Unity Technologies raised more than $ 1.3 billion through an initial public offering (IPO). $ 13.6 billion. USD. Unity develops tools for developers to create games and other computer-generated entertainment.
San Francisco-based Unity has submitted its application S-1 statement a month ago, with the U.S. Securities and Exchange Commission, it first disclosed its financial data. Some people were worried about how much money the company was losing, but others were impressed by the long-term stability of its subscriber base. Earlier this week, Unity valued its shares at $ 44- $ 48 per share range, higher than the previous $ 34-42 per share range, as feedback from potential investors was more positive than expected. It opened at $ 52 per share under the $ U symbol.
2019 San Francisco’s Unity game engine maker, which used $ 1.5 million a month. Active games and other content development reported a loss of 163.2 million. USD revenue, ie 541.8 million. USD. 2018 The company reported 131.6 million. USD loss of $ 380.7 million.
During the first six years of 2020. For months, Unity announced that in 2019. The loss was 54.1 million. USD, with revenue of $ 351.3 million. USD, compared to 67 million USD. USD loss when in 2019. Revenue was $ 252.7 million. USD. All in all, Unity has lost 569.3 million to date. Unity’s line of credit has about $ 125 million in debt, so IPO money will go a long way in raising the company’s cash when it works in a profitable business.
Unity is one of the most important gaming technologies, as the software developed with its tools runs on more than 1.5 billion devices. Unity said its platform is used by more than 50% of mobile games, PCs and consoles. Its competitors include Epic Games’ Unreal Engine, as well as more specialized engines such as Cocos2d. Unity estimates that its target market is $ 29 billion for games and entertainment such as TV commercials or cartoons. Unity games include Fall Guys: Ultimate Knockout, Township, Ori and the Wisps Will, and Oddworld: Soulstorm.
To mark the occasion, Unity’s 3379 employees participated in a virtual 3D bell on the New York Stock Exchange on Friday morning. It was the first on the NYSE. Unity’s motto is “the world is a better place with more developers.”
In a presentation before the IPO, John Riccitiello, CEO of Unity, said the company described the event as a UPO, where Unity’s own management team chose the investment bankers who chose the investors, rather than the one who received the initial allotment. The deviation from the usual IPO practice had to be based on data and to select investors with whom Unity wanted to work and to find people who wanted to keep stocks longer.
“We wanted to choose investors we are proud to work with,” Riccitiello said.
While Unity earns money on subscriptions, it is also heavily dependent on revenue advertising. It’s a tough business right now, and it’s becoming increasingly confusing Apple’s recent decision remove the Identifier for Advertisers (IDFA), which is similar to a cookie that helps advertise in a targeted way. Apple is doing this for the sake of privacy, although it has recently postponed retirement as the games and apps industry develops new advertising methods. Mobile advertising may be more difficult and may affect Unity.
Unity said one risk factor is dependence on operating system developers who can change their business practices or policies.
Unity faces tough competition from Unreal Engine, reinforced by Epic’s success with Fortnite. Based on information received by GamesBeat, Epic Games announced that in 2019. Revenue amounted to $ 4.2 billion. USD. Epic has recently raised several funding rounds for evaluation 17.3 billion USD. The rounds included $ 250 million from Sony, which owns 1.4% of the company. However, Epic Games is closed in a heavy antitrust lawsuit accused Apple of monopolistic abuses in the mobile gaming market.
Unity said its engine has games and other apps available for download of $ 3 billion a month. The company said developers are launching about 150,000 new projects in 190 countries every day.
The game engine “Unity” differs from “Unreal” in its origin. Founders David Helgason, Nicholas Francis and Joachim Ante started it in 2004. As a gaming company. Their first game failed, but they found that the tools they developed to simplify game development were a commercial opportunity, and they turned to the “democratization” game development mission. They were designed for both 2D and 3D content, especially for the nascent mobile gaming industry. When the iPhone went live in 2007, Unity began to rise. It is now moving to higher quality works and tools in competition with the Unreal Engine PC and console. The two companies meet in the competitive middle, with Unity coming from the lowest class and Epic Games coming from the top.
Game engines are now very important because they save developers time. They once write games for an engine that converts code so that it can run across a variety of platforms, which has multiplied over the years. 2014 Riccitiello, the former CEO of Electronic Arts, has replaced Helgason, the CEO. Recently, Unity has been expanding not only in the gaming industry but also in other entertainment, as well as acquiring companies such as Digital Monarch Media, DeltaDNA, Vivox, Artomatix and Software code. Everything said that Unity from 2019. Initially, it acquired eight companies, and since 2011.
Clients include game developers, artists, architects, filmmakers and car designers. Unity noted that during the first 2020 Half-year had 515 customers with revenues in excess of $ 100,000. The company said its financial activities are its ability to sell and expand subscriptions with customers as well as attract new customers. About 76% of revenue comes from outside the US
Unity, meanwhile, raised a lot of money for an ever-increasing rating. 2019 May. Unity raised $ 150 million USD, valued at $ 6 billion. USD, in addition to the $ 600 million previously raised. Unity has invested heavily in research and development, with more than $ 450 million invested in the last two financial years.
Unity’s major shareholders are Sequoia Capital, which owns 24.1 percent, followed by Silver Lake Partners subsidiaries with 18.2 percent. And JA Technologies – 8.2 percent. Unity plans to use the money for its financial flexibility and the company’s overall goals, as well as pay 125 million. USD debt from your credit facility. Riccitiello owns 0.4% of the company and Helgason owns 4.4%.
The company noted that games continue to be the fastest-growing media segment, with game developers engaging in external solutions such as Unity rather than building their own game engines.
In terms of risk factors, Unity cited its loss history and stated that “it may not achieve or maintain profitability in the future” as well as a limited operating history. Its growth may be limited if it is unable to expand into new industries and markets remain competitive. Unity is classified as an “emerging growth company”, which means that it is not subject to so many reporting requirements. For example, it only needs to include financial data for two years in the IPO registration. Unity has not yet indicated how much it will collect, as this will be after the next steps in the IPO process.
June 30 Unity had $ 453.2 million. Dollar net and total assets of $ 1.29 billion. Unity said in the first half of 2020. More than 15,000 new projects were launched in its engine every six months. Unity-based players in the six months ended 2020 On June 30, more than 8 billion hours of play were recorded per month. Unity developers developed more than 8,000 games and applications a month in the same six months.
Unity said on June 30 1 879 employees worked in research and development. This represents about 56% of its total staff.