Skillz Inc. (NYSE: SKLZ) (“Skillz” or the “Company”), the leading mobile games platform bringing fair competition to players worldwide, today reported financial results for the fourth quarter and fiscal year ended December 31, 2023.
Fourth Quarter 2023 Financial Highlights:
- Revenue of $29.1 million
- Gross profit of $25.7 million
- Net loss of $20.8 million
- Adjusted EBITDA1 of $(12.3) million
- Paying monthly active users (PMAU)2 of 137,000
- Average Revenue Per Paying Monthly Active User (ARPPU)3 of $70.3
- Total operating expenses of $48.3 million
Full Year 2023 Financial Highlights:
- Revenue of $150.1 million
- Gross profit of $134.7 million
- Net loss of $106.7 million
- Adjusted EBITDA1 of $(70.1) million
- Paying monthly active users (PMAU)2 of 179,000
- Average Revenue Per Paying Monthly Active User (ARPPU)3 of $70.0
- Total operating expenses of $250.7 million
- Cash, cash equivalents, and marketable securities of $302.0 million as of December 31, 2023
- Total outstanding debt of $123.9 million as of December 31, 2023
“We made steady progress throughout 2023 with our strategic initiatives to position Skillz to deliver consistent top-line growth and positive Adjusted EBITDA,” said Andrew Paradise, Skillz’ CEO. “This progress includes improving user economics, which have benefitted from the introduction of new features that increase player engagement and monetization. In addition, the payback period on our customer acquisition costs exiting the year was significantly shorter than it was entering 2023 and it has continued to improve to-date in 2024. Importantly, after declines in our paying audience throughout 2023, we significantly slowed the decline in the beginning of 2024, and are tracking to a more stable audience. We are now beginning to transition our efforts toward scaling the business to generate future profitable growth. Our continued execution on our strategic initiatives puts Skillz on track to achieve our goal of generating positive Adjusted EBITDA on a run-rate basis by the fourth quarter of this year.”
Gaetano Franceschi, Skillz’ CFO, added, “We continue to demonstrate prudent management of the business as reflected in the quarterly sequential improvements in our Adjusted EBITDA loss for every quarter of 2023, with the fourth quarter loss being 41% less than in the first quarter. Our focus on managing operating expenses is similarly driving improvement in our quarterly operating cash burn and, combined with our strong cash position of more than $300 million at 2023 year-end, provides us with the flexibility to invest in our key initiatives such as new product features that provide our players with a better experience which in turn will create value for our shareholders.”
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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.
|
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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.
|
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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.
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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=81fbf945&confId=61498. 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, March 21, 2024, and can be accessed by dialing (866) 813-9403 (US) or (929) 458-6194 (international) and entering the passcode 189136.
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
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 expense is 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 expense 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 expense 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 expense, net; (benefit) or provision for income taxes; depreciation and amortization, and other income or expense, 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, acquisition-related expenses, impairment charges, loss contingency accruals, restructuring charges 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 acquisition-related expenses for transaction costs, 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 and 10-K Extension
The Company is in the process of completing its financial statements and other disclosures for the fiscal year ended December 31, 2023. As a result, the Company will file an extension for the filing of our Annual Report on Form 10-K for the year ended December 31, 2023. Accordingly, we are announcing preliminary results for the year, 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 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 our internal procedures, the audit of our financial statements, final adjustments and other developments that may arise between now and the time the results are finalized. Further disclosure is included in the Form 12b-25 filed with the Securities and Exchange Commission. We expect to file our Annual Report on Form 10-K for the year ended December 31, 2023 by March 29, 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. 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.
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Skillz Inc.
