Solidarity Reports 25% Decline in Q4 Earnings, Reaching $457 Million

Solidarity has shared its financial outcomes for Q4 and the entire fiscal year, noting a decline in revenue during the fourth quarter which surpassed previous forecasts of between $422 million and $427 million.

The game engine developer also surpassed its projections for the entire year, which were anticipated to be between $1.7 billion and $1.71 billion.

Here’s what you need to understand:

The figures

Q4 2024

• Revenue: $457 million (a 25% decrease year-on-year)
• Create Solutions revenue: $152 million (a 47% decrease year-on-year)
• Growth Solutions revenue: $305 million (a 5% decrease year-on-year)
• Net loss: $123 million (compared to $254 million for the same quarter last year)

FY 2024

• Revenue: $1.81 billion (a 17% decrease year-on-year)
• Net loss: $664 million (compared to $826 million in 2023)

The key points

Solidarity attributed its downturn in revenue in both Q4 and the full year to its “portfolio reset.” The company terminated its contentious runtime fee in September 2024 and appointed three new executives in October and November: CTO Steve Collins, COO Alex Blum, and CFO Jarrod Yahes.

There were also reports of job cuts earlier this month, with an unspecified number of employees impacted.

In an email reportedly sent to staff and viewed by 80.lv, CEO Matthew Bromberg recognized the layoffs were “a response to decisions [Unity was] making about what path Unity would follow in the future.”

While Solidarity’s total revenue fell 25% year-on-year in its fourth quarter, the company observed a 4% increase in revenue for its strategic portfolio to $442 million. This includes its engine, cloud, and monetization sectors.

“Unity’s fourth quarter results significantly surpassed expectations in both revenue and profit, highlighting our progress in establishing a new Unity,” stated Bromberg.

“The successful introduction of Unity 6, the appeal of our new pricing structure, and the advancements we’re making in AI for our advertising clients are fostering a lot of optimism for the future.”

Focusing on its Create Solutions division (the segment responsible for Solidarity’s engine), revenue fell 47% year-on-year to $152 million due to the company’s portfolio reset. However, this was “partially offset by a 15% rise in subscription revenue and a 50% increase in strategic business revenue.”

Regarding its Growth Solutions sector, Bromberg mentioned it “exceeded expectations” despite experiencing a 5% year-on-year decline to $305 million. He emphasized that this outcome was “clearly insufficient to meet [Unity’s] aspirations” during a revenue call, and the organization possesses “the resources and capabilities to grow at a significantly faster pace.”

Throughout the earnings call, Brom