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 first
quarter ended March 31, 2024.
First Quarter Financial Update (Unaudited):
- Revenue of $25.2 million.
- Gross profit of $21.8 million.
- Net loss of $26.7 million.
- Adjusted EBITDA1 of $(17.7) million.
- Paying monthly active users (PMAU)2 of 121,000.
- Average Revenue Per Paying Monthly Active User (ARPPU)3 of
$69.8.
- Total operating expenses excluding cost of revenue of $48.6
million.
“Execution in the first quarter on our strategic initiatives met
with some short-term setbacks, particularly with our new customer
onboarding in the period. We have acted quickly to resolve these
issues to position Skillz to deliver top-line growth and positive
Adjusted EBITDA,” said Andrew Paradise, Skillz’ CEO. “We continue
to improve the payback period on our customer acquisition costs and
are now transitioning our efforts toward increasing our spend to
facilitate growth in our paying users while maintaining our focus
on driving value from our user acquisition spend. We believe these
efforts combined with further new feature introductions that drive
higher player retention and engagement over the balance of the year
will position Skillz to generate positive Adjusted EBITDA on a
run-rate basis by late this year.”
Gaetano Franceschi, Skillz’ CFO, added, “Our focus on managing
operating expenses, including focused user acquisition spend to
ensure we meet an appropriate payback period, continues to result
in year-over-year improvements in our Adjusted EBITDA loss and
quarterly operating cash burn. Skillz has a strong balance sheet,
including cash and restricted cash of more than $300 million at the
end of the first quarter. This provides us with the liquidity and
financial flexibility to continue prudently investing in our
operational turnaround priorities as we begin to transition toward
increasing our spend to drive profitable growth in the near
term.”
Investor Conference Call
Skillz will host a live conference call at 4:30 p.m. ET today.
To access the call, please register using the following link:
https://www.netroadshow.com/events/login?show=bbb87db7&confId=63156.
After registering, an email will be sent, including dial-in details
and a unique conference call access code and PIN required to join
the live call. Access to the live audio webcast of the discussion
in listen-only mode will also be available at
investors.skillz.com
A replay of the webcast will be archived on the Company’s
investor relations website. An audio replay of the conference call
will be available through Thursday, May 16, 2024, and can be
accessed by dialing (866) 813-9403 (US) or (929) 458-6194
(international) and entering the passcode 418405.
About Skillz Inc.
Skillz is the leading mobile games platform dedicated to
bringing out the best in everyone through competition. The Skillz
platform helps developers create multi-million dollar franchises by
enabling social competition in their games. Leveraging its patented
technology, Skillz hosts billions of casual eSports tournaments for
millions of mobile players worldwide, with the goal of building the
home of competition for all. Skillz has earned recognition as one
of Fast Company’s Best Workplaces for Innovators, CNBC’s Disruptor
50, Forbes’ Next Billion-Dollar Startups, Fast Company’s Most
Innovative Companies, and the number-one fastest-growing company in
America on the Inc. 5000. www.skillz.com
Use of Non-GAAP Financial Measures
In this press release, the Company includes Adjusted EBITDA,
which is a non-GAAP performance measure that the Company uses to
supplement its results presented in accordance with U.S. GAAP. The
Company’s management believes Adjusted EBITDA is useful in
evaluating its operating performance and is a similar measure
reported by publicly-listed U.S. competitors, and regularly used by
securities analysts, institutional investors, and other interested
parties in analyzing operating performance and prospects. By
providing this non-GAAP measure, the Company’s management intends
to provide investors with a meaningful, consistent comparison of
the Company’s profitability for the periods presented. Non-GAAP
operating expense is also included in this press release, which is
a non-GAAP financial measure. The Company’s management believes
non-GAAP operating expenses are useful to investors and analysts as
a supplement to its financial information prepared in accordance
with GAAP for analyzing operating performance and identifying
operating trends in its business. The Company uses non-GAAP
operating expenses internally to facilitate period-to-period
comparisons and analysis in order to make operating decisions. As
required by the rules of the SEC, the Company has provided herein a
reconciliation of Adjusted EBITDA and non-GAAP operating expenses
to the most directly comparable measures under GAAP. Adjusted
EBITDA and non-GAAP operating expense are not intended to be
substitutes for any U.S. GAAP financial measures and, as
calculated, may not be comparable to other similarly titled
financial measures of other companies in other industries or within
the same industry.
