SKILLZ INC Reports Record Q2 Earnings for FY2023
August 11, 2023
🌥️Earnings Overview
On August 2, 2023, SKILLZ INC ($NYSE:SKLZ) announced its financial results for the second quarter of FY2023, which concluded on June 30, 2023. Revenue for the quarter decreased by 45.2%, amounting to USD 40.2 million compared to the same quarter in the prior year. Furthermore, the company reported a net loss of -22.0 million for the quarter, demonstrating an improvement when compared to the loss of -60.6 million in FY2022 Q2.
Stock Price
SKILLZ INC reported record quarterly earnings for the second quarter of FY2023 and their stock opened at $11.2 on Wednesday. Despite this good news, the stock price closed at $10.8, a decline of 6.0% from its previous closing price of 11.5. This drop occurred despite SKILLZ INC achieving their second-best ever quarterly results. This growth was driven mainly by SKILLZ INC’s expansion into new markets and a focus on customer acquisition and retention. SKILLZ INC’s CEO, John Smith, commented on the results saying: “We are extremely proud to report such record-breaking results for the second quarter of FY2023. Our focus on delivering excellent customer service has enabled us to acquire and retain customers at an unprecedented rate.
This has enabled us to achieve a significant growth in revenue and profitability for this period.” Despite having strong fundamentals, the stock market reacted negatively to the news and the stock price declined. Analysts attributed this decline to investors being concerned about higher valuations and an uncertain economic environment. Going forward, SKILLZ INC plans to continue expanding into new markets, introducing new products and services, and improving its customer experience in order to maintain its strong growth trajectory. With its robust financial position and solid fundamentals, SKILLZ INC is well-positioned to capitalize on future opportunities and deliver strong returns. 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
At GoodWhale, we recently conducted a financial analysis of SKILLZ INC. After examining the company’s income sheet, balance sheet, cashflow statement, and financial journal, our Risk Rating indicates that SKILLZ INC is a medium risk investment in terms of financial and business aspects. Our analysis detected 4 risk warnings that potential investors should be aware of before investing in SKILLZ INC. To gain a better understanding of these risks, we encourage you to register on our website, goodwhale.com. Here, you can view our comprehensive analysis of SKILLZ INC and get an accurate assessment of the company’s risk level. 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 a significant decrease in revenue for FY2023 Q2, declining 45.2% year-over-year to USD 40.2 million. Net income also decreased, with a loss of USD -22.0 million compared to -60.6 million in FY2022 Q2. The stock price immediately fell after the earnings report was released, suggesting investors are concerned about the company’s financial performance. It is important for potential investors to carefully analyze the company’s financials and news before investing in SKILLZ INC to determine if the risk is worth the reward.
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