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

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Dylan Becker: Super helpful. Maybe if we can talk on it, we haven’t spent a ton of time on the Aura piece of the business as well. Maybe some near-term device headwinds there, but how do you guys think about the opportunity for global connectivity going forward and potential monetization opportunity and touch points being afforded by being embedded across a lot of €“ a significant number of those devices as well. Thanks.

John Riccitiello: Aura is a €“ for those of you who don’t know, it’s a very strategic business for us. It came along with the ironSource acquisition. It’s a device management business. They operate at the carrier level, but around the app store. And it’s a business where we drive a great deal of data, but we also drive meaningful revenue from it. Our offering, we believe, is well differentiated from the principal competitor in this space Digital Turbine. And it’s another area where we can’t get too specific because when we talk about winning market share, it’s like winning a major national carrier. So these deals are not like you pick up 0.5 point a day. These are €“ or 0.5 point a quarter. These are material trends. And we are confident that we’re gaining here.

We have been prior to Unity’s ownership, and we expect to going forward. I would love to show you what our pipeline looks like. It would make you happy, I think, to hear what our pipeline looks like. But it’s something I can’t get into further detail on, but we feel really good about that business. It’s €“ if you think about €“ if you’re a Unity, we’d love €“ if you take, for example, a mobile ecosystem, we love that we’re the leading platform for creation on both the app stores. We’d love that we’re one of the leading monetization user acquisition platform across the entire industry. We love that we’ve got a meaningful device management, both same devices. We love that these things come together to create an end-to-end platform that makes what our customers do more successful when they use our platform.

It’s that end-to-end, highly synergistic platform that differentiates Unity from anyone and from everyone. And we feel really good about our ability to bring all that together synergistically. And again, as I said, Luis and I are going to be saying about synergies now for years to come. It is €“ it’s our theme song.

Dylan Becker: Super helpful. Thanks, John.

Richard Davis: We won’t ask you to do a do it here, but maybe later. So at Goldman Sachs. I think we got you on there now.

Unidentified Analyst: Yes. Hi, everyone. It’s Gilly on for Kash. Thanks so much for circling back and congrats on the strong 4Q. Can we just quickly touch on any customer behavior you are seeing €“ now they have Unity and ironSource under the same HUD and a decision to ultimately keep supersonic in your growth category, kind of what was the rationale behind that?

John Riccitiello: I’m not sure I quite get the customers that we’re getting because of work together?

Unidentified Analyst: Yes. Or any synergies you’re seeing between creating growth at this point if the ironSource deal kind of helped you in getting customer synergies just to utilize that word as well.

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