|
|
Consolidated Statements of Operations and Comprehensive Loss
|
|
(Unaudited)
|
|
(in thousands, except for number of shares and per share amounts)
|
|
|
|
|
|
|
Three Months Ended
December 31,
|
|
Twelve Months Ended
December 31,
|
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
Revenue
|
$
|
29,138
|
|
|
$
|
46,872
|
|
|
$
|
150,113
|
|
|
$
|
269,709
|
|
|
Costs and expenses:
|
|
|
|
|
|
|
|
|
Cost of revenue
|
|
3,455
|
|
|
|
4,916
|
|
|
|
15,379
|
|
|
|
30,718
|
|
|
Research and development
|
|
3,391
|
|
|
|
7,425
|
|
|
|
28,148
|
|
|
|
52,265
|
|
|
Sales and marketing
|
|
23,051
|
|
|
|
34,458
|
|
|
|
122,560
|
|
|
|
277,014
|
|
|
General and administrative
|
|
21,898
|
|
|
|
22,478
|
|
|
|
99,977
|
|
|
|
163,018
|
|
|
Impairment of goodwill and long-lived assets
|
|
2,880
|
|
|
|
116,821
|
|
|
|
3,335
|
|
|
|
168,051
|
|
|
Total costs and expenses
|
|
54,675
|
|
|
|
186,098
|
|
|
|
269,399
|
|
|
|
691,066
|
|
|
Loss from operations
|
|
(25,537
|
)
|
|
|
(139,226
|
)
|
|
|
(119,286
|
)
|
|
|
(421,357
|
)
|
|
Gain on extinguishment of debt
|
|
—
|
|
|
|
—
|
|
|
|
15,205
|
|
|
|
2,553
|
|
|
Interest income (expense), net
|
|
4,315
|
|
|
|
(4,432
|
)
|
|
|
(3,171
|
)
|
|
|
(26,545
|
)
|
|
Change in fair value of common stock warrant liabilities
|
|
—
|
|
|
|
599
|
|
|
|
278
|
|
|
|
6,004
|
|
|
Other income (expense), net
|
|
411
|
|
|
|
(273
|
)
|
|
|
508
|
|
|
|
125
|
|
|
Loss before income taxes
|
|
(20,811
|
)
|
|
|
(143,332
|
)
|
|
|
(106,466
|
)
|
|
|
(439,220
|
)
|
|
Provision (benefit) for income taxes
|
|
35
|
|
|
|
143
|
|
|
|
228
|
|
|
|
(345
|
)
|
|
Net loss
|
$
|
(20,846
|
)
|
|
$
|
(143,475
|
)
|
|
$
|
(106,694
|
)
|
|
$
|
(438,875
|
)
|
|
Net loss per share attributable to common stockholders:
|
|
|
|
|
|
|
|
|
Basic and diluted
|
$
|
(1.04
|
)
|
|
$
|
(6.90
|
)
|
|
$
|
(5.11
|
)
|
|
$
|
(21.41
|
)
|
|
Weighted average common shares outstanding:
|
|
|
|
|
|
|
|
|
Basic and diluted
|
|
20,054,167
|
|
|
|
20,801,624
|
|
|
|
20,893,085
|
|
|
|
20,498,477
|
|
|
|
|
|
|
|
|
|
|
|
Other comprehensive income (loss):
|
|
|
|
|
|
|
|
|
Change in unrealized gain (loss) on available-for-sale investments, net of tax
|
|
30
|
|
|
|
1,169
|
|
|
|
1,556
|
|
|
|
(1,315
|
)
|
|
Total other comprehensive income (loss)
|
|
30
|
|
|
|
1,169
|
|
|
|
1,556
|
|
|
|
(1,315
|
)
|
|
Total comprehensive loss
|
$
|
(20,816
|
)
|
|
$
|
(142,306
|
)
|
|
$
|
(105,138
|
)
|
|
$
|
(440,190
|
)
|
|
Skillz Inc.
|
|
Consolidated Balance Sheets
|
|
(Unaudited)
|
|
(in thousands, except for number of shares and par value per share amounts)
|
|
|
|
|
|
|
December 31,
|
|
December 31,
|
|
|
2023
|
|
2022
|
|
Assets
|
|
|
|
|
Current assets:
|
|
|
|
|
Cash and cash equivalents
|
$
|
302,027
|
|
|
$
|
362,516
|
|
|
Restricted cash
|
|
10,000
|
|
|
|
—
|
|
|
Marketable securities, current
|
|
—
|
|
|
|
127,268
|
|
|
Accounts receivable, net
|
|
5,942
|
|
|
|
7,177
|
|
|
Prepaid expenses and other current assets
|
|
6,401
|
|
|
|
4,722
|
|
|
Total current assets
|
|
324,370
|
|
|
|
501,683
|
|
|
Property and equipment, net
|
|
14,549
|
|
|
|
2,991
|
|
|
Operating lease right-of-use assets, net
|
|
—
|
|
|
|
472
|
|
|
Marketable securities, non-current
|
|
1,125
|
|
|
|
56,728
|
|
|
Non-marketable equity securities
|
|
52,768
|
|
|
|
55,649
|
|
|
Other long-term assets
|
|
2,692
|
|
|
|
3,772
|
|
|
Total assets
|
$
|
395,504
|
|
|
$
