Skillz Q4 2023 Earnings Report
Key Takeaways
Skillz Inc. reported Q4 2023 financial results with a revenue of $29.1 million and a net loss of $20.8 million. The company focused on strategic initiatives to improve user economics and manage operating expenses, aiming for positive Adjusted EBITDA on a run-rate basis by Q4 2024. They are in the process of completing its financial statements and other disclosures for the fiscal year ended December 31, 2023.
Revenue for Q4 2023 was $29.1 million.
Net loss for Q4 2023 was $20.8 million.
Paying monthly active users (PMAU) were 137,000.
Average Revenue Per Paying Monthly Active User (ARPPU) was $70.3.
Skillz
Skillz
Forward Guidance
Skillz is transitioning efforts toward scaling the business to generate future profitable growth and aims to achieve positive Adjusted EBITDA on a run-rate basis by Q4 2024.
Positive Outlook
- Improving user economics due to new features increasing player engagement and monetization.
- Shorter payback period on customer acquisition costs exiting the year compared to the beginning of 2023.
- Significantly slowed decline in paying audience in the beginning of 2024, tracking to a more stable audience.
- Strategic initiatives are putting Skillz on track to achieve positive Adjusted EBITDA on a run-rate basis by the fourth quarter of this year.
- Strong cash position of more than $300 million at 2023 year-end provides flexibility to invest in key initiatives.
Challenges Ahead
- Company is in the process of completing its financial statements and other disclosures for the fiscal year ended December 31, 2023.
- The company will file an extension for the filing of their Annual Report on Form 10-K for the year ended December 31, 2023.
- Preliminary results are based on currently available information and 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 or its audit of the financial statements for the year ended December 31, 2023.
- Actual results may differ from these preliminary financial results and other financial information due to the completion of internal procedures, the audit of financial statements, final adjustments and other developments that may arise between now and the time the results are finalized.