Skillz (SKLZ) Q4 Earnings Top Estimates, Revenues Lag, Down Y/Y

Skillz Inc. SKLZ reported mixed fourth-quarter 2023 results, with earnings surpassing the Zacks Consensus Estimate and revenues missing the same.

On a year-over-year basis, the top declined, but the bottom line improved. The downside was due to a year-over-year decline in paying monthly active users and monthly active users.

Earnings and Revenues

In the quarter under review, Skillz reported an adjusted loss of $1.04 per share, narrower than the Zacks Consensus Estimate of $1.48. The company reported an adjusted loss of $2.4 in the prior-year quarter.

Skillz Inc. Price, Consensus and EPS Surprise

 

Skillz Inc. Price, Consensus and EPS Surprise

Skillz Inc. price-consensus-eps-surprise-chart | Skillz Inc. Quote

 

Total revenues of $29.1 million missed the consensus mark of $39.2 million by 24.1%. The top line declined 37.8% on a year-over-year basis.

During the quarter, paying monthly active users and monthly active users declined year over year by 41.7% and 30.5% to 137,000 and 896,000, respectively. However, the average revenue per paying monthly active user of $70.3 was up from $66.6 in the year-ago quarter.

Operating Highlights

During fourth-quarter 2023, the company’s total operating costs and expenses were $54.7 million, down 70.1% year over year. General and administrative expenses of $21.9 million fell 2.6% from the year-ago quarter’s levels.

Adjusted EBITDA loss during the reported quarter amounted to $12.3 million compared with a loss of $9.5 million reported in the prior-year quarter.

2023 Highlights

Total revenues in 2023 amounted to $150.1 million compared with $269.7 million in 2022.

Adjusted EBITDA loss totaled $70.1 million compared with a loss of $122.4 million a year ago.

Financial Highlights

As of Dec 31, 2023, the company had cash and cash equivalents of $302 million compared with $362.5 million at 2022-end. Long-term debt was $123.9 million, up from $272.8 million at 2022-end.

Zacks Rank & Other Key Picks

Skillz currently carries a Zacks Rank #2 (Buy).

Here are some other top-ranked stocks from the Zacks Consumer Discretionary sector:

Trip.com Group Limited TCOM currently flaunts a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here. TCOM has a trailing four-quarter earnings surprise of 53.1%, on average. Shares of TCOM have gained 17.3% in the past year.

The Zacks Consensus Estimate for TCOM’s 2024 sales and earnings per share (EPS) indicates a rise of 18.2% and 1.8%, respectively, from the year-ago levels.

Hyatt Hotels Corporation H carries a Zacks Rank #1. It has a trailing four-quarter earnings surprise of 17.8% on average. Shares of H have increased 45.1% in the past year.

The Zacks Consensus Estimate for H’s 2024 sales and EPS indicates a rise of 2.9% and 30.1%, respectively, from the year-ago levels.

Royal Caribbean Cruises Ltd. RCL sports a Zacks Rank #2. RCL has a trailing four-quarter earnings surprise of 26.4% on average. Shares of RCL have surged 98.4% in the past year.

The Zacks Consensus Estimate for RCL’s 2024 sales and earnings per share (EPS) indicates a rise of 14.7% and 47.9%, respectively, from the year-ago levels.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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