News

Skillz Hires Airbnb Executive Ian Lee as CFO

By Skillz on May 4, 2021 in Press Releases

Lee Was Head of Investor Relations During Airbnb’s Successful IPO and Brings Deep Public Markets Expertise to Top Mobile Gaming Platform

 

Skillz (NYSE: SKLZ), the leading mobile games platform connecting players around the world in fair, fun, and meaningful competition, announced today that veteran finance and investor relations executive Ian Lee has been hired as the company’s Chief Financial Officer (CFO). Lee will join the company on June 21, 2021 from Airbnb, where he served as Head of Investor Relations and was on the core deal team for the company’s successful 2020 IPO.

 
“With an outstanding track record of leading corporate finance and investor relations at some of the industry’s most respected technology companies, Skillz will benefit greatly from Ian’s leadership, business acumen, and proven ability to guide the transition from pre-IPO to life as a publicly held company,” said Skillz CEO and founder Andrew Paradise. “We’re fortunate to have Ian join our leadership team to continue building on that success and realize our promising outlook and growth trajectory.”

As CFO, Lee will report directly to Paradise and oversee the company’s finance functions, including accounting, investor relations, FP&A, tax, corporate development, and strategy.

Formerly Head of Investor Relations of Airbnb, Lee was a key member of the company’s IPO preparation team, culminating in Airbnb’s successful $4 billion offering in December 2020 to its current $100 billion market cap. He has also led investor relations as a senior finance executive at other world-class technology firms, including Atlassian and Trulia, both of which he helped take public; as well as holding IR leadership roles at Hewlett-Packard and Omnicom Group.

Lee holds an MBA in Finance from the Wharton School of the University of Pennsylvania and a Bachelor of Communication Studies from the Auckland University of Technology.

 

About Skillz Inc.

Skillz is the leading mobile games platform that connects players around the world in fair, fun, and meaningful competition. The Skillz marketplace expands the gaming ecosystem, helping developers share their art with the world and build multi-million dollar franchises by enabling social competition in their games. Leveraging its patented technology, Skillz hosts billions of casual esports tournaments for 30 million mobile players worldwide and distributes millions in prizes each month. The company is headquartered in San Francisco and backed by leading venture capitalists, media companies, and professional sports leagues and franchises. Skillz has earned recognition as one of Fast Company’s Most Innovative Companies, CNBC’s Disruptor 50, Forbes’ Next Billion-Dollar Startups, and the #1 fastest-growing company in America on the Inc. 5000. www.skillz.com

 

Media Contact

skillz@methodcommunications.com

Skillz Reports Record Q1 Revenue and Raises 2021 Guidance

By Skillz on May 4, 2021 in Press Releases

– First Quarter Revenue Hits $84 Million, Up 92% Year-over-Year

– Paying Monthly Active Users Grows 81% Year-over-Year

– Raises Full Year 2021 Revenue Guidance to $375 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 first quarter ended March 31, 2021.

“We are proud to report record-breaking first quarter results, giving us 21 consecutive quarters of revenue growth,” said Andrew Paradise, CEO and founder of Skillz. “Our performance and strong growth trajectory gave us the confidence to increase investment in Q1 and raise full year revenue guidance to $375 million.”

First Quarter Financial Highlights

  • Revenue grew to $83.7 million during the first quarter of 2021, up 92% over the prior year.
  • Gross profit grew to $79.4 million during the first quarter of 2021, up 95% over the prior year.
  • Gross margin was 95% during the first quarter of 2021, 100 basis points higher than the prior year.
  • Net loss was $53.6 million during the first quarter of 2021, compared with $15.5 million in the prior year.
  • Adjusted EBITDA was $(31.1) million during the first quarter of 2021, compared with $(14.6) million in the prior year.
  • Gross Marketplace Volume1 (GMV) grew to $566.6 million during the first quarter of 2020, up 85% over the prior year.
  • Cash on balance sheet of $613 million and no debt at the end of first quarter 2021.

First Quarter Business Highlights

  • Paying MAU reached 0.467 million with a 17% Paying to Playing MAU ratio which is 8x higher than the mobile gaming industry average2 and highlights the platform’s powerful competitive advantage over in-app purchases.
  • Launched developer progression, a feature that allows game developers to create in-game milestones for players, such as winning a reward for bowling perfect games. This enables developers to introduce new game design mechanics that enhance player retention and engagement.
  • Expanded Android footprint, growing revenue from Android users 2x faster than iOS.
1 Gross Marketplace Volume means the total entry fees paid by users for contests hosted on Skillz’s platform. Total entry fees include entry fees paid by end-users using cash deposits, prior cash winnings from end-users’ accounts that have not been withdrawn, and end-user incentives used to enter paid entry fee contests.

2 Note: According to Wappier Gaming Apps, conversion rates were 1.6% to 2% in 2020.

Financial Outlook

The Company is increasing 2021 revenue guidance to $375 million, which equates to 63% year-over-year growth.

Investor Conference Call and Webcast

The Company will host a conference call and webcast on Tuesday, May 4, 2021, at 5:00 pm Eastern Time. The conference call can be accessed by registering online at webcast registration, 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.

Access to a live video-webcast of the discussion in listen-only mode will be available through the “Investors” section of the Skillz website at www.skillz.com. A replay of the webcast will be archived on the Company’s website.

About Skillz Inc.

Skillz (NYSE: SKLZ) is the leading mobile games platform that connects players around the world in fair, fun, and meaningful competition. The Skillz platform helps developers build multi-million dollar franchises by enabling social competition in their games. Leveraging its patented technology, Skillz hosts billions of casual esports tournaments for millions of mobile players worldwide, and distributes millions in prizes each month. Skillz has earned recognition as one of Fast Company’s Most Innovative Companies, CNBC’s Disruptor 50, Forbes’ Next Billion-Dollar Startups, and the #1 fastest-growing company in America on the Inc. 5000. www.skillz.com

Use of Non-GAAP Financial Measures

In this press release, the Company includes Adjusted EBITDA which is a non-GAAP performance measure that the Company uses to supplement its results presented in accordance with U.S. GAAP. As required by the rules of the Securities and Exchange Commission (“SEC”), the Company has provided herein a reconciliation of the non-GAAP financial measure contained in this press release to the most directly comparable measure under GAAP. The Company’s management believes Adjusted EBITDA is useful in evaluating its operating performance and is a similar measure reported by publicly-listed U.S. competitors, and regularly used by security analysts, institutional investors, and other interested parties in analyzing operating performance and prospects. By providing this non-GAAP measure, the Company’s management intends to provide investors with a meaningful, consistent comparison of the Company’s profitability for the periods presented. Adjusted EBITDA is not intended to be a substitute for any U.S. GAAP financial measure and, as calculated, may not be comparable to other similarly titled measures of performance of other companies in other industries or within the same industry.

