What changed in this filing

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Item 1. Business

2025-02-21 compared with 2024-02-29 · 21 added, 25 removed, 75 unchanged (38% of the section changed)

Unity is the world's leading platform for creating and growing interactive, real-time 3D ("RT3D") content and experiences.

Our comprehensive set of software, including AI solutions, supports creators through the entire development lifecycle as they build, run, and grow immersive, real-time 2D and 3D content for mobile phones, tablets, PCs, consoles, and augmented and virtual reality devices.

Our platform is used by creators of all types - such as developers, artists, and designers - to build content for various industries, including gaming, retail, automotive, architecture, engineering, and construction.

Unity is the leading platform to create and grow games and interactive experiences.

We offer a suite of tools across all major platforms from mobile, PC, and console, to extended reality (XR).

Our comprehensive set of software, including AI solutions, supports developers through the entire development lifecycle – from prototyping to live service operation, user acquisition, and monetization.

Our platform is used by creators of all types - such as developers, artists, and designers - to build content in gaming and non-gaming industries, including retail, automotive, architecture, engineering, and construction.

Unity was originally founded as Over the Edge Entertainment in Denmark in 2004.

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We completed our initial public offering in September 2020 and our common stock is listed on the New York Stock Exchange under the symbol "U".

In November 2022, we completed the transactions contemplated by the Agreement and Plan of Merger (the "Merger Agreement"), dated July 13, 2022, by and among Unity Software Inc., Ursa Aroma Merger Subsidiary Ltd., a company organized under the laws of the State of Israel and a direct wholly owned subsidiary of Unity, and ironSource Ltd., a company organized under the laws of the State of Israel ("ironSource", and such transactions, the "ironSource Merger").

In November 2022, we completed the transactions contemplated by the Agreement and Plan of Merger, dated July 13, 2022, by and among Unity Software Inc., Ursa Aroma Merger Subsidiary Ltd., a company organized under the laws of the State of Israel and a direct wholly owned subsidiary of Unity, and ironSource Ltd., a company organized under the laws of the State of Israel ("ironSource", and such transactions, the "ironSource Merger").

Our platform consists of two complementary sets of solutions:

Create Solutions and Grow Solutions which together comprise our strategic portfolio surrounding the Unity Engine, Cloud and Monetization.

Create Solutions and Grow Solutions, which together comprise our "Strategic Portfolio" surrounding the Unity Engine and related consumption services, and Monetization.

Create Solutions

Our Create Solutions are a robust set of tools and services used to build, ship and run high-definition, real-time 2D and 3D content.

Designed for developers, these tools and services are used across a range of industries ranging from games to aerospace, construction to retail, medical to manufacturing, and beyond.

Designed for developers, these tools and services are used across a range of industries from games to automotive, aerospace, construction to retail, medical to manufacturing, and beyond.

Create Solutions includes our custom real-time 3D engine and development environment with a high-definition render pipeline;

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navigation, networking, user interface tools and more.

Enhanced by cloud services including asset management, DevOps tools and multiplayer game support, creators can leverage our products and extensibility to easily edit, run, and iterate interactive RT3D and 2D experiences that can be created once and deployed to a variety of platforms.

Enhanced by cloud services including asset management, DevOps tools and multiplayer game support, creators can leverage our products and extensibility to easily edit, run, and iterate interactive real-time 2D and 3D experiences that can be created once and deployed to a variety of platforms.

Grow Solutions

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• Grow Solutions:

We operate in a fragmented ecosystem composed of privately held companies up to select divisions of large, well-established companies.

We operate in a fragmented ecosystem composed of privately held companies up to select divisions of large, well-established public companies.

The large companies in our ecosystem may play multiple different roles given the breadth of their business.

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• cross-platform deployability;

• the pace and quality of new product innovation;

• the pace and quality of new product innovation, such as the rise of AI and machine learning and the increasing use of data and trained models;

• supply from publishers, who may also use channels beyond in-app advertising to grow revenue;

• product capabilities, including flexibility, scalability, performance, security, and reliability;

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Risk Factors" for a discussion of risks related to competition.

Unity Software Inc.

Privacy and Data Security

Creative assets, performance and user data are critical to our customers’ businesses.

We devote considerable resources to our security program, regularly testing the security of user assets utilized by our services, and developing easy-to-use features that content creators can leverage to enhance the

Unity Software Inc.

security of their creative products.

Our team of security practitioners, working in partnership with peers across our company, works to identify and mitigate risks, assess our security measures against industry standards and best practices, and continue to evaluate ways to improve.

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As of December 31, 2024, we had 256 issued utility patents in the United States that expire between 2031 and 2042, 34 issued utility patents in non-U.S.

jurisdictions, and 90 utility patent applications (including 6 provisional applications and 16 active PCT applications) pending in the United States and globally.

As of such date, we also had 1 registered design patent in the United States, 36 registered design patents in non-U.S.

jurisdictions and 4 pending design patent applications, 1 of which is in the United States.

jurisdictions, and 59 utility patent applications (including 3 provisional applications) pending in the United States and globally.

As of such date, we also had 1 registered design patent in the United States and 31 registered design patents in non-U.S.

jurisdictions.

While we believe our patents and patent applications in the aggregate are important to our competitive position, no single patent or patent application is material to us as a whole.

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In addition, our geographic diversification enhances our ability to retain and attract talent, and as of December 31, 2024, approximately 77% of our full-time employees were located outside of the United States.

In the fourth quarter of 2023, we initiated a number of steps to reduce our cost structure.

For example, we announced and substantially completed plans to scale back our office footprint by approximately 14 locations, and in the first quarter of 2024, we announced plans to reduce approximately 1,800 employee roles, or approximately 25% of our then-current workforce.

While we believe these steps were necessary to position Unity for long-term and profitable growth, we still believe that having a strong culture is essential for driving that long-term success.

Our culture is fueled by our commitment to our values, inclusion, and social impact, making Unity an attractive place for top talent to work and grow.

We invest in our culture in many ways, including a Unity Leadership Program run by senior leaders, frequent Town Hall meetings, executive roundtables, manager and employee development opportunities, and a global Workplace Experience team dedicated to curating local cultural events.

Unity's benefit offerings are designed to meet the varied and evolving needs of a diverse workforce.

Unity's benefit offerings are designed to help attract and retain our workforce.

Government Regulations

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Compliance with these laws, rules, and regulations has not had, and is not expected to have, a material effect upon our capital expenditures, results of operations, or competitive position, and we do not currently anticipate material capital expenditures for environmental control facilities.

Nevertheless, compliance with existing or future governmental regulations, including, but

Unity Software Inc.

not limited to, those pertaining to global trade, business acquisitions, consumer and data protection, and taxes, could have a material impact on our business in subsequent periods.

Nevertheless, compliance with existing or future governmental regulations, including, but not limited to, those pertaining to global trade, business acquisitions, consumer and data protection, and taxes, could have a material impact on our business in subsequent periods.

Refer to "Item 1A.

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Our investor relations website is https://investors.unity.com/ and we encourage investors to use it as a way of easily finding information about us.

Copies of our reports on Forms 10-K, Forms 10-Q, and Forms 8-K, may be obtained, free of charge, electronically on this website as soon as reasonably practicable after we file such material with, or furnish such material to, the SEC.

Copies of our reports on Forms 10-K, Forms 10-Q, and

Unity Software Inc.

Forms 8-K, may be obtained, free of charge, electronically on this website as soon as reasonably practicable after we file such material with, or furnish such material to, the SEC.

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-K

Item 1. Business