Unity CFO Kim Jabal interview: Understanding the tradeoff between market share and profits

Unity Technologies recently reported better than expected earnings for the fourth quarter ended December 31. It reported revenues rose 39% to $220.3 million, but the company still reported a loss from operations of $80.8 million, wider than its loss of $48.6 million a year earlier.

But Unity’s new investors (the company went public at a $13 billion valuation in September) are largely OK with this. The stock fell after the report, but Unity is still trading at a healthy $34.5 billion valuation. Part of the reason that people are bullish on Unity is that it has a market share lead, as its game engine is used in more than half of all mobile games compared to rivals Cocos and Unreal. In its recent history, Unity has been emphasizing market share over profits in its recent strategy. So long as it has access to capital, that strategy has worked.