The Company defines and calculates Adjusted EBITDA as net loss before interest, other non-operating expense or income, provision for income taxes, and depreciation and amortization, and further adjusted for stock-based compensation and other special items determined by management, including, but not limited to, fair value adjustments for certain financial liabilities (including derivatives) associated with debt and equity transactions and impairment charges, as they are not indicative of business operations.

Forward-Looking Statements

This press release includes “forward-looking statements” within the meaning of the “safe harbor” provisions of the United States Private Securities Litigation Reform Act of 1995. The Company’s actual results may differ from its expectations, estimates, and projections and, consequently, you should not rely on these forward-looking statements as predictions of future events. Words such as “expect,” “estimate,” “project,” “budget,” “forecast,” “anticipate,” “intend,” “plan,” “may,” “will,” “could,” “should,” “believes,” “predicts,” “potential,” “continue,” and similar expressions (or the negative versions of such words or expressions) are intended to identify such forward-looking statements.

These forward-looking statements involve significant risks and uncertainties that could cause the Company’s actual results to differ materially from those discussed in the forward-looking statements. Most of these factors are outside of the Company’s control and are difficult to predict. Factors that may cause such differences include, but are not limited to, the ability of Skillz to: effectively compete in the global entertainment and gaming industries; attract and retain successful relationships with the third party developers that develop and update all of the games hosted on Skillz’s platform; comply with laws and regulations applicable to its business; and as well as other risks and uncertainties indicated from time to time in the Company’s SEC filings, including those under “Risk Factors” therein, which are available on the SEC’s website at www.sec.gov. Additional information will be made available in other filings that the Company makes from time to time with the SEC. In addition, any forward-looking statements contained in this press release are based on assumptions that the Company believes to be reasonable as of this date. The Company undertakes no obligation to update any forward-looking statements to reflect events or circumstances after the date of this press release or to reflect new information or the occurrence of unanticipated events, except as required by law.

(1) Amounts in this column are preliminary estimates and are subject to change as management completes the restatement of the Company’s consolidated financial statements for the year ended December 31, 2020 required to reclassify its public warrants and private placement warrants as liabilities and record non-cash fair value adjustments into earnings to align with the guidance set forth by the Securities and Exchange Commission in the public statement entitled “Staff Statement on Accounting and Reporting Considerations for Warrants issued by Special Purpose Acquisition Companies,” as further described in our Current Report on Form 8-K filed May 4, 2021. Our independent registered public accounting firm has not audited or reviewed these estimates.

 

(1) For the three months ended March 31, 2021, amounts represent transaction expenses related to the follow-on offering.

(2) For the three month ended March 31, 2021, amounts represent the fair value adjustments related to the revaluation of liability classified warrants.

(1) “Monthly Active Users” or “MAUs” means the number of end-users who entered into a paid or free contest hosted on Skillz’s platform at least once in a month, averaged over each month in the period.

(2) “Paying Monthly Active Users” or “pMAUs” means the number of end-users who entered into a paid contest hosted on Skillz’s platform at least once in a month, averaged over each month in the period.

(3) “Average Revenue Per Monthly Active User” or “ARPU” means the average revenue in a given month divided by MAUs in that month, averaged over the period.

(4) “Average Revenue Per Paying Monthly Active User” or “ARPPU” means the average revenue in a given month divided by Paying MAUs in that month, averaged over the period.

(5) “GMV” or “Gross Marketplace Volume” means the total entry fees paid by users for contests hosted on Skillz’s platform. Total entry fees include entry fees paid by end-users using cash deposits, prior cash winnings from end-users’ accounts that have not been withdrawn, and end-user incentives used to enter paid entry fee contests.

 

Contacts:

Investors: ir@skillz.com

Media: skillz@methodcommunications.com

NFL and Skillz Launch Game Developer Challenge, Submission Period Now Open

By Skillz on April 28, 2021 in Press Releases

Winning Games Slated to Debut at the Start of 2022 NFL Season with Co-Promotion from NFL and Skillz

The National Football League (NFL) and Skillz (NYSE: SKLZ), the leading mobile games platform bringing fair competition to players worldwide, today announced that the NFL & Skillz Game Developer Challenge is now live and accepting proposals from the developer community. Through this first-of-its-kind collaboration, competing developers have the opportunity to create innovative NFL-inspired and branded mobile games, excluding 11 vs 11 simulation, powered by the Skillz esports platform. 

As part of the multi-year agreement announced in February, the challenge is open to all interested game developers, from indie developers to established studios. Participating developers must submit their game concept proposal by May 31, 2021; a panel of NFL and Skillz judges will review all submissions and select those that will proceed to the development stage. Ultimately, finalists will present their creations to the judges to win the coveted rights to brand their game with the NFL and club logos. The NFL and Skillz will launch and provide cross-platform promotion of the winning games to coincide with the start of the 2022 NFL season.

“From the moment we announced the collaboration with the NFL, the Skillz gaming community has been buzzing with excitement over this ultimate football competition,” said Andrew Paradise, CEO and founder of Skillz. “Developers rarely have the opportunity to capture the attention of the NFL and football fans everywhere in this way, so we can’t wait to see which games score the big win!”

“This challenge combines the power of the Skillz platform and the NFL brand to reimagine football for mobile esports,” said Rachel Hoagland, VP of Gaming and Partnerships at the NFL. “For developers, this is an incredible opportunity to exercise their creativity, and for our fans, it’s an exciting new way for them to experience NFL gaming in the palm of their hands.” 

The NFL & Skillz Game Developer Challenge will span the 2021 NFL season and interested participants can learn more about the challenge by visiting skillz.com/nflchallenge.

 

About Skillz Inc.

Skillz is the leading mobile games platform that connects players in fair, fun, and meaningful competition. The Skillz platform helps developers build multi-million dollar franchises by enabling social competition in their games. Leveraging its patented technology, Skillz hosts billions of casual esports tournaments for millions of mobile players worldwide, and distributes millions in prizes each month. Skillz has earned recognition as one of Fast Company’s Most Innovative Companies, CNBC’s Disruptor 50, Forbes’ Next Billion-Dollar Startups, and the #1 fastest-growing company in America on the Inc. 5000. www.skillz.com

 

Contacts

Skillz Inc.

skillz@methodcommunications.com

 

National Football League (NFL)

Liana Bailey

liana.bailey@nfl.com

Skillz Outlook Outperforms Analysts’ Expectations for First Quarter 2021 and Sets Date for Earnings Call

By Skillz on March 25, 2021 in Press Releases

Strong Player Growth Drives Record Revenue 

Skillz Inc. (NYSE: SKLZ), the leading mobile games platform bringing fair competition to players worldwide, released its outlook for the first quarter ending March 31, 2021 today. The Company also announced that it will release its fiscal first quarter financial results on May 4, 2021 after the end of trading on the New York Stock Exchange. 

