FALSE000180166100018016612024-03-142024-03-14

 
 
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
 
FORM 8-K
 
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
 
Date of Report (Date of earliest event reported): March 13, 2025
 
SKILLZ INC.
(Exact name of registrant as specified in its charter)
Delaware 001-39243 84-4478274
(State or other jurisdiction
of incorporation)		 (Commission
File Number)		 (IRS Employer
Identification No.)
6625 Badura Avenue
Las Vegas, Nevada 89118
(Address of principal executive offices, including zip code)
 
Registrant’s telephone number, including area code: (415) 762-0511
 
Not Applicable
(Former name or former address, if changed since last report)
 
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
 
☐Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
  
☐Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
  
☐Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
  
☐Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
 
Securities registered pursuant to Section 12(b) of the Act:
Title of each class Trading Symbol(s) Name of each exchange on which
registered
Class A common stock, par value $0.0001 per share
 SKLZ NYSE
 
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
 
Emerging growth company ☐
 
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐


Item 2.02.Results of Operations and Financial Condition.
 
On March 13, 2025, Skillz Inc. (the "Company") issued a press release announcing its financial results for the fourth quarter and year ended December 31, 2024. A copy of the press release is attached hereto as Exhibit 99.1 and incorporated by reference herein.

The information contained in Exhibit 99.1 shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing.


Item 9.01.Financial Statements and Exhibits.
 
(d)Exhibits.
 
Exhibit Number Description
99.1
104Cover Page Interactive Data File (embedded within the Inline XBRL document)
 
 
 
 



SIGNATURES
 
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
 
 SKILLZ INC.
   
 By:/s/ Gaetano Franceschi
 Name:Gaetano Franceschi
 Title:Chief Financial Officer
 
Date: March 13, 2025
  


Skillz Reports 2024 Fourth Quarter and Full Year 2024 Results

LAS VEGAS, March 13, 2025-- Skillz Inc. (NYSE: SKLZ) (“Skillz” or the “Company”), the leading mobile games platform bringing fair competition to players worldwide, today reported financial results for the fourth quarter and fiscal year ended December 31, 2024.

Fourth Quarter 2024 Financial Highlights:
•Revenue of $20.4 million
•Gross profit of $17.1 million
•Net loss of $26.4 million
•Adjusted EBITDA1 of $(18.5) million
•Paying monthly active users (PMAU)2 of 110,000
•Average Revenue Per Paying Monthly Active User (ARPPU)3 of $68.1
•Total operating expenses excluding cost of revenue of $43.2 million

Full Year 2024 Financial Highlights:
•Revenue of $95.5 million
•Gross profit of $82.1 million
•Net loss of $48.2 million
•Adjusted EBITDA1 of $(63.0) million
•Paying monthly active users (PMAU)2 of 118,000
•Average Revenue Per Paying Monthly Active User (ARPPU)3 of $68.7
•Total operating expenses excluding cost of revenue of $176.4 million
•Cash, cash equivalents and restricted cash of $281.9 million as of December 31, 2024
•Total outstanding debt of $129.7 million as of December 31, 2024



“Throughout 2024, we advanced our strategic initiatives to return to consistent top-line growth and positive Adjusted EBITDA,” said Andrew Paradise, Skillz’ CEO. “As part of our focus on our new product and content pipeline, we recently announced a $75 million developer accelerator program to drive and deliver the best game innovation and expand the offerings on our platform. We are encouraged by our recent performance with paying monthly active users improving sequentially each month from November 2024 through February 2025. With further execution on our four key pillars, we believe our unique platform and strong balance sheet can generate significant shareholder returns.”

Gaetano Franceschi, Skillz’ CFO, added, “Our efforts to return Skillz to profitable revenue growth and positive Adjusted EBITDA include a focus on operating expense management balanced with targeted investments to drive growth. We ended 2024 with cash, cash equivalents and restricted cash of $282 million, which provides us with the flexibility to continue investing in key initiatives that we expect will create value for our shareholders.”


1. Adjusted EBITDA is a non-GAAP metric; for a reconciliation of each measure against its most comparable GAAP metric, please see the section titled “Use of Non-GAAP Financial Measures” in this press release.
2. “Paying Monthly Active Users” or “PMAUs” means the number of end-users who entered into a paid contest hosted on Skillz’s platform at least once in a month, averaged over each month in the period.
3. “Average Revenue Per Paying Monthly Active User” or “ARPPU” means the average revenue in a given month divided by Paying MAUs in that month, averaged over the period and does not include a deduction for end-user incentives that are included in sales and marketing expense.


