skillz(SKLZ) - 2024 Q4 - Earnings Call Transcript

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]