What Happened? Shares of mobile game developer Skillz (NYSE:SKLZ) fell 1.9% in the afternoon session after the company reported third-quarter results that missed analyst expectations for revenue and earnings. The company posted revenue of $27.4 million, which, while up 11% from the previous year, fell short of the $29.1 million analysts had predicted. The loss per share of $1.14 also missed the consensus estimate. Furthermore, the company's adjusted EBITDA loss came in at $11.8 million, significantly wid ...

Business Model and Revenue Generation - Skillz's platform enables game developers to monetize their content through multi-player competition, allowing developers to earn revenue by hosting skill-based competitions where players pay entry fees, with Skillz taking a percentage of the pool[34] - Aarki, Skillz's AI advertising technology, manages millions of mobile ad requests per second from over 10 billion devices, driving revenue growth for mobile app developers[37] - In February 2025, Skillz launched the $75 million Skillz Developer Program to provide working capital and operational support to approximately 25 games over the next three years[58] - The company enables cash prizes in 45 states and the District of Columbia, excluding Arkansas, Connecticut, Delaware, Louisiana, and South Dakota[81] - Approximately 93% of Ticketz were issued from customer participation in paid tournaments for the year ending December 31, 2024, compared to 96% for the year ending December 31, 2023[70] - For the year ended December 31, 2024, the top games Solitaire Cube and 21 Blitz accounted for 59% of revenue, with Tether contributing 45% and Big Run 26%[108] Technology and Platform Development - Skillz's proprietary platform ensures fair player matching, which is critical for maintaining trust and engagement in skill-based gaming[26] - Skillz's technology capabilities include anti-cheat and anti-fraud systems, which are essential for fostering a healthy competitive ecosystem[54] - The introduction of standardized game development platforms has resulted in a flood of game content, making it challenging for developers to monetize effectively[56] - The company actively monitors player metrics such as daily active users, crash rates, app store ratings, and support ticket issues to ensure game quality[59] - The company relies on third-party developers for game updates, and any failure to provide timely updates could negatively impact financial results[106] Financial Performance and Challenges - The company has 91 patents granted and 86 patents pending worldwide as of December 31, 2024[79] - The company has experienced net losses in each period since inception, highlighting the risks associated with its growth strategy in a competitive industry[190] - The company expects operating margins to face downward pressure due to increased competition and rising user acquisition costs[191] - As of December 31, 2024, the company had an accumulated deficit of $1,021.3 million, indicating ongoing financial challenges since inception[190] - The company has experienced interruptions in service in the past, which could impact user engagement and retention[152] Regulatory and Compliance Issues - The company has developed internal compliance programs to adhere to legal and regulatory requirements for skill-based gaming and data privacy[84] - The company is subject to indirect taxation and reporting in approximately 218 domestic and international jurisdictions[147] - Changes in tax laws or tax rulings could materially affect the company's effective tax rates and financial position[147] - Compliance with evolving privacy laws such as GDPR and CCPA has required significant operational resources and expenses[177] - The company is subject to potential fines of up to 4% of global annual revenue or €20 million for violations of GDPR[175] Market and Competitive Landscape - The global video game market size was estimated at $221.2 billion in 2024, with a projected compound annual growth rate (CAGR) of 6.5% from 2025 to 2033[55] - Competition in the entertainment industry is intense, with the company facing challenges from established and emerging competitors, which could affect user retention and market share[99] - The company faces increasing challenges and costs in acquiring players due to the competitive nature of the mobile gaming industry[117] - The company relies on the continued growth of the mobile gaming market for future success, and any decline in mobile device popularity could harm revenue[129] Risks and Legal Matters - The company is involved in ongoing litigation regarding bot misuse, which could result in reputational harm and additional legal costs[101] - Material weaknesses in internal control over financial reporting were identified as of December 31, 2023, and December 31, 2024, potentially impacting timely and accurate financial reporting[95] - The company faces potential litigation risks related to the use of third-party open source software, which could disrupt its business operations[157] - The company may incur significant costs or downtime if agreements with third-party service providers are terminated[155] Strategic Initiatives and Future Outlook - The company plans to pursue acquisitions and strategic investments, but miscalculations in value or integration challenges could materially harm its business[170] - The company’s growth strategy includes developing localized offerings for international markets, which requires significant resources and management attention[167] - The company has significant opportunities to extend marketing channels to offline media and engage in brand marketing[69] - The company expects a positive return on investment from user acquisition spending, but incorrect assumptions about user spending behavior could negatively impact operating results[119] Corporate Governance and Shareholder Matters - The Company authorized a share repurchase program with an aggregate purchase price not to exceed $65.0 million, effective for one year from August 18, 2023[210] - The average closing price of the Company's stock must remain above $1.00 over a 30-day period to comply with NYSE listing standards, or it risks delisting[211] - As of December 31, 2024, Mr. Paradise controlled 84% of the voting power of the Company's outstanding capital stock, classifying it as a "controlled company" under NYSE rules[216] - The dual class structure of the Company's common stock concentrates significant voting power with the CEO, limiting other stockholders' influence on corporate decisions[218]

