Q&A with Unity CFO Kim Jabal, about the impact from Apple’s upcoming IDFA changes, the tug of war between targeted ads and privacy, competition with Epic, more — Unity Technologies recently reported better than expected earnings for the fourth quarter ended December 31.
Q: Can you tell us a little about your background and how you became the CFO of Unity?
A: Sure. I have over 20 years of experience in finance and accounting, including leadership positions at technology companies such as McAfee, Nimble Storage, and Brocade Communications. I joined Unity in 2018 as Vice President of Finance and was promoted to CFO in 2019.
Q: Unity recently went public through a direct listing. Can you explain what that means and why you chose that route instead of a traditional IPO?
A: Sure. A direct listing is a way for a company to become publicly traded without raising any new capital. In a traditional IPO, a company issues new shares and sells them to institutional investors at a fixed price. In a direct listing, the company’s existing shares are listed on a stock exchange and can be bought and sold by anyone with access to the market.
We chose a direct listing because it allowed us to provide liquidity to our existing shareholders without diluting their ownership. It also allowed us to avoid the expensive and time-consuming process of working with investment banks to set a price for our shares.
Q: How has the COVID-19 pandemic affected Unity’s business?
A: The pandemic has had both positive and negative effects on our business. On the positive side, we’ve seen increased demand for our products as more people turn to gaming and interactive content as a way to stay entertained and connected while social distancing.
On the negative side, we’ve faced some challenges in terms of supply chain disruptions and delays in hiring due to remote work. We’ve also seen some weakness in our advertising business as some advertisers have reduced their spending in response to the economic uncertainty caused by the pandemic.
Q: Unity is known for its game engine, but you also have other business lines such as advertising and augmented reality. Can you talk about your strategy for diversifying your revenue streams?
A: Yes, our goal is to become the leading platform for creating and operating real-time 3D content, not just in gaming but across a wide range of industries. To achieve this, we’re investing in new technologies like augmented and virtual reality, and we’re expanding our reach into new verticals like architecture, engineering, and construction.
We’re also focused on expanding our advertising business by leveraging our real-time 3D technology to create more engaging and immersive ad experiences. We believe that advertising will be an increasingly important revenue stream for us as more brands look to create interactive and personalized content.
Q: Finally, what do you see as the biggest challenges and opportunities for Unity in the coming years?
A: One of our biggest challenges is continuing to innovate and stay ahead of the curve as the technology landscape evolves. We’re constantly exploring new technologies like machine learning and blockchain to see how they can enhance our platform and provide new value to our customers.
At the same time, we see enormous opportunities ahead as the world becomes increasingly digital and interactive. Real-time 3D is a powerful tool for creating immersive experiences across a wide range of industries, and we’re excited to be at the forefront of this trend.
