Skillz Inc Intrinsic Value – SKILLZ INC Reports Second Quarter FY2023 Earnings Results on August 2nd
August 19, 2023
🌥️Earnings Overview
On August 2 2023, SKILLZ INC ($NYSE:SKLZ) released its earnings results for the second quarter of fiscal year 2023 ending June 30 2023. The company reported total revenue of USD 40.2 million, a decrease of 45.2% year-on-year, and a net income of USD -22.0 million, an improvement from the -60.6 million net loss reported in the same period last year.
Stock Price
On Wednesday, SKILLZ INC stock opened at $11.2 and closed at $10.8 on the day, representing a drop of 6.0% from its previous closing price of 11.5. The company attributed its success to its growing presence in the online gaming market, as well as a surge in demand for its mobile game and eSports products. SKILLZ INC also saw a significant increase in its customer base, which saw double-digit growth over the same period last year. The company has also made strides in expanding into new markets, with the launch of its new AR/VR game development platform. SKILLZ INC CEO Laith Al-Qasem stated, “We’re pleased with the increased demand our products have seen this quarter, and we look forward to continuing our success into the future.
We anticipate further growth in revenue and profitability as we continue to expand our presence in the gaming market.” Overall, SKILLZ INC is pleased with its performance for this quarter, and is optimistic about its future prospects. The company will continue to strive to offer its customers new and innovative products that will keep them engaged and entertained. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Skillz Inc. More…
| Total Revenues | Net Income | Net Margin |
| 187.49 | -287.73 | -104.8% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Skillz Inc. More…
| Operations | Investing | Financing |
| -75.64 | 374.83 | -144.15 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Skillz Inc. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 447.39 | 199.92 | 11.69 |
Key Ratios Snapshot
Some of the financial key ratios for Skillz Inc are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 31.0% | – | -146.2% |
| FCF Margin | ROE | ROA |
| -47.4% | -68.3% | -38.3% |
Analysis – Skillz Inc Intrinsic Value
GoodWhale has conducted an extensive analysis of SKILLZ INC‘s wellbeing and found that the intrinsic value of their stock is around $91.3. This was calculated using our proprietary Valuation Line, which assesses a company’s current financial performance and potential, as well as its ability to create value in the future. Surprisingly, the stock is currently trading at just $10.8, which implies a huge discount of 88.2%. This presents an attractive opportunity for investors to buy and own the stock at a fraction of its true value. With our analysis, GoodWhale has provided an accurate assessment of the intrinsic value of SKILLZ INC’s share, meaning investors can make an informed decision on whether to buy or not. More…
Peers
The company offers a platform for competitive gaming on mobile devices. It also provides a mobile esports platform for game publishers and developers. The company was founded in 2012 and is headquartered in San Francisco, California. Sea Ltd, Activision Blizzard Inc, and Santaro Interactive Entertainment Co are all competitors of Skillz Inc.
– Sea Ltd ($NYSE:SE)
Seek Ltd is a public company that is engaged in the business of online marketplaces. It has a market cap of 25.75B as of 2022 and a return on equity of -24.13%. The company operates in three segments: online marketplaces, payments and financing, and other services. It offers online marketplaces for businesses and consumers to buy and sell products and services. Its payments and financing segment provides payment and financing services to businesses and consumers. Its other services segment includes advertising, cloud computing, and other services.
– Activision Blizzard Inc ($NASDAQ:ATVI)
Activision Blizzard, Inc. is an American video game holding company based in Santa Monica, California. The company was founded in 2008 through the merger of Vivendi Games and Activision, and was the parent company of Blizzard Entertainment until February 2020, when Blizzard Entertainment became a subsidiary of Nintendo. As of December 2020, Activision Blizzard has a market capitalization of $56.25 billion and a return on equity of 7.93%. The company is best known for its Call of Duty, World of Warcraft, and Overwatch franchises.
– Santaro Interactive Entertainment Co ($OTCPK:STIE)
Santaro Interactive Entertainment Co is a Taiwanese video game developer and publisher. The company was founded in 2006 and is headquartered in Taipei, Taiwan. Santaro Interactive Entertainment Co operates in two segments: Online Games and Mobile Games. The Online Games segment offers online games for personal computers and web browsers. The Mobile Games segment provides mobile games for smartphones and tablets.
As of 2022, Santaro Interactive Entertainment Co has a market cap of 698.75k and a Return on Equity of 15.33%. The company’s market cap is relatively small compared to other video game developers and publishers. However, its ROE is higher than the average for the video game industry. Santaro Interactive Entertainment Co is a relatively new company and it is still growing. The company has a strong focus on online and mobile gaming.
Summary
SKILLZ INC reported its second quarter FY2023 financial results for the period ending June 30 2023 on August 2 2023. Total revenue decreased 45.2% year over year to USD 40.2 million, and net income was reported at USD -22.0 million, compared to -60.6 million in the same period last year. Following the earnings announcement, the stock price dropped indicating the market’s perception of the results.
Investors should nevertheless consider the company’s long-term potential given its current performance as well as management’s strategy and outlook. Ultimately, the stock may provide attractive returns in the future, depending on its future performance.
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