Unity Software (U) 10-Q9 May 242024 Q1 Quarterly reportFinancial data

Company Profile

Cover

Cover - shares	3 Months Ended
Cover - shares	Mar. 31, 2024	May 01, 2024
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Mar. 31, 2024
Document Transition Report	false
Entity File Number	001-39497
Entity Registrant Name	UNITY SOFTWARE INC.
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	27-0334803
Entity Address, Address Line One	30 3rd Street
Entity Address, City or Town	San Francisco
Entity Address, State or Province	CA
Entity Address, Postal Zip Code	94103‑3104
City Area Code	415
Local Phone Number	638-9950
Title of 12(b) Security	Common stock, $0.000005 par value
Trading Symbol	U
Security Exchange Name	NYSE
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		390,861,717
Amendment Flag	false
Document Fiscal Year Focus	2024
Document Fiscal Period Focus	Q1
Entity Central Index Key	0001810806
Current Fiscal Year End Date	--12-31

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Current assets:
Cash and cash equivalents	$ 1,179,962	$ 1,590,325
Accounts receivable, net	621,184	611,723
Prepaid expenses and other	140,092	122,843
Total current assets	1,941,238	2,324,891
Property and equipment, net	122,783	140,887
Goodwill	3,166,304	3,166,304
Intangible assets, net	1,318,787	1,406,745
Other assets	204,151	204,614
Total assets	6,753,263	7,243,441
Current liabilities:
Accounts payable	18,862	14,517
Accrued expenses and other	302,207	307,704
Publisher payables	410,671	385,113
Deferred revenue	170,435	186,769
Total current liabilities	902,175	894,103
Convertible notes	2,236,415	2,711,750
Long-term deferred revenue	9,080	6,015
Other long-term liabilities	190,869	217,195
Total liabilities	3,338,539	3,829,063
Commitments and Contingencies (Note 7)
Redeemable noncontrolling interests	224,736	225,797
Stockholders' equity:
Common stock, $0.000005 par value: Authorized shares - 1,000,000 and 1,000,000; Issued and outstanding shares - 390,397 and 384,872	2	2
Additional paid-in capital	6,554,787	6,259,479
Accumulated other comprehensive loss	(7,760)	(5,009)
Accumulated deficit	(3,362,904)	(3,071,830)
Total Unity Software Inc. stockholders' equity	3,184,125	3,182,642
Noncontrolling interest	5,863	5,939
Total stockholders' equity	3,189,988	3,188,581
Total liabilities and stockholders' equity	$ 6,753,263	$ 7,243,441

CONDENSED CONSOLIDATED BALANC_2

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Mar. 31, 2024	Dec. 31, 2023
Statement of Financial Position [Abstract]
Common stock, par value (USD per share)	$ 0.000005	$ 0.000005
Common stock, authorized (in shares)	1,000,000,000	1,000,000,000
Common stock, issued (in shares)	390,397,000	384,872,000
Common stock, outstanding (in shares)	390,397,000	384,872,000

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Income Statement [Abstract]
Revenue	$ 460,380	$ 500,361
Cost of revenue	144,387	161,964
Gross profit	315,993	338,397
Operating expenses
Research and development	282,728	280,480
Sales and marketing	230,625	216,127
General and administrative	177,569	96,774
Total operating expenses	690,922	593,381
Loss from operations	(374,929)	(254,984)
Interest expense	(6,035)	(6,129)
Interest income and other income (expense), net	76,643	13,615
Loss before income taxes	(304,321)	(247,498)
Provision for (benefit from) Income taxes	(12,843)	6,205
Net loss	(291,478)	(253,703)
Net loss attributable to noncontrolling interest and redeemable noncontrolling interests	(404)	(672)
Net loss attributable to Unity Software Inc.	$ (291,074)	$ (253,031)
Basic net loss per share attributable to Unity Software Inc. (USD per share)	$ (0.75)	$ (0.67)
Diluted net loss per share attributable to Unity Software Inc. (USD per share)	$ (0.75)	$ (0.67)
Weighted-average shares used in computation of basic net loss per share (in shares)	387,151	375,909
Weighted-average shares used in computation of diluted net loss per share (in shares)	387,151	375,909

CONDENSED CONSOLIDATED STATEM_2

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Statement of Comprehensive Income [Abstract]
Net loss	$ (291,478)	$ (253,703)
Other comprehensive income (loss), net of taxes:
Change in foreign currency translation adjustment	(3,461)	3,157
Change in unrealized gains (losses) on derivative instruments	0	(327)
Other comprehensive income (loss)	(3,461)	2,830
Comprehensive loss	(294,939)	(250,873)
Net loss attributable to noncontrolling interest and redeemable noncontrolling interests	(404)	(672)
Foreign currency translation attributable to noncontrolling interest and redeemable noncontrolling interests	(710)	649
Comprehensive loss attributable to noncontrolling interest and redeemable noncontrolling interests	(1,114)	(23)
Comprehensive loss attributable to Unity Software Inc.	$ (293,825)	$ (250,850)

CONDENSED CONSOLIDATED STATEM_3

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) $ in Thousands	Total	Unity Software Inc. Stockholders' Equity	Common Stock	Additional Paid-In Capital	Accumulated Other Comprehensive Loss	Accumulated Deficit	Noncontrolling Interest	[1]
Beginning balance (in shares) at Dec. 31, 2022			374,243,196
Beginning balance at Dec. 31, 2022	$ 3,534,566	$ 3,528,268	$ 2	$ 5,779,776	$ (1,691)	$ (2,249,819)	$ 6,298
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of common stock from employee equity plans (in shares)			1,475,761
Issuance of common stock from employee equity plans	21,971	21,971		21,971
Issuance of common stock for settlement of RSUs (in shares)			2,654,728
Stock‑based compensation expense	166,445	166,445		166,445
Net loss	(253,077)	(253,031)				(253,031)	(46)
Adjustments to redeemable noncontrolling interest	(5,834)	(5,834)		(5,834)
Other comprehensive loss	2,225	2,181			2,181		44
Ending balance (in shares) at Mar. 31, 2023			378,373,685
Ending balance at Mar. 31, 2023	$ 3,466,296	3,460,000	$ 2	5,962,358	490	(2,502,850)	6,296
Beginning balance (in shares) at Dec. 31, 2023	384,872,000		384,871,561
Beginning balance at Dec. 31, 2023	$ 3,188,581	3,182,642	$ 2	6,259,479	(5,009)	(3,071,830)	5,939
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of common stock from employee equity plans (in shares)	1,960,774		2,511,920
Issuance of common stock from employee equity plans	$ 25,997	25,997		25,997
Issuance of common stock for settlement of RSUs (in shares)			3,013,449
Stock‑based compensation expense	269,288	269,288		269,288
Net loss	(291,102)	(291,074)				(291,074)	(28)
Adjustments to redeemable noncontrolling interest	23	23		23
Other comprehensive loss	$ (2,799)	(2,751)			(2,751)		(48)
Ending balance (in shares) at Mar. 31, 2024	390,397,000		390,396,930
Ending balance at Mar. 31, 2024	$ 3,189,988	$ 3,184,125	$ 2	$ 6,554,787	$ (7,760)	$ (3,362,904)	$ 5,863

[1] (1) Excludes redeemable noncontrolling interests.

