Skillz Inc. appoints Anthony Cabot to its board

Skillz Inc. (NYSE:SKLZ), a company specialized in computer processing and data preparation, announced the appointment of Anthony Cabot (NYSE:CBT) to its Board of Directors. The appointment took effect immediately on Monday, with Mr. Cabot also joining the Nominating and Corporate Governance Committee.

Mr. Cabot, 68, is recognized for his extensive background in gaming law, having served as a Distinguished Fellow of Gaming Law at the UNLV Boyd School of Law until May 2023. He brings over 37 years of experience in the field, including his role as chair of the gaming law practice at Lewis Roca Rothgerber Christie LLP and as a founding member and former president of the International Masters of Gaming Law.

The company's Board has confirmed Mr. Cabot as an independent director under the New York Stock Exchange rules and as defined in Rule 10A-3(b)(1) under the Securities Exchange Act of 1934. He also meets all the necessary requirements for membership on the Nominating and Corporate Governance Committee.

In other recent news, Skillz Inc. reported a notable 37% year-over-year drop in its Q2 revenue, which totaled $25 million. The company also announced the upcoming departure of Casey Chafkin, the firm's Chief Strategy Officer, who will continue to serve on the board of directors and as a member of the Nominating and Corporate Governance Committee. These are recent developments that have been influencing the company's operations and financial performance.

Skillz Inc. is in the midst of litigations against companies like AviaGames, Papaya Gaming, and Voodoo Games for alleged bot fraud. Despite these challenges, the company maintains a robust cash and cash equivalent position of $326 million and plans to scale marketing spend in Q3 for growth.

Analyst Andrew Paradise highlighted plans to maintain a 6 to 8-month payback period on deployed capital and control customer acquisition costs. The company is also facing non-compliance issues with the NYSE due to delayed financial reporting. However, Skillz Inc. is optimistic about achieving a positive adjusted EBITDA by 2025.

InvestingPro Insights

As Skillz Inc. (NYSE:SKLZ) welcomes Anthony Cabot to its Board of Directors, investors might be interested in some key financial metrics and insights about the company. According to InvestingPro data, Skillz has a market capitalization of $92.65 million, reflecting its current position in the market.

Despite the company's recent leadership addition, Skillz faces some financial challenges. InvestingPro Tips indicate that the company is not profitable over the last twelve months, and analysts do not anticipate profitability this year. This aligns with the reported operating income of -$92.39 million for the last twelve months as of Q2 2024.

On a positive note, Skillz boasts impressive gross profit margins, with a gross profit margin of 88.19% for the same period. This suggests that while the company is struggling with profitability, it maintains strong pricing power for its services.

For investors considering Skillz's valuation, it's worth noting that the stock is trading at a low Price / Book multiple of 0.43. This could indicate that the stock is undervalued relative to its book value, though it's essential to consider this in the context of the company's overall financial health and growth prospects.

InvestingPro offers additional tips and insights for those seeking a more comprehensive analysis of Skillz Inc. There are 7 more InvestingPro Tips available, which could provide valuable context for understanding the company's financial position and market performance.

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