Skillz (SKLZ) Q3 2024 earnings summary

Executive summary

• Q3 2024 revenue was $24.6 million, down 33% year-over-year, driven by a 19% decline in monthly active users and reduced marketing spend.

• Net loss for Q3 2024 was $21.1 million, a 37% improvement from Q3 2023, reflecting disciplined expense control and cost reductions.

• Adjusted EBITDA loss narrowed to $13.9 million, a 25% year-over-year improvement.

• Cash and cash equivalents stood at $301.4 million as of September 30, 2024, with $129.7 million in senior secured notes outstanding.

• Focus remains on profitability, platform enhancement, and legal actions to ensure fair play and protect stakeholders.

Financial highlights

• Q3 2024 revenue: $24.6 million, down 33% year-over-year; nine months ended revenue: $75.1 million, down 38%.

• Net loss Q3 2024: $21.1 million vs. $33.5 million in Q3 2023; nine months net loss: $21.8 million vs. $85.8 million prior year.

• Adjusted EBITDA loss Q3 2024: $13.9 million, improved from $18.5 million in Q3 2023.

• Gross marketplace volume (GMV) Q3 2024: $158.2 million, down from $241.1 million in Q3 2023.

• Cash, cash equivalents, and restricted cash totaled $311.4 million at quarter end; $182 million net of debt.

Outlook and guidance

• Management expects continued execution on strategic initiatives to achieve positive adjusted EBITDA in 2025.

• Plans to scale user acquisition spend as retention and cohort performance improve and new product features are introduced.

• Existing liquidity is expected to support operations for at least one year beyond the financial statement issuance date.