CONDENSED CONSOLIDATED STATEM_4

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Operating activities
Net loss	$ (291,478)	$ (253,703)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization	101,810	109,560
Stock-based compensation expense	265,877	163,028
Gain on repayment of convertible note	(61,371)	0
Other	16,516	379
Changes in assets and liabilities, net of effects of acquisitions:
Accounts receivable, net	(9,740)	21,013
Prepaid expenses and other	(16,779)	7,589
Other assets	(2,399)	11,169
Accounts payable	5,273	7,450
Accrued expenses and other	(4,269)	(7,305)
Publisher payables	25,558	(27,756)
Other long-term liabilities	(23,584)	(18,302)
Deferred revenue	(12,787)	(18,221)
Net cash used in operating activities	(7,373)	(5,099)
Investing activities
Purchases of short-term investments	0	(212)
Proceeds from principal repayments and maturities of short-term investments	0	102,673
Purchases of property and equipment	(7,190)	(14,350)
Net cash provided by (used in) investing activities	(7,190)	88,111
Financing activities
Repayments of convertible note	(414,999)	0
Proceeds from issuance of common stock from employee equity plans	25,998	21,971
Net cash provided by (used in) financing activities	(389,001)	21,971
Effect of foreign exchange rate changes on cash, cash equivalents, and restricted cash	(6,202)	3,151
Increase (decrease) in cash, cash equivalents, and restricted cash	(409,766)	108,134
Cash, cash equivalents, and restricted cash, beginning of period	1,604,267	1,505,688
Cash, cash equivalents, and restricted cash, end of period	1,194,501	1,613,822
Supplemental disclosure of cash flow information:
Cash paid for income taxes, net of refunds	11,041	3,751
Cash paid for operating leases	13,540	10,181
Supplemental disclosures of non‑cash investing and financing activities:
Assets acquired under operating lease	$ 9,273	$ 24,528

Accounting Policies

Accounting Policies	3 Months Ended
Accounting Policies	Mar. 31, 2024
Accounting Policies [Abstract]
Accounting Policies	Accounting Policies Basis of Presentation and Consolidation We prepared the accompanying unaudited condensed consolidated financial statements in accordance with United States ("U.S.") generally accepted accounting principles ("GAAP") and applicable rules and regulations of the Securities and Exchange Commission ("SEC") for interim financial reporting. The condensed consolidated financial statements include the accounts of Unity Software Inc., its wholly owned subsidiaries, and entities consolidated under the voting interest model. We have eliminated all intercompany balances and transactions. Certain information and footnote disclosures normally included in the financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations. In our opinion, all adjustments, which include normal recurring adjustments necessary for a fair presentation, have been included. The results of operations for the periods presented are not necessarily indicative of the results to be expected for the full year or other periods. The unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes included in our 2023 Annual Report on Form 10-K. Use of Estimates The preparation of condensed consolidated financial statements in conformity with GAAP requires management to make certain estimates, judgments, and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, as well as the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates, and such differences could be material to our financial position and results of operations. Employee Separation and Restructuring Costs In January 2024, we committed to a plan to eliminate approximately 25% of our workforce, and we mutually agreed to the departure of the founders of ironSource Ltd. Following these announcements, we incurred incremental employee separation costs of approximately $193 million in the first quarter of 2024, which included $126 million of incremental stock-based compensation. Additionally we incurred $19 million of restructuring costs, primarily related to office closures.

Revenue

Revenue	3 Months Ended
Revenue	Mar. 31, 2024
Revenue from Contract with Customer [Abstract]
Revenue	Revenue The following table presents our revenue disaggregated by source, which also have similar economic characteristics (in thousands): Three Months Ended March 31, 2024 2023 Create Solutions $ 163,670 $ 187,369 Grow Solutions 296,710 312,992 Total revenue $ 460,380 $ 500,361 The following table presents our revenue disaggregated by geography, based on the invoice address of our customers (in thousands): Three Months Ended March 31, 2024 2023 United States $ 139,119 $ 132,994 Greater China (1) 59,690 59,548 EMEA (2) 166,770 186,724 APAC (3) 84,036 107,528 Other Americas (4) 10,765 13,567 Total revenue $ 460,380 $ 500,361 (1) Greater China includes China, Hong Kong, and Taiwan. (2) Europe, the Middle East, and Africa ("EMEA") (3) Asia- Pacific , excluding Greater China ("APAC") (4) Canada and Latin America ("Other Americas") Accounts Receivable, Net Accounts receivable are recorded at the original invoiced amount, net of allowances for uncollectible amounts. We estimate losses on uncollectible amounts based on expected losses, including our historical experience of actual losses. The estimated losses on uncollectible amounts are recorded in general and administrative expense on our condensed consolidated statement of operations. As of March 31, 2024 and December 31, 2023, the allowance for uncollectible amounts was $16.6 million and $16.9 million, respectively. For the three months ended March 31, 2024 and 2023, the provision for uncollectible amounts was $1.8 million and $2.9 million. Sales Commissions Sales commissions that have a benefit beyond one year are capitalized and amortized on a straight-line method over the expected period of benefit, which is generally three years. As of March 31, 2024, capitalized commissions, net of amortization, included in prepaid expenses and other and other assets were $6.4 million and $4.9 million, respectively. During the three months ended March 31, 2024, we recorded amortization costs of $2.4 million in sales and marketing expenses, as compared to $2.5 million during the three months ended March 31, 2023, respectively. Contract Balances and Remaining Performance Obligations Contract assets (unbilled receivables), primarily included in accounts receivable, net, are recorded when revenue is earned in advance of customer billing schedules. Unbilled receivables totaled $20.1 million and $31.3 million as of March 31, 2024 and December 31, 2023, respectively. Of this total as of March 31, 2024, $6.0 million was included in Other Long-Term Assets on our consolidated balance sheets. Contract liabilities (deferred revenue) relate to payments received in advance of performance under the contract. Revenue recognized during the three months ended March 31, 2024 that was included in the deferred revenue balances at January 1, 2024 was $76.3 million. Additionally, we have performance obligations associated with commitments in customer contracts to perform in the future that had not yet been recognized in our consolidated financial statements. For contracts with original terms that exceed one year, those commitments not yet recognized as of March 31, 2024, were $357 million and relate primarily to Create Solutions subscriptions, Enterprise Support, and Strategic Partnerships. These commitments generally extend over the next one

Financial Instruments

Financial Instruments	3 Months Ended
Financial Instruments	Mar. 31, 2024
Investments, Debt and Equity Securities [Abstract]
Financial Instruments	Financial Instruments Cash, Cash Equivalents, and Restricted Cash Cash, cash equivalents, and restricted cash are recorded at fair value. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. To increase the comparability of fair value measures, the following hierarchy prioritizes the inputs to valuation methodologies used to measure fair value: • Level 1—Valuations based on quoted prices in active markets for identical assets or liabilities. • Level 2—Valuations based on quoted prices for similar assets and liabilities in active markets or inputs that are observable for the assets or liabilities, either directly or indirectly through market corroboration. • Level 3—Valuations based on unobservable inputs reflecting our own assumptions used to measure assets and liabilities at fair value. These valuations require significant judgment. The following table summarizes, by major security type, our cash, cash equivalents, and restricted cash that are measured at fair value on a recurring basis and are categorized using the fair value hierarchy (in thousands): March 31, 2024 December 31, 2023 Fair Value (1) Cash $ 888,092 $ 834,877 Level 1: Restricted cash and cash equivalents: Restricted cash $ 14,539 $ 13,942 Money market funds 92,762 502,754 Time deposits 199,108 252,694 Total restricted cash and cash equivalents $ 306,409 $ 769,390 Total cash, cash equivalents, and restricted cash $ 1,194,501 $ 1,604,267 (1) Due to the highly liquid nature of our investments, amortized cost approximates fair value. Nonrecurring Fair Value Measurements We hold equity investments in certain unconsolidated entities without a readily determinable fair value. These strategic investments represent less than a 20% ownership interest in each of the entities, and we do not have significant influence over or control of the entities. We use the measurement alternative to account for adjustments to these investments for observable transactions for the same or similar investments of the same issuer in any given quarter. If we determine an impairment has occurred, the investment is written down to the estimated fair value. As of March 31, 2024 and December 31, 2023, such equity investments totaled $33.6 million. No adjustments to the carrying value of these equity investments were recorded for the three months ended March 31, 2024 and 2023.