Q1 2021 SKLZ Outlook

Analyst Expectations (1)Skillz Outlook
Revenue$72.2 – $79.6 million$80 million
Adj. EBITDA (2)($21.8) – ($24.5) million($37) million 
MAU (3)2.4 – 3.2 million2.6 million
Paying MAU (4)0.442 – 0.469 million0.45 million

(1) Range of analyst expectations from publicly available research reports published by Canaccord Genuity, Stifel, Wedbush Securities, Wells Fargo Securities, and UBS Securities Investment Bank.

(2) Adjusted EBITDA is defined as net loss before interest, other non-operating expense or income, provision for income taxes, and depreciation and amortization, and further adjusted for stock-based compensation and other special items determined by management, including, but not limited to, fair value adjustments for certain financial liabilities (including derivatives) associated with debt and equity transactions and impairment charges as they are not indicative of business operations. The Company does not provide a reconciliation of this forward-looking measure because it is an estimate and a reconciliation to the most directly comparable financial measures calculated and presented in accordance with GAAP will be provided in connection with reporting Q1 financial results.

(3) “Monthly Active Users” or “MAUs” means the number of end-users who entered into a paid or free contest hosted on Skillz’s platform at least once in a month, averaged over each month in the period.

(4) “Paying Monthly Active Users” or “pMAUs” means the number of end-users who entered into a paid contest hosted on Skillz’s platform at least once in a month, averaged over each month in the period.

 

Skillz’s first quarter outlook exhibits strong momentum attributed to double-digit growth in payors, resulting from both an increase in new installs and rising conversion of existing players into payors.

Skillz will host a conference call and audio webcast on May 4, 2021 at 5:00pm Eastern Time, during which management will discuss the first quarter results and provide commentary on business performance. A question and answer session with analysts and investors will follow the prepared remarks.

The conference call can be accessed by registering online for the Skillz webcast, 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.

Access to a live audio-webcast of the discussion in listen-only mode will be available through the “Investors” section of the Skillz website at www.skillz.com. A replay of the webcast will be archived on the Company’s website. 

The foregoing outlook reflects preliminary estimates based on information available as of March 24, 2021 and is subject to change following completion of Skillz’s quarter-end review process. 

About Skillz Inc.

Skillz is the leading mobile games platform that connects players in fair, fun, and meaningful competition. The Skillz platform helps developers build multi-million dollar franchises by enabling social competition in their games. Leveraging its patented technology, Skillz hosts billions of casual esports tournaments for millions of mobile players worldwide, and distributes millions in prizes each month. Skillz has earned recognition as one of Fast Company’s Most Innovative Companies, CNBC’s Disruptor 50, Forbes’ Next Billion-Dollar Startups, and the #1 fastest-growing company in America on the Inc. 5000. www.skillz.com

Forward-Looking Statements

This press release includes “forward-looking statements” within the meaning of the “safe harbor” provisions of the United States Private Securities Litigation Reform Act of 1995. The Company’s actual results may differ from its expectations, estimates, and projections and, consequently, you should not rely on these forward-looking statements as predictions of future events. Words such as “expect,” “estimate,” “project,” “budget,” “forecast,” “anticipate,” “intend,” “plan,” “may,” “will,” “could,” “should,” “believes,” “predicts,” “potential,” “continue,” and similar expressions (or the negative versions of such words or expressions) are intended to identify such forward-looking statements.

These forward-looking statements involve significant risks and uncertainties that could cause the Company’s actual results to differ materially from those discussed in the forward-looking statements. Most of these factors are outside of the Company’s control and are difficult to predict. Factors that may cause such differences include, but are not limited to, the ability of Skillz to: realize the benefits expected from the business combination; effectively compete in the global entertainment and gaming industries; attract and retain successful relationships with the third party developers that develop and update all of the games hosted on Skillz’s platform; comply with laws and regulations applicable to its business; and as well as other risks and uncertainties indicated from time to time in the Company’s SEC filings, including those under “Risk Factors” therein, which are available on the SEC’s website at www.sec.gov. Additional information will be made available in other filings that the Company makes from time to time with the SEC. In addition, any forward-looking statements contained in this press release are based on assumptions that the Company believes to be reasonable as of this date. The Company undertakes no obligation to update any forward-looking statements to reflect events or circumstances after the date of this press release or to reflect new information or the occurrence of unanticipated events, except as required by law.

 

Contacts

Investors: ir@skillz.com 

Media: skillz@methodcommunications.com 

Source: Skillz Inc.

Skillz Outperforms Fourth Quarter and Full Year 2020 Financial Results

By Skillz on March 10, 2021 in Press Releases

– Fourth Quarter Revenue of $68 million, Up 95% Year-over-Year
– Full Year Revenue of $230 million vs $225 million Guidance, Up 92% Year-over-Year
– Initiates Full Year 2021 Revenue Guidance of $366 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 fourth quarter and full year ended December 31, 2020 and initiated full year 2021 revenue guidance.

“Our first quarter as a publicly traded company was our twentieth consecutive quarter of revenue growth,” said Andrew Paradise, CEO and founder. “We look forward to many more such quarters ahead.”

Fourth Quarter Financial Highlights

  • Revenue grew to $68 million during the fourth quarter of 2020, 8% higher than expectations, and up 95% compared with $35 million during the comparable quarter in 2019.
  • Gross profit grew 95% to $64 million during the fourth quarter of 2020, compared with $33 million during the comparable quarter in 2019.
  • Gross margin was 95% during the fourth quarter of 2020, consistent with the comparable quarter in 2019.
  • Net loss was $44 million during the fourth quarter of 2020, compared with a net loss of $9 million during the comparable quarter in 2019.
  • Gross Marketplace Volume1 (“GMV”) grew 78% to $463 million during the fourth quarter of 2020, compared with $259 million during the comparable quarter in 2019.

Full Year Financial Highlights

  • Revenue grew 92% to $230 million in 2020, compared with $120 million during 2019.
  • Gross profit grew 91% to $218 million during 2020, compared with $114 million in 2019.
  • Gross margin was 95% during 2020, the same as the year prior.
  • Net loss was $122 million during 2020, compared with a net loss of $24 million during 2019.
  • GMV grew 80% to $1.6 billion during 2020, compared with $886 million during 2019.
  • As of December 31, 2020, the Company had $263 million of cash and no debt.

