Unity Software Inc Stock Price, News & Analysis

Unity (U) has announced the development of Survival Kids, a day-one launch title for Nintendo Switch 2, in collaboration with KONAMI. This marks Unity's first end-to-end game development partnership with a publisher, built entirely on Unity 6 for Nintendo Switch 2.

The project has served as a practical testing ground for Unity's engine capabilities, incorporating features like URP, Netcode, Lobby, and Relay services. According to Adam Smith, VP of Unity Engine Product Management, this development experience has provided valuable insights for improving the engine's performance and stability.

The game represents a significant partnership between KONAMI and Unity, featuring new co-op mechanics and multiplayer functionality while maintaining the classic survival gameplay elements.

Unity (NYSE: U) has announced official support for Nintendo Switch 2 through Unity 6 platform. The company has validated its support through hands-on development of a day-one launch title, gaining valuable feedback to enhance the engine capabilities.

The support package includes key features such as Rendering and Performance Optimization with Universal Render Pipeline (URP), Spatial-Temporal Post-Processing (STP), and GPU Resident Drawer. Unity is also implementing end-to-end multiplayer solutions and enhanced developer documentation.

Developers will benefit from full compatibility with Unity 6 features, including the new input system, Build Profiles, and Incremental Build Pipeline. The platform will facilitate porting existing Nintendo Switch games to Nintendo Switch 2, though developers must be approved by Nintendo to access these capabilities.

Unity (NYSE: U) has announced significant updates to its game development platform with three Unity 6 Updates planned for 2025. The first update, Unity 6.1, launching in April, promises enhanced performance features including higher frame rates, smoother gameplay, and lower CPU/GPU load.

The platform is expanding support beyond its current 20+ platforms to include large and foldable Android screens, Meta Quest, Android XR build profiles, and Instant Games, with WebGPU support for compatible browsers. Later 2025 updates will introduce AI-driven workflows and tools integrated directly into the Editor.

According to Unity's annual Gaming Report:

• 96% of developers are already using AI tools in their workflows
• 64% of developers are working on multiplayer games
• 62% are focusing on existing game investment
• 90% launched their recent games on mobile
• 45% seek workflow streamlining tools
• 55% prioritize end-to-end tech stack support

Unity Software has announced the pricing of $600.0 million in 0% Convertible Senior Notes due 2030, an upsized offering from the previously announced $500.0 million. The company also granted initial purchasers an option to purchase up to an additional $90.0 million in notes.

Unity expects net proceeds of approximately $586.8 million (or $675.0 million if the additional purchase option is exercised). The company plans to use about $38.6 million for capped call transactions and the remaining proceeds, along with cash on hand, to repurchase approximately $644.3 million in aggregate principal amount of its 2026 Notes for approximately $600.0 million.

The Notes will mature on March 15, 2030, with an initial conversion rate of 27.6656 shares of Unity's common stock per $1,000 principal amount, equivalent to a conversion price of approximately $36.15 per share (a 32.5% premium to the February 24, 2025 closing price).

Unity Software (NYSE: U) has announced plans to offer $500.0 million in Convertible Senior Notes due 2030 through a private placement to qualified institutional buyers. The company will grant initial purchasers an option for an additional $75.0 million in notes.

The notes will be unsecured obligations with semiannual interest payments. Upon conversion, Unity will pay in cash, common stock, or a combination thereof. The proceeds will be used to fund capped call transactions and repurchase approximately $500.0 million of its existing 2026 Notes.

Unity plans to enter into capped call transactions to reduce potential stock dilution and offset cash payments beyond the principal amount of converted notes. The company may use remaining proceeds for general corporate purposes, including additional 2026 Notes repurchases, acquisitions, working capital, and capital expenditures.

Unity (NYSE: U) reported Q4 2024 financial results with revenue of $457 million, down 25% year-over-year. The company's strategic portfolio revenue grew 4% to $442 million. Create Solutions revenue was $152 million (down 47% YoY), while Grow Solutions revenue was $305 million (down 5% YoY).

For full-year 2024, Unity recorded revenue of $1,813 million, a 17% decrease from 2023. The company reported a GAAP net loss of $664 million with a margin of (37)%. Adjusted EBITDA was $390 million with a 21% margin. Free Cash Flow improved to $286 million from $179 million in 2023.

Looking ahead, Unity provided Q1 2025 guidance with expected revenue between $405-415 million and Adjusted EBITDA of $60-65 million. The company highlighted the successful launch of Unity 6, new pricing model implementation, and progress in AI advertising solutions.

Unity (NYSE: U) has been selected by Toyota Motor to develop the Graphical User Interface (GUI) for Toyota's next-generation in-car Human Machine Interface (HMI). The partnership leverages Unity's real-time 3D technology, developed through extensive gaming industry experience, to enhance Toyota's HMI development pipeline.

The collaboration aims to improve efficiency across design and engineering stages by reducing rework, optimizing development processes, and streamlining data management. Toyota's Digital Software Development Center is developing in-house 'digital cockpits' to connect drivers, vehicles, and society, involving hundreds of software engineers in developing instrument clusters and infotainment systems.

According to Toyota, Unity's technology has simplified the implementation of advanced 3D graphics, making it more accessible to newer engineers and significantly improving development efficiency.

Unity (NYSE: U) has announced it will release its fourth quarter and fiscal year 2024 financial results before market opening on February 20, 2025. The company will host a webcast at 8:30 a.m. ET/5:30 a.m. PT on the same day. Investors can access both the financial results and webcast through Unity's Investor Relations website at investors.unity.com, where a replay will also be available afterward.

Unity (NYSE: U), renowned for its game development platform, announced that Jarrod Yahes will be the new SVP and Chief Financial Officer effective January 1, 2025. Yahes, previously CFO at Shutterstock, led significant expansions in 3D content and digital advertising. Unity's CEO, Matt Bromberg, praised Yahes' operational and growth expertise. This follows the recent hiring of Steve Collins as CTO. Unity emphasizes its unique position in supporting developers throughout the game lifecycle. The company will release its Q3 2024 financial results today, November 7, 2024, followed by a webcast at 2 p.m. PT/5 p.m. ET.