Skillz’s First Quarter Earnings

Company Overview: Skillz is a popular mobile online gaming platform that establishes an “ecosystem” for the game users and developers in the world. The company has been providing a professional gaming console for game developers and gaming platforms for game users. The company has hosted “billions of casual esports tournaments for millions of mobile gamers worldwide and distributes millions in prizes each month”. Key Financial Highlights: Skillz Inc. released its first quarter earning on May 4th. The company has announced an increase in its 2021 revenue guidance to $375M, which equates to 63% year-over-year growth. The total revenue $83M, up to 92% year-over-year. The total costs and expenses went up from $58M to $ 135M, up to more than 132%. As a result, the net loss surged up to $53M, up to 253% year-over-year. The net loss per share was $0.15 compared to $0.06 in the prior year. (View the first picture for more details) The company has more than $612M of cash on hand, up to 133% year-over-year, with no debt at the end of the first quarter of 2021. But more than 65% of it came from issuing new equities. (View the second picture for more details) The monthly active users (“MAUs”) maintained stable, but the average revenue per user (“ARPU”) almost doubled year-over-year, as well as the paying monthly active users (“pMAUs”). More importantly, the gross marketplace volume (‘GMV”) increased from $306M to $567, up to 85% year-over-year. According to the report, the “monthly active users” or “MAUs” are reflected by “the number of end-users who entered into a paid or free contest hosted on Skillz’s platform at least once in a month, averaged over each month in the period”.  The“Paying Monthly Active Users” or “pMAUs” are indicated  by “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”. Lastly, the “GMV” or “Gross Marketplace Volume” means “the total entry fees paid by users for contests hosted on Skillz’s platform. Total entry fees include entry fees paid by end-users using cash deposits, prior cash winnings from end-users’ accounts that have not been withdrawn, and end-user incentives used to enter paid entry fee contests”. Conclusion: The company is the market lender in the mobile gaming industry and has the potential to maintain the momentum in the future. Cathie Wood, the founder of ARK Fund, has bought 6.6M shares in less than 2 weeks, which accounts for 1/20 of total tradeable shares in the market. However, Skillz is a company with a continuously increasing in net loss. Under current market circumstance where investors are more likely to invest in value stocks, the company’s share price will keep consolidating until the next surprising news.   View source version on businesswire.com: https://www.businesswire.com/news/home/20210504006307/en/

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TOTHEMOON123

May 7, 2021

-35.32%

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SKLZ

Skillz Inc - Class A

10.64

0.04
0.38%
Current Price

Skillz’s First Quarter Earnings

bullish

Company Overview:

Skillz is a popular mobile online gaming platform that establishes an “ecosystem” for the game users and developers in the world. The company has been providing a professional gaming console for game developers and gaming platforms for game users. The company has hosted “billions of casual esports tournaments for millions of mobile gamers worldwide and distributes millions in prizes each month”.

Key Financial Highlights:

Skillz Inc. released its first quarter earning on May 4th. The company has announced an increase in its 2021 revenue guidance to $375M, which equates to 63% year-over-year growth. The total revenue $83M, up to 92% year-over-year. The total costs and expenses went up from $58M to $ 135M, up to more than 132%. As a result, the net loss surged up to $53M, up to 253% year-over-year. The net loss per share was $0.15 compared to $0.06 in the prior year. (View the first picture for more details)

The company has more than $612M of cash on hand, up to 133% year-over-year, with no debt at the end of the first quarter of 2021. But more than 65% of it came from issuing new equities. (View the second picture for more details)

The monthly active users (“MAUs”) maintained stable, but the average revenue per user (“ARPU”) almost doubled year-over-year, as well as the paying monthly active users (“pMAUs”). More importantly, the gross marketplace volume (‘GMV”) increased from $306M to $567, up to 85% year-over-year.

According to the report, the “monthly active users” or “MAUs” are reflected by “the number of end-users who entered into a paid or free contest hosted on Skillz’s platform at least once in a month, averaged over each month in the period”.  The“Paying Monthly Active Users” or “pMAUs” are indicated  by “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”. Lastly, the “GMV” or “Gross Marketplace Volume” means “the total entry fees paid by users for contests hosted on Skillz’s platform. Total entry fees include entry fees paid by end-users using cash deposits, prior cash winnings from end-users’ accounts that have not been withdrawn, and end-user incentives used to enter paid entry fee contests”.

Conclusion:

The company is the market lender in the mobile gaming industry and has the potential to maintain the momentum in the future. Cathie Wood, the founder of ARK Fund, has bought 6.6M shares in less than 2 weeks, which accounts for 1/20 of total tradeable shares in the market. However, Skillz is a company with a continuously increasing in net loss. Under current market circumstance where investors are more likely to invest in value stocks, the company’s share price will keep consolidating until the next surprising news.  

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20210504006307/en/

 

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20.70

Target Price

8/ 10

Confidence

1-2 Months

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