Investment in Unity China

Investment in Unity China	3 Months Ended
Investment in Unity China	Mar. 31, 2024
Noncontrolling Interest [Abstract]
Investment in Unity China	Investment in Unity China The results of Unity China, of which third-party investors hold a 20.5% ownership interest, are included in our condensed consolidated financial statements. Under certain conditions we may be required to repurchase the third-party interest in Unity China. The redeemable noncontrolling interests in Unity China are recorded as temporary equity on our condensed consolidated balance sheet. The following table presents the changes in redeemable noncontrolling interests (in thousands): Three Months Ended March 31, 2024 2023 Balance at beginning of period $ 225,797 $ 219,563 Net loss attributable to redeemable noncontrolling interests (376) (626) Accretion for redeemable noncontrolling interests 3,075 2,698 Foreign currency translation and foreign exchange adjustments for redeemable noncontrolling interests (3,760) 3,741 Balance at end of period $ 224,736 $ 225,376

Leases

Leases	3 Months Ended
Leases	Mar. 31, 2024
Leases [Abstract]
Leases	Leases We have operating leases for offices, which have remaining lease terms of up to nine years. Components of lease expense were as follows (in thousands): Three Months Ended March 31, 2024 2023 Operating lease expense $ 10,253 $ 9,393 Variable lease expense 1,721 1,278 Sublease income (244) (384) Total lease expense $ 11,730 $ 10,287 Supplemental balance sheet information related to leases was as follows (in thousands, except weighted-average figures): As of Classification March 31, 2024 December 31, 2023 Operating lease assets Other assets $ 104,599 $ 113,256 Current operating lease liabilities Accrued expenses and other $ 37,566 $ 39,132 Long-term operating lease liabilities Other long-term liabilities 98,521 111,669 Total operating lease liabilities $ 136,087 $ 150,801 As of March 31, 2024 and December 31, 2023, our operating leases had a weighted-average remaining lease term of 5.0 years and 5.1 years, respectively, and a weighted-average discount rate of 5.2% and 5.2%, respectively. As of March 31, 2024, our lease liabilities were as follows (in thousands): Operating Leases Gross lease liabilities $ 154,385 Less: imputed interest 18,298 Present value of lease liabilities $ 136,087

Borrowings

Borrowings	3 Months Ended
Borrowings	Mar. 31, 2024
Debt Disclosure [Abstract]
Borrowings	Borrowings Convertible Notes As of March 31, 2024, we had $2.2 billion of unsecured convertible notes outstanding including $1.0 billion issued in November 2022 (the "2027 Notes") and $1.2 billion issued in November 2021 (the "2026 Notes"). The table below summarizes the principal and unamortized debt issuance costs and other material features of the Notes (in thousands): Carrying Amount as of Conversion Rate per Conversion Price Maturities Stated Interest Rates March 31, 2024 December 31, 2023 Convertible notes: Principal – 2026 Notes 3.2392 $ 308.72 2026 0.0% $ 1,245,232 $ 1,725,000 Principal – 2027 Notes 20.4526 $ 48.89 2027 2.0% 1,000,000 1,000,000 Unamortized debt issuance costs, net (8,817) (13,250) Net carrying amount $ 2,236,415 $ 2,711,750 Interest on the Notes is payable semi-annually in arrears. The combined interest expense on the Notes related to regular interest and the amortization of debt issuance cost was $6.0 million and $6.1 million for the three months ended March 31, 2024 and March 31, 2023, respectively. As of March 31, 2024 and December 31, 2023, the estimated fair value of the 2027 Notes were approximately $1.1 billion and 1.3 billion, respectively, and the estimated fair value of the 2026 Notes were approximately $1.1 billion and 1.4 billion, respectively. The fair value of the 2027 Notes was based on a combination of a discounted cash flow and Black-Scholes option-pricing model. The fair value of the 2026 Notes was based on quoted prices as of that date. The 2026 Notes are convertible at the option of the holder if a conversion condition of the 2026 Notes is triggered. During the three months ended March 31, 2024, none of the conversion conditions of the 2026 Notes were triggered and the 2026 Notes were not convertible as of March 31, 2024. The 2027 Notes are convertible at the option of the holder prior to maturity. Upon conversion of the Notes, we will deliver cash, shares of our common stock, or a combination of cash and shares of our common stock,at our election. The conversion rates for the Notes is subject to customary adjustments for certain events as described in the indentures governing the Notes. The Notes are subject to additional terms. In connection with certain corporate events, as described in the Indentures, we will increase the conversion rate for a holder of the Notes who elects to convert those notes in connection with the event. Additionally, upon the occurrence of certain corporate events and subject to certain exceptions, as described in the Indentures, holders of the Notes may require us to repurchase all or a portion of their notes at a price equal to 100% of the principal amount to be repurchased, plus any accrued and unpaid interest to date. The 2026 Notes are also redeemable at our option if certain conditions are met, as described in the Indenture governing the 2026 Notes. As of March 31, 2024, no holders of the 2027 and 2026 Notes have exercised the conversion rights, and the if-converted value of the 2027 and 2026 Notes did not exceed the principal amount. Convertible Note Repurchase During the first quarter of 2024, the Company repurchased in privately negotiated transactions and extinguished a portion of the 2026 Notes, with a total principal balance of $480 million. The aggregate repurchase price for these notes was $415 million, resulting in pre-tax gains of $61.4 million, net of the write-off of unamortized issuance costs. The gain was included in Interest income and other income (expense), net, in the condensed consolidated statement of operations. Capped Call Transactions In connection with the pricing of the 2026 Notes, we entered into the Capped Call Transactions at a net cost of $48.1 million, with call options totaling approximately 5.6 million of our common shares, and with expiration dates ranging from September 18, 2026 to November 12, 2026. The strike price is $308.72, and the cap price is initially $343.02 per share, subject to adjustments in certain circumstances. The Capped Call Transactions are freestanding and are considered separately exercisable from the 2026 Notes. The Capped Call Transactions are intended to reduce potential dilution to our common stock upon any conversion of the 2026 Notes and/or offset any cash payments we are required to make in excess of the principal amount of converted 2026 Notes, as the case may be, with such reduction and/or offset subject to a cap. As of March 31, 2024, the Capped Call Transactions met the conditions for equity classification and were not in the money.