|
621,295
|
|
|
Liabilities and stockholders’ equity
|
|
|
|
|
Current liabilities:
|
|
|
|
|
Accounts payable
|
$
|
1,712
|
|
|
$
|
1,696
|
|
|
Operating lease liabilities, current
|
|
1,364
|
|
|
|
2,133
|
|
|
Other current liabilities
|
|
51,769
|
|
|
|
45,666
|
|
|
Total current liabilities
|
|
54,845
|
|
|
|
49,495
|
|
|
Operating lease liabilities, non-current
|
|
10,573
|
|
|
|
11,942
|
|
|
Common stock warrant liabilities, non-current
|
|
11
|
|
|
|
289
|
|
|
Long-term debt, non-current
|
|
123,935
|
|
|
|
272,781
|
|
|
Other long-term liabilities
|
|
985
|
|
|
|
8,387
|
|
|
Total liabilities
|
|
190,349
|
|
|
|
342,894
|
|
|
Commitments and contingencies
|
|
|
|
|
Stockholders’ equity:
|
|
|
|
|
Preferred stock $0.0001 par value; 10 million shares authorized — 0 issued and outstanding as of December 31, 2023 and 2022
|
|
—
|
|
|
|
—
|
|
|
Common stock $0.0001 par value; 31 million shares authorized; Class A common stock – 25 million shares authorized; 16 million and 18 million shares issued and outstanding as of December 31, 2023 and 2022, respectively; Class B common stock – 6 million shares authorized; 3 million shares issued and outstanding as of December 31, 2023 and 2022, respectively
|
|
41
|
|
|
|
41
|
|
|
Treasury stock, at cost, 2 million shares at December 31, 2023
|
|
(13,000
|
)
|
|
|
—
|
|
|
Additional paid-in capital
|
|
1,197,923
|
|
|
|
1,153,031
|
|
|
Accumulated other comprehensive loss
|
|
(7
|
)
|
|
|
(1,563
|
)
|
|
Accumulated deficit
|
|
(979,802
|
)
|
|
|
(873,108
|
)
|
|
Total stockholders’ equity
|
|
205,155
|
|
|
|
278,401
|
|
|
Total liabilities and stockholders’ equity
|
$
|
395,504
|
|
|
$
|
621,295
|
|
|
Skillz Inc.
|
|
Consolidated Statement of Cash Flows
|
|
(Unaudited)
|
|
(in thousands)
|
|
|
|
|
Twelve Months Ended December 31,
|
|
|
2023
|
|
2022
|
|
Operating Activities
|
|
|
|
|
Net loss
|
$
|
(106,694
|
)
|
|
$
|
(438,875
|
)
|
|
Adjustment to reconcile net loss to net cash used in operating activities:
|
|
|
|
|
Depreciation and amortization
|
|
1,961
|
|
|
|
17,871
|
|
|
Stock-based compensation
|
|
43,692
|
|
|
|
108,202
|
|
|
Gain on extinguishment of debt
|
|
(15,205
|
)
|
|
|
(2,553
|
)
|
|
Accretion of unamortized debt discount and amortization of debt issuance costs
|
|
2,214
|
|
|
|
3,743
|
|
|
Amortization of premium for marketable securities
|
|
890
|
|
|
|
3,095
|
|
|
Impairment charges
|
|
3,336
|
|
|
|
168,051
|
|
|
Deferred income taxes
|
|
—
|
|
|
|
(698
|
)
|
|
Change in fair value of common stock warrant liabilities
|
|
(278
|
)
|
|
|
(6,004
|
)
|
|
Other, net
|
|
17
|
|
|
|
—
|
|
|
Changes in operating assets and liabilities:
|
|
|
|
|
Accounts receivable, net
|
|
1,235
|
|
|
|
5,592
|
|
|
Prepaid expenses and other assets
|
|
(1,519
|
)
|
|
|
11,602
|
|
|
Accounts payable
|
|
16
|
|
|
|
(17,222
|
)
|
|
Loss contingency accrual
|
|
—
|
|
|
|
(4,449
|
)
|
|
Operating lease right-of-use assets
|
|
—
|
|
|
|
1,605
|
|
|
Operating lease liabilities
|
|
(2,138
|
)
|
|
|
(1,602
|
)
|
|
Other accruals and liabilities
|
|
711
|
|
|
|
(27,955
|
)
|
|
Net cash used in operating activities
|
|
(71,762
|
)
|
|
|
(179,597
|
)
|
|
Investing Activities
|
|
|
|
|
Purchases of property and equipment, including internal-use software
|
|
(13,233
|
)
|
|
|
(1,892
|
)
|
|
Investment in loan receivable
|
|
(2,000
|
)
|
|
|
—
|
|
|
Purchases of marketable securities
|
|
