Financial · November 1, 2024

Skillz Inc. Form 8-K

Published by Skillz

Summary

Skillz Inc. reported its unaudited financial results for the third quarter ended September 30, 2024, highlighting a period of strategic transition focused on operational efficiency and disciplined expense management. The company generated $24.6 million in revenue, a decrease from $36.4 million in the prior-year period. Despite the revenue decline, the company narrowed its net loss to $21.1 million compared to $33.5 million in the third quarter of 2023. Adjusted EBITDA loss also improved year-over-year, moving from $18.5 million to $13.9 million. Key performance indicators for the mobile gaming platform showed a paying monthly active user (PMAU) count of 121,000, which remained stable on a sequential quarterly basis. The average revenue per paying monthly active user (ARPPU) stood at $67.60. Management emphasized a shift toward high-efficiency user acquisition, achieving a systemwide payback period of approximately six months. Total operating expenses, excluding cost of revenue, were reduced to $42.2 million, reflecting significant cuts in research and development, sales and marketing, and general and administrative costs. The geographic scope of the report covers global operations from the company’s Las Vegas headquarters, focusing on the three- and nine-month periods ending September 30, 2024. Financial stability remains a core pillar of the company's thesis, with a balance sheet carrying over $300 million in cash and restricted cash. This liquidity is intended to fund turnaround initiatives, including new product features and a planned increase in user acquisition spend. Leadership expressed optimism regarding the company's trajectory, projecting a return to positive Adjusted EBITDA on a run-rate basis in 2025. The results were disclosed via a Form 8-K filing with the SEC, incorporating standard GAAP to non-GAAP reconciliations.

From the report

# UNITED STATES # SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 # FORM 8-K # CURRENT REPORT # PURSUANT TO SECTION 13 OR 15(d) OF THE # SECURITIES EXCHANGE ACT OF 1934 Date of Report (Date of earliest event reported): November 7, 2024 # SKILLZ INC. (Exact name of registrant as specified in its charter) # Delaware (State or other jurisdiction of incorporation) # 001-39243 (Commission File Number) # 84-4478274 (IRS Employer Identification No.) # 6625 Badura Avenue # Las Vegas, Nevada 89118 (Address of principal executive offices, including zip code) Registrant’s telephone number, including area code: (415) 762-0511 # Not Applicable (Former name or former address, if changed since last report) Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions: - ☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) - ☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) - ☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) - ☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) Table: Securities registered pursuant to Section 12(b) of the Act: | Title of each class | Trading Symbol(s) | Name of each exchange on which registered | | --- | --- | --- | | Class A common stock, par value $0.0001 per share | SKLZ | NYSE |

13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) Table: Securities registered pursuant to Section 12(b) of the Act: | Title of each class | Trading Symbol(s) | Name of each exchange on which registered | | --- | --- | --- | | Class A common stock, par value $0.0001 per share | SKLZ | NYSE | Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter). Emerging growth company ☐ If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

# Item 2.02. Results of Operations and Financial Condition. On November 7, 2024, Skillz Inc. (the "Company") issued a press release announcing its financial results for the third quarter ended September 30, 2024. A copy of the press release is attached hereto as Exhibit 99.1 and incorporated by reference herein. The information contained in Exhibit 99.1 shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing. # Item 9.01. Financial Statements and Exhibits. (d) Exhibits. # Exhibit Number Description 99.1 Press Release, dated November 7, 2024 104 Cover Page Interactive Data File (embedded within the Inline XBRL document)

# SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. # SKILLZ INC. By: /s/ Nikul Patel Name: Nikul Patel Title: Interim General Counsel Date: November 7, 2024

LAS VEGAS--(BUSINESS WIRE), November 7, 2024-- Skillz Inc. (NYSE: SKLZ) (“Skillz” or the “Company”), the leading mobile games platform bringing fair competition to players worldwide, today reported unaudited financial results for the third quarter ended September 30, 2024. # Third Quarter Financial Update (Unaudited): - Revenue of \ 24.6$ million. - Net loss of \ 21.1$ million. - Adjusted EBITDA of1 \ (13.9)$ million. - Paying monthly active users (PMAU) of 121,000.2 - Average Revenue Per Paying Monthly Active User (ARPPU) of3 \ 67.6$ . - Total operating expenses excluding cost of revenue of \ 42.2$ million. “Our third quarter operating performance was marked by continued execution on our strategic operating priorities as we further position Skillz to generate sustainable top-line growth and positive cash flow,” said Andrew Paradise, Skillz’ CEO. “Paying Monthly Average Users (pMAU) in the quarter was stable on a quarterly sequential basis. By focusing our customer acquisition spend on targeted channels we again achieved systemwide payback approaching six months. We are optimistic that continued execution on our strategic initiatives will position Skillz to generate positive Adjusted EBITDA on a run-rate basis in 2025.”

ential basis. By focusing our customer acquisition spend on targeted channels we again achieved systemwide payback approaching six months. We are optimistic that continued execution on our strategic initiatives will position Skillz to generate positive Adjusted EBITDA on a run-rate basis in 2025.” Gaetano Franceschi, Skillz’ CFO, added, “Our focus on disciplined operating expense management, including on user acquisition spend to ensure we achieve expected system-wide payback, continues to drive year over year improvements in our Adjusted EBITDA loss and our quarterly cash burn. Our strong balance sheet, including more than \ 300$ million in cash and restricted cash as of September 30, 2024, provides us with the flexibility to deploy capital on our turnaround initiatives such as the development and introduction of new product features, as well as to begin to transition toward increasing our user acquisition spend to generate profitable growth.”

Pages: 13
Words: 4,466
Format: PDF
Type: Financial

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