Financial Data and Key Metrics Changes - Revenue for Q4 was $20 million, down 17% sequentially and down 35% year over year [25] - Net loss for Q4 was $26 million, compared to a net loss of $60 million in Q4 2023 [27] - Adjusted EBITDA loss in Q4 was $19 million, with a full-year adjusted EBITDA loss of $63 million, an improvement from $69 million in 2023 [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 in Q4 was $5 million, while engagement marketing was $10 million [26] Market Data and Key Metrics Changes - The company is actively pursuing legal actions against competitors using deceptive practices, which it believes are harming its market position [11][12] - The company emphasizes the importance of fair competition in the gaming industry to ensure its survival and growth [8][14] 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 its platform and up-leveling the organization [16][19] - A $75 million developer accelerator program has been announced to support game developers and expand offerings on its platform [17][18] - The company aims to optimize customer acquisition cost (CAC) and grow lifetime value (LTV) [21] Management's Comments on Operating Environment and Future Outlook - Management is confident in the company's ability to compete against other skill-based gaming providers without engaging in deceptive practices [14] - The company is focused on improving its cash burn and has a strong balance sheet to support its growth initiatives [23][28] 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, and the conference call concluded without any inquiries [31]

Core Insights - Skillz Inc. reported a quarterly loss of $1.50 per share, which was worse than the Zacks Consensus Estimate of a loss of $1.07, marking a 40.19% earnings surprise [1] - The company's revenues for the quarter ended December 2024 were $20.37 million, missing the Zacks Consensus Estimate by 19.80% and down from $29.14 million a year ago [2] - Skillz has only surpassed consensus EPS estimates once in the last four quarters and has consistently missed revenue estimates during the same period [2] Financial Performance - The company experienced a loss of $1.04 per share in the same quarter last year, indicating a deterioration in performance year-over-year [1] - The current consensus EPS estimate for the upcoming quarter is -$0.70 on revenues of $26 million, and for the current fiscal year, it is -$3.62 on revenues of $111.05 million [7] Market Position - Despite the poor earnings report, Skillz shares have increased by approximately 7.2% since the beginning of the year, contrasting with a -4.8% decline in the S&P 500 [3] - The Zacks Rank for Skillz is currently 3 (Hold), suggesting that the stock is expected to perform in line with the market in the near future [6] Industry Context - The Gaming industry, to which Skillz belongs, is currently ranked in the bottom 39% of over 250 Zacks industries, indicating a challenging environment [8] - The performance of Skillz's stock may be influenced by the overall outlook for the gaming industry, as historical data shows that the top 50% of Zacks-ranked industries outperform the bottom 50% by more than 2 to 1 [8]

Revenue Performance - Revenue for Q4 2024 was $20.4 million, a decrease from $31.1 million in Q4 2023, representing a decline of 34.7%[6] - Full year 2024 revenue totaled $95.5 million, down from $152.1 million in 2023, reflecting a decrease of 37.1%[6] - Gross marketplace volume (GMV) for the twelve months ended December 31, 2024, was $608,248,000, down from $963,580,000 in 2023, a decrease of approximately 37%[28] User Metrics - The number of Paying Monthly Active Users (PMAUs) in Q4 2024 was 110,000, a slight decrease from 118,000 in Q4 2023[6] - Monthly active users (MAUs) decreased from 1,045,000 in 2023 to 816,000 in 2024, a decline of about 22%[28] - Paying monthly active users (PMAUs) dropped from 179,000 in 2023 to 118,000 in 2024, a decrease of approximately 34%[28] Financial Losses - Skillz ended 2024 with a net loss of $48.2 million, compared to a net loss of $101.4 million in 2023[6] - Net loss for the twelve months ended December 31, 2024, was $48,231,000, significantly improved from a net loss of $101,360,000 in 2023, representing a reduction of about 52%[21] Operating Expenses - Adjusted EBITDA for Q4 2024 was $(18.5) million, compared to $(63.0) million for the full year 2024[6] - Total operating expenses for Q4 2024 were $43.2 million, down from $51.6 million in Q4 2023[6] Cash and Assets - Cash, cash equivalents, and restricted cash as of December 31, 2024, were $282 million, providing flexibility for future investments[4] - Cash and cash equivalents decreased from $302,028,000 in 2023 to $271,923,000 in 2024, a reduction of approximately 10%[19] - Total assets decreased from $395,826,000 in 2023 to $364,173,000 in 2024, a decline of approximately 8%[19] Debt and Liabilities - Total outstanding debt as of December 31, 2024, was $129.7 million[6] - Total current liabilities increased from $49,858,000 in 2023 to $57,253,000 in 2024, an increase of about 15%[19] Equity and Investment - Stockholders' equity decreased from $210,489,000 in 2023 to $171,595,000 in 2024, a decline of approximately 18%[19] - The company announced a $75 million developer accelerator program to enhance game innovation and expand platform offerings[4] Revenue Per User - Average Revenue Per Paying Monthly Active User (ARPPU) was $68.1 in Q4 2024, compared to $68.7 in Q4 2023[6] - Average revenue per paying monthly active user (ARPPU) decreased from $70.00 in 2023 to $68.70 in 2024, a decline of about 1.9%[28] Cash Flow Improvement - Net cash used in operating activities improved from $71,758,000 in 2023 to $7,193,000 in 2024, a reduction of about 90%[21]

