Release Date: May 08, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Skillz Inc (SKLZ, Financial) reported a sequential revenue increase of 21% in the first quarter of 2025.
- The company launched an accelerator program to drive innovation and expand its game offerings, with plans to invest up to $75 million over the next three years.
- Skillz Inc (SKLZ) saw an increase in paying monthly active users (MAU) from 110,000 in Q4 2024 to 123,000 in Q1 2025.
- The company achieved a higher paid user conversion rate of 16.2% in Q1 2025, up from 14.6% in the previous quarter.
- Skillz Inc (SKLZ) reported a net loss of $15 million in Q1 2025, an improvement over a net loss of $27 million in the prior year.
- Skillz Inc (SKLZ) reported an improvement in adjusted EBITDA loss, reducing it from $19 million in Q4 2024 to $15 million in Q1 2025.
Negative Points
- Skillz Inc (SKLZ) experienced a year-over-year revenue decline of 11% in the first quarter of 2025.
- The company is facing ongoing litigation with international companies like Papaya Gaming and Voodoo Games, which could impact its business operations.
- The company is not in compliance with NYSE listing standards and is working to file necessary financial statements to regain compliance.
- Skillz Inc (SKLZ) has a total principal debt of $129.7 million, which could pose financial challenges if not managed effectively.
Q & A Highlights
Q: Can you provide an update on the fair play initiative and related litigation?
A: Andrew Paradise, CEO, explained that the fair play initiative is crucial for protecting consumers and maintaining industry integrity. Skillz has filed lawsuits against companies like Papaya and Voodoo for allegedly using bots, which harm both consumers and Skillz's business. The litigation is ongoing, and Skillz is committed to ensuring a fair gaming environment.
Q: What progress has been made on Skillz's four key pillars for growth?
A: Andrew Paradise, CEO, outlined progress on the four pillars: enhancing the platform for better engagement, scaling teams in Las Vegas and Bangalore, improving go-to-market strategies with increased paying users, and demonstrating a path to profitability with a focus on managing expenses and investing in growth.
Q: How did Skillz perform financially in Q1 2025?
A: Gaetano Franceschi, CFO, reported that revenue was $22 million, up 21% sequentially but down 11% year over year. The paid user conversion rate increased to 16.2%. The company ended the quarter with $264 million in cash and a net loss of $15 million, with an adjusted EBITDA loss of $15 million.
Q: What is the status of Skillz's compliance with NYSE listing standards?
A: Richard Land, Investor Relations, stated that Skillz is working diligently to complete necessary filings and expects to file the Form 10-K within the six-month period granted by the NYSE notice. The company aims to achieve compliance with applicable listing standards as soon as practicable.
Q: What are the future plans for the accelerator program?
A: Andrew Paradise, CEO, mentioned that the accelerator program aims to identify and support high-potential games by deploying up to $75 million over the next three years. The focus is on expanding into new genres and enhancing competitive gaming offerings, with strong interest from developers.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
