single view of customer ability to engage and talk about how we can create value across that life cycle with our kind of portfolio of offerings. So there’s kind of the operational data-ish, I want to say stuff. And then there’s the broader, single view of customer and be able to act that way set of stuff.
Luis Visoso: Yeah, I agree, Jim. And if I were to add something, I would just say this is unique to us, right? We were the only Company has both create and operate or grow businesses. And that’s very valuable to us and to our customers. And remember we have over 70% market share on the editor, particularly on mobile. So that gives us a very strong base to build upon.
Richard Davis: And then, yep, Michael Funk at Bank of America.
Michael Funk: Yes, thank you, Richard. And Jim, I really, I appreciate the brass tacks opening letter today as well. But just wondering, you did mention that there was limited impact from the pricing change and bled over into the fourth quarter. What have you been doing to reach out to the game developers and rebuild that trusted relationship with them?
James Whitehurst: Well, a couple of — obviously I’ve been talking to a number of them. And it’s one of these, I think almost all of them that I’ve talked to or others that I’ve talked to in Unity, who’ve talked to them, start off with game developers who were upset by the first action. Once you actually get people to focus on the next set of things we did, the first thing you hear is like, oh, okay, well that all makes sense. I’m actually good with that. So the changes we then went back and tweaked, I think helped a lot. But honestly, the biggest thing that helps is when we talk about the future feature velocity we’re driving. I was talking with someone here who had just met with the game developers, started off very, very negative.
But as soon as we started getting into some of the features we’re driving, all of a sudden they went from, we don’t even want to deal with you, to, ooh, can we be an early beta customer? And can we actually potentially get in there and help draw some feature set into that? That’s right what we’re trying to do. So I think the most important thing is we can talk, I’ve been saying this internally at Unity quite a bit, having dealt with communities in the past, we can talk all we want, but our behaviors are what will rebuild trust. And the behaviors are how we make decisions going forward and how we are taking those dollars and reinvesting them efficiently and effectively to build extraordinary product. And so Unite next week, we’ll have a number of product launches.
And I think really kind of focusing on the value we’re delivering, we’ll kind of — get that buzz replacing kind of noise around, well, what are they doing.
Michael Funk: And one more, if I could, I think a lot of investors are wondering about the decision to pull guidance for the year. What was that based on your view of best practices as a new CEO coming in and assessing the business?
Luis Visoso: Well, I’ll tell you my view- And that’s based on something called the numbers.
James Whitehurst: Yes, no, and a lot of people are grumpy about that. Look, the problem when you are looking to, bluntly wind down or get rid of some businesses, which is part of what we’ll do, is the longer you wait to do it, the better your revenue looks in the short run. And I want zero incentive for anybody here to slow anything down. We need to move and we need to move fast. And the faster we move, the better shape we are. So we will plummet all out after the fact for you. You’ll know exactly, we’ll be completely transparent. But what I don’t want to have happen is people say, well, we kind of guided this. And so if we just wait another month before we do that, maybe we don’t close that till January 1, instead of November 30, you can make the numbers look better.
But I want to emphasize, we got to move fast and we got to be decisive. And we’re going to emerge, I will say, I think we’re sandbagging when we say by the end of Q1. I’m hoping we can do it a lot faster than that. The faster we can get these things done, the faster we have kind of reset and we are focused, the better. And I want zero incentive for anybody to do anything but that. So it was not a popular move, I can tell you, to say we weren’t going to do it. But I think it’s better to move fast and then be transparent after the fact. And I promise you, after that, we will be reset. We’ll be confident in our numbers and we will provide guidance for Q1 in the year and give you all the color and clarity you want. I just in this period of time, I think it’s important that we have no barriers to moving fast.
Richard Davis: And then next is Brian Fitzgerald at Wells.
Brian Fitzgerald: Thanks, guys. I had a couple if I could on UGS letter noted tough year over year comps, just hoping you give sense for how that business form relative to expectations for the quarter and whether there is anything waiting on that part of the business. And maybe second one follow up to that is, can you comment at all on iron source cross sell opportunity and where you think the business stands right now when you say in the shareholder letter that the company is not achieving the selling synergies and that exists across the portfolio? And then thirdly, are we right to assume that that’s what you’re talking about there or maybe that’s where the softness in UGS comes from?
Luis Visoso: Yeah, I think. Go ahead, Jim. Do you want to start?
James Whitehurst: If you want to kind of give performance expectations, I’ll give you a sense of what I meant by that not performing across.
Luis Visoso: Yeah, I mean, we don’t want to single out any business because we’re not ready to share specifics on whether a business is inside or outside of the portfolio choices. But I will address your question. UGS, frankly, we didn’t have the quarter we expected on the business. And therefore, I’d be very transparent about that. And we need to continue to drive our business and grow faster. So I’ll give you that piece.
James Whitehurst: I’ll just say I will use that as an example. When I say that, I actually mean broadly across the portfolio, but I’ll pick on UGS. I think UGS has been quite successful selling into gaming. But if you actually look at the correlation between, say, something like multiplayer and Unity made with Unity games, it’s actually quite low. And so what I want to make sure that we’re doing is win where we have the right to win, which is around our Unity ecosystem. So I’m not saying it’s awful revenue to go sell multiplayer and a Unreal-based game. But fundamentally, the place where we have the right to win and should win is things around Unity. And so what I’m looking at across our portfolio is making sure the things that we do are self-reinforcing.