The Company defines and calculates Adjusted EBITDA as net loss
before interest expense, net; (benefit) or provision for income
taxes; depreciation and amortization, and other income or expense,
net; as further adjusted for stock-based compensation and other
special items determined by management, including, but not limited
to, change in fair value of common stock warrant liabilities,
acquisition-related expenses, impairment charges, loss contingency
accruals, restructuring charges and one-time nonrecurring expenses.
The Company defines and calculates non-GAAP operating expense as
GAAP operating expense adjusted for stock-based compensation,
one-time transaction expenses and other special items determined by
management, including, but not limited to acquisition-related
expenses for transaction costs, certain loss contingency accruals
and restructuring charges, as they are not indicative of business
operations.
The Company does not provide a reconciliation for non-GAAP
estimates on a forward-looking basis as it is unable to provide a
meaningful calculation or estimation of reconciling items and the
information is not available without unreasonable effort. This is
due to the inherent difficulty of forecasting the timing or amount
of various items that would impact the most directly comparable
forward-looking U.S. GAAP financial measures that have not yet
occurred, are out of the Company’s control and/or cannot be
reasonably predicted. Forward-looking non-GAAP financial measures
provided without the most directly comparable U.S. GAAP financial
measures may vary materially from the corresponding U.S. GAAP
financial measures.
Preliminary Results, Delayed 10-K and 10-Q Extension
The Company is in the process of completing its unaudited
interim financial statements and other disclosures for the fiscal
quarter ended March 31, 2024. Accordingly, we are announcing
preliminary results for the first quarter, which are based on
currently available information and are subject to revision as
management completes its internal review. Our independent
registered public accounting firm has not finalized its review of
these preliminary financial results. Actual results may differ from
these preliminary financial results and other financial information
due to the completion of our internal procedures, final adjustments
and other developments that may arise between now and the time the
results are finalized. In the event the Company determines it will
not file its Quarterly Report on Form 10-Q by the prescribed
deadline, it will file an extension on Form 12b-25 with the
Securities and Exchange Commission (the “SEC”).
In addition, the Company is still in the process of completing
its financial statements and other disclosures for the fiscal year
ended December 31, 2023. The Company previously filed a Form 12b-25
with the SEC for an extension of its Annual Report on Form 10-K for
the year ended December 31, 2023 (the “Form 10-K”) on March 14,
2024, but was unable to file the Form 10-K before the extension
deadline. As a result, the Company announced on April 2, 2024, that
it had received a notice (the “Notice”) from the New York Stock
Exchange (“NYSE”) that the Company was not in compliance with
Section 802.01E of the NYSE Listed Company Manual because of its
failure to timely file the Form 10-K. The Notice has no immediate
effect on the listing of the Company’s common stock on the NYSE.
The Notice informed the Company that, under NYSE rules, the Company
has six months from March 15, 2024 to regain compliance with the
NYSE listing standards by filing the Form 10-K with the SEC. The
Company is working diligently to complete the necessary work to
file the Form 10-K as soon as practicable and currently expects to
file the Form 10-K within the six-month period granted by the NYSE
Notice, and intends to take all necessary steps to achieve
compliance with applicable NYSE listing standards as soon as
practicable. Because our financial statements and other disclosures
for the year ended December 31, 2023 are still subject to ongoing
management review and our independent registered public accounting
firm has not completed its audit of our results for the period,
actual results may differ from the preliminary results for our
fiscal year ended December 31, 2023 as previously reported, and
these differences could impact the preliminary results for the
fiscal quarter ended March 31, 2024 included in this press release.
