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

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John Riccitiello: Okay. So let me give you this in a sort of a time phase way. In the present moment, we are winning customers in mediation, which is a very lucrative outcome for us, an important driver of the EBIT performance we’re going to see through the year. That added market share and not added share of wallet yields a more profitable Unity. Now it’s happening precisely right after the acquisition because what we are carrying to market is a message. And the message is the power of the combined data platform, the power that drives a better performance for our customers. Now these are things that are, if you will, that come about as a result of a presentation. Now the second thing we’re doing now is we are engineering in €“ for example, supersonic indoor editor to make it an easy platform for our customers to take their products directly to market without ever leaving the environment.

There’s a lot of places where the tool set, whether it’s Luna or it’s supersonic or it’s parts of LevelPlay and the integration and where it shows up into the mix, where our customers are going to take advantage of a more performant platform for them to create, to publish user require or monetized directly. And there are some things we can do there, which is more about engineering in, and that’s what we’re working on right now. That combination of we’re a better story. They want to be part of something that’s bigger and better is the starting point. The second point is to engineer in the advantages that our customers need and want. And it’s more than just supersonic and LevelPlay. It’s the two networks, ironSource, et cetera. So also all of the create tools, for example, whether it’s Artistry, as we bring AI to the equation as we bring simulation to the equation, things that they need for better content creation, more cost-efficient content creation.

And so it’s UGS, which is part of the platform, which is what’s enabled us to find success in that space. So really what it’s about, and I hate to wax on about synergy. Synergy is partly about the story, but it’s more about engineering a simpler single source of truth, single source of opportunity, single platform for our customers to leverage to find a more successful business for themselves. As I said, we’ll be talking about this each and every quarter for probably years to come.

Richard Davis: Great. Well, I mispronounced your name Arsenije from Wolfe. But please ask your question. Thank you so much.

Arsenije Matovic: Can you guys hear me?

Richard Davis: Yes.

Arsenije Matovic: This is Arsenije on for Gal. Thanks for taking my question. I wanted to ask whether you could parse out roughly what the growth of non-gaming create was, excluding Weta and UGS in 4Q? And then I had a quick follow-up.

Richard Davis: Luis, you have that?

Luis Visoso: Yes, we’re not providing it by quarter, right? We put in the node, you see very strong growth, 118% is the exact number for the year, for non-gaming, that includes the weather growth, which we isolated before. We told you at the beginning of the year, that would be about $70 million. The other thing that you saw is an increase as a percentage of our business. On a comparable basis, we went from 40% that we announced six months ago to about 41%. So that would be on a comparable basis based on the old structure that we’ve been reporting before. So we’re clearly seeing an acceleration in that business, and we expect that to continue into 2023.

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