Skillz Inc. (NYSE: SKLZ) (“Skillz” or the “Company”), the
leading mobile games platform bringing fair competition to players
worldwide, today reported unaudited financial results for the
second quarter ended June 30, 2024.
Second Quarter Financial Update (Unaudited):
- Revenue of $25.3 million.
- Gross profit of $21.9 million.
- Net income of $26.0 million.
- Adjusted EBITDA1 of $(12.6) million.
- Paying monthly active users (PMAU)2 of 122,000.
- Average Revenue Per Paying Monthly Active User (ARPPU)3 of
$69.4.
- Total operating expenses excluding cost of revenue of $3.6
million.
“Skillz’ second quarter results mark continued progress against
our strategic initiatives to position the Company to deliver
consistent revenue growth and positive cash flow,” said Andrew
Paradise, Skillz’ CEO. “Progress in the second quarter includes our
first quarterly sequential increase in Paying Monthly Average Users
(pMAU) in ten quarters. During the quarter we also extended the
pattern of the last several quarters of customer acquisition
systemwide paybacks trending towards six months. Given the success
of these initiatives we will prudently scale our spend to grow our
paying user base while maintaining our focus on optimizing the
return on our customer acquisition costs and growing long-term
player value. By executing on our strategic initiatives we are
positioning Skillz to generate positive Adjusted EBITDA and unlock
the significant shareholder value inherent in our platform and
business.”
Gaetano Franceschi, Skillz CFO, added, “The second quarter
performance demonstrates our disciplined management of the business
as reflected in the year-over-year declines in R&D, SG&A
and G&A costs. Combined with the further optimization of our
user acquisition spend, our fiscal discipline helped drive year
over year and quarterly sequential improvements in our Adjusted
EBITDA loss and quarterly operating cash burn. Our strong balance
sheet, which includes cash and restricted cash of more than $325
million at the end of the second quarter, provides us with
significant flexibility and optionality to invest in our turnaround
initiatives to enhance shareholder value.”
Investor Conference Call
Skillz will host a live conference call at 4:30 p.m. ET today.
To access the call, please register using the following link:
https://www.netroadshow.com/events/login?show=2958d4d5&confId=67742.
After registering, an email will be sent, including dial-in details
and a unique conference call access code and PIN required to join
the live call. Access to the live audio webcast of the discussion
in listen-only mode will also be available at
investors.skillz.com.
A replay of the webcast will be archived on the Company’s
investor relations website. An audio replay of the conference call
will be available through Thursday, August 8, 2024, and can be
accessed by dialing (866) 813-9403 (US) or (929) 458-6194
(international) and entering the passcode 53915.
About Skillz Inc.
Skillz is the leading mobile games platform dedicated to
bringing out the best in everyone through competition. The Skillz
platform helps developers create multi-million dollar franchises by
enabling social competition in their games. Leveraging its patented
technology, Skillz hosts billions of casual eSports tournaments for
millions of mobile players worldwide, with the goal of building the
home of competition for all. Skillz has earned recognition as one
of Fast Company’s Best Workplaces for Innovators, CNBC’s Disruptor
50, Forbes’ Next Billion-Dollar Startups, Fast Company’s Most
Innovative Companies, and the number-one fastest-growing company in
America on the Inc. 5000. www.skillz.com
1. Adjusted EBITDA is a non-GAAP metric;
for a reconciliation of each measure against its most comparable
GAAP metric, please see the section titled “Use of Non-GAAP
Financial Measures” in this press release.
2. “Paying Monthly Active Users” or
“PMAUs” means the number of end-users who entered into a paid
contest hosted on Skillz’s platform at least once in a month,
averaged over each month in the period.
3. “Average Revenue Per Paying Monthly
Active User” or “ARPPU” means the average revenue in a given month
divided by Paying MAUs in that month, averaged over the period and
does not include a deduction for end-user incentives that are
included in sales and marketing expense.
