Unity Software Inc. (NYSE:U) Q4 2022 Earnings Call Transcript

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But just this morning I was going through one tool in particular that we expect to have a favorable outcome for our combined ad network based on bringing a tool from one side of the equation to the other side of the equation. And then beyond that create to grow, they’re doing the exact thing at a higher level. So that’s happening. Aura, you talk about Aura relative to non-gaming. For those of you that don’t know part of what Aura does is it drives installs of game and non-game applications on Android devices around the world on based on carrier relationships. That essentially puts us in the ads business and gaming. And I believe you’re absolutely right to point out that driving installs outside of gaming represents a significant opportunity for Unity.

And some of those are going to be our create customers. But that is something that we don’t have a specific plan for today. Although we’ve certainly talked about it. So we’ve been focusing on the very obvious and most important synergies for that end-to-end platform. And there’s a few things that are sort of next quarters conversation and that particular one is more of next quarters conversation internally to Unity.

Tim Nollen: Excellent. Thanks for that.

Richard Davis: Okay. And if I slip in two more and finish up. So first we’ll start with Jonathan and then we’ll conclude with Franco.

Unidentified Analyst: Okay, great. Can you hear me?

Richard Davis: Yes.

John Riccitiello: Yes.

Unidentified Analyst: Great. Thanks for letting me get in here and ask my questions. Actually, most of them have already been answered. Just wanted to ask then the rationale behind combining strategic partnerships and to create, I mean, it makes sense that you would have create, add some of the stuff from operate and operate to become grow. But why would you and not leave strategic partnerships separate like you have before? Thanks.

John Riccitiello: The majority of the revenue is very create centric, pretty simple. These are often deals where revenue is derived from a platform holder to enable create, to work better for their platform. And so it was more pattern matching here. It was like, this is very much like a create business. We’ve held it out separately because it had a different sales cadence and a very different type of deal structure. But when we tried to figure out where to put all the different pieces post-merger, this was the obvious place for it. Luis, you might want to add to that.

Luis Visoso: Yes. I totally agree, John. And we manage the teams together, and that’s the cause of the synergies because one drives the other. So we thought that would be the most natural thing to do, Jonathan, but we’ll be transparent as I was at the beginning of this call and where we see volatility driven by strategic partnerships that we need to call out.

Unidentified Analyst: Okay. Great. Thank you.

Richard Davis: All right. Not the least, not the €“ but the last, Franco, why don’t you tee it up for finishes up.

Unidentified Analyst: Right. Yes, John. So on LevelPlay, you talked about some of the show can you have, and you rightfully noted the variability and the lead times. Can you speak to whether this is from developers that are new to €“ brand new to the market or are you leveraging the relationships on the ironSource side and getting someone that is perhaps a bigger scale, more mature players. And I guess, what is your strategy to gain business from some of the large publishers that are currently in other platforms?

John Riccitiello: For some reason, that broke up a lot from me on my end of hearing that. There’s like half the words, Richard, you catch the question, I can summarize it back.

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