Skillz Inc Intrinsic Stock Value – Skillz Inc Reports Q1 Loss Despite Record Revenues
March 31, 2023
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SKILLZ ($NYSE:SKLZ): This was $0.22 lower than what analysts had expected, and the revenue was $1.85M lower than anticipated. The company offers a broad range of competitive and recreational gaming experiences for players of all skill levels, from amateur to professional. The company plans on expanding its platform to include more game titles and gameplay options, as well as increasing its focus on customer engagement and marketing. These initiatives are expected to help the company reach its goal of becoming the world’s leading gaming platform.
Share Price
On Thursday, SKILLZ INC reported its first quarter financials, with the company suffering a net loss despite a significant growth in revenue. SKILLZ INC opened at $0.5 and closed at the same price, up by 4.2% from its last closing price of $0.5. The company attributed this loss to higher operating costs, including costs associated with developing new products and services.
In addition, SKILLZ INC also announced a restructuring of its business model in the first quarter, which is expected to deliver cost savings and better performance in the long-term. The company’s stock price has remained steady despite the news of the net loss, as investors are encouraged by the strong revenue growth and anticipate potential benefits from the restructuring. Overall, SKILLZ INC is optimistic about its future prospects in the coming quarters and expects profitability to return as it focuses further on cost reductions and improving its product portfolio. 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 |
| 335.88 | -386.24 | -104.2% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Skillz Inc. More…
| Operations | Investing | Financing |
| -243.61 | -327.08 | 270.24 |
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 |
| 772.41 | 340.11 | 1.03 |
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 |
| 96.3% | – | -109.0% |
| FCF Margin | ROE | ROA |
| -73.5% | -48.9% | -29.6% |
Analysis – Skillz Inc Intrinsic Stock Value
At GoodWhale, we have been conducting an analysis of SKILLZ INC‘s financials. After thoroughly going over all of the data, our proprietary Valuation Line has calculated the intrinsic value of a SKILLZ INC share to be around $9.6. Astonishingly, the stock is currently being traded at only $0.5, which means that it is undervalued by a full 94.8%. More…
Peers
The company offers a platform for competitive gaming on mobile devices. It also provides a mobile esports platform for game publishers and developers. The company was founded in 2012 and is headquartered in San Francisco, California. Sea Ltd, Activision Blizzard Inc, and Santaro Interactive Entertainment Co are all competitors of Skillz Inc.
– Sea Ltd ($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
Despite these results, the stock price increased on the same day. Investors must consider the long-term potential of Skillz Inc while also evaluating the current market conditions, customer engagement, and overall competitive landscape. With the mobile gaming industry experiencing growth opportunities, including increased user engagement and more widespread AR/VR gaming, it is important for investors to analyze the company’s current fundamentals and identify potential risks to determine if Skillz Inc is a viable investment opportunity.
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