Use of Non-GAAP Financial Measures
In this press release, the Company includes Adjusted EBITDA,
which is a non-GAAP performance measure that the Company uses to
supplement its results presented in accordance with U.S. GAAP. The
Company’s management believes Adjusted EBITDA is useful in
evaluating its operating performance and is a similar measure
reported by publicly-listed U.S. competitors, and regularly used by
securities analysts, institutional investors, and other interested
parties in analyzing operating performance and prospects. By
providing this non-GAAP measure, the Company’s management intends
to provide investors with a meaningful, consistent comparison of
the Company’s profitability for the periods presented. Non-GAAP
operating expense is also included in this press release, which is
a non-GAAP financial measure. The Company’s management believes
non-GAAP operating expenses are useful to investors and analysts as
a supplement to its financial information prepared in accordance
with GAAP for analyzing operating performance and identifying
operating trends in its business. The Company uses non-GAAP
operating expenses internally to facilitate period-to-period
comparisons and analysis in order to make operating decisions. As
required by the rules of the SEC, the Company has provided herein a
reconciliation of Adjusted EBITDA and non-GAAP operating expenses
to the most directly comparable measures under GAAP. Adjusted
EBITDA and non-GAAP operating expense are not intended to be
substitutes for any U.S. GAAP financial measures and, as
calculated, may not be comparable to other similarly titled
financial measures of other companies in other industries or within
the same industry.
The Company defines and calculates Adjusted EBITDA as net loss
before interest income (expense), net; provision for income taxes;
depreciation and amortization, and other income, net; as further
adjusted for stock-based compensation and other special items
determined by management, including, but not limited to, change in
fair value of common stock warrant liabilities, impairment charges,
loss contingency accruals, and one-time nonrecurring expenses. The
Company defines and calculates non-GAAP operating expense as GAAP
operating expense adjusted for stock-based compensation, one-time
transaction expenses and other special items determined by
management, including, but not limited to certain loss contingency
accruals and restructuring charges, as they are not indicative of
business operations.
The Company does not provide a reconciliation for non-GAAP
estimates on a forward-looking basis as it is unable to provide a
meaningful calculation or estimation of reconciling items and the
information is not available without unreasonable effort. This is
due to the inherent difficulty of forecasting the timing or amount
of various items that would impact the most directly comparable
forward-looking U.S. GAAP financial measures that have not yet
occurred, are out of the Company’s control and/or cannot be
reasonably predicted. Forward-looking non-GAAP financial measures
provided without the most directly comparable U.S. GAAP financial
measures may vary materially from the corresponding U.S. GAAP
financial measures.
Preliminary Results, Delayed 10-K and 10-Q Extension
The Company is in the process of completing its unaudited
interim financial statements and other disclosures for the fiscal
quarter ended June 30, 2024. Accordingly, we are announcing
preliminary results for the second quarter, which are based on
currently available information and are subject to revision as
management completes its internal review. Our independent
registered public accounting firm has not finalized its review of
these preliminary financial results. Actual results may differ from
these preliminary financial results and other financial information
due to the completion of our internal procedures, final adjustments
and other developments that may arise between now and the time the
results are finalized. In the event the Company determines it will
not file its Quarterly Report on Form 10-Q by the prescribed
deadline, it will file an extension on Form 12b-25 with the
Securities and Exchange Commission (the “SEC”).
In addition, the Company is still in the process of completing
its financial statements and other disclosures for the fiscal year
ended December 31, 2023 and unaudited financial statements and
other disclosures for the fiscal quarter ended March 31, 2024. The
Company previously filed a Form 12b-25 with the SEC for an
extension of its Annual Report on Form 10-K for the year ended
December 31, 2023 (the “Form 10-K”) on March 14, 2024, but was
unable to file the Form 10-K before the extension deadline. As a
result, the Company announced on April 2, 2024, that it had
received a notice (the “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. The Notice has no immediate effect on
the listing of the Company’s common stock on the NYSE. The Notice
informed the Company that, under NYSE rules, the Company has six
months from March 15, 2024 to regain compliance with the NYSE
listing standards by filing the Form 10-K with the SEC. The Company
is working diligently to complete the necessary work to file the
Form 10-K as soon as practicable and currently expects to file the
Form 10-K within the six-month period granted by the NYSE Notice,
and intends to take all necessary steps to achieve compliance with
applicable NYSE listing standards as soon as practicable. Because
our financial statements and other disclosures for the year ended
December 31, 2023 are still subject to ongoing management review
and our independent registered public accounting firm has not
completed its audit of our results for the period, actual results
may differ from the preliminary results for our fiscal year ended
December 31, 2023 as previously reported, and these differences
could impact the preliminary results for the fiscal quarter ended
June 30, 2024 included in this press release. For additional
details, please refer to the Company’s Form 12b-25 filed with the
SEC on March 14, 2024 and its Form 8-K filed with the SEC on April
8, 2024.