Recent Business Highlights

  • Went public on the NYSE, providing greater access to capital and increasing the visibility and transparency of the platform for developers, users, and brands.
  • Signed multi-year agreement with the NFL subsequent to the end of the quarter, underscoring the trusted relationship Skillz is building with leading brands.
  • Blackout Bingo became Skillz’s #1 game based on GMV, highlighting the ability of the platform to enable innovative developers to build successful businesses.
  • Bolstered Skillz Board of Directors with the addition of film and television producer, Jerry Bruckheimer, and Chris Gaffney, co-founder of Great Hill Partners.

1 “GMV” or “Gross Marketplace Volume” means the total entry fees paid by users for contests hosted on Skillz’s platform. Total entry fees include entry fees paid by end-users using cash deposits, prior cash winnings from end-users’ accounts that have not been withdrawn, and end-user incentives used to enter paid entry fee contests.

Financial Outlook

The Company is initiating 2021 revenue guidance of $366 million, which equates to 59% year-over-year growth.

Investor Conference Call and Webcast

The Company will host a conference call and audio webcast on Wednesday, March 10, 2021 at 5:00pm Eastern Time. The conference call can be accessed by registering online at http://www.directeventreg.com/registration/event/2977385 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.

Access to a live audio-webcast of the discussion in listen-only mode will be available through the “Investors” section of the Skillz website at www.skillz.com. A replay of the webcast will be archived on the Company’s website.

About Skillz Inc.

Skillz (NYSE: SKLZ) is the leading mobile games platform that connects players around the world in fair, fun, and meaningful competition. The Skillz platform helps developers build multi-million dollar franchises by enabling social competition in their games. Leveraging its patented technology, Skillz hosts billions of casual esports tournaments for millions of mobile players worldwide, and distributes millions in prizes each month. Skillz has earned recognition as one of Fast Company’s Most Innovative Companies, CNBC’s Disruptor 50, Forbes’ Next Billion-Dollar Startups, and the #1 fastest-growing company in America on the Inc. 5000. www.skillz.com

Use of Non-GAAP Financial Measure

In this press release, the Company includes Adjusted EBITDA which is a non-GAAP performance measure that the Company uses to supplement its results presented in accordance with U.S. GAAP. As required by the rules of the Securities and Exchange Commission (“SEC”), the Company has provided herein a reconciliation of the non-GAAP financial measure contained in this press release to the most directly comparable measures under GAAP. The Company’s management believes Adjusted EBITDA is useful in evaluating its operating performance and is a similar measure reported by publicly-listed U.S. competitors, and regularly used by security analysts, institutional investors, and other interested parties in analyzing operating performance and prospects. By providing this non-GAAP measure, the Company’s management intends to provide investors with a meaningful, consistent comparison of the Company’s profitability for the periods presented. Adjusted EBITDA is not intended to be a substitute for any U.S. GAAP financial measure and, as calculated, may not be comparable to other similarly titled measures of performance of other companies in other industries or within the same industry.

The Company defines and calculates Adjusted EBITDA as net loss before interest, other non-operating expense or income, provision for income taxes, and depreciation and amortization, and further adjusted for stock-based compensation and other special items determined by management, including, but not limited to, fair value adjustments for certain financial liabilities (including derivatives) associated with debt and equity transactions and impairment charges as they are not indicative of business operations.

Forward-Looking Statements

This press release includes “forward-looking statements” within the meaning of the “safe harbor” provisions of the United States Private Securities Litigation Reform Act of 1995. The Company’s actual results may differ from its expectations, estimates, and projections and, consequently, you should not rely on these forward-looking statements as predictions of future events. Words such as “expect,” “estimate,” “project,” “budget,” “forecast,” “anticipate,” “intend,” “plan,” “may,” “will,” “could,” “should,” “believes,” “predicts,” “potential,” “continue,” and similar expressions (or the negative versions of such words or expressions) are intended to identify such forward-looking statements.

These forward-looking statements involve significant risks and uncertainties that could cause the Company’s actual results to differ materially from those discussed in the forward-looking statements. Most of these factors are outside of the Company’s control and are difficult to predict. Factors that may cause such differences include, but are not limited to, the ability of Skillz to: realize the benefits expected from the business combination; effectively compete in the global entertainment and gaming industries; attract and retain successful relationships with the third party developers that develop and update all of the games hosted on Skillz’s platform; comply with laws and regulations applicable to its business; and as well as other risks and uncertainties indicated from time to time in the Company’s SEC filings, including those under “Risk Factors” therein, which are available on the SEC’s website at www.sec.gov. Additional information will be made available in other filings that the Company makes from time to time with the SEC. In addition, any forward-looking statements contained in this press release are based on assumptions that the Company believes to be reasonable as of this date. The Company undertakes no obligation to update any forward-looking statements to reflect events or circumstances after the date of this press release or to reflect new information or the occurrence of unanticipated events, except as required by law.

(1) For 2020, other non-operating costs (income) is primarily attributed to a $20.8 million adjustment to the fair value of the redeemable convertible Series E preferred stock forward contract liability.

(2) For 2019, other non-operating costs (income) include a $3.6 million remeasurement gain for the bifurcated derivative liability related to the Company’s 2018 Convertible Promissory Notes.

(3) This represents an impairment charge of a lease deposit and prepayment in connection with a lease agreement related to our new corporate facilities in San Francisco.

(4) For 2020, amounts represent one-time transaction expenses related to the Business Combination.

(1) “Monthly Active Users” or “MAUs” means the number of end-users who entered into a paid or free contest hosted on Skillz’s platform at least once in a month, averaged over each month in the period.

(2) “Paying Monthly Active Users” or “pMAUs” means the number of end-users who entered into a paid contest hosted on Skillz’s platform at least once in a month, averaged over each month in the period.

(3) “Average Revenue Per Monthly Active User” or “ARPU” means the average revenue in a given month divided by MAUs in that month, averaged over the period.

(4) “Average Revenue Per Paying Monthly Active User” or “ARPPU” means the average revenue in a given month divided by Paying MAUs in that month, averaged over the period.

(5) “GMV” or “Gross Marketplace Volume” means the total entry fees paid by users for contests hosted on Skillz’s platform. Total entry fees include entry fees paid by end-users using cash deposits, prior cash winnings from end-users’ accounts that have not been withdrawn, and end-user incentives used to enter paid entry fee contests.

 

Contacts
Investors: ir@skillz.com
Media: skillz@methodcommunications.com

Jerry Bruckheimer Joins Skillz Board of Directors

By Skillz on February 24, 2021 in Press Releases

Bruckheimer’s appointment set to accelerate media industry shift towards interactive entertainment

Skillz (NYSE: SKLZ), the leading mobile games platform bringing fair competition to players worldwide, today announced that famed film and television producer Jerry Bruckheimer has joined its board of directors. The appointment marks the first time that Bruckheimer has accepted a position on a public company board and comes less than three months after Skillz debuted on the New York Stock Exchange as the first publicly traded mobile esports platform.