Investor Conference Call
Skillz will host a live conference call at 4:30 p.m. ET today. To access the call, please register using the following link: https://www.netroadshow.com/events/login?show=204d9fc3&confId=77995. After registering, an email will be sent, including dial-in details and a unique conference call access code and PIN required to join the live call. Access to the live audio webcast of the discussion in listen-only mode will also be available at investors.skillz.com

A replay of the webcast will be archived on the Company’s investor relations website. An audio replay of the conference call will be available through Thursday, March 20, 2025, and can be accessed by dialing (866) 813-9403 (US) or (929) 458-6194 (international) and entering the passcode 575328.

About Skillz Inc.
Skillz is the leading mobile games platform dedicated to bringing out the best in everyone through competition. The Skillz platform helps developers create multi-million dollar franchises by enabling social competition in their games. Leveraging its patented technology, Skillz hosts billions of casual eSports tournaments for millions of mobile players worldwide, with the goal of building the home of competition for all. Skillz has earned recognition as one of Fast Company’s Best Workplaces for Innovators, CNBC’s Disruptor 50, Forbes’ Next Billion-Dollar Startups, Fast Company’s Most Innovative Companies, and the number-one fastest-growing company in America on the Inc. 5000. www.skillz.com

Use of Non-GAAP Financial Measures
In this press release, the Company includes Adjusted EBITDA, which is a non-GAAP performance measure that the Company uses to supplement its results presented in accordance with U.S. GAAP. The Company’s management believes Adjusted EBITDA is useful in evaluating its operating performance and is a similar measure reported by publicly-listed U.S. competitors, and regularly used by securities analysts, institutional investors, and other interested parties in analyzing operating performance and prospects. By providing this non-GAAP measure, the Company’s management intends to provide investors with a meaningful, consistent comparison of the Company’s profitability for the periods presented. Non-GAAP operating expense is also included in this press release, which is a non-GAAP financial measure. The Company’s management believes non-GAAP operating expense is useful to investors and analysts as a supplement to its financial information prepared in accordance with GAAP for analyzing operating performance and identifying operating trends in its business. The Company uses non-GAAP operating expense internally to facilitate period-to-period comparisons and analysis in order to make operating decisions. As required by the rules of the SEC, the Company has provided herein a reconciliation of Adjusted EBITDA and non-GAAP operating expense to the most directly comparable measures under GAAP. Adjusted EBITDA and non-GAAP operating expense are not intended to be substitutes for any U.S. GAAP financial measures and, as calculated, may not be comparable to other similarly titled financial measures of other companies in other industries or within the same industry.

The Company defines and calculates Adjusted EBITDA as net loss before interest income or expense, net; (benefit) or provision for income taxes; depreciation and amortization, and other income or expense, net; as further adjusted for stock-based compensation and other special items determined by management, which may include, but are not limited to, change in fair value of common stock warrant liabilities, acquisition-related expenses, impairment charges, loss contingency accruals, restructuring charges and one-time nonrecurring expenses. The Company defines and calculates non-GAAP operating expense as GAAP operating expense adjusted for stock-based compensation and other special items determined by management, which may include, but are not limited to acquisition-related expenses for transaction costs, certain loss contingency accruals and restructuring charges, as they are not indicative of business operations.

The Company does not provide a reconciliation for non-GAAP estimates on a forward-looking basis as it is unable to provide a meaningful calculation or estimation of reconciling items and the information is not available without unreasonable effort. This is due to the inherent difficulty of forecasting the timing or amount of various items that would impact the most directly comparable forward-looking U.S. GAAP financial measures that have not yet occurred, are out of the Company’s control and/or cannot be reasonably predicted. Forward-looking non-GAAP financial measures provided without the most directly



comparable U.S. GAAP financial measures may vary materially from the corresponding U.S. GAAP financial measures.

Preliminary Results and 10-K Extension

The Company is in the process of completing its financial statements and other disclosures for the fiscal year ended December 31, 2024. As a result, the Company may file an extension for the filing of our Annual Report on Form 10-K for the year ended December 31, 2024. Accordingly, we are announcing preliminary results for the year, which are based on currently available information and are subject to revision as management completes its internal review. Actual results may differ from these preliminary financial results and other financial information due to the completion of our internal procedures, the audit of our financial statements, final adjustments and other developments that may arise between now and the time the results are finalized. Further disclosure may be included in the Form 12b-25 filed with the Securities and Exchange Commission.




