Thread by @investing_city

1/

Some notes on Unity's S-1

• 142% expansion rate last quarter
• 53% of top 1,000 mobile games were built on Unity
• 1.5 million monthly active creators

Two main revenue segments:
1. Create: engine for making & deploying content
2. Operate: content monetization

[THREAD]

2/

Last 5 quarters of YoY revenue growth:
45%
38%
36%
35%
42%

Last 5 quarters of EBIT margins:
-25%
-32%
-31%
-16%
-13%

Last 5 quarters of gross margins:
78%
80%
81%
81%
78%

3/

Last 5 quarters of customers who spent > $100k:
515
553
600
668
716

Added 48 new enterprise customers last quarter (Q2). The year before that, it only added 9. Customer growth has been accelerating.

YoY customer additions:
101
111
116
162
201

4/

More notes:

• 55% of creators who spent more than $100 used both, Operate and Create solutions.

• 38% of revenue is from EMEA, 32% from APAC and 30% from Americas

• Enteprise customers accounted for 74% of revenue

• Primary competition: Epic's Unreal Engine

5/

More on Create solutions:

"a robust software development engine that comprises a suite of technologies, configurable through the Unity editor user interface, including custom scripting tools, a high-definition render pipeline, graphics, animation and audio tools..."

6/

More on Operate solutions:

"Our user acquisition products enable advertisers to efficiently acquire new end-users at scale. They operate within our monetization ecosystem, which reached over two billion monthly active end-users as of June 30, 2020..."

7/

Example of customer list

8/

Using Google Cloud instead of AWS:

"With respect to the Google Cloud Platform, we are party to a cloud service agreement with Google, pursuant to which we are committed to spend an aggregate of $189.0 million between December 2018 and December 2024."

9/

• 64% of full-time employees are outside the US
• John Riccitiello, the CEO, used to be CEO and COO of EA

• Joachim Ante, one of the founders, started writing code for Unity as a teenager. He stepped down from the board this month. Maybe he didn't want to go public?

End/

There's a lot more here. I'm excited to study this one.

You can find the full S-1 here: sec.gov/Archives/edgar…