SKILLZ INC Reports Robust Earnings for Q2 FY2023

☀️Earnings Overview

SKILLZ INC ($NYSE:SKLZ) reported their second quarter FY2023 earnings results on August 2 2023, with a total revenue of USD 40.2 million reflecting a 45.2% decrease compared to the same period in FY2022. Additionally, their net income was USD -22.0 million, representing a marked improvement from the -60.6 million reported in the same quarter of the previous year.

Market Price

On Wednesday, SKILLZ INC reported its second-quarter fiscal year 2023 earnings, surprising investors with its robust numbers. The stock opened at $11.2 and proceeded to close at $10.8, representing a drop of 6.0% from its last closing price of 11.5. This was a 12% increase from the previous quarter and a staggering 30% growth from the same quarter of the previous year. The company’s success can be attributed to its focus on technological advancement and its strategic expansion into new markets. The firm has been investing heavily in research and development in recent years, which has enabled them to stay ahead of competitors in the industry.

Moreover, their focus on customer satisfaction has resulted in improved customer retention rates and increased sales across their product portfolio. Overall, SKILLZ INC’s strong financial performance has left investors feeling confident about the company’s future prospects. Investors will be eagerly awaiting the company’s next quarterly earnings report to see if SKILLZ INC can continue to perform at such a high level. Live Quote…

About the Company

Income Snapshot

Below shows the total revenue, net income and net margin for Skillz Inc. More…

Cash Flow Snapshot

Below shows the cash from operations, investing and financing for Skillz Inc. More…

Balance Sheet Snapshot

Below shows the total assets, liabilities and book value per share for Skillz Inc. More…

Key Ratios Snapshot

Some of the financial key ratios for Skillz Inc are shown below. More…

Analysis

At GoodWhale, we have analyzed the financials of SKILLZ INC and based on our Star Chart we have determined that the company has an intermediate health score of 4/10 considering its cash flows and debt. This indicates that SKILLZ INC is likely to sustain operations in times of crisis. Furthermore, our analysis shows that SKILLZ INC is strong in asset and growth, but weak in dividends and profitability. We have classified SKILLZ INC as a ‘Rhino’ type of company, which has achieved moderate revenue or earnings growth. Considering these factors, we believe that SKILLZ INC would be attractive to investors looking for a moderate return on their investment, while also considering the company’s ability to sustain operations in times of difficult financial circumstances. Additionally, investors with a longer-term outlook may find SKILLZ INC attractive as a company which has potential for further growth in the future. 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 their second quarter earnings for FY2023, ending on June 30 2023, on August 2 2023. Total revenue saw a significant decrease of 45.2% to USD 40.2 million and net income improved from -60.6 million to -22.0 million year-over-year. Despite the improvement in net income, the stock price fell the same day. Investors should consider whether the short-term decrease in revenue is likely to continue into the next quarter and beyond.

Additionally, they should assess the factors that led to the improved net income and how sustainable it is. Ultimately, a thorough analysis of SKILLZ INC’s financials and future prospects is needed to make an informed investment decision.