Mar 31, 2024

Skillz Q1 2024 Earnings Report

Skillz's first quarter results for 2024 were announced, revealing a mix of strategic execution challenges and ongoing efforts to improve financial performance.

Key Takeaways

Skillz reported a revenue of $25.2 million and a net loss of $26.7 million for Q1 2024. The company is focused on resolving onboarding issues, improving customer acquisition cost payback, and managing operating expenses to achieve top-line growth and positive Adjusted EBITDA.

Revenue was reported at $25.2 million.

Gross profit reached $21.8 million.

Net loss amounted to $26.7 million.

Paying monthly active users (PMAU) totaled 121,000 with an ARPPU of $69.8.

Total Revenue
$25.2M
Previous year: $44.4M
-43.1%
EPS
-$1.45
Previous year: -$1.8
-19.4%
Gross Profit
$21.8M
Previous year: $39.8M
-45.2%
Cash and Equivalents
$291M
Previous year: $415M
-30.0%
Free Cash Flow
-$4.91M
Total Assets
$382M
Previous year: $612M
-37.5%

Skillz

Skillz

Forward Guidance

Skillz is focused on improving customer acquisition, increasing user engagement, and managing operating expenses to drive profitable growth and achieve positive Adjusted EBITDA on a run-rate basis by late this year.

Positive Outlook

  • Transitioning efforts toward increasing spend to facilitate growth in paying users.
  • Focusing on driving value from user acquisition spend.
  • Introducing new features to drive higher player retention and engagement.
  • Aiming to generate positive Adjusted EBITDA on a run-rate basis by late this year.
  • Maintaining a strong balance sheet with over $300 million in cash and restricted cash.

Challenges Ahead

  • Experienced short-term setbacks with new customer onboarding in the period.
  • Preliminary results are subject to revision as management completes its internal review.
  • Independent registered public accounting firm has not finalized its review of these preliminary financial results.
  • Company is still in the process of completing its financial statements for the fiscal year ended December 31, 2023.
  • Received a notice from the New York Stock Exchange for not being in compliance with Section 802.01E of the NYSE Listed Company Manual due to the failure to timely file the Form 10-K.