348
you are viewing a single comment's thread
view the rest of the comments
view the rest of the comments
this post was submitted on 14 Nov 2023
348 points (96.5% liked)
Games
32695 readers
518 users here now
Welcome to the largest gaming community on Lemmy! Discussion for all kinds of games. Video games, tabletop games, card games etc.
Weekly Threads:
Rules:
-
Submissions have to be related to games
-
No bigotry or harassment, be civil
-
No excessive self-promotion
-
Stay on-topic; no memes, funny videos, giveaways, reposts, or low-effort posts
-
Mark Spoilers and NSFW
-
No linking to piracy
More information about the community rules can be found here.
founded 1 year ago
MODERATORS
Headline really feels like it's trying to imply unity is currently making a profit. They haven't been out of the red in a while. Businesses tend to die when they're bleeding money and there's no VC.
It's a bit more complicated than that. There are a lot of accounting tricks to be constantly making losses but end up cash flow positive.
I don't work or invest in Unity so I don't have a great understanding of their metrics but companies I worked at would constantly capitalize new projects to add expenses in the future. You can structure sales deals so a new feature is added late in the contract. That pushes revenue out, but you can collect more cash early.
If unity didn't do share buy backs this quarter, they would have a positive cash flow. Which points to they should be a profitable company but instead are using accounting tricks to post losses to lower tax bills.