Commitments and Contingencies

Commitments and Contingencies	3 Months Ended
Commitments and Contingencies	Mar. 31, 2024
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitments and Contingencies The following table summarizes our non-cancelable contractual commitments as of March 31, 2024 (in thousands): Total Remainder of 2024 2025‑2026 2027‑2028 Thereafter Operating leases (1) $ 154,385 $ 32,892 $ 60,279 $ 36,591 $ 24,623 Purchase commitments (2) 643,505 180,782 433,298 29,425 — Convertible note principal and interest (3) 2,325,232 20,000 1,285,232 1,020,000 — Total $ 3,123,122 $ 233,674 $ 1,778,809 $ 1,086,016 $ 24,623 (1) Operating leases consist of obligations for real estate that are active. (2) The substantial majority of our purchase commitments are related to agreements with our data center hosting providers. (3) Convertible notes due 2026 and 2027. See Note 6, "Borrowings," above for further discussion. We expect to meet our remaining commitments. Legal Matters In the normal course of business, we are subject to various legal matters. We accrue a liability when management believes that it is both probable that a liability has been incurred and the amount of loss can be reasonably estimated. We also disclose material contingencies when we believe a loss is not probable but reasonably possible. Legal costs related to such potential losses are expensed as incurred. In addition, recoveries are shown as a reduction in legal costs in the period in which they are realized. With respect to our outstanding matters, based on our current knowledge, we believe that the resolution of such matters will not, either individually or in aggregate, have a material adverse effect on our business or our condensed consolidated financial statements. However, litigation is inherently uncertain, and the outcome of these matters cannot be predicted with certainty. Accordingly, cash flows or results of operations could be materially affected in any particular period by the resolution of one or more of these matters. Indemnifications In the ordinary course of business, we may provide indemnifications of varying scope and terms to customers, vendors, lessors, investors, directors, officers, employees and other parties with respect to certain matters. Indemnification may include losses from our breach of such agreements, services we provide, or third-party intellectual property infringement claims. These indemnifications may survive termination of the underlying agreement and the maximum potential amount of future indemnification payments may not be subject to a cap. As of March 31, 2024, there were no known events or circumstances that have resulted in a material indemnification liability to us and we did not incur material costs to defend lawsuits or settle claims related to these indemnifications. Letters of Credit We had $14.5 million and $13.9 million of secured letters of credit outstanding as of March 31, 2024 and December 31, 2023, respectively. These primarily relate to our office space leases and are fully collateralized by certificates of deposit which we record in restricted cash as other assets on our condensed consolidated balance sheets.

Stock-Based Compensation

Stock-Based Compensation	3 Months Ended
Stock-Based Compensation	Mar. 31, 2024
Share-Based Payment Arrangement [Abstract]
Stock-Based Compensation	Stock‑Based Compensation Stock-based compensation expense is as follows (in thousands): Three Months Ended March 31, 2024 2023 Cost of revenue $ 16,806 $ 18,849 Research and development 87,738 76,483 Sales and marketing 63,971 35,517 General and administrative 97,362 32,179 Total stock-based compensation expense $ 265,877 $ 163,028 Included in the above expenses for the three months ended March 31, 2024, is $93 million of incremental stock-based compensation expense from modifications, primarily within general and administrative. These amounts predominately relate to the modification of awards held by the founders of ironSource Ltd. that departed in the first quarter of 2024. Stock Options A summary of our stock option activity is as follows: Options Outstanding Stock Weighted-Average Weighted-Average Balance as of December 31, 2023 31,541,466 $ 19.35 4.79 Granted 86,854 $ 26.89 Exercised (1,960,774) $ 6.25 Forfeited, cancelled, or expired (175,140) $ 82.32 Balance as of March 31, 2024 29,492,406 $ 19.86 3.77 The calculated grant-date fair value of stock options granted was estimated using the Black-Scholes option-pricing model with the following assumptions: Three Months Ended March 31, 2024 2023 Expected dividend yield — — Risk-free interest rate 4.1% 4.2% Expected volatility 66.4% 54.7% Expected term (in years) 6.25 6.25 Fair value of underlying common stock $26.89 $29.33 Restricted Stock Units A summary of our restricted stock unit ("RSU"), including price-vested unit ("PVU"), activity is as follows: Unvested RSUs Number of Weighted-Average Unvested as of December 31, 2023 37,332,551 $ 38.31 Granted 1,570,357 $ 30.14 Vested (3,017,254) $ 45.83 Forfeited (3,409,225) $ 42.68 Unvested as of March 31, 2024 32,476,429 $ 36.76 Price-Vested Units In October 2022, we granted to certain of our executive officers a total of 989,880 PVUs, which are RSUs for which vesting is subject to the fulfillment of both a service period that extends up to four years and the achievement of a stock price hurdle during the relevant performance period that extends up to seven years. The fair value of each PVU award is estimated using a Monte Carlo simulation that uses assumptions determined on the date of grant. During the three months ended March 31, 2024, the service period condition and stock price hurdle were not met. Employee Stock Purchase Plan The fair value of shares offered under our Employee Stock Purchase Plan ("ESPP") was determined on the grant date using the Black-Scholes option pricing model. The following table summarizes the assumptions used and the resulting grant-date fair values of our ESPP: Three Months Ended March 31, 2024 2023 Expected dividend yield — — Risk-free interest rate 5.3% 5.2% Expected volatility 56.0% 94.5% Expected term (in years) 0.50 0.50 Grant-date fair value per share $9.11 $12.44 Additional information related to the ESPP is provided below (in thousands, except per share amounts): Three Months Ended March 31, 2024 2023 Shares issued under the ESPP 551,146 532,643 Weighted-average price per share issued $24.92 $25.87

Income Taxes

Income Taxes	3 Months Ended
Income Taxes	Mar. 31, 2024
Income Tax Disclosure [Abstract]
Income Taxes	Income Taxes Our tax provision for interim periods is determined using an estimated annual effective tax rate, adjusted for discrete items arising in that quarter. In each quarter, we update the estimated annual effective tax rate and make a year-to-date adjustment to the provision. The estimated annual effective tax rate is subject to volatility due to several factors, including variability in accurately predicting our pre-tax income or loss and the mix of jurisdictions to which they relate, intercompany transactions, changes in how we do business, and tax law developments. Our effective tax rate for the three months ended March 31, 2024 differs from the U.S. federal statutory tax rate of 21% primarily due to the need to record a valuation allowance on U.S. losses, a tax benefit on foreign losses in connection with employee separation costs, and to a lesser extent tax expense on foreign earnings taxed at different rates. In addition, during the first quarter of 2024, we continued to restructure our tax operations which resulted in a reduction to our U.S. valuation allowance. Our effective tax rate for the three months ended March 31, 2023 differed from the U.S. federal statutory tax rate of 21% primarily due to the need to record a valuation allowance in the U.S. on losses and to a lesser extent, tax expense on foreign earnings taxed at different rates. In addition, the Company undertook certain tax restructuring efforts during the period that enhanced our ability to offset deferred tax liabilities in the U.S. in future periods, thereby partially reducing the need for a valuation allowance. The realization of deferred tax assets is dependent upon the generation of sufficient taxable income of the appropriate character in future periods. We regularly assess the ability to realize our deferred tax assets and establish a valuation allowance if it is more-likely-than-not that some portion of the deferred tax assets will not be realized. In performing this assessment with respect to each jurisdiction, we review all available positive and negative evidence. Primarily due to our history of losses, we believe that it is more likely than not that the deferred tax assets of our U.S. federal, certain U.S. states, Denmark, U.K., and other non-U.S. jurisdictions will not be realized and we have maintained a full valuation allowance against such deferred tax assets. As of March 31, 2024, we had $184.3 million of gross unrecognized tax benefits, of which $29.7 million would impact the effective tax rate, if recognized. It is reasonably possible that the amount of unrecognized tax benefits as of March 31, 2024 could increase or decrease significantly as the timing of the resolution, settlement, and closure of audits is highly uncertain. We believe that we have adequately provided for any reasonably foreseeable outcome related to our tax audits and that any settlement will not have a material impact on our financial condition and operating results at this time.

