Company Performance - Skillz Inc. reported a quarterly loss of $1.12 per share, which was better than the Zacks Consensus Estimate of a loss of $1.34, representing an earnings surprise of +16.42% [1] - The company posted revenues of $27.37 million for the quarter ended June 2025, exceeding the Zacks Consensus Estimate by 20.05%, compared to revenues of $25.3 million a year ago [2] - Over the last four quarters, Skillz has surpassed consensus EPS estimates two times and topped consensus revenue estimates twice [2] Stock Movement and Outlook - Skillz shares have increased by approximately 40.4% since the beginning of the year, significantly outperforming the S&P 500's gain of 7.9% [3] - The future performance of Skillz's stock will largely depend on management's commentary during the earnings call and the company's earnings outlook [4][6] - The current consensus EPS estimate for the upcoming quarter is -$1.28 on revenues of $23.55 million, and for the current fiscal year, it is -$4.72 on revenues of $93.81 million [7] Industry Context - The Gaming industry, to which Skillz belongs, is currently ranked in the bottom 42% of over 250 Zacks industries, indicating potential challenges ahead [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which could impact Skillz's stock performance [5]

Financial Data and Key Metrics Changes - Q2 GAAP revenue was $27 million, up from $21 million in Q1 2025 and $25 million in Q2 2024, reflecting a 30% sequential increase and an 8% year-over-year increase [5][16] - Excluding one-time adjustments, revenue grew 22% quarter-over-quarter and 4% year-over-year [5][16] - Q2 adjusted EBITDA loss was $10 million, an improvement from a loss of $16 million in Q1 2025 and a loss of $13 million in Q2 2024, representing a 36% improvement quarter-over-quarter and 17% year-over-year [6][18] - Q2 net loss was $9 million compared to a net income of $26 million in the same quarter last year, with an adjusted EBITDA loss improving by $3 million year-over-year [18] Business Line Data and Key Metrics Changes - Paying Monthly Active Users (MAU) reached 146,000, up from 124,000 in Q1 2025 and 122,000 in Q2 2024, indicating an 18% growth quarter-over-quarter and 20% growth year-over-year [5][16] - The paid user conversion rate increased to 19% in Q2 from 15% a year ago [17] Market Data and Key Metrics Changes - User acquisition marketing expenses in Q2 were $3 million, while engagement marketing expenses were $9 million, with total sales and marketing expenses down 16% year-over-year [17] Company Strategy and Development Direction - The company is focused on enhancing its platform to improve player and developer engagement, with significant progress made in loyalty programs and user experience [6][7] - A three-year commitment of $75 million has been made to support a developer accelerator program, aimed at encouraging game development for the platform [9] - The company is also pursuing litigation against competitors for alleged unfair practices, emphasizing its commitment to fair competition [14][15] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to achieve positive adjusted EBITDA and highlighted the steady strides being made towards profitability [11][12] - The company believes its current valuation does not reflect the combined value of its operating platform and progress made [15] Other Important Information - The company is working to complete its financial statements for the year ended December 31, 2024, after receiving a notice from the NYSE regarding non-compliance with listing standards [3] - The company ended Q2 with $239 million in cash, providing flexibility to enhance shareholder value [19] Q&A Session Summary - No questions were registered during the Q&A session, and the call concluded without further inquiries [20]

