22nd Consecutive Quarter of Growth
Company Completes Aarki Acquisition and Investment in Exit Games in July
Updates Organic Revenue Guidance Up to $376 Million
Skillz Inc. (NYSE: SKLZ) (“Skillz” or the “Company”), the leading mobile games platform bringing fair competition to players worldwide, today announced financial results for the second quarter ended June 30, 2021.
“Skillz is pleased to report strong revenue growth for the 22nd consecutive quarter and the closing of our acquisition of marketing platform Aarki, which will increase the efficiency of our user acquisition spend,” said Andrew Paradise, CEO and founder of Skillz. “Together with our partners, we continue to accelerate our vision of connecting the world through the power of competition.”
Q2 Financial Highlights
- Revenue grew to $89.5 million during the second quarter of 2021, up 52% over the prior year.
- Gross profit grew to $85.1 million during the second quarter of 2021, up 52% over the prior year.
- Gross margin was 95% during the second quarter of 2021, in line with prior year.
- Net loss increased to $79.6 million during the second quarter of 2021, compared with $20.2 million in the prior year.
- Adjusted EBITDA was $(31.6) million during the second quarter of 2021, $28.3 million lower than the prior year.
- Gross Marketplace Volume1 (GMV) grew to $608.5 million during the second quarter of 2021, up 47% over the prior year.
- Cash on balance sheet of $692.8 million and no debt at the end of second quarter 2021.
Q2 Business Highlights
- Acquired Aarki, a growing demand-side platform with more than 465 million monthly users, rich data engines, and proprietary machine-learning algorithms that deliver industry-leading ROI to its advertiser customers. Aarki broadens Skillz’s footprint by combining Skillz’s leading monetization with Aarki’s advanced User Acquisition capabilities.
- Formed a strategic alliance with Exit Games, a private German company whose advanced technology allows developers to create and host real-time, synchronous, multiplayer games. Skillz’s $50 million investment for a minority stake in Exit Games will give the Company permanent access to Exit’s technology to power its esports tournaments and platform exclusively, as well as dramatically accelerate the development of multiplayer synchronous content on the Skillz platform.
- Officially launched our multi-phase partnership with the NFL, kicking off a developer challenge to identify new NFL-branded mobile game(s). Hundreds of game proposals were submitted, and in collaboration with the NFL, Skillz reviewed the concepts and selected 14 semi-finalists, who have moved into the development phase of the competition.
- Launched Big Buck Hunter: Marksman, successfully advancing the mobile version of the legendary arcade game through the first phase of scale testing. Skillz continues to work to optimize performance in preparation for scaling.
Financial Outlook
The Company is updating its full-year 2021 revenue guidance from $375 million to $376 million for Skillz on a stand-alone basis, plus $13 million revenue contribution from the business combination with Aarki resulting in combined 2021 revenue of $389 million.
Investor Conference Call and Webcast
Earlier today, Skillz posted a stockholder letter and short video featuring Andrew Paradise, Founder and CEO at Skillz, discussing the second quarter results on its investor relations website at http://investors.skillz.com. A live question and answer conference call and audio webcast with analysts and investors will begin at 5:30pm Eastern Time (ET).
The Q&A conference call can be accessed by registering online for the Skillz Conference, at which time registrants will receive dial-in information as well as a passcode and registrant ID. At the time of the call, participants will dial in using the numbers in the confirmation email and enter their passcode and ID, upon which they will enter the conference call. Registration to a live audio-webcast of the discussion in listen-only mode is available at webcast registration.
A replay of the webcast will be archived on the Company’s investor relations website. An audio replay of the Q&A conference call will be available through August 10, 2021 and can be accessed by dialing 1-929-458-6194 (domestic) or +44-204-525-0658 (international) and entering the passcode 684073.
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