Net Loss per Share of Common St

Net Loss per Share of Common Stock	3 Months Ended
Net Loss per Share of Common Stock	Mar. 31, 2024
Earnings Per Share [Abstract]
Net Loss per Share of Common Stock	Net Loss per Share of Common Stock Basic and diluted net loss per share is the same for all periods presented because the effects of potentially dilutive items were antidilutive given our net loss in each period. The following table presents potentially dilutive common stock excluded from the computation of diluted net loss per share (in thousands) because the impact of including them would have been antidilutive: As of March 31, 2024 2023 Convertible notes 24,488 26,042 Stock options 29,492 34,461 Unvested RSUs and PVUs 32,476 36,079

Pay vs Performance Disclosure

Pay vs Performance Disclosure - USD ($) $ in Thousands	3 Months Ended
Pay vs Performance Disclosure - USD ($) $ in Thousands	Mar. 31, 2024	Mar. 31, 2023
Pay vs Performance Disclosure
Net Income (Loss)	$ (291,074)	$ (253,031)

Insider Trading Arrangements

Insider Trading Arrangements	3 Months Ended
Insider Trading Arrangements	Mar. 31, 2024 shares
Trading Arrangements, by Individual
Material Terms of Trading Arrangement	The adoption or termination of contracts, instructions or written plans for the purchase or sale of our securities by our directors and officers (as defined in Rule 16a-1(f) under the Exchange Act) for the three months ended March 31, 2024, each of which is intended to satisfy the affirmative defense conditions of Rule 10b5-1(c) under the Exchange Act, were as follows: Name Title Action Date Adopted Expiration Date Aggregate # of Securities to be Purchased/Sold Tomer Bar-Zeev (1) Director Adopted February 29, 2024 December 21, 2024 1,450,000 Michelle Lee (2) Director Adopted March 13, 2024 September 18, 2024 3,200 Robynne Sisco (2) Director Adopted March 5, 2024 June 5, 2025 14,700 (1) Mr. Bar-Zeev's plan provides for the potential sale of shares of our common stock held in account. The plan expires on the date shown above, or upon the earlier completion of all authorized transactions under the plan. (2) Each of Ms. Lee's and Ms. Sisco's plans provides for the potential sale of our common stock currently held in account and future vesting events. The plans expire on the respective dates shown above, or upon the earlier completion of all authorized transactions under the plans.
Non-Rule 10b5-1 Arrangement Adopted	false
Rule 10b5-1 Arrangement Terminated	false
Non-Rule 10b5-1 Arrangement Terminated	false
Tomer Bar-Zeev [Member]
Trading Arrangements, by Individual
Name	Tomer Bar-Zeev
Title	Director
Rule 10b5-1 Arrangement Adopted	true
Adoption Date	February 29, 2024
Arrangement Duration	296 days
Aggregate Available	1,450,000
Michelle Lee [Member]
Trading Arrangements, by Individual
Name	Michelle Lee
Title	Director
Rule 10b5-1 Arrangement Adopted	true
Adoption Date	March 13, 2024
Arrangement Duration	189 days
Aggregate Available	3,200
Robynne Sisco [Member]
Trading Arrangements, by Individual
Name	Robynne Sisco
Title	Director
Rule 10b5-1 Arrangement Adopted	true
Adoption Date	March 5, 2024
Arrangement Duration	457 days
Aggregate Available	14,700

Accounting Policies (Policies)

Accounting Policies (Policies)	3 Months Ended
Accounting Policies (Policies)	Mar. 31, 2024
Accounting Policies [Abstract]
Basis of Presentation	Basis of Presentation and Consolidation
Consolidation	The condensed consolidated financial statements include the accounts of Unity Software Inc., its wholly owned subsidiaries, and entities consolidated under the voting interest model. We have eliminated all intercompany balances and transactions. Certain information and footnote disclosures normally included in the financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations. In our opinion, all adjustments, which include normal recurring adjustments necessary for a fair presentation, have been included. The results of operations for the periods presented are not necessarily indicative of the results to be expected for the full year or other periods. The unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes included in our 2023 Annual Report on Form 10-K.
Use of Estimates	Use of Estimates The preparation of condensed consolidated financial statements in conformity with GAAP requires management to make certain estimates, judgments, and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, as well as the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates, and such differences could be material to our financial position and results of operations.
Accounts Receivable, Net	Accounts Receivable, Net
Sales Commissions and Contract Balances and Remaining Performance Obligations	Sales Commissions
Cash, Cash Equivalents, Restricted Cash	Cash, Cash Equivalents, and Restricted Cash Cash, cash equivalents, and restricted cash are recorded at fair value. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. To increase the comparability of fair value measures, the following hierarchy prioritizes the inputs to valuation methodologies used to measure fair value: • Level 1—Valuations based on quoted prices in active markets for identical assets or liabilities. • Level 2—Valuations based on quoted prices for similar assets and liabilities in active markets or inputs that are observable for the assets or liabilities, either directly or indirectly through market corroboration. • Level 3—Valuations based on unobservable inputs reflecting our own assumptions used to measure assets and liabilities at fair value. These valuations require significant judgment.

Revenue (Tables)

Revenue (Tables)	3 Months Ended
Revenue (Tables)	Mar. 31, 2024
Revenue from Contract with Customer [Abstract]
Schedule of Revenue Disaggregated by Source	The following table presents our revenue disaggregated by source, which also have similar economic characteristics (in thousands): Three Months Ended March 31, 2024 2023 Create Solutions $ 163,670 $ 187,369 Grow Solutions 296,710 312,992 Total revenue $ 460,380 $ 500,361
Schedule of Revenue Disaggregated by Geography	The following table presents our revenue disaggregated by geography, based on the invoice address of our customers (in thousands): Three Months Ended March 31, 2024 2023 United States $ 139,119 $ 132,994 Greater China (1) 59,690 59,548 EMEA (2) 166,770 186,724 APAC (3) 84,036 107,528 Other Americas (4) 10,765 13,567 Total revenue $ 460,380 $ 500,361 (1) Greater China includes China, Hong Kong, and Taiwan. (2) Europe, the Middle East, and Africa ("EMEA") (3) Asia- Pacific , excluding Greater China ("APAC") (4) Canada and Latin America ("Other Americas")

Financial Instruments (Tables)

Financial Instruments (Tables)	3 Months Ended
Financial Instruments (Tables)	Mar. 31, 2024
Investments, Debt and Equity Securities [Abstract]
Schedule of Cash, Cash Equivalents, and Restricted Cash Measured at Fair Value on a Recurring Basis	The following table summarizes, by major security type, our cash, cash equivalents, and restricted cash that are measured at fair value on a recurring basis and are categorized using the fair value hierarchy (in thousands): March 31, 2024 December 31, 2023 Fair Value (1) Cash $ 888,092 $ 834,877 Level 1: Restricted cash and cash equivalents: Restricted cash $ 14,539 $ 13,942 Money market funds 92,762 502,754 Time deposits 199,108 252,694 Total restricted cash and cash equivalents $ 306,409 $ 769,390 Total cash, cash equivalents, and restricted cash $ 1,194,501 $ 1,604,267 (1) Due to the highly liquid nature of our investments, amortized cost approximates fair value.