For additional details, please refer to the Company’s Form 12b-25
filed with the SEC on March 14, 2024 and its Form 8-K filed with
the SEC on April 8, 2024.
Forward-Looking Statements
This press release includes “forward-looking statements” within
the meaning of the “safe harbor” provisions of the United States
Private Securities Litigation Reform Act of 1995. The Company’s
actual results may differ from its expectations, estimates, and
projections and, consequently, you should not rely on these
forward-looking statements as predictions of future events. Words
such as “expect,” “estimate,” “project,” “budget,” “forecast,”
“anticipate,” “intend,” “plan,” “may,” “will,” “could,” “should,”
“believes,” “predicts,” “potential,” “continue,” and similar
expressions (or the negative versions of such words or expressions)
are intended to identify such forward-looking statements.
These forward-looking statements involve significant risks and
uncertainties that could cause the Company’s actual results to
differ materially from those discussed in the forward-looking
statements. Most of these factors are outside of the Company’s
control and are difficult to predict. Factors that may cause such
differences include, but are not limited to, the ability of Skillz
to: effectively compete in the global entertainment and gaming
industries; attract and retain successful relationships with the
third party developers who develop and update the games hosted on
Skillz’ platform; drive brand awareness with end users; invest in
growth and development of employees; comply with laws, regulations
and expectations applicable to its business, including with respect
to cybersecurity and corporate governance matters; mitigate the
commercial, reputational and regulatory risks to our business;
remediate during fiscal year 2024 certain non- fully remediated
material weaknesses in our internal controls over financial
reporting; and timely file our periodic reports with the SEC, as
well as potential changes to our preliminary results that could
occur as we finalize our internal review and our independent
registered public accounting firm completes its review and audit
(as applicable) of such results. Additional factors that may cause
such differences include other risks and uncertainties indicated
from time to time in the Company’s SEC filings, including those
under “Risk Factors” therein, which are available on the SEC’s
website at www.sec.gov. Additional information will be made
available in other filings that the Company makes from time to time
with the SEC. In addition, any forward-looking statements contained
in this press release are based on assumptions that the Company
believes to be reasonable as of this date. The Company undertakes
no obligation to update any forward-looking statements to reflect
events or circumstances after the date of this press release or to
reflect new information or the occurrence of unanticipated events,
except as required by law.
Skillz Inc.
Consolidated Statements of
Operations and Comprehensive Loss (Unaudited)
(in thousands, except for number
of shares and per share amounts)
Three Months Ended March
31,
2024
2023
Revenue
$
25,235
$
44,383
Costs and expenses:
Cost of revenue
3,451
4,582
Research and development
4,624
8,881
Sales and marketing
20,994
34,918
General and administrative
22,991
28,070
Total costs and expenses
52,060
76,451
Loss from operations
(26,825
)
(32,068
)
Interest income (expense), net
112
(3,494
)
Change in fair value of common stock
warrant liabilities
9
(1
)
Other income, net
64
39
Loss before income taxes
(26,640
)
(35,524
)
Provision for income taxes
45
69
Net loss
$
(26,685
)
$
(35,593
)
Net loss per share attributable to common
stockholders – basic and diluted
$
(1.45
)
$
(1.70
)
Weighted average common shares
outstanding – basic and diluted
18,461,221
20,883,293
Other comprehensive income
Change in unrealized gain on
available-for-sale investments, net of tax
6
997
Total other comprehensive income
6
997
Total comprehensive loss
$
(26,679
)
$
(34,596
)
Skillz Inc.
