In extended trading, Unity's shares plunged by as much as 18.5%, unveiling cost-cutting measures despite a significant yearly revenue surge of 57.2%, reaching $2.19 billion in 2023.

The company's recent financial report revealed a net loss of $826.3 million for the year, marking a 10.1% reduction compared to the previous year. Unity confirmed that its restructuring efforts resulted in a 25% reduction in its workforce, coupled with office closures and other measures aimed at trimming $250 million in annual non-GAAP operating expenses.

In a strategic move, Unity announced its departure from businesses where it believes it cannot offer unique value to customers or generate satisfactory returns for investors. Consequently, its Professional Services unit will now focus on selected strategic engagements, while exiting the hardware components of its multiplayer business.

Despite the challenges, Unity reported a revenue boost of 35% year-over-year in the fourth quarter, totaling $609 million. This increase was partially attributed to a $99 million deal with Weta FX for the use of Unity's Weta tools. Unity had previously acquired Weta Digital's visual effects tools and team in a $1.6 billion deal in December 2021 but terminated the partnership in November, resulting in layoffs.

The company's Create Solutions division witnessed a 47% year-over-year revenue increase to $290 million in Q4, with the Weta FX revenue factored in. However, excluding the Weta FX revenue, sales would have declined by 4% year-over-year to $190 million.

Meanwhile, Unity's Grow Solutions business recorded a 26% year-over-year sales increase to $319 million in Q4. However, revenue remained flat compared to the previous quarter, attributed to fierce market competition and challenges stemming from the Runtime Fee controversy.

Looking ahead, Unity forecasts revenue for 2024 in the range of $1.76 billion to $1.8 billion, indicating a decline from the $2.19 billion generated in 2023. Despite the projected decrease, the company remains focused on optimizing its operations and delivering value to its customers and shareholders in the evolving landscape of technology and gaming.

Source: adapted from an article by Craig Chapple, Head of Content for PocketGamer.biz.