“Skillz puts the excitement and competitive drama of esports into the hands of billions of people around the world,” said Bruckheimer, “and I’m excited to join the company defining the future of interactive entertainment.”

Bruckheimer has a deep track record of success across the entertainment spectrum. His films have collectively grossed more than $18 billion, ranking him among the top five producers of all time. He is the co-founder and co-majority owner of the National Hockey League franchise, the Seattle Kraken. Bruckheimer also served on the board of directors for privately-held Zenimax Media, the creator of hit gaming franchises Doom, Fallout, and Elder Scrolls. Zenimax was acquired by Microsoft in 2020 for $7.5 billion. 

“Jerry has a unique ability to create blockbuster experiences that captivate global audiences and enrich the lives of billions of people,” said Andrew Paradise, CEO and founder of Skillz. “With Skillz, Jerry will have an interactive canvas to reach and engage his biggest audience yet.”

The mobile gaming industry is now almost twice the size of movies and is expected to more than double by 2025 to surpass $150 billion in revenue. Skillz is leading the gaming industry into the future, enabling players around the world to engage in fun and fair competition.

 

About Skillz Inc.

Skillz is the leading mobile games platform that connects players in fair, fun, and meaningful competition. The Skillz platform helps developers build multi-million dollar franchises by enabling social competition in their games. Leveraging its patented technology, Skillz hosts billions of casual esports tournaments for millions of mobile players worldwide, and distributes millions in prizes each month. Skillz has earned recognition as one of Fast Company’s Most Innovative Companies, CNBC’s Disruptor 50, Forbes’ Next Billion-Dollar Startups, and the #1 fastest-growing company in America on the Inc. 5000. www.skillz.com 

 

About Jerry Bruckheimer

Perhaps the most successful film and television producer of all time, Jerry Bruckheimer’s productions include the monumentally successful films “Pirates of the Caribbean,” “National Treasure,” “Bad Boys,” and “Beverly Hills Cop” franchises, “Black Hawk Down,” “Pearl Harbor,” “Remember the Titans,” “Armageddon,” “The Rock,” “Crimson Tide,” “Top Gun” and “Flashdance.” Bruckheimer created “CSI: Crime Scene Investigation,” which quickly became the number one show on television, and launched three successful spin-offs. Bruckheimer also produced “Without a Trace,” “Cold Case,” and ten-time Emmy Award-winning “The Amazing Race.”

In a career spanning more than 40 years, Bruckheimer’s films have collectively grossed more than $18 billion including box office and ancillary sales. His projects have been honored with 43 Academy Award nominations, 6 Oscars, 8 Grammy Award nominations, 5 Grammys, 23 Golden Globe nominations, 4 Golden Globes, 140 Emmy Award nominations, 23 Emmys, 36 People’s Choice nominations, 15 People’s Choice Awards, and numerous MTV Awards, including one for Best Picture of the Decade for “Beverly Hills Cop.”

 

Media Contact

skillz@methodcommunications.com 

Source: Skillz Inc. 

NFL and Skillz Sign Multi-Year Gaming Agreement

By Skillz on February 4, 2021 in Press Releases

NFL Taps Skillz To Reach New Audiences and Expand Presence on Mobile 

The National Football League (NFL) is teaming up with Skillz (NYSE: SKLZ), the leading platform for fair, fun, and meaningful competition, to crowdsource a future mobile esport. As part of the agreement, the two sports organizations will host a global game developer challenge. Competing developers will have the opportunity to develop an NFL-themed mobile game. The game will be powered by the Skillz esports platform and will have joint marketing support from both the NFL and Skillz. The combination of the NFL brand and the Skillz platform will set the stage for the future of electronic sports competition. 

Working with Skillz enables the NFL to reach the next generation of football fans where they live – on mobile – while driving the convergence of traditional and online sports. For Skillz, this agreement will introduce hundreds of millions of NFL fans to the leading esports platform. 

“The NFL is an iconic brand that is synonymous with American sports, and Skillz is thrilled to help power their esports competitions on mobile,” said Andrew Paradise, CEO and founder of Skillz. 

“Mobile gaming continues to be an important platform to reach and engage new and existing fans,” said Rachel Hoagland, VP of Gaming & Esports at the NFL. “Our agreement with Skillz provides access to a trusted platform and a highly engaged player base, making Skillz an ideal partner long term.”

The developer challenge will launch in the second quarter of 2021 and will be open to all genres except for 11 v 11 simulated games. For more information on the upcoming developer challenge and implementing mobile gaming competitions, visit www.skillz.com or email NFLChallenge@skillz.com.

 

About Skillz Inc.

Skillz is the leading mobile games platform that connects players in fair, fun, and meaningful competition. The Skillz platform helps developers build multi-million dollar franchises by enabling social competition in their games. Leveraging its patented technology, Skillz hosts billions of casual esports tournaments for millions of mobile players worldwide, and distributes millions in prizes each month. Skillz has earned recognition as one of Fast Company’s Most Innovative Companies, CNBC’s Disruptor 50, Forbes’ Next Billion-Dollar Startups, and the #1 fastest-growing company in America on the Inc. 5000. www.skillz.com 

 

Media Contacts:

Skillz Inc.

skillz@methodcommunications.com 

 

National Football League (NFL)

Liana Bailey 

liana.bailey@nfl.com

 

Source: Skillz Inc.

Play Mechanix Partners with Skillz to Bring Mobile Competition to Legendary First-Person Shooter Big Buck Hunter

By Skillz on January 28, 2021 in Press Releases

Partnership Expands Big Buck Hunter’s Reach to Skillz’s Millions of Competitive Mobile Gamers

The legendary arcade franchise Big Buck Hunter is coming to mobile with a new game built exclusively for Skillz (NYSE: SKLZ), the leading mobile games platform for fair, fun, and meaningful competition. The partnership will broaden the franchise’s fan base, reaching millions of mobile gamers competing on the Skillz platform. It also marks Skillz’s expansion into the first-person shooter (FPS) genre, one of the most popular categories in modern gaming.

With over 46,000 arcade machines sold to bars and restaurants across the world, Big Buck Hunter is one of the best selling arcade shooters of all time. The new Skillz-powered edition of the classic game will be available to both existing fans and the world’s 2.7 billion mobile gamers. 

“Big Buck Hunter has been a cultural icon for 20 years,” said Andrew Paradise, CEO and founder of Skillz. “We’re proud to enable top game developers like Play Mechanix to put content into the palms of players’ hands – anyone, anywhere, anytime.”

