SKILLZ - ER Next week. An overview

Skillz is having a Q4 earnings on Wednesday, FEB 23rd after close of business.

Skillz is an online mobile multiplayer video game competition platform that is integrated into a number of iOS and Android games. Players use it to compete in competitions against other players across the world. Reaching a high of $43ish - this stock has taken an absolute beating.

Skillz has been in a down trend over the past three months and testing signs of a breakout.

Quarter over quarter MAUs will be HUGE for Skillz in this earnings report. Revenue growth is great - but the downside is the loses. The earnings report will need to show Revenue growth, MAU growth and burn rate decrease. If we see that operating costs decrease and see that the other two KPIs increase, this could boom in a pretty decent way upwards.

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Looking at the chart, Skillz might job upwards into earnings. This could be a quick intraday play where you bail out of earnings. I need to examine the chain and look at options pricing, but sub 5 is a decent level.

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This is interesting. I think falling below $8 hurt the stock a lot and it’s on a huge decline from ATH just a few months ago.

Can it honestly go any lower though? Hard to say but definitely worth keeping an eye on.

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I dont think there’s much more room for downside. It would take a minor bullish catalyst to push it upwards.

EBET is one to compare although I’m not very familiar with the space.

DKNG is also having their earnings earlier and a DKNG movement may affect similar stocks.

Interesting piece of news that hit FP reddit shows this industry should have impressive CAGR

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Yes it definitely can go down lower. I’ve been holding this and ‘averaging down’ for what feels like forever.

That being said, I did buy some calls today to ride the earnings wave and cut them right before.

  • Looks like revenue will be above expectations
  • Adjusted loss of earnings is expected to be about $10M more than projections
  • Anticipated 2002 revenue is $590M compared to projected $548M

Anyone bought any calls yet for this?

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Bought a few 4.5’s expiring 02/25. Seems like a solid chance of an earnings run-up.

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@Kryptek Mentioned on the trading floor that ARK sold their position in Skillz - that made me want to look into other institutional holdings. It looks relatively neutral across the board, with Morgan Stanely adding to their position in late December and others removing SKLZ completely. Im not sure which way this indicates movement but it is something to be cognizant of.


That slight revenue beat isn’t very impressive for me and is heavily outweighed by the larger than expected losses.

I believe EBET played out almost exactly the same, slight rev beat, losses widened. They dropped 12% from there.

I think there is room to fall on this. A worry investors could have are bigger players like DKNG moving into this scene. None of these companies have a good moat, biggest players may take all.


Earnings today, be wary if you have an open position.

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Opened an iron condor for this thinking the IVs were insane and most of the movement was already recorded given the tumultuous week we’ve had. Not happy with out AH movement is turning out and given the volume it’s probably real.

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That revenue guidance though… this will probably not end well for SKLZ. Sad, because they are down 94% already from their ATH.

  • Skillz Platform press release (NYSE:SKLZ): Q4 GAAP EPS of -$0.25 misses by $0.10.
  • Revenue of $108.85M (+60.7% Y/Y) misses by $5.2M.
  • Shares -11%.
  • Revenue grew 61% on a year-over-year basis to $108.8 million.
  • Gross Profit grew 56% on a year-over year basis to $100.4 million.
  • Net Loss increased to $99.0 million from $67.0 million in the prior year period.
  • Paying Monthly Active Users (PMAU) increased 56% year-over-year to 0.61 million.
  • Average Revenue Per Paying User (ARPPU) was up 3% year-over-year to $59.
  • The Company is initiating its 2022 revenue guidance at $400 million vs. $548.78M consensus.

Yeah, think the main problem was guidance vs. original spac guidance