Skillz Inc. (SKLZ) Reports Q4 Loss, Lags Revenue Estimates

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]