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Mar 31, 2022
Skillz Q1 2022 Earnings Report
Delivered $93 million in Revenue with Higher Marketing Efficiency.
Key Takeaways
Skillz Inc. announced its Q1 2022 financial results, reporting a 12% increase in revenue to $93 million compared to the prior year period. The company demonstrated improved marketing efficiency and a $17 million improvement in Adjusted EBITDA over Q4 2021. However, net loss increased to $148 million from $54 million in the prior year period.
Revenue was up 12% over the prior year period to $93 million.
Gross Profit grew by 6% over the prior year period to $84 million.
Paying Monthly Active Users increased by 22% over the prior year period to 0.57 million.
Revenue After Engagement Marketing (RAEM) increased by 8% over the prior year period to $51.3 million.
Forward Guidance
Skillz is maintaining its full-year 2022 revenue guidance of $400 million. The company expects a reduction in engagement marketing as a percentage of revenue of approximately 10 percentage points compared to 2021, implying RAEM of $245 million, representing 24% year-over-year growth. Skillz anticipates achieving an Adjusted EBITDA margin improvement of approximately 10 percentage points compared to 2021 and expects to exit 2022 with a Q4 year-over-year RAEM growth rate above 30% and a Q4 Adjusted EBITDA margin better than (30)%.
Positive Outlook
- Full-year 2022 revenue guidance of $400 million.
- Estimated reduction in engagement marketing as a percentage of revenue of approximately 10 percentage points compared to 2021.
- Implied RAEM of $245 million, representing 24% year-over-year growth.
- Anticipated Adjusted EBITDA margin improvement of approximately 10 percentage points compared to 2021.
- Expected Q4 2022 year-over-year RAEM growth rate above 30%.
Challenges Ahead
- Q4 2022 Adjusted EBITDA margin expected to be better than (30)%.
- No specific information provided on net income or EPS guidance.
Historical Earnings Impact
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