Q2 2024 Skillz Inc Earnings Call Transcript
Key Points
- Skillz Inc (SKLZ) reported a sequential increase in paying monthly average users for the first time in 10 quarters, reaching 122,000 in Q2 2024.
- The company achieved a 33% year-over-year improvement in adjusted EBITDA loss, reducing it to $12.6 million in Q2 2024.
- Skillz Inc (SKLZ) has a strong balance sheet with $300.6 million in cash and cash equivalents, providing a runway for sustainable and profitable growth.
- The company is making progress in its Fairplay initiatives and litigation efforts to combat fraudulent practices in the skill-based gaming industry.
- Skillz Inc (SKLZ) continues to optimize its expense management, with Q2 2024 operating expenses excluding cost of sales and NBA games segment declining by $6 million from Q1 2024.
- Skillz Inc (SKLZ) experienced a 37% year-over-year decline in revenue, reporting $25 million in Q2 2024.
- The company has faced delays in filing its Form 10-K for the fiscal year ended December 31, 2023, and its Form 10-Q for the fiscal quarter ended March 31, 2024, resulting in non-compliance with NYSE listing standards.
- Despite some progress, the company acknowledges it will be difficult to achieve its goal of generating a positive adjusted EBITDA run rate by late 2024, now targeting 2025.
- Skillz Inc (SKLZ) continues to face challenges with onboarding new players and launching new product features, impacting its growth trajectory.
- The company is dealing with significant legal expenses related to lawsuits against companies using bots, which affected its adjusted EBITDA.
Good afternoon. I would like to welcome you all to the skills and 2024 second quarter results call. My name is Carla, and I will be moderating the call today.
During the presentation, you can register to ask questions by pressing star, followed by one on your telephone keypad. And if you change your mind, please press star followed by two. I would now like to pass the conference call over to your host, James Leahy from JCIR. to begin.
So Jim, please go ahead.
Good afternoon and welcome to the skills 2024 second quarter earnings conference call. On the call today are Andrew Paradise, Skillz's Co-Founder and CEO, PC champion, Co-Founder and CSO; and good tenant for TASKi CFO. This afternoon, skills issued its earnings release reporting preliminary unaudited second quarter results, which is available on the company's Investor Relations website.
The Company is in the process of completing its unaudited interim financial statements and other disclosures for the fiscal quarter ended June 30th, 2024.
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