[Skillz Preliminary Q2 2025 Results](index=1&type=section&id=Skillz%20Announces%20Preliminary%20Second%20Quarter%202025%20Results) [Financial & Operational Highlights](index=1&type=section&id=Preliminary%20Second%20Quarter%20Financial%20Update) Skillz reported revenue growth and a significant increase in Paying Monthly Active Users, reflecting progress towards its strategic goals of top-line growth and improved profitability Q2 2025 Preliminary Financial Highlights | Metric | Value | | :--- | :--- | | Revenue | $27.4 million | | Gross Profit | $24.2 million | | Net Loss | $8.9 million | | Adjusted EBITDA Loss | $10.4 million | | Paying Monthly Active Users (PMAU) | 146,000 | | Avg. Revenue Per Paying Monthly Active User (ARPPU) | $62.8 | - Revenue grew **8% year-over-year**, while Paying Monthly Active Users (PMAUs) grew **18% sequentially** and **20% year-over-year**, reaching the highest level since Q3 2023[3](index=3&type=chunk) - The company is advancing its **$75 million Developer Accelerator program** to diversify game genres and remains committed to its four key pillars for long-term shareholder value[3](index=3&type=chunk) - Management emphasized that disciplined operating expense management improved the Adjusted EBITDA loss year-over-year, and the company's cash and restricted cash balance of **over $238 million** provides significant financial flexibility[3](index=3&type=chunk) [Consolidated Statements of Operations (Preliminary & Unaudited)](index=5&type=section&id=Preliminary%20Consolidated%20Statements%20of%20Operations%20and%20Comprehensive%20(Loss)%20Income%20(Unaudited)) The company's Q2 2025 net loss of $8.9 million contrasts sharply with a $26.0 million net income in Q2 2024, primarily due to a one-time litigation settlement gain in the prior year Q2 Statement of Operations (in thousands) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | | :--- | :--- | :--- | | **Revenue** | **$27,372** | **$25,295** | | Total costs and expenses | $33,953 | $(297) | | (Loss) income from operations | $(6,581) | $25,592 | | **Net (loss) income** | **$(8,919)** | **$26,045** | | Diluted (Loss) Earnings per share | $(0.58) | $1.44 | - Sales and marketing expenses decreased to **$17.5 million** in Q2 2025 from $20.8 million in Q2 2024[20](index=20&type=chunk) - The significant income from operations and net income in Q2 2024 were driven by a **$46.0 million gain from a litigation settlement**, which was not repeated in Q2 2025[20](index=20&type=chunk) [Consolidated Balance Sheets (Preliminary & Unaudited)](index=6&type=section&id=Preliminary%20Consolidated%20Balance%20Sheets%20(Unaudited)) The company's balance sheet shows a reduction in both total assets and total liabilities as of June 30, 2025, while maintaining a strong cash position of $238.7 million Balance Sheet Highlights (in thousands) | Metric | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Cash and cash equivalents | $228,657 | $271,923 | | **Total Assets** | **$328,302** | **$362,619** | | **Total Liabilities** | **$187,884** | **$200,671** | | Total stockholders' equity | $140,418 | $161,948 | [Consolidated Statements of Cash Flows (Preliminary & Unaudited)](index=7&type=section&id=Preliminary%20Consolidated%20Statements%20of%20Cash%20Flows%20(Unaudited)) Net cash used in operating activities was $31.7 million for the first half of 2025, a significant shift from cash provided by operations in the prior-year period Six-Month Cash Flow Summary (in thousands) | Metric | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | Net cash (used in) provided by operating activities | $(31,709) | $23,406 | | Net cash (used in) provided by investing activities | $(3,446) | $2,210 | | Net cash used in financing activities | $(8,111) | $(11,225) | | **Net change in cash, cash equivalents and restricted cash** | **$(43,266)** | **$14,391** | | **Cash, cash equivalents and restricted cash – end of period** | **$238,657** | **$326,419** | [Reconciliation of Net Loss to Adjusted EBITDA](index=8&type=section&id=Preliminary%20Reconciliation%20of%20GAAP%20Net%20Loss%20to%20Adjusted%20EBITDA%20Loss%20(Unaudited)) The company's Adjusted EBITDA loss improved to $10.4 million in Q2 2025 from $12.6 million in Q2 2024, after adjusting for items like stock compensation and insurance recovery Reconciliation to Adjusted EBITDA Loss (in thousands) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | | :--- | :--- | :--- | | Net (loss) income | $(8,919) | $26,045 | | Stock-based compensation | $4,366 | $7,433 | | Insurance recovery | $(8,367) | — | | Gain from litigation settlement | — | $(46,000) | | **Adjusted EBITDA loss** | **$(10,388)** | **$(12,572)** | [Reconciliation of GAAP to Non-GAAP Costs and Expenses](index=9&type=section&id=Preliminary%20Reconciliation%20of%20GAAP%20to%20Non-GAAP%20Costs%20and%20Expenses) Non-GAAP operating expenses for Q2 2025 reflect significant year-over-year reductions in sales, marketing, and administrative costs after excluding stock-based compensation Q2 Non-GAAP Expense Reconciliation (in thousands) | Expense Category | GAAP Expense | Stock-Based Comp. | Non-GAAP Expense | | :--- | :--- | :--- | :--- | | **Q2 2025** | | | | | Research and development | $4,840 | $(250) | $4,590 | | Sales and marketing | $17,540 | $(690) | $16,850 | | General and administrative | $8,353 | $(3,426) | $4,927 | | **Q2 2024** | | | | | Research and development | $4,272 | $(182) | $4,090 | | Sales and marketing | $20,849 | $(1,787) | $19,062 | | General and administrative | $17,236 | $(5,462) | $11,774 | [Key Operating Metrics](index=10&type=section&id=Preliminary%20Supplemental%20Financial%20Information) While Paying Monthly Active Users grew 20% year-over-year in Q2 2025, a decline in Gross Marketplace Volume led to lower monetization per paying user Key Operating Metrics Comparison | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | | :--- | :--- | :--- | | Gross marketplace volume ("GMV") (000s) | $136,590 | $161,663 | | Paying monthly active users ("PMAUs") (000s) | 146 | 122 | | Monthly active users ("MAUs") (000s) | 748 | 807 | | Average revenue per paying monthly active user ("ARPPU") | $62.8 | $69.4 | | Average revenue per monthly active user ("ARPU") | $12.3 | $10.4 | | Paying MAU to MAU ratio | 19% | 15% | [Disclosures and Other Information](index=2&type=section&id=Disclosures%20and%20Other%20Information) The company discusses its use of non-GAAP metrics, the preliminary nature of results, and its plan to address an NYSE non-compliance notice for delayed SEC filings - The company uses non-GAAP measures like Adjusted EBITDA to supplement GAAP results, believing they provide a useful evaluation of operating performance consistent with industry practice[9](index=9&type=chunk) - The reported financial results are **preliminary** and subject to change upon completion of the company's internal review and independent accounting firm's review[12](index=12&type=chunk) - Skillz received a **non-compliance notice from the NYSE** for failure to timely file its Form 10-K and has a six-month grace period to regain compliance[14](index=14&type=chunk) - The report contains forward-looking statements that are subject to significant risks and uncertainties, including competition, developer relationships, and regulatory changes[15](index=15&type=chunk)[16](index=16&type=chunk)

Company Overview - Skillz Inc. (SKLZ) shares increased by 10.1% to close at $7.73, with trading volume significantly higher than usual, compared to a 5.7% gain over the past four weeks [1] Strategic Initiatives - The recent stock price rally is attributed to growing investor confidence in Skillz's strategic turnaround efforts and operational focus, particularly the launch of its Accelerator program aimed at expanding beyond casual games into emerging genres [2] - The Accelerator program has garnered strong interest from developers, enhancing Skillz's position as an innovative platform in skill-based mobile gaming [2] - Skillz is also focusing on strengthening internal operations and streamlining product development and marketing, which is expected to lead to more consistent execution and broaden its market reach [2] Financial Expectations - The company is projected to report a quarterly loss of $1.34 per share, reflecting a year-over-year decline of 135.1%, with expected revenues of $22.8 million, down 9.9% from the previous year [3] - The consensus EPS estimate for the quarter has remained unchanged over the last 30 days, indicating that stock price movements may not sustain without trends in earnings estimate revisions [4] Industry Context - Skillz is part of the Zacks Gaming industry, where Roblox (RBLX) experienced a 3.5% decline in the last trading session, despite a 20.3% return over the past month [4] - Roblox's consensus EPS estimate has changed by +0.8% to -$0.36, representing a year-over-year change of -12.5%, and it currently holds a Zacks Rank of 2 (Buy) [5]

