Mar 31

Skillz Q1 2025 Earnings Report

Reported unaudited preliminary financial results for the first quarter ended March 31, 2025.

Key Takeaways

Skillz reported preliminary results for Q1 2025 with revenue of $22.4 million and a net loss of $14.9 million. The company saw a slight increase in paying monthly active users quarter-over-quarter and continues to focus on improving retention and player spend, as well as disciplined operating expense management.

Revenue for Q1 2025 was $22.4 million, a decrease from $25.2 million in Q1 2024.

Net loss for Q1 2025 was $14.9 million, an improvement from a net loss of $26.7 million in Q1 2024.

Paying Monthly Active Users (PMAU) increased to 124,000 in Q1 2025 compared to 121,000 in Q1 2024.

Adjusted EBITDA was $(15.1) million, an improvement from $(17.7) million in Q1 2024.

Total Revenue
$22.4M
Previous year: $25.2M
-11.2%
EPS
-$0.93
Previous year: -$1.45
-35.9%
Paying Monthly Active Users
124K
Previous year: 121K
+2.5%
Average Revenue Per Paying Monthly Active User
$62.2
Previous year: $69.8
-10.9%
Gross Marketplace Volume
$126M
Previous year: $161M
-21.6%
Cash and Equivalents
$254M
Previous year: $291M
-12.5%
Total Assets
$347M
Previous year: $382M
-9.3%

Skillz

Skillz

Forward Guidance

The company is working to return to consistent top-line growth and positive Adjusted EBITDA, and expects to file its Form 10-K within the six-month period granted by the NYSE Notice.

Positive Outlook

  • Progress toward returning to consistent top-line growth.
  • Progress toward returning to positive Adjusted EBITDA.
  • Paying monthly active users rose quarter over quarter.
  • Prioritizing features and offerings to improve retention and increase player spend.
  • $75 million accelerator program to identify new skill-based mobile games.

Challenges Ahead

  • Preliminary results are unaudited and subject to revision.
  • Actual results may differ from preliminary results.
  • Still in the process of completing financial statements for fiscal year ended December 31, 2024.
  • Did not timely file the Form 10-K and received a notice of non-compliance from the NYSE.
  • Uncertainties associated with ongoing litigation.