NYSE$SKLZ

Skillz Inc · Q2 2024 earnings

Q2 2024 earnings · · Investor relations

Briefing

Reported a mixed second quarter with revenue decline but improved net income and strategic progress.

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.

Headline financials

Total Revenue

$25.3M

Previous: $40.2M-37.0%
EPS

$1.44

Previous: -$1.77+181.4%
Paying Monthly Active Users

122.0K

No prior period
Average Revenue Per Paying MAU

$69.40

No prior period
Gross Marketplace Volume

$162M

No prior period
Monthly Active Users

807.0K

No prior period
Average GMV Per Paying MAU

$441.70

No prior period
Average GMV Per MAU

$66.80

No prior period
Average Revenue Per MAU

$10.40

No prior period
Paying MAU to MAU Ratio

0.1%

No prior period
Capital Expenditures

-$11.5M

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

$14.5M

Previous: -$33.5M+143.4%
Net Income

$26M

Previous: -$22M+218.5%
Operating Income

$25.6M

Previous: -$35.6M+171.8%
Gross Profit

$21.9M

Previous: $36.5M-39.9%
Cash & Equivalents

$316M

Previous: $325M-2.6%
Total Assets

$403M

Previous: $447M-10.0%
R&D Expense

$4.27M

No prior period
Stock-Based Comp

$7.43M

Previous: $14.6M-49.2%

Revenue & EPS history

Skillz · Revenue · Quarterly

$25.3M

Q2 2024-37%vs Q2 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 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.

Tailwinds

  • 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.

Headwinds

  • 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.

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 Q2 2024

Historical avgQ2 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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