Investment in Unity China (Tabl

Investment in Unity China (Tables)	3 Months Ended
Investment in Unity China (Tables)	Mar. 31, 2024
Noncontrolling Interest [Abstract]
Schedule of Changes in Redeemable Noncontrolling Interests	The following table presents the changes in redeemable noncontrolling interests (in thousands): Three Months Ended March 31, 2024 2023 Balance at beginning of period $ 225,797 $ 219,563 Net loss attributable to redeemable noncontrolling interests (376) (626) Accretion for redeemable noncontrolling interests 3,075 2,698 Foreign currency translation and foreign exchange adjustments for redeemable noncontrolling interests (3,760) 3,741 Balance at end of period $ 224,736 $ 225,376

Leases (Tables)

Leases (Tables)	3 Months Ended
Leases (Tables)	Mar. 31, 2024
Leases [Abstract]
Schedule of Components of Lease Expense	Components of lease expense were as follows (in thousands): Three Months Ended March 31, 2024 2023 Operating lease expense $ 10,253 $ 9,393 Variable lease expense 1,721 1,278 Sublease income (244) (384) Total lease expense $ 11,730 $ 10,287
Schedule of Supplemental Balance Sheet Information Related to Leases	Supplemental balance sheet information related to leases was as follows (in thousands, except weighted-average figures): As of Classification March 31, 2024 December 31, 2023 Operating lease assets Other assets $ 104,599 $ 113,256 Current operating lease liabilities Accrued expenses and other $ 37,566 $ 39,132 Long-term operating lease liabilities Other long-term liabilities 98,521 111,669 Total operating lease liabilities $ 136,087 $ 150,801
Schedule of Lease Liabilities	As of March 31, 2024, our lease liabilities were as follows (in thousands): Operating Leases Gross lease liabilities $ 154,385 Less: imputed interest 18,298 Present value of lease liabilities $ 136,087

Borrowings (Tables)

Borrowings (Tables)	3 Months Ended
Borrowings (Tables)	Mar. 31, 2024
Debt Disclosure [Abstract]
Schedule of Principal and Unamortized Debt Issuance Costs and Other Material Features of Notes	The table below summarizes the principal and unamortized debt issuance costs and other material features of the Notes (in thousands): Carrying Amount as of Conversion Rate per Conversion Price Maturities Stated Interest Rates March 31, 2024 December 31, 2023 Convertible notes: Principal – 2026 Notes 3.2392 $ 308.72 2026 0.0% $ 1,245,232 $ 1,725,000 Principal – 2027 Notes 20.4526 $ 48.89 2027 2.0% 1,000,000 1,000,000 Unamortized debt issuance costs, net (8,817) (13,250) Net carrying amount $ 2,236,415 $ 2,711,750

Commitments and Contingencies (

Commitments and Contingencies (Tables)	3 Months Ended
Commitments and Contingencies (Tables)	Mar. 31, 2024
Commitments and Contingencies Disclosure [Abstract]
Schedule of Non-Cancelable Contractual Commitments	The following table summarizes our non-cancelable contractual commitments as of March 31, 2024 (in thousands): Total Remainder of 2024 2025‑2026 2027‑2028 Thereafter Operating leases (1) $ 154,385 $ 32,892 $ 60,279 $ 36,591 $ 24,623 Purchase commitments (2) 643,505 180,782 433,298 29,425 — Convertible note principal and interest (3) 2,325,232 20,000 1,285,232 1,020,000 — Total $ 3,123,122 $ 233,674 $ 1,778,809 $ 1,086,016 $ 24,623 (1) Operating leases consist of obligations for real estate that are active. (2) The substantial majority of our purchase commitments are related to agreements with our data center hosting providers. (3) Convertible notes due 2026 and 2027. See Note 6, "Borrowings," above for further discussion.

Stock-Based Compensation (Table

Stock-Based Compensation (Tables)	3 Months Ended
Stock-Based Compensation (Tables)	Mar. 31, 2024
Share-Based Payment Arrangement [Abstract]
Schedule of Stock-Based Compensation Expense	Stock-based compensation expense is as follows (in thousands): Three Months Ended March 31, 2024 2023 Cost of revenue $ 16,806 $ 18,849 Research and development 87,738 76,483 Sales and marketing 63,971 35,517 General and administrative 97,362 32,179 Total stock-based compensation expense $ 265,877 $ 163,028
Schedule of Stock Option Activity	A summary of our stock option activity is as follows: Options Outstanding Stock Weighted-Average Weighted-Average Balance as of December 31, 2023 31,541,466 $ 19.35 4.79 Granted 86,854 $ 26.89 Exercised (1,960,774) $ 6.25 Forfeited, cancelled, or expired (175,140) $ 82.32 Balance as of March 31, 2024 29,492,406 $ 19.86 3.77
Schedule of Grant-Date Fair Value of Stock Options Granted	The calculated grant-date fair value of stock options granted was estimated using the Black-Scholes option-pricing model with the following assumptions: Three Months Ended March 31, 2024 2023 Expected dividend yield — — Risk-free interest rate 4.1% 4.2% Expected volatility 66.4% 54.7% Expected term (in years) 6.25 6.25 Fair value of underlying common stock $26.89 $29.33
Schedule of Restricted Stock Unit Activity	A summary of our restricted stock unit ("RSU"), including price-vested unit ("PVU"), activity is as follows: Unvested RSUs Number of Weighted-Average Unvested as of December 31, 2023 37,332,551 $ 38.31 Granted 1,570,357 $ 30.14 Vested (3,017,254) $ 45.83 Forfeited (3,409,225) $ 42.68 Unvested as of March 31, 2024 32,476,429 $ 36.76
Schedule of Grant-Date Fair Values of ESPP	The following table summarizes the assumptions used and the resulting grant-date fair values of our ESPP: Three Months Ended March 31, 2024 2023 Expected dividend yield — — Risk-free interest rate 5.3% 5.2% Expected volatility 56.0% 94.5% Expected term (in years) 0.50 0.50 Grant-date fair value per share $9.11 $12.44
Schedule of Additional Information Related to ESPP	Additional information related to the ESPP is provided below (in thousands, except per share amounts): Three Months Ended March 31, 2024 2023 Shares issued under the ESPP 551,146 532,643 Weighted-average price per share issued $24.92 $25.87

Net Loss per Share of Common _2

Net Loss per Share of Common Stock (Tables)	3 Months Ended
Net Loss per Share of Common Stock (Tables)	Mar. 31, 2024
Earnings Per Share [Abstract]
Schedule of Antidilutive Securities Excluded from Computation of Diluted Net Loss Per Share	The following table presents potentially dilutive common stock excluded from the computation of diluted net loss per share (in thousands) because the impact of including them would have been antidilutive: As of March 31, 2024 2023 Convertible notes 24,488 26,042 Stock options 29,492 34,461 Unvested RSUs and PVUs 32,476 36,079

Accounting Policies (Details)

Accounting Policies (Details) - USD ($) $ in Millions	1 Months Ended	3 Months Ended
Accounting Policies (Details) - USD ($) $ in Millions	Jan. 31, 2024	Mar. 31, 2024
Restructuring Cost and Reserve [Line Items]
Percentage of reduction in workforce	25%
Employee Severance
Restructuring Cost and Reserve [Line Items]
Employee separation costs		$ 193
Stock-Based Compensation
Restructuring Cost and Reserve [Line Items]
Employee separation costs		126
Facility Closing
Restructuring Cost and Reserve [Line Items]
Restructuring costs		$ 19