Forward-Looking Statements
This press release includes “forward-looking statements” within the meaning of the “safe harbor” provisions of the United States Private Securities Litigation Reform Act of 1995. The Company’s actual results may differ from its expectations, estimates, and projections and, consequently, you should not rely on these forward-looking statements as predictions of future events. Words such as “expect,” “estimate,” “project,” “budget,” “forecast,” “anticipate,” “intend,” “plan,” “may,” “will,” “could,” “should,” “believes,” “predicts,” “potential,” “continue,” and similar expressions (or the negative versions of such words or expressions) are intended to identify such forward-looking statements.

These forward-looking statements involve significant risks and uncertainties that could cause the Company’s actual results to differ materially from those discussed in the forward-looking statements. Most of these factors are outside of the Company’s control and are difficult to predict. Factors that may cause such differences include, but are not limited to, the ability of Skillz to: sustain profitability if Skillz’ revenue continues to decline; effectively compete in the global entertainment and gaming industries; attract and retain successful relationships with the third party developers who develop and update the games hosted on Skillz’ platform; drive brand awareness with end users; issues in the development and use of artificial intelligence and machine learning; invest in growth and development of employees; comply with laws, regulations and expectations applicable to its business, including with respect to cybersecurity and corporate governance matters; mitigate the commercial, reputational and regulatory risks to our business; remediate during fiscal year 2025 certain non- fully remediated material weaknesses in our internal controls over financial reporting. Additional factors that may cause such differences include other risks and uncertainties indicated from time to time in the Company’s SEC filings, including those under “Risk Factors” therein, which are available on the SEC’s website at www.sec.gov. Additional information will be made available in other filings that the Company makes from time to time with the SEC. In addition, any forward-looking statements contained in this press release are based on assumptions that the Company believes to be reasonable as of this date. The Company undertakes no obligation to update any forward-looking statements to reflect events or circumstances after the date of this press release or to reflect new information or the occurrence of unanticipated events, except as required by law.



Contacts:
Investors: ir@skillz.com
or
James Leahy, Richard Land
JCIR
(212) 835-8500 or sklz@jcir.com

Media: press@skillz.com



Skillz Inc.
Consolidated Statements of Operations and Comprehensive Loss
(Unaudited)
(in thousands, except for number of shares and per share amounts)


Three Months Ended December 31,Twelve Months Ended December 31,
2024202320242023
Revenue$20,372 $31,104 $95,466 $152,079 
Costs and expenses:
Cost of revenue3,234 3,455 13,405 15,379 
Research and development3,560 3,391 17,198 28,148 
Sales and marketing19,118 23,346 80,255 122,855 
General and administrative20,541 18,575 78,961 96,654 
Gain from litigation settlement— — (46,000)— 
Impairment of goodwill and long-lived assets— 2,880 — 3,335 
Total costs and expenses46,453 51,647 143,819 266,371 
Loss from operations(26,081)(20,543)(48,353)(114,292)
Gain on extinguishment of debt— — — 15,205 
Interest income (expense), net(390)4,634 298 (2,852)
Change in fair value of common stock warrant liabilities— — 11 278 
Other income (expense), net(48)441 (126)540 
Loss before income taxes(26,519)(15,468)(48,170)(101,121)
Provision (benefit) for income taxes(81)46 61 239 
Net loss$(26,438)$(15,514)$(48,231)$(101,360)
Net loss per share attributable to common stockholders:
Basic and diluted$(1.50)$(0.74)$(2.70)$(4.85)
Weighted average common shares outstanding:
Basic and diluted17,614,97420,883,29317,845,77120,893,085
Other comprehensive income:
Change in unrealized gain on available-for-sale investments, net of tax— 30 7 1,556 
Total other comprehensive income— 30 7 1,556 
Total comprehensive loss$(26,438)$(15,484)$(48,224)$(99,804)



