skillz(US:SKLZ)2024-05-09 20:08Financial Performance - Revenue for Q1 2024 was $25.2 million, a decrease from $44.4 million in Q1 2023, representing a year-over-year decline of approximately 43%[16] - Gross profit for the quarter was $21.8 million, with a gross margin of approximately 86.3%[7] - Net loss for Q1 2024 was $26.7 million, compared to a net loss of $35.6 million in Q1 2023, showing an improvement of about 25% year-over-year[16] - Adjusted EBITDA loss was $(17.7) million, reflecting a reduction in losses compared to previous periods[7] - Adjusted EBITDA improved from $(20,893) thousand in Q1 2023 to $(17,690) thousand in Q1 2024, representing an improvement of about 15.5%[20] User Engagement - Paying monthly active users (PMAUs) totaled 121,000, indicating a focus on user engagement and retention strategies[7] - Monthly active users (MAUs) fell from 1,176 thousand in Q1 2023 to 860 thousand in Q1 2024, a decrease of about 26.8%[24] - Paying monthly active users (PMAUs) decreased from 214 thousand in Q1 2023 to 121 thousand in Q1 2024, a decline of approximately 43.5%[24] - Average Revenue Per Paying Monthly Active User (ARPPU) was $69.8, which is a key metric for assessing monetization effectiveness[7] - Average revenue per monthly active user (ARPU) decreased from $12.6 in Q1 2023 to $9.8 in Q1 2024, a decline of about 22.2%[24] - Average GMV per paying monthly active user increased from $432.4 in Q1 2023 to $444.3 in Q1 2024, an increase of approximately 2.2%[24] Operating Expenses and Financial Position - Total operating expenses, excluding cost of revenue, were $48.6 million, down from $76.5 million in the same quarter last year, marking a reduction of approximately 36%[7] - The company ended Q1 2024 with over $300 million in cash and restricted cash, providing financial flexibility for future investments[3] - Total current liabilities increased from $53,382 thousand as of December 31, 2023, to $64,988 thousand as of March 31, 2024, an increase of about 21.7%[17] - Cash and cash equivalents decreased from $302,028 thousand at the end of 2023 to $290,601 thousand at the end of Q1 2024, a decline of approximately 3.8%[17] Compliance and Strategic Initiatives - The company is currently addressing compliance issues related to its delayed 10-K filing and is working to regain compliance with NYSE listing standards[12] - Skillz aims to achieve positive Adjusted EBITDA on a run-rate basis by late 2024 through strategic initiatives and increased user acquisition spending[3] Asset Management - Total assets decreased from $395,825 thousand as of December 31, 2023, to $382,352 thousand as of March 31, 2024, a decline of approximately 3.4%[17] - Gross marketplace volume (GMV) decreased from $277,632 thousand in Q1 2023 to $161,269 thousand in Q1 2024, a decline of approximately 42%[24]