NYSE$SKLZ

Skillz Inc · Q1 2022 earnings

Q1 2022 earnings · · Investor relations

Briefing

Delivered $93 million in Revenue with Higher Marketing Efficiency.

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.

Headline financials

Total Revenue

$93.4M

Previous: $83.7M+11.7%
EPS (adj)

-$4.20

Previous: -$2.60-61.5%
Monthly Active Users

3.2M

No prior period
Free Cash Flow

-$148M

Previous: -$53.6M-176.4%
Net Income

-$148M

Previous: -$53.6M-176.4%
Operating Income

-$145M

Previous: -$51.5M-181.0%
Gross Profit

$84.2M

Previous: $79.4M+6.0%
Cash & Equivalents

$115M

Previous: $613M-81.3%
Total Assets

$933M

Previous: $741M+25.8%
Stock-Based Comp

$77.9M

Previous: $10.9M+611.5%

Revenue & EPS history

Skillz · Revenue · Quarterly

$93.4M

Q1 2022+11.7%vs Q1 2021
Beat estimate in 5 of 11 quarters(45%)
ActualEstimate

Revenue by segment

Skillz · $29.4M total across 2 segments · Q1 2026

  • Skillz Platform
    $19.7M
  • RZR Advertising
    $9.76M

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)%.

Tailwinds

  • 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%.

Headwinds

  • Q4 2022 Adjusted EBITDA margin expected to be better than (30)%.
  • No specific information provided on net income or EPS guidance.
  • Guidance is based on estimates and assumptions, which may not materialize.
  • Achievement of guidance depends on various factors, including market conditions and company performance.
  • Unspecified risks and uncertainties could impact the company's ability to achieve its guidance.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 19 quarterly earnings reports · overlaid with Q1 2022

Historical avgQ1 2022

-3.8%

Avg return

Earnings day

-0.6%

Avg return

5 days after

+4.2%

Avg return

30 days after

27%

7 / 26 earnings

Positive

+15.5%

Q4 2022

Best reaction

-19.9%

Q4 2021

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-4.8%+11.2%+33.0%
Q4 2025-4.6%-3.9%+189.6%
Q3 2025-0.8%-0.6%-11.4%
Q2 2025+14.0%+29.8%+11.9%
Q1 2025+6.2%+15.3%+19.3%
Q4 2024-14.1%-10.6%-18.8%
Q3 2024-9.0%-11.5%-0.9%
Q2 2024-5.4%-6.2%-8.5%
Q1 2024-13.5%+2.4%+11.0%
Q4 2023-11.7%-12.6%-12.8%
Q3 2023-14.9%-6.7%+10.8%
Q2 2023-14.4%-12.9%-28.9%
Q1 2023-14.2%-14.8%-8.0%
Q4 2022+15.5%+14.0%+21.2%
Q3 2022-1.0%+2.9%-3.7%
Q2 2022-8.7%+0.0%-27.3%
Q1 2022-3.3%-20.0%-22.3%
Q4 2021-19.9%-13.9%-15.0%
Q3 2021-1.8%+6.3%-30.6%
Q2 2021-14.6%-16.1%-12.9%
Q1 2021-6.3%-4.9%+28.5%
Q4 2019+13.2%+5.7%-37.9%
Q4 2020+9.5%+24.0%-31.9%
Q3 2020+4.3%+6.7%+39.3%
Q2 2020-0.3%-1.9%+11.0%
Q1 2020+1.5%+2.0%+4.0%

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