Skillz Inc.
Consolidated Balance Sheets
(Unaudited)
(in thousands, except for number of shares and par value per share amounts)
December 31,December 31,
20242023
Assets
Current assets:
Cash and cash equivalents$271,923 $302,028 
Restricted cash10,000 10,000 
Accounts receivable, net4,890 5,942 
Prepaid expenses and other current assets7,592 6,721 
Total current assets294,405 324,691 
Property and equipment, net15,937 14,549 
Operating lease right-of-use assets, net308 — 
Marketable securities, non-current— 1,125 
Non-marketable equity securities52,768 52,768 
Other non-current assets755 2,693 
Total assets$364,173 $395,826 
Liabilities and stockholders’ equity
Current liabilities:
Accounts payable$9,797 $1,712 
Operating lease liabilities, current1,544 1,364 
Other current liabilities45,912 46,782 
Total current liabilities57,253 49,858 
Operating lease liabilities, non-current9,338 10,573 
Common stock warrant liabilities, non-current— 11 
Long-term debt, net of current portion125,654 123,935 
Other non-current liabilities333 960 
Total liabilities192,578 185,337 
Stockholders’ equity:
Preferred stock $0.0001 par value; 10 million shares authorized — 0 issued and outstanding as of December 31, 2024 and 2023
— — 
Common stock 0.0001 par value; 31.3 million shares authorized; Class A common stock – 25.0 million shares authorized; 18.7 million and 18.1 million shares issued; 13.3 million and 15.8 million shares outstanding as of December 31, 2024 and 2023, respectively; Class B common stock - 6.3 million shares authorized; 3.4 million shares issued and outstanding as of December 31, 2024 and 2023, respectively1 1 
Treasury shares, at cost, 5.4 million and 2.3 million shares as of December 31, 2024 and 2023, respectively(32,349)(13,000)
Additional paid-in capital1,226,642 1,197,963 
Accumulated other comprehensive loss— (7)
Accumulated deficit(1,022,699)(974,468)
Total stockholders’ equity171,595 210,489 
Total liabilities and stockholders’ equity$364,173 $395,826 






Skillz Inc.
Consolidated Statement of Cash Flows
(Unaudited)
(in thousands)
Twelve Months Ended December 31,
20242023
Operating Activities
Net loss$(48,231)$(101,360)
Adjustment to reconcile net loss to net cash used in operating activities:
Depreciation and amortization1,568 1,961 
Stock-based compensation30,087 43,692 
Gain on extinguishment of debt— (15,205)
Accretion of unamortized debt discount and amortization of debt issuance costs1,719 2,214 
Amortization of premium for marketable securities— 890 
Impairment charges— 3,336 
Change in fair value of common stock warrant liabilities(11)(278)
Other, net— 17 
Changes in operating assets and liabilities:
Accounts receivable, net1,052 1,235 
Prepaid expenses and other assets1,067 (1,840)
Accounts payable8,085 16 
Operating lease liabilities(1,730)(2,138)
Other accruals and liabilities(799)(4,298)
Net cash used in operating activities(7,193)(71,758)
Investing Activities
Purchases of property and equipment, including internal-use software(2,757)(13,236)
Investment in loan receivable— (2,000)
Purchases of marketable securities(5)— 
Proceeds from sales of marketable securities1,137 57,553 
Proceeds from maturities of marketable securities— 125,984 
Net cash (used in) provided by investing activities(1,625)168,301 
Financing Activities
Principal payments on finance leases obligations(502)(1,096)
Payments for extinguishment of debt— (135,855)
Repurchase of common stock(19,349)(13,000)
Net proceeds from exercise of stock options and issuance of common stock(1,436)— 
Net cash used in financing activities$(21,287)$(149,951)
Net change in cash, cash equivalents and restricted cash(30,105)(53,408)
Cash, cash equivalents and restricted cash – beginning of year312,028 365,436 
Cash, cash equivalents and restricted cash – end of year$281,923 $312,028 


Skillz Inc.
Reconciliation of GAAP Net Loss to Adjusted EBITDA
(Unaudited)
(in thousands)

Three Months Ended December 31,Twelve Months Ended December 31,
2024202320242023
Net loss$(26,438)$(15,514)$(48,231)$(101,360)
Interest income (expense), net390 (4,634)(298)2,852 
Stock-based compensation7,193 10,254 30,087 43,692 
Change in fair value of common stock warrant liabilities— — (11)(278)
Provision (benefit) for income taxes(81)46 61 239
Depreciation and amortization380 104 1,568 1,961 
Gain on extinguishment of debt— — — (15,205)
Other (income) expense, net48 (441)(126)(540)
Impairment charges(1)
— 2,880 — 3,335 
Gain from litigation settlement(2)
— — (46,000)— 
Loss contingency accrual(3)
— — — (3,524)
Adjusted EBITDA$(18,508)$(7,305)$(62,950)$(68,828)
(1) For the three and twelve months ended December 31, 2023 amount includes recorded impairment of goodwill and long-lived assets.
(2) For the twelve months ended December 31, 2024, amount includes gain on litigation settlement with AviaGames.
(3) For the twelve months ended December 31, 2023, amount represents the settlement that occurred in 2024 of a litigation matter relating to a former employee.