分组1 - Skillz Inc. reported a quarterly loss of $0.92 per share, better than the Zacks Consensus Estimate of a loss of $1.09, and an improvement from a loss of $1.45 per share a year ago, resulting in an earnings surprise of 15.60% [1] - The company posted revenues of $22.41 million for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 8.01%, although this represents a decline from year-ago revenues of $25.24 million [2] - Skillz shares have increased by approximately 3% since the beginning of the year, contrasting with the S&P 500's decline of -4.3% [3] 分组2 - The current consensus EPS estimate for the upcoming quarter is -$1.25 on revenues of $20.5 million, and for the current fiscal year, it is -$4.74 on revenues of $86.95 million [7] - The Zacks Industry Rank indicates that the Gaming industry is currently in the bottom 41% of over 250 Zacks industries, suggesting that the industry's outlook may negatively impact stock performance [8]

Financial Data and Key Metrics Changes - Revenue for Q1 was $22 million, up 21% sequentially but down 11% year over year. Excluding a $1.6 million life-to-date incentive adjustment in Q4, revenue grew 12% sequentially [18] - The net loss for the quarter was $15 million, compared to a net loss of $27 million in the prior year [19] - Adjusted EBITDA loss in Q1 was $50 million, compared to an adjusted EBITDA loss of $90 million in Q4 [19] - The company ended Q1 with $264 million in cash, including $254 million in cash and cash equivalents and $10 million in restricted cash [20] Business Line Data and Key Metrics Changes - The paid user conversion rate was 16.2% in Q1, up from 14.6% in Q4 [18] - Paying monthly active users (MAU) increased to 123,000 in Q1 from 110,000 in Q4 [14] Market Data and Key Metrics Changes - The company is actively addressing industry-wide issues related to fairness and integrity, particularly concerning the use of bots by competitors [7][8] - Ongoing litigation against companies like Papaya and Voodoo aims to protect the business interests and integrity of the industry [9][10] Company Strategy and Development Direction - The company is focused on four key pillars: enhancing the platform, up-leveling the organization, improving go-to-market strategies, and demonstrating a clear path to profitability [11] - An accelerator program was launched to drive innovation and expand offerings, with plans to deploy up to $75 million over the next three years to support at least 25 high-potential games [12][13] - The company aims to optimize customer acquisition costs (CAC) and grow lifetime value (LTV) while managing expenses [15][16] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ability to compete against legitimate skill-based gaming providers and emphasized the importance of building trust within the industry [8][10] - The company is committed to returning to consistent top-line growth and positive adjusted EBITDA, supported by a strong balance sheet [11][16] Other Important Information - The company is working to comply with NYSE listing standards and expects to file necessary financial reports within the granted six-month period [5][20] - The cash position includes a $7.5 million payment received from AviGames as part of a settlement, which is the first of four annual payments [20] Q&A Session Summary - No questions were registered during the Q&A session, leading to the conclusion of the call [21]