Core Viewpoint - Skillz Inc. is expected to report a loss per share of $1.07 for Q4 2024, with revenues projected at $25.4 million, reflecting a year-over-year decline of 12.8% [2][3] Group 1: Financial Performance Expectations - The Zacks Consensus Estimate for Skillz's Q4 2024 indicates a loss per share of $1.07, unchanged over the past 60 days, compared to an adjusted loss of $1.04 in the same quarter last year [2] - Revenue expectations for the quarter are set at $25.4 million, representing a 12.8% decrease year-over-year [2] Group 2: Factors Impacting Performance - The anticipated decline in Q4 revenue is attributed to a decrease in monthly active users (MAU) and paying MAU, alongside lower traffic levels, influenced by softening economic conditions in the consumer discretionary sector [3] - Rising costs and expenses, particularly related to user acquisition and disruptions from Identifier for Advertisers, are expected to pressure margins [4] Group 3: Strategic Initiatives - Skillz's focus on four strategic pillars—strengthening the platform, optimizing organizational structure, enhancing go-to-market efficiency, and establishing a clear path to profitability—may have positively influenced its performance [5] Group 4: Earnings Prediction Model - The current model does not predict an earnings beat for Skillz, as it lacks a positive Earnings ESP and holds a Zacks Rank of 3 (Hold) [6][7]

User Engagement and Activity - For the nine months ended September 30, 2024, Skillz had over 0.8 million monthly active users (MAUs) and hosted an average of over 1.1 million daily tournaments, offering over $43.5 million in prizes each month[156]. - The number of paying monthly active users (PMAUs) for the three months ended September 30, 2024, was 121,000, down from 168,000 in the same period of 2023, a decrease of approximately 28%[161]. - The average GMV per paying monthly active user for the three months ended September 30, 2024, was $435.9, compared to $478.8 in the same period of 2023, a decline of approximately 8%[161]. - The average revenue per paying monthly active user (ARPPU) for the three months ended September 30, 2024, was $67.6, down from $72.3 in the same period of 2023, a decrease of approximately 10%[161]. - The average revenue per monthly active user (ARPU) for the three months ended September 30, 2024, was $9.7, compared to $11.7 in the same period of 2023, a decline of approximately 17%[161]. Financial Performance - Revenue decreased by $11.9 million, or 33%, to $24.6 million for the three months ended September 30, 2024, compared to $36.4 million for the same period in 2023, primarily due to a 19% decrease in monthly active users[182]. - Revenue decreased by $45.9 million, or 38%, to $75.1 million for the nine months ended September 30, 2024, primarily due to a 23% decrease in monthly active users[191]. - Skillz segment revenue decreased by $12.0 million, or 35.8%, to $21.5 million for the three months ended September 30, 2024, primarily due to a decrease in player base[211]. - Skillz Segment Revenue for the nine months ended September 30, 2024, was $66.6 million, a decrease of $43.2 million (39.3%) from $109.8 million in the same period of 2023, primarily due to a 23% decrease in monthly active users[218]. - Consolidated Revenue for the nine months ended September 30, 2024, was $75.1 million, a decrease of $45.9 million (37.9%) from $121.0 million in the same period of 2023[217]. Cost Management - Cost of revenue decreased by $0.3 million, or 9%, to $3.4 million for the three months ended September 30, 2024, driven by reductions in payment processing and customer support personnel costs[183]. - Research and development costs decreased by $3.1 million, or 40%, to $4.7 million for the three months ended September 30, 2024, primarily due to a $2.3 million reduction in employee-related costs[184]. - Sales and marketing costs decreased by $12.6 million, or 40%, to $19.3 million for the three months ended September 30, 2024, driven by decreases in UA and engagement marketing spend[186]. - General and administrative costs decreased by $6.2 million, or 26%, to $18.1 million for the three months ended September 30, 2024, primarily due to a $3.5 million decrease in legal fees[187]. - Research and development costs decreased by $11.1 million, or 45%, to $13.6 million, mainly due to an $8.9 million reduction in employee-related costs[193]. - Sales and marketing costs decreased by $38.4 million, or 39%, to $61.1 million, reflecting a strategic decision to prioritize profitability over revenue growth[194]. - General and administrative costs decreased by $19.7 million, or 25%, to $58.4 million, primarily due to a decrease in legal fees and reliance on contractors[195]. Loss and Improvement - The loss from operations improved by $10.4 million, or 33%, to $(20.99) million for the three months ended September 30, 2024, compared to $(31.43) million for the same period in 2023[181]. - Net loss decreased by $12.4 million, or 37%, to $(21.12) million for the three months ended September 30, 2024, from $(33.55) million in the same period in 2023[181]. - Net loss for the nine months ended September 30, 2024, was $21.8 million, a decrease of $64.1 million or 75% compared to the net loss of $85.8 million in 2023[190]. - Total segment adjusted EBITDA loss improved by $4.6 million, or 25.0%, to $(13.9) million for the three months ended September 30, 2024[211]. - Total Segment Adjusted EBITDA loss for the nine months ended September 30, 2024, was $44.2 million, an improvement of $13.6 million (23.6%) from a loss of $57.8 million in the same period of 2023[217]. Cash and Debt Management - As of September 30, 2024, the company had cash and cash equivalents of $301.4 million, primarily invested in money market funds and marketable securities[221]. - The company has long-term debt of $129.7 million from senior secured notes due December 15, 2026, with compliance to all covenants as of September 30, 2024[223]. - Interest income was $0.2 million for the three months ended September 30, 2024, compared to interest expense of $2.3 million for the same period in 2023, reflecting a decrease of $2.5 million in interest expense due to debt repurchase[188]. - Interest income was $0.7 million for the nine months ended September 30, 2024, compared to interest expense of $7.5 million in the same period of 2023[198]. - The company reported a net cash used in financing activities of $12.8 million for the nine months ended September 30, 2024, primarily due to common stock repurchases[229]. Strategic Focus - Engagement marketing expenses decreased, which may lead to lower revenue as paying users may not receive end-user incentives[162]. - Skillz's financial model aims to drive higher player engagement and retention, monetizing users at higher rates than traditional models[165]. - The company is focusing on optimizing user acquisition marketing spend to improve efficiency and drive organic traffic[164]. - User acquisition (UA) marketing spend decreased by 43%, and engagement marketing spend decreased by 40%, reflecting a strategic shift to prioritize profitability over revenue growth[182]. - The company plans to continue investing in personnel and external consultants to address identified material weaknesses in internal controls over financial reporting[245]. - The company may use proceeds from its senior secured notes for potential acquisitions of other companies, products, or technologies in the future[223]. - The gain from litigation settlement was $46.0 million, related to the settlement with AviaGames[196].

