News

Blockbuster “Trivia Crack” Franchise to Create All-New Game Exclusively on Skillz Platform

By Skillz on August 19, 2021 in Press Releases

Global Trivia Hit to Offer Competitive, Live Tournament-Style Play

Trivia Crack’s Millions of Daily Active Users Will Soon Be Able to Compete for Prizes

The most popular mobile trivia game in history, Trivia Crack is coming to Skillz (NYSE: SKLZ), the leading mobile games platform bringing fair and fun competition to players worldwide, the company announced today. As the number-one trivia franchise in the world, Trivia Crack is a global phenomenon available in more than 180 countries, 34 languages, and has more than 150 million active users annually.

Developed by etermax, one of the largest game developers in Latin America, the new Skillz-powered game will be the first trivia-based entertainment property of its kind to offer competitive, live tournament-style play for real-world prizes. It will also be the first to incorporate a collection of the best trivia features from the franchise that’s made Trivia Crack a fan favorite. The collaboration will connect Trivia Crack’s worldwide fan base with Skillz, which offers industry-leading monetization through its competitive tournament system. 

“etermax has challenged trivia fans across the globe with their hugely popular Trivia Crack games. Now Skillz will put fan knowledge to the test with the newest game in the franchise, built exclusively for our platform,” said Skillz CEO and Founder Andrew Paradise. “Trivia Crack has the potential to be one of the most popular competitive trivia games of our time, reaching new audiences and generations of players worldwide by adding even more fun to Skillz’s growing arsenal of games.”

Originally launched in 2013, Trivia Crack is one of the most beloved trivia-based, multi-platform entertainment franchises in the world. Ranked as the number-one trivia brand in more than 125 countries according to user ratings and reviews, the franchise includes several mobile titles such as Trivia Crack, Trivia Crack 2, Trivia Crack Adventure, and more. With over 600 million downloads worldwide, the Trivia Crack franchise is available on Android, iOS, Google Assistant, Amazon Alexa, Apple Watch, YouTube, and Twitch, and has also inspired a line of board games, figurines, consumer products, and the animated series Triviatopia. 

“Combining technology with creativity, data, and experimentation has pushed etermax to the forefront of mobile gaming, connecting players all over the world,” said etermax CEO and Founder Maximo Cavazzani. “We can’t wait to expand our franchise and fanbase by leveraging the Skillz competitive gaming platform, which will give our massive Trivia Crack family the opportunity to level up their trivia knowledge plus win prizes and, dare we say, illustrious bragging rights.”

 

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 number-one fastest-growing company in America on the Inc. 5000. www.skillz.com

 

About etermax

Founded in 2009 in Argentina, etermax is an international technology company, creator of global brands that connect, entertain and provide business value. Its Gaming division has exceeded 800 million downloads which highlights it as a leader in Latin America in the development of social games with successful IPs such as Trivia Crack and Word Crack, among others. The company also integrates a Brand Gamification division, a pioneer in the region in offering marketing and advertising solutions in the video game universe, with recreational experiences and special advertising formats in a network of thousands of titles, owned and represented. Furthermore, it has incorporated a division of Artificial Intelligence (“A.I”) focused on applying AI in the organization’s digital transformation. Constantly growing, etermax has teams in Argentina, Uruguay, Germany, Brazil, Colombia and Mexico.

 

Media Contact:

pr@skillz.com

Source: Skillz Inc.

 

Skillz Named to Fast Company’s Annual List of “100 Best Workplaces for Innovators”

By Skillz on August 4, 2021 in Press Releases

Skillz Makes Its Debut on Prestigious List, Joining Companies Including Google, IBM, Moderna, and Samsung

Skillz (NYSE: SKLZ), the leading mobile games platform bringing fair and fun competition to players worldwide, has been named to Fast Company’s third annual list of the “100 Best Workplaces for Innovators.” This latest honor follows a series of exemplary industry awards and accolades that Skillz has received, spotlighting the company’s commitment to pioneering the future of mobile gaming and esports. 

