Skillz stock tumbles as Q4 revenue misses expectations

Published 13/03/2025, 21:58
Skillz stock tumbles as Q4 revenue misses expectations

NEW YORK - Skillz Inc. (NYSE:SKLZ), a mobile games platform, reported fourth quarter earnings that fell short of last years, sending its stock down 13% in after-hours trading.

The company posted revenue of $20.4 million for the quarter, missing the analyst consensus of $20.37 million and marking a significant decline from $46.9 million in the same quarter last year. Skillz reported a net loss of $26.4 million, or -$1.50 per share, compared to the expected loss of -$1.50 per share.

Skillz’s adjusted EBITDA loss widened to $18.5 million in the fourth quarter. The company’s paying monthly active users (PMAU) decreased to 110,000, down from 268,000 in the same period last year. However, the average revenue per paying monthly active user (ARPPU) increased to $68.1 from $62.5 YoY.

"Throughout 2024, we advanced our strategic initiatives to return to consistent top-line growth and positive Adjusted EBITDA," said Andrew Paradise, Skillz’ CEO. "We are encouraged by our recent performance with paying monthly active users improving sequentially each month from November 2024 through February 2025."

For the full year 2024, Skillz reported revenue of $95.5 million and a net loss of $48.2 million. The company ended the year with $281.9 million in cash, cash equivalents, and restricted cash, and total outstanding debt of $129.7 million.

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