NYSE$SKLZ

Skillz Inc · Q1 2024 earnings

Q1 2024 earnings · · Investor relations

Briefing

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

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.

Headline financials

Total Revenue

$25.2M

Previous: $44.4M-43.1%
EPS

-$1.45

Previous: -$1.80+19.4%
Paying Monthly Active Users

121.0K

No prior period
Average Revenue Per Paying MAU

$69.80

No prior period
Gross Marketplace Volume

$161M

No prior period
Monthly Active Users

860.0K

No prior period
Paying MAU to MAU Ratio

14.0%

No prior period
Capital Expenditures

-$11.5M

Previous: -$11.5M+0.0%
Free Cash Flow

-$38.2M

Previous: -$47.1M+18.8%
Net Income

-$26.7M

Previous: -$35.6M+24.9%
Operating Income

-$26.9M

Previous: -$32.1M+16.2%
Gross Profit

$21.8M

Previous: $39.8M-45.3%
Cash & Equivalents

$291M

Previous: $415M-30.0%
Total Assets

$382M

Previous: $612M-37.5%
R&D Expense

$4.62M

No prior period
Stock-Based Comp

$8.74M

Previous: $10.5M-17.1%

Revenue & EPS history

Skillz · Revenue · Quarterly

$25.2M

Q1 2024-43.1%vs Q1 2023
Beat estimate in 1 of 12 quarters(8%)
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 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.

Tailwinds

  • 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.

Headwinds

  • 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.

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 2024

Historical avgQ1 2024

-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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