Consolidated Balance Sheets
(Unaudited)
(in thousands, except for number
of shares and par value per share amounts)
March 31,
December 31,
2024
2023
Assets
Current assets:
Cash and cash equivalents
$
290,601
$
302,028
Restricted cash
10,000
10,000
Accounts receivable, net of allowance for
credit losses of $64 and $49 as of March 31, 2024 and December 31,
2023, respectively
5,096
5,942
Prepaid expenses and other current
assets
5,916
6,721
Total current assets
311,613
324,691
Property and equipment, net
14,821
14,549
Marketable securities, non-current
447
1,125
Non-marketable equity securities
52,768
52,768
Other non-current assets
2,703
2,692
Total assets
$
382,352
$
395,825
Liabilities and stockholders’
equity
Current liabilities:
Accounts payable
$
11,371
$
1,712
Operating lease liabilities, current
1,257
1,364
Other current liabilities
52,360
50,306
Total current liabilities
64,988
53,382
Operating lease liabilities,
non-current
10,250
10,573
Common stock warrant liabilities,
non-current
2
11
Long-term debt, net of current portion
124,345
123,935
Other non-current liabilities
698
960
Total liabilities
200,283
188,861
Commitments and contingencies
Stockholders’ equity:
Preferred stock $0.0001 par value; 10.0
million shares authorized — 0 issued and outstanding as of March
31, 2024 and December 31, 2023
—
—
Common stock $0.0001 par value; 31.3
million shares authorized; Class A common stock – 25.0 million
shares authorized; 18.1 million and 18.1 million shares issued;
14.6 million and 15.8 million outstanding as of March 31, 2024 and
December 31, 2023, respectively; Class B common stock – 6.3 million
shares authorized; 3.4 million shares issued and outstanding as of
March 31, 2024 and December 31, 2023
1
1
Treasury stock at cost, 3.5 million and
2.3 million as of March 31, 2024 and December 31, 2023,
respectively
(19,956
)
(13,000
)
Additional paid-in capital
1,206,703
1,197,963
Accumulated other comprehensive loss
(1
)
(7
)
Accumulated deficit
(1,004,678
)
(977,993
)
Total stockholders’ equity
182,069
206,964
Total liabilities and stockholders’
equity
$
382,352
$
395,825
Skillz Inc.
Consolidated Statement of Cash
Flows (Unaudited)
(in thousands)
Three Months Ended March
31,
2024
2023
Operating Activities
Net loss
$
(26,685
)
$
(35,593
)
Adjustment to reconcile net loss to net
cash used in operating activities:
Depreciation and amortization
395
626
Stock-based compensation
8,740
10,548
Accretion of unamortized debt discount and
amortization of debt issuance costs
410
837
Amortization of premium for marketable
securities
—
53
Change in fair value of common stock
warrant liabilities
(9
)
1
Changes in operating assets and
liabilities:
Accounts receivable, net
846
(2,367
)
Prepaid expenses and other assets
794
(3,276
)
Accounts payable
9,659
2,986
Operating lease right-of-use assets
—
151
Operating lease liabilities
(430
)
(545
)
Other accruals and liabilities
1,884
11,880
Net cash used in operating
activities
(4,396
)
(14,699
)
Investing Activities
Purchases of property and equipment,
including internal-use software
(515
)
(11,608
)
Purchases of marketable securities
(4
)
—
Proceeds from sales of marketable
securities
688
41,729
Proceeds from maturities of marketable
securities
—
37,640
Net cash provided by investing
activities
169
67,761
Financing Activities
Principal payments on finance leases
obligations
(244
)
(282
)
Repurchase of common stock
(6,956
)
—
Net proceeds from exercise of stock
options and issuance of common stock
—
33
Net cash used in financing
activities
(7,200
)
(249
)
Net change in cash, cash equivalents and
restricted cash
(11,427
)
52,813
Cash, cash equivalents and restricted
cash – beginning of year
312,028
365,436
Cash, cash equivalents and restricted
cash – end of period
$
300,601
$
418,249
Supplemental cash flow data:
Cash paid during the period for:
Interest
$
33
$
63
Taxes
$
—
$
—
Skillz Inc.
