Skillz Posts Q1 Revenue of $29M, EBITDA Loss Improves; Won $420M Verdict
SKLZ•Skillz Inc reported Q1 revenue of $29M, up 33% year-on-year but down 3% sequentially, and a GAAP net loss of $11M, a 36% improvement. Adjusted EBITDA loss was $13M (or $7M excluding litigation), cash stood at $185M with $130M debt due year-end, and the firm won $420M in legal damages.
1. Q1 Financial Performance
Skillz reported GAAP revenue of $29 million for Q1, up 33% year-over-year but down 3% quarter-over-quarter. The company posted a GAAP net loss of $11 million, a 36% year-over-year improvement, and an adjusted EBITDA loss of $13 million ($7 million excluding litigation), marking a 15% sequential improvement excluding litigation costs.
2. Legal Victory
Skillz secured a $420 million actual damages award in its false advertising lawsuit, strengthening its balance sheet. The ultimate disgorgement amount remains uncertain and could influence future financial results or capital allocation.
3. User Metrics and Monetization
Paying monthly active users declined 9% sequentially to 128,000 but rose 3% year-over-year, reflecting a shift to profitable acquisitions. Average revenue per paying user rose 7%, driven by higher engagement and retention initiatives.
4. Cash Position and Debt
The company ended Q1 with $185 million in cash and cash equivalents alongside $130 million of debt due by year-end. Management is evaluating refinancing options and the recent Beamable acquisition is expected to enhance platform performance and infrastructure.