Forward-Looking Statements
This press release includes “forward-looking statements” within
the meaning of the “safe harbor” provisions of the United States
Private Securities Litigation Reform Act of 1995. The Company’s
actual results may differ from its expectations, estimates, and
projections and, consequently, you should not rely on these
forward-looking statements as predictions of future events. Words
such as “expect,” “estimate,” “project,” “budget,” “forecast,”
“anticipate,” “intend,” “plan,” “may,” “will,” “could,” “should,”
“believes,” “predicts,” “potential,” “continue,” and similar
expressions (or the negative versions of such words or expressions)
are intended to identify such forward-looking statements.
These forward-looking statements involve significant risks and
uncertainties that could cause the Company’s actual results to
differ materially from those discussed in the forward-looking
statements. Most of these factors are outside of the Company’s
control and are difficult to predict. Factors that may cause such
differences include, but are not limited to, the ability of Skillz
to: effectively compete in the global entertainment and gaming
industries; attract and retain successful relationships with the
third party developers who develop and update the games hosted on
Skillz’ platform; drive brand awareness with end users; invest in
growth and development of employees; comply with laws, regulations
and expectations applicable to its business, including with respect
to cybersecurity and corporate governance matters; mitigate the
commercial, reputational and regulatory risks to our business;
remediate during fiscal year 2024 certain non- fully remediated
material weaknesses in our internal controls over financial
reporting; and timely file our periodic reports with the SEC, as
well as potential changes to our preliminary results that could
occur as we finalize our internal review and our independent
registered public accounting firm completes its review and audit
(as applicable) of such results. Additional factors that may cause
such differences include other risks and uncertainties indicated
from time to time in the Company’s SEC filings, including those
under “Risk Factors” therein, which are available on the SEC’s
website at www.sec.gov. Additional information will be made
available in other filings that the Company makes from time to time
with the SEC. In addition, any forward-looking statements contained
in this press release are based on assumptions that the Company
believes to be reasonable as of this date. The Company undertakes
no obligation to update any forward-looking statements to reflect
events or circumstances after the date of this press release or to
reflect new information or the occurrence of unanticipated events,
except as required by law.
Skillz Inc.
Consolidated Statements of
Operations and Comprehensive Income (Loss) (Unaudited)
(in thousands, except for number
of shares and per share amounts)
Three Months Ended June
30,
Six Months Ended June
30,
2024
2023
2024
2023
Revenue
$
25,295
$
40,166
$
50,530
$
84,549
Costs and expenses:
Cost of revenue
3,346
3,650
6,798
8,232
Research and development
4,272
8,025
8,896
16,906
Sales and marketing
20,849
32,669
41,842
67,587
General and administrative
17,236
26,074
40,273
54,144
Gain from litigation settlement
(46,000
)
—
(46,000
)
—
Total costs and expenses
(297
)
70,418
51,809
146,869
Income (loss) from operations
25,592
(30,252
)
(1,279
)
(62,320
)
Gain from extinguishment of debt
—
15,205
—
15,205
Interest income (expense), net
334
(1,712
)
447
(5,207
)
Change in fair value of common stock
warrant liabilities
2
152
11
151
Other income, net
190
11
254
50
Income (loss) before income
taxes
26,118
(16,596
)
(567
)
(52,121
)
Provision for income taxes
73
114
111
183
Net income (loss)
$
26,045
$
(16,710
)
$
(678
)
$
(52,304
)
Earnings (loss) per share:
Basic
$
1.47
$
(0.79
)
$
(0.04
)
$
(2.48
)
Diluted
$
1.44
$
(0.79
)
$
(0.04
)
$
(2.48
)
Weighted average shares outstanding:
Basic
17,776,904
21,143,257
18,119,062
21,109,886
Diluted
18,079,310
21,143,257
18,119,062
21,109,886
Other comprehensive income:
Change in unrealized gain on
available-for-sale investments, net of tax
1
394
7
1,391
Total other comprehensive income
1
394
7
1,391
Total comprehensive income (loss)
$
26,046
$
(16,316
)
$
(671
)
$
(50,913
)
Skillz Inc.