Skillz Inc.
Reconciliation of GAAP to Non-GAAP Operating Expenses
(Unaudited)
(in thousands)
Three Months Ended December 31,Twelve Months Ended December 31,
2024202320242023
Research and development$3,560 $3,391 $17,198 $28,148 
Less: stock-based compensation(202)(428)(853)(4,010)
Non-GAAP research and development$3,358 $2,963 $16,345 $24,138 
Sales and marketing$19,118 $23,346 $80,255 $122,855 
Less: stock-based compensation(1,582)(2,004)(6,467)(8,481)
Non-GAAP sales and marketing$17,536 $21,342 $73,788 $114,374 
General and administrative$20,541 $18,575 $78,961 $96,654 
Less: stock-based compensation(5,347)(7,818)(22,718)(31,208)
Non-GAAP general and administrative$15,194 $10,757 $56,243 $65,446 




Skillz Inc.
Supplemental Financial Information
(Unaudited)
(in millions, except ARPU and ARPPU)

Three Months Ended December 31,Twelve Months Ended December 31,
2024202320242023
Gross marketplace volume (“GMV”) (000s)(1)
$127,079$189,573$608,248$963,580
Paying monthly active users (“PMAUs”) (000s)(2)
110137118179
Monthly active users (“MAUs”) (000s)(3)
7538968161,045
Average GMV per paying monthly active user(4)
385.1461.2429.6448.8
Average GMV per monthly active user(5)
56.370.562.176.9
Average revenue per paying monthly active user (“ARPPU”)(6)
68.173.368.770.0
Average revenue per monthly active user (“ARPU”)(7)
9.910.810.011.9
Paying MAU to MAU ratio15 %15 %14 %17 %
Average end-user incentives, included as sales and marketing expense, per paying active user(8)
25.9831.5126.8830.09
Average end-user incentives, included as sales and marketing expense, per playing active user(9)
3.804.833.895.15

(1) “GMV” or “Gross Marketplace Volume” means the total entry fees paid by users for contests hosted on Skillz’ platform. Total entry fees include entry fees paid by end-users using cash deposits, prior winnings from end-users’ accounts that have not been withdrawn, and end-user incentives used to enter paid entry fee contests.
(2) “Paying Monthly Active Users” or “PMAUs” means the number of end-users who entered into a paid contest hosted on Skillz’ platform at least once in a month, averaged over each month in the period.
(3) “Monthly Active Users” or “MAUs” means the number of playing end-users who entered into a paid or free contest hosted on Skillz’ platform at least once in a month, averaged over each month in the period.
(4) “Average GMV Per Paying Monthly Active User” means the average GMV in a given month divided by Paying MAUs in that month, averaged over the period.
(5) “Average GMV Per Monthly Active User” means the average GMV in a given month divided by MAUs in that month, averaged over the period.
(6) “Average Revenue Per Paying Monthly Active User” or “ARPPU” means the average revenue in a given month divided by Paying MAUs in that month, averaged over the period and does not include a deduction for end-user incentives that are included in sales and marketing expense.
(7) “Average Revenue Per Monthly Active User” or “ARPU” means the average revenue in a given month divided by MAUs in that month, averaged over the period and does not include a deduction for end-user incentives that are included in sales and marketing expense.
(8) Amount reflects the average end-user incentives included in sales and marketing expense in a given month divided by PMAUs in that month, averaged over the period.
(9) Amount reflects the average end-user incentives included in sales and marketing expense in a given month divided by MAUs in that month, averaged over the period.

v3.25.0.1
Cover
Mar. 14, 2024
Cover [Abstract]  
Document Type 8-K
Document Period End Date Mar. 13, 2025
Entity Registrant Name SKILLZ INC.
Entity Incorporation, State or Country Code DE
Entity File Number 001-39243
Entity Tax Identification Number 84-4478274
Entity Address, Address Line One 6625 Badura Avenue
Entity Address, City or Town Las Vegas
Entity Address, State or Province NV
Entity Address, Postal Zip Code 89118
City Area Code 415
Local Phone Number 762-0511
Written Communications false
Soliciting Material false
Pre-commencement Tender Offer false
Pre-commencement Issuer Tender Offer false
Title of 12(b) Security Class A common stock, par value $0.0001 per share
Trading Symbol SKLZ
Security Exchange Name NYSE
Entity Emerging Growth Company false
Amendment Flag false
Entity Central Index Key 0001801661
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