Revenue - Schedule of Revenue D

Revenue - Schedule of Revenue Disaggregated by Source (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Disaggregation of Revenue [Line Items]
Revenue	$ 460,380	$ 500,361
Create Solutions
Disaggregation of Revenue [Line Items]
Revenue	163,670	187,369
Grow Solutions
Disaggregation of Revenue [Line Items]
Revenue	$ 296,710	$ 312,992

Revenue - Schedule of Revenue_2

Revenue - Schedule of Revenue Disaggregated by Geography (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Disaggregation of Revenue [Line Items]
Revenue	$ 460,380	$ 500,361
United States
Disaggregation of Revenue [Line Items]
Revenue	139,119	132,994
Greater China
Disaggregation of Revenue [Line Items]
Revenue	59,690	59,548
EMEA
Disaggregation of Revenue [Line Items]
Revenue	166,770	186,724
APAC
Disaggregation of Revenue [Line Items]
Revenue	84,036	107,528
Other Americas
Disaggregation of Revenue [Line Items]
Revenue	$ 10,765	$ 13,567

Revenue - Accounts Receivable,

Revenue - Accounts Receivable, Net (Narrative) (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023	Dec. 31, 2023
Revenue from Contract with Customer [Abstract]
Accounts receivable, allowances	$ 16.6		$ 16.9
Provision for uncollectible amounts	$ 1.8	$ 2.9

Revenue - Sales Commissions (Na

Revenue - Sales Commissions (Narrative) (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Disaggregation of Revenue [Line Items]
Capitalized contract cost, amortization period	3 years
Capitalized contract cost, amortization	$ 2.4	$ 2.5
Prepaid Expenses and Other Current Assets
Disaggregation of Revenue [Line Items]
Capitalized contract costs	6.4
Other Assets
Disaggregation of Revenue [Line Items]
Capitalized contract costs	$ 4.9

Revenue - Contract Balances (Na

Revenue - Contract Balances (Narrative) (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2024	Dec. 31, 2023
Capitalized Contract Cost [Line Items]
Unbilled receivables	$ 20.1	$ 31.3
Revenue recognized	76.3
Other Noncurrent Assets
Capitalized Contract Cost [Line Items]
Unbilled receivables	$ 6

Revenue - Remaining Performance

Revenue - Remaining Performance Obligations (Narrative) (Details) $ in Millions	3 Months Ended
	Mar. 31, 2024 USD ($)
Disaggregation of Revenue [Line Items]
Revenue, remaining performance obligation, amount	$ 357
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-04-01
Disaggregation of Revenue [Line Items]
Revenue, remaining performance obligation, amount	$ 205
Revenue, remaining performance obligation, percentage	57%
Recognition period	12 months
Minimum
Disaggregation of Revenue [Line Items]
Commitment term	1 year
Maximum
Disaggregation of Revenue [Line Items]
Commitment term	5 years

Financial Instruments - Schedul

Financial Instruments - Schedule of Cash, Cash Equivalents, and Restricted Cash Measured at Fair Value on a Recurring Basis (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023	Mar. 31, 2023	Dec. 31, 2022
Debt Securities, Available-for-sale [Line Items]
Cash	$ 888,092	$ 834,877
Restricted cash and cash equivalents:
Total cash, cash equivalents, and restricted cash	1,194,501	1,604,267	$ 1,613,822	$ 1,505,688
Level 1:
Restricted cash and cash equivalents:
Restricted cash	14,539	13,942
Total restricted cash and cash equivalents	306,409	769,390
Level 1: \| Money market funds
Restricted cash and cash equivalents:
Cash equivalents	92,762	502,754
Level 1: \| Time deposits
Restricted cash and cash equivalents:
Cash equivalents	$ 199,108	$ 252,694

Financial Instruments - Narrati

Financial Instruments - Narrative (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2024	Dec. 31, 2023
Debt Securities, Available-for-sale [Line Items]
Equity investments	$ 33.6	$ 33.6
Maximum
Debt Securities, Available-for-sale [Line Items]
Ownership interest less than	20%

Investment in Unity China - Nar

Investment in Unity China - Narrative (Details)	Mar. 31, 2024
Third Party Investors \| Unity China
Noncontrolling Interest [Line Items]
Noncontrolling interest, percentage sold	20.50%

Investment in Unity China - Sch

Investment in Unity China - Schedule of Changes in Redeemable Noncontrolling Interests (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Increase (Decrease) in Temporary Equity [Roll Forward]
Balance at beginning of period	$ 225,797	$ 219,563
Net loss attributable to redeemable noncontrolling interests	(376)	(626)
Accretion for redeemable noncontrolling interests	3,075	2,698
Foreign currency translation and foreign exchange adjustments for redeemable noncontrolling interests	(3,760)	3,741
Balance at end of period	$ 224,736	$ 225,376

Leases - Narrative (Details)

Leases - Narrative (Details)	Mar. 31, 2024	Dec. 31, 2023
Lessee, Lease, Description [Line Items]
Operating lease, weighted average remaining lease term	5 years	5 years 1 month 6 days
Operating lease, weighted average discount rate, percent	5.20%	5.20%
Maximum
Lessee, Lease, Description [Line Items]
Operating lease term (up to)	9 years

Leases - Schedule of Components

Leases - Schedule of Components of Lease Expense (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Leases [Abstract]
Operating lease expense	$ 10,253	$ 9,393
Variable lease expense	1,721	1,278
Sublease income	(244)	(384)
Total lease expense	$ 11,730	$ 10,287

Leases - Schedule of Supplement

Leases - Schedule of Supplemental Balance Sheet Information Related to Leases (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Leases [Abstract]
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration]	Other assets	Other assets
Operating lease assets	$ 104,599	$ 113,256
Operating Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration]	Accrued expenses and other	Accrued expenses and other
Current operating lease liabilities	$ 37,566	$ 39,132
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible Enumeration]	Other long-term liabilities	Other long-term liabilities
Long-term operating lease liabilities	$ 98,521	$ 111,669
Total operating lease liabilities	$ 136,087	$ 150,801

Leases - Schedule of Lease Liab

Leases - Schedule of Lease Liabilities (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Leases [Abstract]
Gross lease liabilities	$ 154,385
Less: imputed interest	18,298
Present value of lease liabilities	$ 136,087	$ 150,801

Borrowings - Convertible Notes

Borrowings - Convertible Notes (Narrative) (Details) - Convertible Debt - USD ($) $ in Millions	1 Months Ended	3 Months Ended
	Nov. 30, 2022	Mar. 31, 2024	Mar. 31, 2023	Dec. 31, 2023
Debt Instrument [Line Items]
Debt face amount		$ 2,200
2026 and 2027 Notes
Debt Instrument [Line Items]
Interest expense related to amortization of debt		6	$ 6.1
Principal – 2027 Notes
Debt Instrument [Line Items]
Debt face amount		1,000
Debt instrument, fair value		1,100		$ 1,300
Redemption price percentage	100%
Principal – 2026 Notes
Debt Instrument [Line Items]
Debt face amount		1,200
Debt instrument, fair value		$ 1,100		$ 1,400

