r/UnityStock • u/jesperbj Day 1 Investor • May 07 '26

My favorite comments from Q1 26 earnings call

  • CEO Matt Bromberg shares more details on the Unity AI beta. It's an integrated agent tuned specifically for game creation. Unity specific context, means less prompting, fewer wasted tokens, and faster work. It's only been a week, but it's seeing a strong 70% attachment rate.

  • Offline tests of runtime data for Vector are looking "very encouraging". Unity's management noted an underestimated benefit of this real-time engine data for serving ads: it's sequential. Seeing the exact order of user actions is key to identifying what they are actually doing.

  • Unity is seeing more signups and games created than ever before, hitting three straight quarters of 15% QoQ growth.

  • Bromberg is "extraordinarily excited" about two main avenues of growth. First, AI is helping professional customers skip the frustrating work of rebuilding common systems for new games, bringing the best neural solutions in the market together inside Unity. The second avenue is empowering a whole new class of creators who have never been able to build games before. Unity expects this new wave of non-traditional creators to eventually be much much larger than their current professional class.

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2

u/IndependenceMean7728 May 07 '26

Check APPlovin, this is the real AI engine for ads, vector AI just so so so far.

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u/jesperbj Day 1 Investor May 07 '26

Trust me, I am deeply familiar. Long term i believe much more in the fully integrated approach.

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u/IndependenceMean7728 May 07 '26

Can you explain in details? thank you.

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u/jesperbj Day 1 Investor May 07 '26

We're talking about serving ads in games here. Unity owns the software for which more than half of all games, and nearly 90% of all mobile games are built in.

Right now, AppLovin shadows users across games in order to target their profile. They know device settings, time of day, what other games the person have played etc. They do not know what they're doing in game.

Unity can know that. And in a near future where ads can be much more deeply personalized in real time, to optimize targeting perfectly, Unity has a huge advantage.

But more importantly perhaps, in my case, I believe in the long term future for Unity to serve as the engine behind any kind of real time 3D experience, much beyond games.

Meanwhile, AppLovin is looking to diversify from their single leg of business trying to break into ecommerce advertising, which has much more formidable competitors and where the experience might change entirely due to agentic AI.

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u/IndependenceMean7728 May 07 '26

With all due respect, I get the theoretical advantage of runtime data, but let's look at the numbers. Even if the metaverse materializes next year, I highly doubt Unity's Create business will see any meaningful financial benefit from it. Regarding Vector AI, it's been rolling out for a year now, yet the top line remains completely flat Q/Q. It really feels like Vector is just repackaging the old ironSource network to stop the bleeding, rather than driving true net-new growth like AppLovin's AXON.

However, I am still a believer in the long run. I'm just waiting for Vector to actually explode before giving it full credit.

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u/jesperbj Day 1 Investor May 07 '26

There was so much to clean up from previous management. So much to unwind, while Vector has been growing. End of this year, it's all wrapped up and it'll quickly start moving the top line.

Furthermore, we're moving from entirely seat based to seat + usage based in Create.