Consolidated Balance Sheets
(Unaudited)
(in thousands, except for number
of shares and par value per share amounts)
June 30, 2024
December 31, 2023
Assets
Current assets:
Cash and cash equivalents
$
316,419
$
302,028
Restricted cash
10,000
10,000
Accounts receivable, net of allowance for
credit losses of $64 and $49 as of June 30, 2024 and December 31,
2023, respectively
4,223
5,942
Prepaid expenses and other current
assets
4,127
6,721
Total current assets
334,769
324,691
Property and equipment, net
14,616
14,549
Marketable securities, non-current
—
1,125
Non-marketable equity securities
52,768
52,768
Other non-current assets
707
2,693
Total assets
$
402,860
$
395,826
Liabilities and stockholders’
equity
Current liabilities:
Accounts payable
$
6,348
$
1,712
Operating lease liabilities, current
1,256
1,364
Other current liabilities
44,835
46,782
Total current liabilities
52,439
49,858
Operating lease liabilities,
non-current
9,912
10,573
Common stock warrant liabilities,
non-current
—
11
Long-term debt, net of current portion
124,769
123,935
Other non-current liabilities
512
960
Total liabilities
187,632
185,337
Commitments and contingencies
Stockholders’ equity:
Common stock $0.0001 par value; 31.3
million shares authorized; Class A common stock – 25.0 million
shares authorized; 18.1 million and 18.1 million shares issued;
14.0 million and 15.8 million outstanding as of June 30, 2024 and
December 31, 2023, respectively; Class B common stock – 6.3 million
shares authorized; 3.4 million shares issued and outstanding as of
June 30, 2024 and December 31, 2023
1
1
Treasury stock at cost, 4.1 million and
2.3 million as of June 30, 2024 and December 31, 2023,
respectively
(23,770
)
(13,000
)
Additional paid-in capital
1,214,143
1,197,963
Accumulated other comprehensive loss
—
(7
)
Accumulated deficit
(975,146
)
(974,468
)
Total stockholders’ equity
215,228
210,489
Total liabilities and stockholders’
equity
$
402,860
$
395,826
Skillz Inc.
Consolidated Statement of Cash
Flows (Unaudited)
(in thousands)
Six Months Ended June
30,
2024
2023
Operating Activities
Net loss
$
(678
)
$
(52,304
)
Adjustment to reconcile net loss to net
cash used in operating activities:
Depreciation and amortization
798
1,372
Stock-based compensation
16,173
21,170
Gain on extinguishment of debt
—
(15,205
)
Accretion of unamortized debt discount and
amortization of debt issuance costs
834
1,428
Amortization of premium for marketable
securities
—
591
Impairment charges
—
455
Change in fair value of common stock
warrant liabilities
(11
)
(151
)
Changes in operating assets and
liabilities:
Accounts receivable, net
1,719
(2,481
)
Prepaid expenses and other assets
2,580
(1,746
)
Accounts payable
4,636
2,499
Operating lease right-of-use assets
—
308
Operating lease liabilities
(769
)
(1,115
)
Other accruals and liabilities
(1,876
)
4,119
Net cash provided by (used in)
operating activities
23,406
(41,060
)
Investing Activities
Purchases of property and equipment,
including internal-use software
(922
)
(11,622
)
Settlement of loan receivable
2,000
—
Purchases of marketable securities
(5
)
—
Proceeds from sales of marketable
securities
1,137
52,477
Proceeds from maturities of marketable
securities
—
98,903
Net cash provided by investing
activities
2,210
139,758
Financing Activities
Principal payments on finance leases
obligations
(455
)
(394
)
Payments for extinguishment of debt
—
(135,855
)
Repurchase of common stock
(10,770
)
—
Net proceeds from exercise of stock
options and issuance of common stock
—
70
Net cash used in financing
activities
(11,225
)
(136,179
)
Net change in cash, cash equivalents and
restricted cash
14,391
(37,481
)
Cash, cash equivalents and restricted
cash – beginning of year
312,028
365,436
Cash, cash equivalents and restricted
cash – end of period
$
326,419
$
327,955
Supplemental cash flow data:
Cash paid during the period for:
Interest
$
6,813
$
12,211
Taxes
$
135
$
160
Skillz Inc.
Reconciliation of GAAP Net
Loss to Adjusted EBITDA (Unaudited)
(in thousands)
Three Months Ended June
30,
Six Months Ended June
30,
2024
2023
2024
2023
Net income (loss)
$
26,045
$
(16,710
)
$
(678
)
$
(52,304
)
Interest income (expense), net
(334
)
1,712
(447
)
5,207
Stock-based compensation
7,433
10,622
16,173
21,170
Change in fair value of warrant
liability
(2
)
(152
)
(11
)
(151
)
Provision for income taxes
73
114
111
183
Depreciation and amortization
403
745
798
1,372
Gain on extinguishment of debt
—
(15,205
)
—
(15,205
)
Gain from litigation settlement(1)
(46,000
)
—
(46,000
)
—
Other income, net
(190
)
(11
)
(254
)
(50
)
Adjusted EBITDA
$
(12,572
)
$
(18,885
)
$
(30,308
)
$
(39,778
)
1) For the three and six months ended June
30, 2024, amount represents certain funds received as part of the
settlement with AviaGames.
