NYSE$SKLZ

Skillz Inc · Q4 2023 earnings

Q4 2023 earnings · · Investor relations

Briefing

Skillz's financial performance reflected a decrease in revenue and a net loss, but showed progress in strategic initiatives and cost management.

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.

Headline financials

Total Revenue

$29.1M

Previous: $46.9M-37.8%
EPS (adj)

-$1.04

Previous: -$1.20+13.3%
Capital Expenditures

-$1.15M

No prior period
Net Income

-$20.8M

Previous: -$144M+85.5%
Operating Income

-$25.5M

Previous: -$139M+81.7%
Gross Profit

$25.7M

Previous: $42M-38.8%
R&D Expense

$3.39M

No prior period
Stock-Based Comp

$10.1M

Previous: $10.6M-5.2%

Revenue & EPS history

Skillz · Revenue · Quarterly

$29.1M

Q4 2023-37.8%vs Q4 2022
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 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.

Tailwinds

  • 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.

Headwinds

  • 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.

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 Q4 2023

Historical avgQ4 2023

-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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