—
|
|
|
|
(454,091
|
)
|
|
Proceeds from sales of marketable securities
|
|
57,553
|
|
|
|
167,847
|
|
|
Proceeds from maturities of marketable securities
|
|
125,984
|
|
|
|
599,522
|
|
|
Net cash provided by investing activities
|
|
168,304
|
|
|
|
311,386
|
|
|
Financing Activities
|
|
|
|
|
Principal payments on finance leases obligations
|
|
(1,096
|
)
|
|
|
(2,612
|
)
|
|
Payments for extinguishment of debt
|
|
(135,855
|
)
|
|
|
(7,298
|
)
|
|
Repurchase of common stock
|
|
(13,000
|
)
|
|
|
—
|
|
|
Payments for debt issuance costs
|
|
—
|
|
|
|
(2,005
|
)
|
|
Net proceeds from exercise of stock options and issuance of common stock
|
|
—
|
|
|
|
1,310
|
|
|
Net cash used in financing activities
|
$
|
(149,951
|
)
|
|
$
|
(10,605
|
)
|
|
Net change in cash, cash equivalents and restricted cash
|
|
(53,409
|
)
|
|
|
121,184
|
|
|
Cash, cash equivalents and restricted cash – beginning of year
|
|
365,436
|
|
|
|
244,252
|
|
|
Cash, cash equivalents and restricted cash – end of year
|
$
|
312,027
|
|
|
$
|
365,436
|
|
|
Skillz Inc.
|
|
Reconciliation of GAAP Net Loss to Adjusted EBITDA
|
|
(Unaudited)
|
|
(in thousands)
|
|
|
|
|
|
|
Three Months Ended
December 31,
|
|
Twelve Months Ended
December 31,
|
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
Net loss
|
$
|
(20,846
|
)
|
|
$
|
(143,475
|
)
|
|
$
|
(106,694
|
)
|
|
$
|
(438,875
|
)
|
|
Interest income (expense), net
|
|
(4,315
|
)
|
|
|
4,432
|
|
|
|
3,171
|
|
|
|
26,545
|
|
|
Stock-based compensation(1)
|
|
10,254
|
|
|
|
10,834
|
|
|
|
43,864
|
|
|
|
108,202
|
|
|
Change in fair value of common stock warrant liabilities
|
|
—
|
|
|
|
(599
|
)
|
|
|
(278
|
)
|
|
|
(6,004
|
)
|
|
Provision (benefit) for income taxes
|
|
35
|
|
|
|
143
|
|
|
|
228
|
|
|
|
(345
|
)
|
|
Depreciation and amortization
|
|
104
|
|
|
|
2,105
|
|
|
|
1,961
|
|
|
|
17,871
|
|
|
Gain on extinguishment of debt
|
|
—
|
|
|
|
—
|
|
|
|
(15,205
|
)
|
|
|
(2,553
|
)
|
|
Other (income) expense, net
|
|
(411
|
)
|
|
|
273
|
|
|
|
(508
|
)
|
|
|
(125
|
)
|
|
Impairment charges(2)(5)
|
|
2,880
|
|
|
|
116,821
|
|
|
|
3,335
|
|
|
|
168,051
|
|
|
Restructuring charges(3)
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
4,830
|
|
|
One-time nonrecurring expenses(4)
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
26
|
|
|
Adjusted EBITDA
|
$
|
(12,299
|
)
|
|
$
|
(9,466
|
)
|
|
$
|
(70,126
|
)
|
|
$
|
(122,377
|
)
|
|
(1) For the twelve months ended December 31, 2022, amount includes stock-based compensation recognized for the cancellation of the Chief Executive Officer’s award of 805,977 performance share units granted on September 14, 2021 (the “CEO Performance Stock Units”).
|
|
|
(2) For the three and twelve months ended December 31, 2022, amount includes impairment of intangible assets related to the developed technology and customer relationships for our Aarki acquisition, goodwill, as well as impairment of lease right-of-use assets and other long-lived assets.
|
|
|
(3) For the twelve months ended December 31, 2022, amount includes employee termination benefits.
|
|
|
(4) For the twelve months ended December 31, 2022, amounts represent IPO bonuses for certain employees, net of amounts forfeited by terminated employees.
|
|
|
(5) For the three and twelve months ended December 31, 2023, amount includes impairment of one of our non-marketable investments.
|
|
Skillz Inc.
