Thu, Aug 29, 8:04 PM (138 days ago)
Skillz Inc. reported a significant decline in financial performance for the fiscal year ending December 31, 2023. Revenue dropped 44% to $152.1 million from $269.7 million in 2022, primarily due to a decrease in monthly active users (MAUs) from 2.1 million to 1.0 million, linked to reduced user acquisition (UA) and engagement marketing spending. Net loss improved to $101.4 million, a 77% reduction from the previous year’s loss of $438.9 million, aided by substantial cost reductions across all expense categories, particularly in sales and marketing, which fell by 56%. The company emphasized its strategic pillars aimed at enhancing platform engagement and achieving profitability, targeting positive Adjusted EBITDA by the end of 2024. However, it faces risks including reliance on a limited number of games for revenue, ongoing litigation, and challenges in regulatory compliance. The company’s balance sheet showed a cash position of $302 million, with long-term debt of $129.7 million remaining after significant debt repurchases. Skillz continues to navigate a complex competitive landscape while focusing on operational efficiency and profitability.