Skillz ranked #37 on the list, joining companies such as Google, IBM, Moderna, Samsung, General Motors, and Mattel, which are ranked, in the words of Fast Company Editor-in-Chief Stephanie Mehta, based on having “created cultures of innovation and sustained them, even as remote work extended into 2021.”

“This newest list of the Best Places to Work for Innovators honors those organizations that found ways to collaborate and invent despite the challenges posed by the pandemic, ensuring employees were at the forefront,” she added.

“At Skillz, we pride ourselves on creating a workplace where innovation and an entrepreneurial spirit thrive,” said Skillz CEO and Founder Andrew Paradise. “Being recognized by Fast Company for attracting, fostering, and retaining the best and brightest minds in our industry is a true honor, especially since our diverse, talented team is what’s driving us forward as we revolutionize the future of competitive entertainment.”

For its third annual list, Fast Company partnered with Accenture, a leading global professional services firm, to determine the 2021 Best Workplaces for Innovators. Fast Company’s editors and Accenture’s researchers combed through more than 1,500 organizations, from small nonprofits to top Fortune 500 companies, to determine the final rankings of winners around the world that, the magazine said, “share a passion for giving employees the freedom to explore creative ideas that benefit their businesses and their communities.” 

The Fast Company recognition is the latest in a series of such awards honoring Skillz as a great place to work. In May, the company was named to the 2021 “Best Places to Work” list published by the San Francisco Business Times and Silicon Valley Business Journal, which recognizes companies “known for recruiting and retaining the best and brightest employees.” The following month, Skillz was named to Parity.org’s 2021 “Best Companies for Women to Advance” List, which recognizes organizations with benefits, programs, and policies that ensure women have significant opportunities to advance their careers. Skillz joined other leading companies such as Airbnb, Salesforce, NASDAQ, Adobe, Fidelity Investments, Ralph Lauren, SAP, Best Buy, and PepsiCo on these lists.

A feature story on the 100 Best Workplaces for Innovators will be published in the September print edition of Fast Company, which will be on newsstands August 17th. 

For more information on why Skillz was named one of the “Best Workplaces for Innovators” and how to join the company’s rapidly growing team across a wide variety of departments and disciplines, please visit the Skillz careers page or LinkedIn.

 

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 Fast Company

Fast Company is the world’s leading progressive business media brand, with a unique editorial focus on innovation in technology, ethonomics (ethical economics), leadership, and design. Written for, by, and about the most progressive business leaders, Fast Company and FastCompany.com inspire readers and users to think beyond traditional boundaries, lead conversations, and create the future of business. 

 

Media Contact

pr@skillz.com 

Source: Skillz Inc. 

 

Skillz Reports Record Q2 Revenue and Updates 2021 Guidance

By Skillz on August 3, 2021 in Press Releases

– 22nd Consecutive Quarter of Growth

– Company Completes Aarki Acquisition and Investment in Exit Games in July

– Updates Organic Revenue Guidance Up to $376 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 second quarter ended June 30, 2021.

“Skillz is pleased to report strong revenue growth for the 22nd consecutive quarter and the closing of our acquisition of marketing platform Aarki, which will increase the efficiency of our user acquisition spend,” said Andrew Paradise, CEO and founder of Skillz. “Together with our partners, we continue to accelerate our vision of connecting the world through the power of competition.”

Q2 Financial Highlights

  • Revenue grew to $89.5 million during the second quarter of 2021, up 52% over the prior year.
  • Gross profit grew to $85.1 million during the second quarter of 2021, up 52% over the prior year.
  • Gross margin was 95% during the second quarter of 2021, in line with prior year.
  • Net loss increased to $79.6 million during the second quarter of 2021, compared with $20.2 million in the prior year.
  • Adjusted EBITDA was $(31.6) million during the second quarter of 2021, $28.3 million lower than the prior year.
  • Gross Marketplace Volume1 (GMV) grew to $608.5 million during the second quarter of 2021, up 47% over the prior year.
  • Cash on balance sheet of $692.8 million and no debt at the end of second quarter 2021.
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.

