Skillz’s first quarter results were received positively by the market, with management attributing performance to ongoing improvements in user engagement and operational cost controls. CEO Andrew Paradise emphasized the impact of their four-pillar strategy, noting that new initiatives such as the Accelerator program and focused marketing to lapsed users helped drive sequential growth in paying users. Management also highlighted ongoing industry litigation as a factor affecting the competitive landscape, underscoring the company’s commitment to fair play and transparency. CFO Gaetano Franceschi pointed to reduced operating expenses and improved cash management as key elements supporting financial stability during the quarter.
Is now the time to buy SKLZ? Find out in our full research report (it’s free).
Skillz (SKLZ) Q1 CY2025 Highlights:
- Revenue: $22.41 million vs analyst estimates of $20.75 million (11.2% year-on-year decline, 8% beat)
- EPS (GAAP): -$0.92 vs analyst estimates of -$1.10 (16.4% beat)
- Adjusted EBITDA: -$15.06 million vs analyst estimates of -$15.95 million (-67.2% margin, 5.6% beat)
- Operating Margin: -59.2%, up from -106% in the same quarter last year
- Paying Monthly Active Users: 124,000, up 3,000 year on year
- Market Capitalization: $106.2 million
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions Skillz’s Q1 Earnings Call
- Analysts would likely have asked for more details on the expected timeline and measurable impact of the Accelerator program on user growth and revenue.
- Questions may have centered around the company’s ability to maintain or further improve its cost structure, and expectations for reaching positive adjusted EBITDA.
- Given ongoing litigation, analysts would have probed management about legal expenses, settlement timing, and any risk to cash reserves or operations.
- There would have been interest in how Skillz plans to differentiate itself against international competitors allegedly using unfair tactics, and how that impacts market share.
- Analysts might have sought clarification on trends in user reactivation—specifically, the sustainability of sequential gains in paying monthly active users and conversion rates.
Catalysts in Upcoming Quarters
In the coming quarters, the StockStory team will be watching (1) the impact of the Accelerator program on new game launches and user acquisition, (2) continued progress in reducing operating expenses and improving cash flow, and (3) any developments in industry litigation that might influence market share or competitive dynamics. Demonstrated growth in paying users and traction with new game genres will also be critical signposts for Skillz’s turnaround.
Skillz currently trades at $6.47, up from $5.28 just before the earnings. Is the company at an inflection point that warrants a buy or sell? Find out in our full research report (it’s free).
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