Game developer Play Mechanix is custom designing the mobile version of Big Buck Hunter exclusively for the Skillz platform, with a focus on replicating the quintessential competitive arcade and console experience that players know and love. Mobile shooters like Call of Duty, Fortnite, and PUBG boast hundreds of millions of players, and now fans of the FPS genre will be able to utilize their skills to compete on the Skillz platform. 

“Our partnership with Skillz opens Big Buck Hunter to a huge and rapidly growing universe of mobile gamers,” said George Petro, founder of Play Mechanix. “We’re thrilled to deliver the same excitement and core gameplay features fans love from the arcade version on mobile.”

Big Buck Hunter has built a loyal following and robust fan base that has evolved beyond the traditional arcade shooter to home consoles, plug-and-play games, social media platforms, pinball machines, and more. As one of the top arcade esports in the world, the game has continued to grow through both live and virtual tournaments in thousands of arcades and other venues worldwide. By partnering with Skillz, Play Mechanix will be able to achieve higher monetization than would be possible with ads or in-game purchases by providing mobile users with a competitive gameplay experience.

Through Skillz’s proprietary and patented player rating and matching technology, players will have the opportunity to compete in Big Buck Hunter on their mobile devices against users with similar skill sets across a variety of immersive outdoor environments. As part of this partnership, Play Mechanix will give away codes that let Skillz users play the arcade game for free and will be promoting the mobile version across all of its online-enabled arcade games.

For more information on Skillz-enabled games and implementing mobile gaming competitions, visit www.skillz.com or email launch@skillz.com.

 

About Skillz Inc.

Skillz is the leading mobile games platform that connects players in fair, fun, and meaningful competition. The Skillz platform helps developers build multi-million dollar franchises by enabling social competition in their games. Leveraging its patented technology, Skillz hosts billions of casual esports tournaments for millions of mobile players worldwide, and distributes millions in prizes each month. Skillz has earned recognition as one of Fast Company’s Most Innovative Companies, CNBC’s Disruptor 50, Forbes’ Next Billion-Dollar Startups, and the #1 fastest-growing company in America on the Inc. 5000. www.skillz.com

 

About Play Mechanix, Inc.

Founded in 1995 by former Midway designer George Petro, Play Mechanix is a global leader in the design and development of arcade video games. Merging with Raw Thrills in 2006 to form the top arcade video game manufacturer in the world, Play Mechanix is responsible for hit releases such as the Big Buck Hunter series, Halo: Fireteam Raven, The Walking Dead Arcade, Terminator Salvation, Aliens Armageddon, MotoGP and many, many more.

 

Media Contact:

skillz@methodcommunications.com 

Source: Skillz Inc.

SKILLZ BECOMES FIRST PUBLICLY-TRADED MOBILE ESPORTS PLATFORM

By Skillz on December 16, 2020 in Press Releases

The company starts trading tomorrow on the New York Stock Exchange under ticker “SKLZ”

Transaction includes $849 million in funding from investors Wellington, Fidelity, Franklin Templeton, and Neuberger Berman, among others

New capital to accelerate growth in rapidly expanding mobile gaming market

 

Skillz Inc. (“Skillz”), the leading mobile games platform connecting players in fair, fun, and meaningful competition, today became the first publicly-traded mobile esports platform, following the completion of its combination with special purpose acquisition company Flying Eagle Acquisition Corp. (NYSE: FEAC). The combined company is named Skillz Inc. and its common stock will begin trading tomorrow on the New York Stock Exchange under the ticker symbol “SKLZ”. With $250 million in cash and no debt on the balance sheet, Skillz is poised to capitalize on the massive growth expected in mobile gaming.

“We built Skillz on the founding belief that esports are for everyone, and have made significant progress toward our vision of enabling everyone to share in the future of competition,” said Andrew Paradise, CEO and founder of Skillz. “We stand at the intersection of mobile gaming and esports, perhaps the two most exciting growth opportunities of the next decade. I thank the entire Skillz team for their dedication, passion, and creativity, which have led us to this incredible moment on our journey to build the competition layer of the internet.”

With just a fraction of the world’s 2.7 billion gamers on its platform today, Skillz has a long runway for growth in building its service for the 10 million game developers globally. Skillz is uniquely positioned to capitalize on the rapidly expanding mobile gaming market, which is expected to more than double by 2025 to $150 billion. As Skillz moves beyond casual esports into new genres, adds new monetization models, and enters new geographies, the company’s addressable market will increase substantially. Going international is a significant opportunity for Skillz. The international market is four times larger than the North American market and represents less than 10% of Skillz revenue today.

Skillz has pioneered the future of the gaming industry, enabling developers to monetize their content five times better than ads or in-app purchases. The company’s platform enables game developers to expand the reach of their games and scale their businesses. Leveraging powerful network effects built out of the platform’s data science, Skillz drives more user engagement, higher conversion, and monetization. Core to the company’s proprietary advantages is patented anti-cheat and anti-fraud technology designed to ensure trust and fairness.

“I’ve had a front row seat to the video game and entertainment industry’s evolution over the past two decades, from my role as founding investor and board member of Bethesda Games to recently taking DraftKings public,” said Harry Sloan, Chairman of Flying Eagle. “We believe that Andrew has positioned Skillz to lead the convergence of mobile, gaming, and player enablement into the future of entertainment itself.” 

This announcement comes on the heels of a year of continued success. Skillz saw consistent growth and further expanded collaborative efforts with game developers, major brands, influencers, and nonprofit organizations, such as the American Cancer Society, World Wildlife Fund, and the NAACP.

The transaction includes the $158.5 million PIPE investment led by Wellington Management Company, Fidelity Management & Research Company, LLC, Franklin Templeton, and Neuberger Berman. As previously announced, Skillz founders CEO Andrew Paradise and CRO Casey Chafkin will continue to lead the company. They will be supported by Skillz’s highly experienced team, including CTO Miriam Aguirre and CFO Scott Henry. 

About Skillz Inc. 

Skillz is the leading mobile games platform that connects players in fair, fun, and meaningful competition. The Skillz platform helps developers build multi-million dollar franchises by enabling social competition in their games. Leveraging its patented technology, Skillz hosts billions of casual esports tournaments for millions of mobile players worldwide, and distributes millions in prizes each month. Skillz has earned recognition as one of Fast Company’s Most Innovative Companies, CNBC’s Disruptor 50, Forbes’ Next Billion-Dollar Startups, and the #1 fastest-growing company in America on the Inc. 5000. www.skillz.com

About Flying Eagle Acquisition Corp.