Borrowings - Schedule of Princi

Borrowings - Schedule of Principal and Unamortized Debt Issuance Costs and Other Material Features of Notes (Details) $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2024 USD ($) $ / shares	Dec. 31, 2023 USD ($)
Debt Instrument [Line Items]
Net carrying amount	$ 2,236,415	$ 2,711,750
2026 and 2027 Notes \| Convertible Debt
Debt Instrument [Line Items]
Unamortized debt issuance costs, net	(8,817)	(13,250)
Net carrying amount	$ 2,236,415	2,711,750
Principal – 2026 Notes \| Convertible Debt
Debt Instrument [Line Items]
Conversion ratio	0.0032392
Conversion price (USD per share) \| $ / shares	$ 308.72
Stated Interest Rates	0%
Principal	$ 1,245,232	1,725,000
Principal – 2027 Notes \| Convertible Debt
Debt Instrument [Line Items]
Conversion ratio	0.0204526
Conversion price (USD per share) \| $ / shares	$ 48.89
Stated Interest Rates	2%
Principal	$ 1,000,000	$ 1,000,000

Borrowings - Convertible Note R

Borrowings - Convertible Note Repurchase (Narrative) (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Debt Instrument [Line Items]
Pre-tax gains	$ 61,371	$ 0
Principal – 2026 Notes \| Convertible Debt
Debt Instrument [Line Items]
Repurchased principal amount	480,000
Aggregate repurchase price	415,000
Pre-tax gains	$ 61,400

Borrowings - Capped Call Transa

Borrowings - Capped Call Transactions (Narrative) (Details) - Principal – 2026 Notes $ / shares in Units, shares in Millions, $ in Millions	1 Months Ended
	Nov. 30, 2021 USD ($) $ / shares shares
Debt Instrument [Line Items]
Net cost incurred \| $	$ 48.1
Number of common shares (in shares) \| shares	5.6
Strike price (USD per share)	$ 308.72
Cap price (USD per share)	$ 343.02

Commitments and Contingencies -

Commitments and Contingencies - Schedule of Non-Cancelable Contractual Commitments (Details) $ in Thousands	Mar. 31, 2024 USD ($)
Operating leases
Total	$ 154,385
Remainder of 2024	32,892
2025‑2026	60,279
2027‑2028	36,591
Thereafter	24,623
Purchase commitments
Total	643,505
Remainder of 2024	180,782
2025‑2026	433,298
2027‑2028	29,425
Thereafter	0
Convertible note principal and interest
Total	2,325,232
Remainder of 2024	20,000
2025‑2026	1,285,232
2027‑2028	1,020,000
Thereafter	0
Total
Total	3,123,122
Remainder of 2024	233,674
2025‑2026	1,778,809
2027‑2028	1,086,016
Thereafter	$ 24,623

Commitments and Contingencies_2

Commitments and Contingencies - Narrative (Details) - USD ($) $ in Millions	Mar. 31, 2024	Dec. 31, 2023
Letter of Credit
Long-term Purchase Commitment [Line Items]
Letter of credit outstanding	$ 14.5	$ 13.9

Stock-Based Compensation - Sche

Stock-Based Compensation - Schedule of Stock-Based Compensation Expense (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total stock-based compensation expense	$ 265,877	$ 163,028
Cost of revenue
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total stock-based compensation expense	16,806	18,849
Research and development
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total stock-based compensation expense	87,738	76,483
Sales and marketing
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total stock-based compensation expense	63,971	35,517
General and administrative
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total stock-based compensation expense	$ 97,362	$ 32,179

Stock-Based Compensation - Narr

Stock-Based Compensation - Narrative (Details) - USD ($) $ in Millions	1 Months Ended	3 Months Ended
	Oct. 31, 2022	Mar. 31, 2024
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Incremental stock expense		$ 93
Price-Vested Units
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Granted (in shares)	989,880
Award requisite service period	4 years
Award performance period	7 years

Stock-Based Compensation - Sc_2

Stock-Based Compensation - Schedule of Stock Option Activity (Details) - $ / shares	3 Months Ended	12 Months Ended
	Mar. 31, 2024	Dec. 31, 2023
Stock Options Outstanding
Beginning balance (in shares)	31,541,466
Granted (in shares)	86,854
Exercised (in shares)	(1,960,774)
Forfeited, cancelled, or expired (in shares)	(175,140)
Ending balance (in shares)	29,492,406	31,541,466
Weighted-Average Exercise Price
Beginning balance (USD per share)	$ 19.35
Granted (USD per share)	26.89
Exercised (USD per share)	6.25
Forfeited, cancelled, or expired (USD per share)	82.32
Ending balance (USD per share)	$ 19.86	$ 19.35
Weighted-Average Remaining Contractual Term (In Years)
Options outstanding, Weighted average remaining contractual term	3 years 9 months 7 days	4 years 9 months 14 days

Stock-Based Compensation - Sc_3

Stock-Based Compensation - Schedule of Grant-Date Fair Value of Stock Options Granted (Details) - Stock options - $ / shares	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Expected dividend yield	0%	0%
Risk-free interest rate	4.10%	4.20%
Expected volatility	66.40%	54.70%
Expected term (in years)	6 years 3 months	6 years 3 months
Fair value of underlying common stock (USD per share)	$ 26.89	$ 29.33

Stock-Based Compensation - Sc_4

Stock-Based Compensation - Schedule of Restricted Stock Unit Activity (Details) - Unvested RSUs and PVUs	3 Months Ended
	Mar. 31, 2024 $ / shares shares
Number of Shares
Unvested at beginning of period (in shares) \| shares	37,332,551
Granted (in shares) \| shares	1,570,357
Vested (in shares) \| shares	(3,017,254)
Forfeited (in shares) \| shares	(3,409,225)
Unvested at end of period (in shares) \| shares	32,476,429
Weighted-Average Grant-Date Fair Value
Unvested at beginning of period (USD per share) \| $ / shares	$ 38.31
Granted (USD per share) \| $ / shares	30.14
Vested (USD per share) \| $ / shares	45.83
Forfeited (USD per share) \| $ / shares	42.68
Unvested at end of period (USD per share) \| $ / shares	$ 36.76

Stock-Based Compensation - Sc_5

Stock-Based Compensation - Schedule of Grant-Date Fair Values of ESPP (Details) - Employee Stock Purchase Plan - $ / shares	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected dividend yield	0%	0%
Risk-free interest rate	5.30%	5.20%
Expected volatility	56%	94.50%
Expected term (in years)	6 months	6 months
Grant-date fair value per share (USD per share)	$ 9.11	$ 12.44

Stock-Based Compensation - Sc_6

Stock-Based Compensation - Schedule of Additional Information Related to ESPP (Details) - Employee Stock Purchase Plan - $ / shares	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares issued under the ESPP (in shares)	551,146	532,643
Weighted-average price per share issued (USD per share)	$ 24.92	$ 25.87

Income Taxes (Details)

Income Taxes (Details) $ in Millions	Mar. 31, 2024 USD ($)
Income Tax Disclosure [Abstract]
Unrecognized tax benefits	$ 184.3
Unrecognized tax benefits that would impact effective tax rate	$ 29.7

Net Loss per Share of Common _3

Net Loss per Share of Common Stock (Details) - shares shares in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Convertible notes
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share (in shares)	24,488	26,042
Stock options
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share (in shares)	29,492	34,461
Unvested RSUs and PVUs
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share (in shares)	32,476	36,079