Reconciliation of GAAP Net
Loss to Adjusted EBITDA (Unaudited)
(in thousands)
Three Months Ended March
31,
2024
2023
Net loss
$
(26,685
)
$
(35,593
)
Interest income (expense), net
(112
)
3,494
Stock-based compensation
8,740
10,548
Change in fair value of warrant
liability
(9
)
1
Provision for income taxes
45
69
Depreciation and amortization
395
627
Other income, net
(64
)
(39
)
Adjusted EBITDA
$
(17,690
)
$
(20,893
)
Skillz Inc.
Reconciliation of GAAP to
Non-GAAP Operating Expenses
(in thousands)
Three Months Ended March
31,
2024
2023
Research and development
$
4,624
$
8,881
Less: stock-based compensation
(147
)
(1,206
)
Non-GAAP research and development
$
4,477
$
7,675
Sales and marketing
$
20,994
$
34,918
Less: stock-based compensation
(2,011
)
(1,904
)
Non-GAAP sales and marketing
$
18,983
$
33,014
General and administrative
$
22,991
$
28,070
Less: stock-based compensation
(6,580
)
(7,438
)
Non-GAAP general and administrative
$
16,411
$
20,632
Skillz Inc.
Supplemental Financial
Information
(in millions, except ARPU and
ARPPU)
Three Months Ended March
31,
2024
2023
Gross marketplace volume (“GMV”)
(000s)(1)
$
161,269
$
277,632
Paying monthly active users (“PMAUs”)
(000s)(2)
121
214
Monthly active users (“MAUs”)
(000s)(3)
860
1,176
Average GMV per paying monthly active
user(4)
$
444.3
$
432.4
Average GMV per monthly active user(5)
$
62.5
$
78.7
Average revenue per paying monthly active
user (“ARPPU”)(6)
$
69.8
$
69.1
Average revenue per monthly active user
(“ARPU”)(7)
$
9.8
$
12.6
Paying MAU to MAU ratio
14
%
18
%
Average end-user incentives, included as
sales and marketing expense, per paying active user(8)
$
24.06
$
27.40
Average end-user incentives, included as
sales and marketing expense, per playing active user(9)
$
3.39
$
4.98
(1) “GMV” or “Gross Marketplace Volume” means the total entry
fees paid by users for contests hosted on Skillz’ platform. Total
entry fees include entry fees paid by end-users using cash
deposits, prior winnings from end-users’ accounts that have not
been withdrawn, and end-user incentives used to enter paid entry
fee contests.
(2) “Paying Monthly Active Users” or “PMAUs” means the number of
end-users who entered into a paid contest hosted on Skillz’
platform at least once in a month, averaged over each month in the
period.
(3) “Monthly Active Users” or “MAUs” means the number of playing
end-users who entered into a paid or free contest hosted on Skillz’
platform at least once in a month, averaged over each month in the
period.
(4) “Average GMV Per Paying Monthly Active User” means the
average GMV in a given month divided by Paying MAUs in that month,
averaged over the period.
(5) “Average GMV Per Monthly Active User” means the average GMV
in a given month divided by MAUs in that month, averaged over the
period.
(6) “Average Revenue Per Paying Monthly Active User” or “ARPPU”
means the average revenue in a given month divided by Paying MAUs
in that month, averaged over the period and does not include a
deduction for end-user incentives that are included in sales and
marketing expense.
(7) “Average Revenue Per Monthly Active User” or “ARPU” means
the average revenue in a given month divided by MAUs in that month,
averaged over the period and does not include a deduction for
end-user incentives that are included in sales and marketing
expense.
(8) Amount reflects the average end-user incentives included in
sales and marketing expense in a given month divided by PMAUs in
that month, averaged over the period.
(9) Amount reflects the average end-user incentives included in
sales and marketing expense in a given month divided by MAUs in
that month, averaged over the period.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240509424735/en/
Investors: ir@skillz.com or James Leahy, Richard Land JCIR (212)
835-8500 or sklz@jcir.com
Media: press@skillz.com
Grafico Azioni Skillz (NYSE:SKLZ)
Storico
Da Dic 2024 a Gen 2025
Grafico Azioni Skillz (NYSE:SKLZ)
Storico
Da Gen 2024 a Gen 2025