Financial Data and Key Metrics Changes - Revenue for Q1 2025 was $22 million, representing a 21% sequential increase but an 11% year-over-year decline [17] - Adjusted EBITDA loss for Q1 was $50 million, an improvement from a loss of $90 million in Q4 2024 [18] - Net loss for Q1 was $15 million, compared to a net loss of $27 million in the prior year [18] - Cash position at the end of Q1 was $264 million, including $254 million in cash and cash equivalents [18] Business Line Data and Key Metrics Changes - Paid Monthly Active Users (MAU) increased to 123,000 in Q1 from 110,000 in Q4 2024, indicating growth in user engagement [13] - The paid user conversion rate rose to 16.2% in Q1 from 14.6% in Q4 2024 [17] Market Data and Key Metrics Changes - The company is actively involved in litigation against international competitors, alleging unfair practices that harm its business [7][9] - The ongoing legal actions are aimed at protecting consumer interests and ensuring fair competition in the skill-based gaming industry [6][10] Company Strategy and Development Direction - The company is focusing on enhancing its platform to improve consumer and developer engagement, with a commitment to invest up to $75 million over the next three years to support new game development [11] - The strategy includes expanding beyond casual skill games into new genres to broaden competitive gaming offerings [12] - The company aims to achieve positive adjusted EBITDA and sustainable growth while managing expenses [15] Management's Comments on Operating Environment and Future Outlook - Management emphasized the importance of building trust in the industry and protecting players from deceptive practices [6][10] - The company remains confident in its ability to compete against legitimate skill-based gaming providers and is focused on returning to consistent top-line growth [10][15] Other Important Information - The company is working to comply with NYSE listing standards after receiving a notice of non-compliance [3][4] - The company has received a $7.5 million payment from AviGames as part of a settlement, contributing to its cash position [19] Q&A Session Summary - No questions were registered during the Q&A session, leading to the conclusion of the call [20]

Skillz Preliminary First Quarter 2025 Results [Management Commentary](index=1&type=section&id=Management%20Commentary) Management highlights progress towards top-line growth and positive Adjusted EBITDA, driven by increased PMAU, disciplined expense management, and a strong cash position - CEO Andrew Paradise noted a quarter-over-quarter increase in **paying monthly active users (PMAU)**, with a focus on improving player retention and spending[4](index=4&type=chunk) - A **$75 million** accelerator program is underway to broaden the company's skill-based mobile game offerings[4](index=4&type=chunk) - CFO Gaetano Franceschi stated that disciplined operating expense management is improving the **Adjusted EBITDA loss** year-over-year[4](index=4&type=chunk) - The company maintains a strong balance sheet with over **$264 million** in cash and restricted cash, providing financial flexibility for strategic initiatives[4](index=4&type=chunk) [Preliminary First Quarter Financial Update](index=1&type=section&id=Preliminary%20First%20Quarter%20Financial%20Update) Preliminary Q1 2025 results show revenue of **$22.4 million**, a net loss of **$14.9 million**, and an Adjusted EBITDA loss of **$15.1 million**, with **124,000 PMAU** Q1 2025 Preliminary Financial & Operational Metrics | Metric | Value | | :--- | :--- | | Revenue | $22.4 million | | Net Loss | $14.9 million | | Adjusted EBITDA | $(15.1) million | | Paying Monthly Active Users (PMAU) | 124,000 | | Average Revenue Per Paying Monthly Active User (ARPPU) | $62.2 | | Total Operating Expenses (Non-GAAP) | $34.7 million | [Filing Status and Preliminary Nature of Results](index=2&type=section&id=Filing%20Status%20and%20Preliminary%20Nature%20of%20Results) Preliminary Q1 2025 results are subject to change, with the company addressing a NYSE non-compliance notice for its delayed 2024 Form 10-K filing and a six-month grace period - The **Q1 2025 results are preliminary** and may differ from final figures upon completion of internal review and audit[13](index=13&type=chunk) - The company has **delayed the filing of its Annual Report on Form 