|
|
Reconciliation of GAAP to Non-GAAP Operating Expenses
|
|
(Unaudited)
|
|
(in thousands)
|
|
|
|
|
|
|
Three Months Ended
December 31,
|
|
Twelve Months Ended
December 31,
|
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
Research and development
|
$
|
3,391
|
|
|
$
|
7,425
|
|
|
$
|
28,148
|
|
|
$
|
52,265
|
|
|
Less: stock-based compensation
|
|
(428
|
)
|
|
|
(1,600
|
)
|
|
|
(4,010
|
)
|
|
|
(4,662
|
)
|
|
Less: restructuring charges(1)
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(2,052
|
)
|
|
Non-GAAP research and development
|
$
|
2,963
|
|
|
$
|
5,825
|
|
|
$
|
24,138
|
|
|
$
|
45,551
|
|
|
|
|
|
|
|
|
|
|
|
Sales and marketing
|
$
|
23,051
|
|
|
$
|
34,458
|
|
|
$
|
122,560
|
|
|
$
|
277,014
|
|
|
Less: stock-based compensation
|
|
(2,004
|
)
|
|
|
(2,036
|
)
|
|
|
(8,481
|
)
|
|
|
(8,615
|
)
|
|
Less: restructuring charges(1)
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(1,066
|
)
|
|
Non-GAAP sales and marketing
|
$
|
21,047
|
|
|
$
|
32,422
|
|
|
$
|
114,079
|
|
|
$
|
267,333
|
|
|
|
|
|
|
|
|
|
|
|
General and administrative
|
$
|
21,898
|
|
|
$
|
22,478
|
|
|
$
|
99,977
|
|
|
$
|
163,018
|
|
|
Less: stock-based compensation(2)
|
|
(7,821
|
)
|
|
|
(7,198
|
)
|
|
|
(31,367
|
)
|
|
|
(94,925
|
)
|
|
Less: one-time nonrecurring expenses(3)
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(26
|
)
|
|
Less: restructuring charges(1)
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(1,712
|
)
|
|
Non-GAAP general and administrative
|
$
|
14,077
|
|
|
$
|
15,280
|
|
|
$
|
68,610
|
|
|
$
|
66,355
|
|
|
(1) For the year ended December 31, 2022, amount includes employee termination benefits.
|
|
|
(2) For the year ended December 31, 2022, amount includes stock-based compensation recognized for the cancellation of the Chief Executive Officer’s award of 805,977 performance share units granted on September 14, 2021 (the “CEO Performance Stock Units”).
|
|
|
(3) For the year ended December 31, 2022, amounts represent IPO bonuses for certain employees, net of amounts forfeited by terminated employees.
|
|
Skillz Inc.
Supplemental Financial Information
|
|
(Unaudited)
|
|
(in millions, except ARPU and ARPPU)
|
|
|
|
|
|
|
Three Months Ended
December 31,
|
|
Twelve Months Ended
December 31,
|
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
Gross marketplace volume (“GMV”) (000s)(1)
|
$
|
189,573
|
|
|
$
|
297,575
|
|
|
$
|
963,580
|
|
|
$
|
1,642,282
|
|
|
Paying monthly active users (“PMAUs”) (000s)(2)
|
|
137
|
|
|
|
235
|
|
|
|
179
|
|
|
|
386
|
|
|
Monthly active users (“MAUs”) (000s)(3)
|
|
896
|
|
|
|
1,290
|
|
|
|
1,045
|
|
|
|
2,105
|
|
|
Average GMV per paying monthly active user(4)
|
|
460.0
|
|
|
|
423.0
|
|
|
|
448.8
|
|
|
|
354.4
|
|
|
Average GMV per monthly active user(5)
|
|
70.5
|
|
|
|
76.9
|
|
|
|
76.9
|
|
|
|
65.0
|
|
|
Average revenue per paying monthly active user (“ARPPU”)(6)
|
|
70.3
|
|
|
|
66.6
|
|
|
|
70.0
|
|
|
|
59.7
|
|
|
Average revenue per monthly active user (“ARPU”)(7)
|
|
10.8
|
|
|
|
12.1
|
|
|
|
11.9
|
|
|
|
11.0
|
|
|
Paying MAU to MAU ratio
|
|
15
|
%
|
|
|
18
|
%
|
|
|
17
|
%
|
|
|
18
|
%
|
|
Average end-user incentives, included as sales and marketing expense, per paying active user(8)
|
|
31.51
|
|
|
|
27.97
|
|
|
|
30.09
|
|
|
|
25.33
|
|
|
Average end-user incentives, included as sales and marketing expense, per playing active user(9)
|
|
4.83
|
|
|
|
5.08
|
|
|
|
5.15
|
|
|
|
4.65
|
|
|
(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/20240314813395/en/