Thu, Aug 29, 8:09 PM (138 days ago)
For the quarter ending March 31, 2024, Skillz Inc. reported a significant decline in revenue, down 43% to $25.2 million from $44.4 million in the same period last year. This drop was attributed to a 27% decrease in monthly active users (MAUs) and reductions in user acquisition (UA) and engagement marketing spending by 33% and 50%, respectively. The company’s cost of revenue decreased by 25% to $3.5 million, reflecting lower server and payment processing costs. The net loss improved to $26.7 million from $35.6 million year-over-year, aided by reduced costs across research and development, sales and marketing, and general administrative expenses. Cash and cash equivalents stood at $290.6 million, primarily in money market funds. Skillz continues to face uncertainties regarding user retention and revenue growth due to marketing cutbacks. The company is focusing on profitability, which may impact future revenue. The overall financial health shows a strategic shift towards efficiency, though future operations remain uncertain amid fluctuating user engagement and market conditions.