Skillz (NYSE:SKLZ) Q3 2025 Earnings Call November 06, 2025 08:30 AM ET Speaker0Hello everybody and welcome to the Skillz Q3 2025 earnings conference call. My name is Elliot and I'll be coordinating your call today. If you'd like to register a question during today's event, please press star one on your telephone keypad. I'll let that hand over to Joe. Please go ahead.Speaker3This morning, Skillz issued its 2025 third quarter earnings release, which is available on the company's investor relations website. T ...

Core Insights - Skillz Inc. reported preliminary financial results for Q3 2025, showing 11% year-over-year revenue growth and 9% sequential growth, alongside a 28% increase in paying monthly active users (PMAUs) [3][6][23] Financial Performance - Revenue for Q3 2025 was $27.4 million, compared to $24.6 million in Q3 2024 [6][17] - Gross profit for the quarter was $24.0 million [6] - The net loss for Q3 2025 was $17.4 million, an improvement from a loss of $21.1 million in Q3 2024 [6][17] - Adjusted EBITDA loss was $11.8 million, compared to a loss of $13.9 million in Q3 2024 [6][17] User Engagement - PMAUs reached 155,000, reflecting a 6% increase quarter-over-quarter and a 28% increase year-over-year [6][23] - Average Revenue Per Paying Monthly Active User (ARPPU) was $58.9 [6][23] Operational Efficiency - The company emphasized its focus on expense management and operational efficiency, contributing to improved Adjusted EBITDA and a healthy balance sheet with $213 million in cash [3][6] Market Position - Skillz continues to leverage its strengths in gaming and AI-driven ad-tech, aiming to expand beyond gaming into adjacent verticals [3]

Core Viewpoint - Skillz Inc. is set to release its third quarter financial results for 2025 on November 6, 2025, before the market opens, indicating a focus on transparency and communication with investors [1] Financial Results Announcement - The financial results will be released before the market opens on November 6, 2025 [1] - A conference call and simultaneous webcast will take place at 8:30 a.m. ET on the same day to discuss the results and provide a business update [1]

Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or a ...

Skillz Inc. (SKLZ) appears an attractive pick, as it has been recently upgraded to a Zacks Rank #2 (Buy). This upgrade is essentially a reflection of an upward trend in earnings estimates -- one of the most powerful forces impacting stock prices.The sole determinant of the Zacks rating is a company's changing earnings picture. The Zacks Consensus Estimate -- the consensus of EPS estimates from the sell-side analysts covering the stock -- for the current and following years is tracked by the system.Individua ...

Group 1 - The article discusses an opportunity for investors in Skillz Inc. to join a fraud investigation led by the Schall Law Firm [1] - The investigation is focused on potential fraudulent activities related to Skillz Inc. [1] - Investors are encouraged to participate in the investigation to seek potential remedies for any losses incurred [1] Group 2 - The mention of Skillz Inc. indicates ongoing concerns regarding corporate governance and transparency within the company [1] - The involvement of a law firm suggests that there may be significant legal implications for Skillz Inc. and its management [1] - The article highlights the importance of investor awareness and action in response to potential fraud allegations [1]

On this news, Skillz's stock price fell $1.50 per share, or 17.22%, to close at $7.21 per share on September 3, 2025. The Pomerantz Firm, with offices in New York, Chicago, Los Angeles, London, and Paris is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, the Pomerantz Firm pioneered the field of securities class actions. Today, more than 80 years later, the Pom ...

NEW YORK, Sept. 06, 2025 (GLOBE NEWSWIRE) -- Pomerantz LLP is investigating claims on behalf of investors of Skillz Inc. (“Skillz” or the “Company”) (NYSE: SKLZ).  Such investors are advised to contact Danielle Peyton at newaction@pomlaw.com or 646-581-9980, ext. 7980.    The investigation concerns whether Skillz and certain of its officers and/or directors have engaged in securities fraud or other unlawful business practices.  [Click here for information about joining the class action] On September 2, 2025 ...