Group 1 - Skillz Inc. reported a quarterly loss of $1.20 per share, which was worse than the Zacks Consensus Estimate of a loss of $0.98, and an improvement from a loss of $1.57 per share a year ago, indicating an earnings surprise of -22.45% [1] - The company posted revenues of $24.56 million for the quarter ended September 2024, missing the Zacks Consensus Estimate by 10.16%, and down from $36.43 million in the same quarter last year [2] - Skillz shares have declined approximately 10.7% year-to-date, contrasting with the S&P 500's gain of 24.3% [3] Group 2 - The earnings outlook for Skillz is mixed, with the current consensus EPS estimate for the upcoming quarter at -$0.89 on revenues of $29.28 million, and for the current fiscal year at -$1.99 on revenues of $107.15 million [7] - The Zacks Industry Rank indicates that the Gaming industry is currently in the bottom 36% of over 250 Zacks industries, suggesting potential challenges for stock performance [8] - The company has surpassed consensus EPS estimates two times over the last four quarters, but has not beaten consensus revenue estimates during the same period [2]

Skillz Announces Third Quarter 2024 Results LAS VEGAS--(BUSINESS WIRE), November 7, 2024-- Skillz Inc. (NYSE: SKLZ) ("Skillz" or the "Company"), the leading mobile games platform bringing fair competition to players worldwide, today reported unaudited financial results for the third quarter ended September 30, 2024. Third Quarter Financial Update (Unaudited): • Revenue of $24.6 million. • Net loss of $21.1 million. • Adjusted EBITDA of $(13.9) million. • Paying monthly active users (PMAU) of 121,000. • Aver ...

SAN DIEGO, Sept. 24, 2024 (GLOBE NEWSWIRE) -- The Shareholders Foundation, Inc. announced an update in the lawsuit that was pending for certain investors who purchased NYSE: SKLZ shares. Investors who purchased shares Flying Eagle Acquisition Corp. (formerly NYSE: FEAC) that later became Skillz Inc. (NYSE: SKLZ) shares have also certain options and should contact the Shareholders Foundation at mail@shareholdersfoundation.com or call +1(858) 779 - 1554. Skillz Inc became a public company in December 2020 by ...

SAN DIEGO, Sept. 17, 2024 /PRNewswire/ -- The Shareholders Foundation, Inc. announces an update in the lawsuit that was pending for certain investors who purchased shares of Skillz Inc. (NYSE: SKLZ). Investors who purchased shares Flying Eagle Acquisition Corp. (formerlyNYSE: FEAC) that then became Skillz Inc. (NYSE: SKLZ) shares have also certain options and should contact the Shareholders Foundation at [email protected] or call +1(858) 779 - 1554. Skillz Inc became a public company in December 2020 by mer ...

Skillz Inc. (SKLZ) could be a solid choice for investors given its recent upgrade to a Zacks Rank #2 (Buy). An upward trend in earnings estimates -- one of the most powerful forces impacting stock prices -- has triggered this rating change. A company's changing earnings picture is at the core of the Zacks rating. The system tracks the Zacks Consensus Estimate -- the consensus measure of EPS estimates from the sell-side analysts covering the stock -- for the current and following years. Individual investors ...