Skillz Reports Q3 2024 Financial Results and Strategic Focus
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Skillz Reports Q3 2024 Financial Results and Strategic Focus

Skillz Inc. ( (SKLZ) ) has released its Q3 earnings. Here is a breakdown of the information Skillz Inc. presented to its investors.

Skillz Inc., a leader in mobile gaming platforms, is renowned for enabling fair competition in eSports tournaments globally. In its third-quarter earnings report, the company revealed a revenue of $24.6 million and a net loss of $21.1 million, while adjusted EBITDA stood at $(13.9) million. Skillz maintained a stable number of paying monthly active users at 121,000, with an average revenue per paying user of $67.6.

The company’s strategic focus on targeted customer acquisition has led to a system-wide payback period approaching six months, as stated by CEO Andrew Paradise. The continued discipline in operating expense management is highlighted as a key factor in improving adjusted EBITDA loss and reducing cash burn over the year. Notably, the company holds a strong balance sheet with over $300 million in cash and restricted cash, enabling strategic investment in new product features and user acquisition to foster growth.

Key financial metrics indicate a challenging quarter for Skillz, with total operating expenses, excluding the cost of revenue, at $42.2 million. Despite a decrease in revenue compared to the previous year, the company’s focus on operational efficiency and strategic initiatives aims to pivot towards profitability. The reduction in sales and marketing expenses reflects a more strategic approach to targeting user acquisition.

Looking ahead, Skillz remains optimistic about achieving positive adjusted EBITDA on a run-rate basis in 2025. The company’s management is focused on leveraging its strong financial position to support growth initiatives and enhance its competitive stance in the mobile gaming sector.

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