Apple’s iOS 14.5 update was a big deal — it gave users the opportunity to block third-party apps from tracking their data.
While many businesses which rely on this data have suffered, it seems that Unity Software (NYSE: U) has managed to thrive.
Doesn’t Unity make games?
Unity is primarily a videogame software company, but it actually makes a lot of money through the Operate segment of its business, which allows content hosting through advertising and in-game transactions.
Ok, so surely Apple’s new Identifier For Advertisers (IDFA) rule change must be hurting Unity as the majority of its customers’ business focus on iOS users? These customers must be having less success with targeting users, thus resulting in less in-game sales, and therefore a smaller cut for Unity?
Not according to Unity’s Q2 results. Investors were pumped this week to see that revenue jumped 48% YoY to $273.6 million. Meanwhile, its Operate segment brought in nearly $584 million in revenue for the trailing 12-month period ended June, up 56% year-over-year (YoY), helped by a 63% jump in Q2 — after the iOS 14.5 update.
This is because Unity has been taking steps to ween off of iOS data reliance for some time now. After all, in its 2020 IPO prospectus, it identified the then-upcoming update as a risk to its bottom line — it refused to go in blind. Now, the company has become a user data powerhouse, claiming to capture and analyze 50 billion in-app events each day — which puts it firmly in the driving seat to help customers optimize their advertising spend on its platform.
So, while Facebook et al. continue their war of words with Apple and its blasted updated, Unity has built its own Apple-esque stockpile of data from which it is now reaping the rewards.
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Editor at MyWallSt
Jamie is the Content Editor here at MyWallSt. His favorite stock is Apple, which is also the first stock he ever bought. Jamie is not only a big fan of its products, but he believes that the tech giant has a whole lot more to give the world, and hasn't even scraped the surface of its potential.