Flying Eagle Acquisition Corp. is a $690 million special purpose acquisition company founded by Harry E. Sloan, Jeff Sagansky and Eli Baker for the purpose of effecting a merger, capital stock exchange, asset acquisition, stock purchase, reorganization, or similar business combination with one or more businesses. Flying Eagle’s initial public offering was underwritten by Goldman Sachs & Co. LLC and Deutsche Bank Securities, and its common stock, units, and warrants began trading on the NYSE on March 6, 2020 under the ticker symbols FEAC, FEAC.U and FEAC WS, respectively. www.eagleequityptnrs.com

Forward-Looking Statements

This press release includes “forward-looking statements” within the meaning of the “safe harbor” provisions of the United States Private Securities Litigation Reform Act of 1995. The company’s actual results may differ from their expectations, estimates, and projections and, consequently, you should not rely on these forward-looking statements as predictions of future events. Words such as “expect,” “estimate,” “project,” “budget,” “forecast,” “anticipate,” “intend,” “plan,” “may,” “will,” “could,” “should,” “believes,” “predicts,” “potential,” “continue,” and similar expressions (or the negative versions of such words or expressions) are intended to identify such forward-looking statements.

These forward-looking statements involve significant risks and uncertainties that could cause the actual results to differ materially from those discussed in the forward-looking statements. Most of these factors are outside of the company’s control and are difficult to predict. Factors that may cause such differences include, but are not limited to: (1) the ability to recognize the anticipated benefits of the business combination, which may be affected by, among other things, competition, the ability of the company to grow and manage growth profitably, and retain its key employees; (2) costs related to the business combination; (3) the inability to maintain the listing of the company’s shares on the NYSE; (4) the company’s ability to execute its business plan and meet its projections; (5) the outcome of any legal proceedings that may be instituted against the company; (6) the impact of COVID-19 on the company’s business; (7) the company’s transition to becoming a public company including the associated expenses and the impact of public financial and other disclosures on its negotiations and arrangements with key counterparties; (8) changes in applicable laws or regulations; (9) general economic, business, and/or competitive factors; and (10) other risks and uncertainties indicated from time to time in the company’s other filings with the SEC, which are available on the SEC’s website at www.sec.gov. Additional information will be made available in other filings that the company makes from time to time with the SEC. In addition, any forward-looking statements contained in this press release are based on assumptions that the company believes to be reasonable as of this date. The company undertakes no obligation to update any forward-looking statements to reflect events or circumstances after the date of this press release or to reflect new information or the occurrence of unanticipated events, except as required by law.

 

Contacts 

For Skillz PR: skillz@methodcommunications.com

For Skillz IR: ir@skillz.com

 

For Flying Eagle:

Jeff Pryor

jeff@prioritypr.net

+1 818-661-6368, ext. 4

Skillz Announces Third Quarter and Nine Months Year to Date 2020 Financial Results

By Skillz on November 18, 2020 in Press Releases

 – Third Quarter Revenue of $60 Million, Up 92% Year-over-Year,

Revenue for Year to Date of $162 Million, Up 91% Over Prior Year

– Affirming Full Year Revenue Guidance of $225 Million

Skillz Inc. (“Skillz” or the “Company”), the leading mobile games platform connecting players around the world in fun, fair, and meaningful competition, today announced financial results for the third quarter ended September 30, 2020.

“These are exciting times at Skillz. During the quarter, we achieved an important milestone by entering into a business combination agreement with Flying Eagle Acquisition Corp. (NYSE: FEAC) that positions us to be the first mobile esports platform to go public. We drove revenue growth of 92% year-over-year and are tracking to achieve our full year 2020 revenue guidance,” commented Andrew Paradise, CEO and founder of Skillz.

“Our mission is to make gaming better by providing players with a fair and trusted competitive gaming experience and by enabling game developers to better monetize their content. We believe gaming is the future of entertainment, and in that future anyone can embrace their inner champion. The engagement we see from the players on our platform validates the connection they’re making with the community through competition,” continued Paradise.

Third Quarter Financial Highlights

  • Revenue grew 92% to $60.0 million during the third quarter of 2020, compared with $31.2 million during the comparable quarter in 2019 and the 19th consecutive quarter of sequential revenue growth.
  • Gross profit grew 92% to $56.9 million during the third quarter of 2020, compared with $29.6 million during the comparable quarter in 2019.
  • Gross margin was 95% during the third quarter of 2020, the same as during the comparable quarter in 2019.
  • Contribution grew 177% to $19.1 million during the third quarter of 2020, compared with $6.9 million during the comparable quarter in 2019.
  • Net loss was $(42.9) million during the third quarter of 2020, compared with a net loss of $(5.0) million during the comparable quarter in 2019.
  • Gross Marketplace Volume1 (“GMV”) grew 76% to $411 million during the third quarter of 2020, compared with $234 million during the comparable quarter in 2019.

Nine Month Financial Highlights

  • Revenue grew 91% to $162.4 million during the nine month period of 2020, compared with $85.1 million during the comparable period in 2019.
  • Gross profit grew 89% to $153.6 million during the nine month period of 2020, compared with $81.3 million during the comparable period in 2019.
  • Gross margin was 95% during the nine month period of 2020, the same as during the prior year period.
  • Contribution grew 154% to $53.8 million during the nine month period of 2020, compared with $21.2 million during the comparable period in 2019.
  • Net loss was $(78.5) million during the nine month period of 2020, compared with a net loss of $(14.9) million during the comparable period in 2019.
  • GMV grew 80% to $1,130 million during the nine months of 2020, compared with $627 million during the comparable period in 2019.

Recent Business Highlights

  • Expanded traction of hosted tournament offering, with celebrities including NFL Super Bowl Champion Marshawn Lynch and World Champion Hall of Fame boxer Floyd Mayweather selecting Skillz to power brand-sponsored tournaments.
  • Launched first offline to online branded venue partnership with Bowlero, the owner of the Professional Bowlers Association and world’s largest operator of bowling centers. Bowlero selected the Skillz platform to blend physical and digital experiences for their 28 million annual players and build the future of competitive electronic bowling.
  • Powered mass participatory fundraisers for leading nonprofits through the Skillz Gaming for Good initiative, including events with the American Cancer Society, Comic Relief, and American Red Cross.

Impact of COVID-19

The Company experienced high rates of revenue growth prior to COVID-19. Since the onset of the pandemic, the Company has witnessed continued growth in consumption of digital entertainment by consumers. The ability of the Company’s developer partners and players to leverage the Skillz platform has not been disrupted. The Company transitioned seamlessly to a remote work environment and continues to see strong content from its developer partners.

Business Combination Transaction

On September 1, 2020, Skillz entered into a business combination agreement with Flying Eagle Acquisition Corp (“Flying Eagle”). The business combination is expected to close during the fourth quarter of 2020. Upon closing of the transaction, the combined company intends to change its name to Skillz, Inc. and trade on the NYSE under the ticker symbol “SKLZ”.