10-K** for the year ended December 31, 2024[14](index=14&type=chunk) - Skillz received a **non-compliance notice from the NYSE** for the late filing, with a **six-month period from March 17, 2025**, to regain compliance by filing its Form 10-K[15](index=15&type=chunk) [Financial Statements](index=4&type=section&id=Financial%20Statements) Preliminary Q1 2025 financial statements show decreased revenue but improved net loss due to a litigation settlement, alongside reduced cash and total assets, and increased negative operating cash flow [Consolidated Statements of Operations](index=4&type=section&id=Preliminary%20Consolidated%20Statements%20of%20Operations%20and%20Comprehensive%20Loss) Q1 2025 vs Q1 2024 Statement of Operations (in thousands) | Metric | Q1 2025 (Thousands) | Q1 2024 (Thousands) | | :--- | :--- | :--- | | Revenue | $22,413 | $25,235 | | Total Costs and Expenses | $35,678 | $52,106 | | Gain from litigation settlement | $(7,500) | $— | | Loss from Operations | $(13,265) | $(26,871) | | Net Loss | $(14,931) | $(26,723) | | Basic and Diluted EPS | $(0.92) | $(1.45) | [Consolidated Balance Sheets](index=5&type=section&id=Preliminary%20Consolidated%20Balance%20Sheets) Balance Sheet Highlights (in thousands) | Account | March 31, 2025 (Thousands) | December 31, 2024 (Thousands) | | :--- | :--- | :--- | | Cash and cash equivalents | $254,341 | $271,923 | | Total Current Assets | $275,897 | $292,408 | | Total Assets | $346,973 | $362,176 | | Total Liabilities | $189,741 | $190,927 | | Total Stockholders' Equity | $157,232 | $171,249 | [Consolidated Statement of Cash Flows](index=6&type=section&id=Preliminary%20Consolidated%20Statement%20of%20Cash%20Flows) Q1 2025 vs Q1 2024 Cash Flow Summary (in thousands) | Activity | Q1 2025 (Thousands) | Q1 2024 (Thousands) | | :--- | :--- | :--- | | Net cash used in operating activities | $(10,767) | $(4,396) | | Net cash provided by (used in) investing activities | $(1,891) | $169 | | Net cash used in financing activities | $(4,924) | $(7,200) | | **Net change in cash** | **$(17,582)** | **$(11,427)** | | **Cash, cash equivalents and restricted cash – end of period** | **$264,341** | **$300,601** | [Non-GAAP Financial Measures](index=7&type=section&id=Non-GAAP%20Financial%20Measures) Adjusted EBITDA loss improved to **$15.1 million** in Q1 2025 from **$17.7 million** in Q1 2024, driven by reduced operating expenses, with a **$7.5 million** litigation settlement gain excluded [Reconciliation of GAAP Net Loss to Adjusted EBITDA](index=7&type=section&id=Preliminary%20Reconciliation%20of%20GAAP%20Net%20Loss%20to%20Adjusted%20EBITDA) Reconciliation of Net Loss to Adjusted EBITDA (in thousands) | Line Item | Q1 2025 (Thousands) | Q1 2024 (Thousands) | | :--- | :--- | :--- | | Net loss | $(14,931) | $(26,723) | | Stock-based compensation | $5,536 | $8,740 | | Gain from litigation settlement | $(7,500) | $— | | **Adjusted EBITDA** | **$(15,062)** | **$(17,736)** | [Reconciliation of GAAP to Non-GAAP Operating Expenses](index=8&type=section&id=Preliminary%20Reconciliation%20of%20GAAP%20to%20Non-GAAP%20Operating%20Expenses) Non-GAAP Operating Expenses (in thousands) | Expense Category | Q1 2025 (Thousands) | Q1 2024 (Thousands) | | :--- | :--- | :--- | | Non-GAAP research and development | $4,563 | $4,477 | | Non-GAAP sales and marketing | $17,891 | $18,983 | | Non-GAAP general and administrative | $12,226 | $16,457 | [Key Operating Metrics](index=9&type=section&id=Preliminary%20Supplemental%20Financial%20Information) Key operating metrics for Q1 2025 show mixed results, with increased **PMAUs** but decreased **GMV** and **MAUs**, leading to lower average revenue per user, though the **PMAU to MAU ratio improved to 16%** Key Operating Metrics (YoY Comparison) | Metric | Q1 2025 | Q1 2024 | Change | | :--- | :--- | :--- | :--- | | Gross marketplace volume (GMV) (000s) | $126,485 | $161,269 | 🔽 | | Paying monthly active users (PMAUs) (000s) | 124 | 121 | 🔼 | | Monthly active users (MAUs) (000s) | 764 | 860 | 🔽 | | Average revenue per paying monthly active user (ARPPU) | $62.2 | $69.8 | 🔽 | | Paying MAU to MAU ratio | 16% | 14% | 🔼 |