Skillz Inc.
Reconciliation of GAAP to
Non-GAAP Operating Expenses
(in thousands)
Three Months Ended June
30,
Six Months Ended June
30,
2024
2023
2024
2023
Research and development
$
4,272
$
8,025
8,896
16,906
Less: stock-based compensation
(182
)
(961
)
(329
)
(2,167
)
Non-GAAP research and development
$
4,090
$
7,064
$
8,567
$
14,739
Sales and marketing
$
20,849
$
32,669
$
41,842
$
67,587
Less: stock-based compensation
(1,787
)
(2,091
)
(3,798
)
(3,995
)
Non-GAAP sales and marketing
$
19,062
$
30,578
$
38,044
$
63,592
General and administrative
$
17,236
$
26,074
$
40,273
$
54,144
Less: stock-based compensation
(5,462
)
(7,570
)
(12,043
)
(15,008
)
Non-GAAP general and administrative
$
11,774
$
18,504
$
28,230
$
39,136
Skillz Inc.
Supplemental Financial
Information
(in millions, except ARPU and
ARPPU)
Three Months Ended June
30,
Six Months Ended June
30,
2024
2023
2024
2023
Gross marketplace volume (“GMV”)
(000s)(1)
$
161,663
$
255,229
$
322,931
$
532,861
Paying monthly active users (“PMAUs”)
(000s)(2)
122
196
121
205
Monthly active users (“MAUs”)
(000s)(3)
807
1,068
833
1,122
Average GMV per paying monthly active
user(4)
$
441.7
$
433.3
$
444.8
$
433.2
Average GMV per monthly active user(5)
$
66.8
$
79.7
$
129.2
$
79.2
Average revenue per paying monthly active
user (“ARPPU”)(6)
$
69.4
$
68.2
$
69.6
$
68.7
Average revenue per monthly active user
(“ARPU”)(7)
$
10.4
$
12.5
$
10.1
$
12.6
Paying MAU to MAU ratio
15
%
18
%
15
%
18
%
Average end-user incentives, included as
sales and marketing expense, per paying active user(8)
$
28.9
$
29.1
$
26.6
$
28.2
Average end-user incentives, included as
sales and marketing expense, per playing active user(9)
$
4.4
$
5.4
$
3.9
$
5.2
(1) “GMV” or “Gross Marketplace Volume”
means the total entry fees paid by users for contests hosted on
Skillz’ platform. Total entry fees include entry fees paid by
end-users using cash deposits, prior winnings from end-users’
accounts that have not been withdrawn, and end-user incentives used
to enter paid entry fee contests.
(2) “Paying Monthly Active Users” or
“PMAUs” means the number of end-users who entered into a paid
contest hosted on Skillz’ platform at least once in a month,
averaged over each month in the period.
(3) “Monthly Active Users” or “MAUs” means
the number of playing end-users who entered into a paid or free
contest hosted on Skillz’ platform at least once in a month,
averaged over each month in the period.
(4) “Average GMV Per Paying Monthly Active
User” means the average GMV in a given month divided by Paying MAUs
in that month, averaged over the period.
(5) “Average GMV Per Monthly Active User”
means the average GMV in a given month divided by MAUs in that
month, averaged over the period.
(6) “Average Revenue Per Paying Monthly
Active User” or “ARPPU” means the average revenue in a given month
divided by Paying MAUs in that month, averaged over the period and
does not include a deduction for end-user incentives that are
included in sales and marketing expense.
(7) “Average Revenue Per Monthly Active
User” or “ARPU” means the average revenue in a given month divided
by MAUs in that month, averaged over the period and does not
include a deduction for end-user incentives that are included in
sales and marketing expense.
(8) Amount reflects the average end-user
incentives included in sales and marketing expense in a given month
divided by PMAUs in that month, averaged over the period.
(9) Amount reflects the average end-user
incentives included in sales and marketing expense in a given month
divided by MAUs in that month, averaged over the period.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240801624835/en/
Investors: ir@skillz.com or James Leahy, Richard Land JCIR (212)
835-8500 or sklz@jcir.com
Media: press@skillz.com
Skillz (NYSE:SKLZ)
過去 株価チャート
から 10 2024 まで 11 2024
Skillz (NYSE:SKLZ)
過去 株価チャート
から 11 2023 まで 11 2024