About Skillz Inc.

Skillz is the leading mobile games platform that connects players around the world in fun, fair, and meaningful competition. The Skillz marketplace expands the gaming ecosystem, helping developers share their art with the world and build multi-million dollar franchises by enabling social competition in their games. Leveraging its patented technology, Skillz hosts billions of casual esports tournaments for millions of mobile players worldwide and distributes millions in prizes each month. Skillz has earned recognition as one of Fast Company’s Most Innovative Companies, CNBC’s Disruptor 50, Forbes’ Next Billion-Dollar Startups, and the #1 fastest-growing company in America on the Inc. 5000. www.skillz.com

Non-GAAP Financial Measures

In this press release, the Company includes EBITDA, Adjusted EBITDA and Contribution which are non-GAAP performance measures that the Company uses to supplement its results presented in accordance with U.S. GAAP. As required by the rules of the Securities and Exchange Commission (“SEC”), the Company has provided herein a reconciliation of the non-GAAP financial measure contained in this press release to the most directly comparable measure under GAAP. The Company’s management believes EBITDA, Adjusted EBITDA and Contribution are useful in evaluating its operating performance and is similar to measures reported by publicly-listed U.S. competitors, and regularly used by security analysts, institutional investors and other interested parties in analyzing operating performance and prospects. By providing these non-GAAP measures, the Company’s management intends to provide investors with a meaningful, consistent comparison of the Company’s profitability for the periods presented. EBITDA, Adjusted EBITDA and Contribution are not intended to be a substitute for any U.S. GAAP financial measure and, as calculated, may not be comparable to other similarly titled measures of performance of other companies in other industries or within the same industry.

The Company defines and calculates EBITDA as net loss before other non-operating interest expense or income, provision for income taxes, and depreciation and amortization. The Company defines and calculates Adjusted EBITDA as net loss before other non-operating interest expense or income, provision for income taxes, and depreciation and amortization, and further adjusted for stock-based compensation and other special items determined by management, including, but not limited to, fair value adjustments for certain financial liabilities (including derivatives) associated with debt and equity transactions and impairment charges as they are not indicative of business operations. The Company defines and calculates Contribution as Adjusted EBITDA before user acquisition marketing expense.

Forward-Looking Statements

This press release includes “forward-looking statements” within the meaning of the “safe harbor” provisions of the United States Private Securities Litigation Reform Act of 1995. The Company’s actual results may differ from its expectations, estimates, and projections and, consequently, you should not rely on these forward-looking statements as predictions of future events. Words such as “expect,” “estimate,” “project,” “budget,” “forecast,” “anticipate,” “intend,” “plan,” “may,” “will,” “could,” “should,” “believes,” “predicts,” “potential,” “continue,” and similar expressions (or the negative versions of such words or expressions) are intended to identify such forward-looking statements.

These forward-looking statements involve significant risks and uncertainties that could cause the Company’s actual results to differ materially from those discussed in the forward-looking statements. Most of these factors are outside of the Company’s control and are difficult to predict. Factors that may cause such differences include, but are not limited to: (1) the ability to recognize the anticipated benefits of the business combination, which may be affected by, among other things, competition, the ability of the Company to grow and manage growth profitably, and retain its key employees; (2) costs related to the business combination; (3) the inability to obtain or maintain the listing of the Company’s shares on the NYSE; (4) the Company’s ability to execute its business plan and meet its projections; (5) the outcome of any legal proceedings that may be instituted against the Company; (6) the impact of COVID-19 on the Company’s business; (7) the Company’s transition to becoming a public company including the associated expenses and the impact of public financial and other disclosures on its negotiations and arrangements with key counterparties; (8) changes in applicable laws or regulations; (9) general economic, business, and/or competitive factors; and (10) other risks and uncertainties indicated from time to time in the final proxy statement/prospectus relating to the business combination, including those under “Risk Factors” therein, and in the Flying Eagle’s other filings with the SEC, which are available on the SEC’s website at www.sec.gov. Additional information will be made available in other filings that the Company makes from time to time with the SEC. In addition, any forward-looking statements contained in this press release are based on assumptions that the Company believes to be reasonable as of this date. The Company undertakes no obligation to update any forward-looking statements to reflect events or circumstances after the date of this press release or to reflect new information or the occurrence of unanticipated events, except as required by law.

Information About the Proposed Business Combination and Where to Find It

In connection with the proposed business combination, Flying Eagle has filed a Registration Statement on Form S-4, including a preliminary proxy statement/prospectus and a definitive proxy statement/prospectus with the SEC. Flying Eagle’s stockholders and other interested persons are advised to read the preliminary proxy statement/prospectus and, when available, the amendments thereto and the definitive proxy statement/prospectus and documents incorporated by reference therein filed in connection with the proposed business combination, as these materials will contain important information about Skillz, Flying Eagle, and the proposed business combination. When available, the definitive proxy statement/prospectus and other relevant materials for the proposed business combination will be mailed to stockholders of Flying Eagle as of the record date established for purposes of determining the stockholders of Flying Eagle entitled to vote on the business combination and related matters. Stockholders will also be able to obtain copies of the preliminary proxy statement/prospectus, the definitive proxy statement/prospectus, and other documents filed with the SEC that will be incorporated by reference therein, without charge, once available, at the SEC’s website at www.sec.gov, or by directing a request to: investors@eagleequityptnrs.com.

Participants in the Solicitation

Flying Eagle and its directors and executive officers may be deemed participants in the solicitation of proxies from Flying Eagle’s stockholders with respect to the business combination. A list of the names of those directors and executive officers and a description of their interests in Flying Eagle will be included in the proxy statement/prospectus for the proposed business combination and be available at www.sec.gov. Additional information regarding the interests of such participants will be contained in the proxy statement/prospectus for the proposed business combination when available.

Skillz and its directors and executive officers may also be deemed to be participants in the solicitation of proxies from the stockholders of Flying Eagle in connection with the proposed business combination. A list of the names of such directors and executive officers and information regarding their interests in the proposed business combination will be included in the proxy statement/prospectus for the proposed business combination.

No Offer or Solicitation

This press release shall not constitute a solicitation of a proxy, consent, or authorization with respect to any securities or in respect of the proposed business combination. This press release shall also not constitute an offer to sell or the solicitation of an offer to buy any securities, nor shall there be any sale of securities in any states or jurisdictions in which such offer, solicitation, or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. No offering of securities shall be made except by means of a prospectus meeting the requirements of Section 10 of the Securities Act of 1933, as amended, or an exemption therefrom.

_____________________________________________________________________________________

1“GMV” or “Gross Marketplace Volume” means the total entry fees paid by users for contests hosted on Skillz’s platform.