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Jun 30, 2024
Skillz Q2 2024 Earnings Report
Reported a mixed second quarter with revenue decline but improved net income and strategic progress.
Key Takeaways
Skillz reported a decrease in revenue to $25.3 million but a significant improvement in net income to $26.0 million. The company saw its first quarterly sequential increase in Paying Monthly Average Users (pMAU) in ten quarters and customer acquisition systemwide paybacks trending towards six months. Skillz is focused on optimizing user acquisition costs and growing long-term player value, aiming for positive Adjusted EBITDA.
Revenue was $25.3 million.
Net income reached $26.0 million.
Paying monthly active users (PMAU) were 122,000.
Average Revenue Per Paying Monthly Active User (ARPPU) was $69.4.
Skillz
Skillz
Forward Guidance
Skillz is focused on strategic initiatives to drive revenue growth and positive cash flow. They aim to prudently scale spending to grow the paying user base while optimizing customer acquisition costs and long-term player value, with expectations of generating positive Adjusted EBITDA.
Positive Outlook
- First quarterly sequential increase in Paying Monthly Average Users (pMAU) in ten quarters.
- Customer acquisition systemwide paybacks trending towards six months.
- Focus on optimizing the return on customer acquisition costs.
- Aim to grow long-term player value.
- Positioning Skillz to generate positive Adjusted EBITDA.
Challenges Ahead
- Preliminary results are subject to revision.
- Independent auditor has not finalized review.
- Risk of not filing Quarterly Report on Form 10-Q by the prescribed deadline.
- Still in the process of completing financial statements for fiscal year ended December 31, 2023.
- Received a 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.