In this video, I will cover Unity's (U 4.71%) recent Q2 earnings report as well as talk about its acquisition of Parsec, the desktop-capturing application primarily used for playing games through video streaming. You can find the video below.
Earnings highlights
The company reported revenue of $273.6 million, up 48% year over year. This is divided into three revenue sources: the "create solutions" segment, which came in at $72.4 million, up 31% year over year (YOY); the "operate solutions" segment, with revenue of $182.9 million, up 63% YOY; and "strategic partnerships and other," with revenue of $18.3 million, up 9% YOY. Customers that generate more than $100,000 of revenue per year reached 888, up from 716 last year. The dollar-based net expansion rate (DBNR) stayed flat at 142%.
Unity raised guidance by another $45 million for the full year. It raised full-year guidance in the first quarter as well, by $50 million.
New acquisition
Unity will acquire Parsec for approximately $320 million in cash. As the world moves toward a more hybrid workplace, a company like Parsec will add tremendous value to the services Unity offers today and in the future. Not everyone has a home computer that can manage heavy work tasks, and Parsec solves that problem. Parsec is also not new to the scene, it has been working with gaming giants such as Electronic Arts, Ubisoft, and Square Enix as the go-to solution for hybrid work.
For full insights do watch the video below.
*Stock prices used were the closing prices of Aug. 10, 2021. The video was published on Aug. 11, 2021.
