skillz(US:SKLZ)2025-05-08 21:32Financial Data and Key Metrics Changes - Revenue for Q1 was $22 million, up 21% sequentially but down 11% year over year. Excluding a $1.6 million life-to-date incentive adjustment in Q4, revenue grew 12% sequentially [18] - The net loss for the quarter was $15 million, compared to a net loss of $27 million in the prior year [19] - Adjusted EBITDA loss in Q1 was $50 million, compared to an adjusted EBITDA loss of $90 million in Q4 [19] - The company ended Q1 with $264 million in cash, including $254 million in cash and cash equivalents and $10 million in restricted cash [20] Business Line Data and Key Metrics Changes - The paid user conversion rate was 16.2% in Q1, up from 14.6% in Q4 [18] - Paying monthly active users (MAU) increased to 123,000 in Q1 from 110,000 in Q4 [14] Market Data and Key Metrics Changes - The company is actively addressing industry-wide issues related to fairness and integrity, particularly concerning the use of bots by competitors [7][8] - Ongoing litigation against companies like Papaya and Voodoo aims to protect the business interests and integrity of the industry [9][10] Company Strategy and Development Direction - The company is focused on four key pillars: enhancing the platform, up-leveling the organization, improving go-to-market strategies, and demonstrating a clear path to profitability [11] - An accelerator program was launched to drive innovation and expand offerings, with plans to deploy up to $75 million over the next three years to support at least 25 high-potential games [12][13] - The company aims to optimize customer acquisition costs (CAC) and grow lifetime value (LTV) while managing expenses [15][16] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ability to compete against legitimate skill-based gaming providers and emphasized the importance of building trust within the industry [8][10] - The company is committed to returning to consistent top-line growth and positive adjusted EBITDA, supported by a strong balance sheet [11][16] Other Important Information - The company is working to comply with NYSE listing standards and expects to file necessary financial reports within the granted six-month period [5][20] - The cash position includes a $7.5 million payment received from AviGames as part of a settlement, which is the first of four annual payments [20] Q&A Session Summary - No questions were registered during the Q&A session, leading to the conclusion of the call [21]