Core Insights - Skillz reported a challenging fourth quarter with earnings missing expectations, highlighting ongoing difficulties in revenue and user retention [1][2] Financial Performance - Q4 2024 revenue was $20.4 million, down 34.5% from $31.1 million in Q4 2023, and below the FactSet estimate of $25 million [2][3] - The net loss for the quarter was $26.4 million, resulting in a GAAP EPS of ($1.50), missing the expected ($1.13) by 32.7% [2][6] - Paying Monthly Active Users (PMAU) decreased to 110,000 from 137,000, a decline of 19.7% [3][7] - Average Revenue Per Paying Monthly Active User (ARPPU) fell to $68.1 from $73.3, a decrease of 7.1% [3][8] - Adjusted EBITDA was $(18.5) million, worsening from $(7.3) million in the previous year [3] Business Model and Strategy - Skillz operates a platform for mobile gaming competitions, focusing on fair play and providing developers with tools for multiplayer capabilities [4] - The company is implementing a $75 million developer accelerator to enhance game innovation and user engagement [5] - Despite cost control efforts, operating expenses excluding revenue costs were $43.2 million, down 10.4% year-over-year [8] Recent Developments - A legal victory against AviaGames strengthened Skillz's market position, crucial for maintaining fair competition [9] - Management reported sequential increases in user counts from November 2024 through February 2025, indicating potential recovery [7] Future Outlook - Management aims for positive adjusted EBITDA by 2025, focusing on user acquisition, retention strategies, and operational enhancements [10][11] - The emphasis on fair play technologies is central to Skillz's competitive differentiation [11] - Future guidance will be critical for investors, with a focus on revenue generation improvements and cost efficiencies [11]

Financial Data and Key Metrics Changes - Revenue for Q4 2024 was $20 million, down 17% sequentially and down 35% year over year [25] - Adjusted EBITDA loss in Q4 was $19 million, with a full-year adjusted EBITDA loss of $63 million compared to $69 million in 2023 [28] - Net loss for Q4 was $26 million, an improvement from a net loss of $60 million in Q4 2023 [27] - Cash at the end of the year was $282 million, consisting of $272 million in cash and cash equivalents and $10 million in restricted cash [28] Business Line Data and Key Metrics Changes - Paying MAU in Q4 was 110,000, down from 121,000 in Q3, but increased to 123,000 by the end of February [20] - Paid user conversion rate was 14.6% in Q4, up from 14.3% in Q3 [25] - User acquisition (UA) marketing spend was $5 million, while engagement marketing was $10 million in Q4 [26] Market Data and Key Metrics Changes - The company is actively pursuing legal actions against competitors using deceptive practices, which it believes defraud players of billions [10][12] - Class action lawsuits have been filed against Avia Games and Papaya Gaming, indicating ongoing market challenges [12] Company Strategy and Development Direction - The company is focusing on four key pillars to return to consistent top-line growth and positive adjusted EBITDA, including enhancing the platform, up-leveling the organization, optimizing go-to-market strategies, and demonstrating a clear path to profitability [15][22] - A $75 million developer accelerator program has been announced to support game developers and expand offerings on the platform [17][18] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in competing against other skill-based gaming providers without engaging in deceptive practices [14] - The company is focused on improving consumer and developer engagement and retention through its platform enhancements [16] Other Important Information - The company expects to receive $7.5 million from Avia Games as part of a settlement, which is the first of four annual payments [29] - Total principal due on outstanding debt at the end of Q4 was $129.7 million [29] Q&A Session Summary - There were no questions registered during the Q&A session, leading to the conclusion of the conference call [31]