Thu, Aug 29, 8:16 PM (138 days ago)
For the quarter ending June 30, 2024, Skillz Inc. reported a significant decline in revenue, totaling $25.3 million, down 37% from $40.2 million year-over-year, primarily due to a 24% drop in monthly active users (MAUs) and reduced user acquisition and engagement marketing spend. The company's costs decreased in several areas, including research and development (down 47% to $4.3 million) and sales and marketing (down 36% to $20.8 million), reflecting a strategic focus on profitability over growth. Notably, Skillz recorded a $46 million gain from a litigation settlement, significantly impacting its income from operations, resulting in a net income of $26 million compared to a loss of $16.7 million in the prior year. Cash flow from operations improved to $23.4 million, bolstered by the settlement proceeds. The company ended the quarter with $316.4 million in cash and equivalents, ensuring liquidity for ongoing operations. However, uncertainties remain regarding user retention and marketing effectiveness amidst a competitive landscape.