Q2 Business Highlights

  • Acquired Aarki, a growing demand-side platform with more than 465 million monthly users, rich data engines, and proprietary machine-learning algorithms that deliver industry-leading ROI to its advertiser customers. Aarki broadens Skillz’s footprint by combining Skillz’s leading monetization with Aarki’s advanced User Acquisition capabilities.
  • Formed a strategic alliance with Exit Games, a private German company whose advanced technology allows developers to create and host real-time, synchronous, multiplayer games. Skillz’s $50 million investment for a minority stake in Exit Games will give the Company permanent access to Exit’s technology to power its esports tournaments and platform exclusively, as well as dramatically accelerate the development of multiplayer synchronous content on the Skillz platform.
  • Officially launched our multi-phase partnership with the NFL, kicking off a developer challenge to identify new NFL-branded mobile game(s). Hundreds of game proposals were submitted, and in collaboration with the NFL, Skillz reviewed the concepts and selected 14 semi-finalists, who have moved into the development phase of the competition.
  • Launched Big Buck Hunter: Marksman, successfully advancing the mobile version of the legendary arcade game through the first phase of scale testing. Skillz continues to work to optimize performance in preparation for scaling.

Financial Outlook

The Company is updating its full-year 2021 revenue guidance from $375 million to $376 million for Skillz on a stand-alone basis, plus $13 million revenue contribution from the business combination with Aarki resulting in combined 2021 revenue of $389 million.

Investor Conference Call and Webcast

Earlier today, Skillz posted a stockholder letter and short video featuring Andrew Paradise, Founder and CEO at Skillz, discussing the second quarter results on its investor relations website at http://investors.skillz.com. A live question and answer conference call and audio webcast with analysts and investors will begin at 5:30pm Eastern Time (ET).

The Q&A conference call can be accessed by registering online for the Skillz Conference, 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. Registration to a live audio-webcast of the discussion in listen-only mode is available at webcast registration.

A replay of the webcast will be archived on the Company’s investor relations website. An audio replay of the Q&A conference call will be available through August 10, 2021 and can be accessed by dialing 1-929-458-6194 (domestic) or +44-204-525-0658 (international) and entering the passcode 684073.

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

Use of Non-GAAP Financial Measures

In this press release, the Company includes Adjusted EBITDA and Non-GAAP Operating Expenses, 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 measures contained in this press release to the most directly comparable measures under GAAP. The Company’s management believes Adjusted EBITDA and Non-GAAP Operating Expenses are useful in evaluating its operating performance and are similar measures reported by publicly-listed U.S. competitors, and regularly used by securities 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. 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.  Further, Non-GAAP Operating Expenses 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.  The Company defines and calculates Non-GAAP Operating Expenses as GAAP Operating Expenses adjusted for stock-based compensation, one-time transaction expenses and other special items determined by management, including, but not limited to 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) For the three and six months ended June 30, 2021, amounts represent one-time nonrecurring expenses related to the follow-on offering, Aarki acquisition, and executive severance expense.

(2) For the three and six months ended June 30, 2020, amounts represent an impairment charge of a lease deposit and prepayment in connection with a lease agreement related to our facilities in San Francisco.

(1) For the three and six months ended June 30, 2021, amounts represent one-time nonrecurring expenses related to the follow-on offering, Aarki acquisition, and executive severance expense.

(2) For the three and six months ended June 30, 2020, amounts represent an impairment charge of a lease deposit and prepayment in connection with a lease agreement related to our facilities in San Francisco.

(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: pr@skillz.com

Skillz Forms Strategic Partnership with Exit Games, Developer of Photon, World’s Most Advanced Synchronous Multiplayer Gaming Technology

By Skillz on July 31, 2021 in Press Releases

  • Skillz Accelerates Expansion into Racing, Fighting, and First-Person Shooter Genres with $50 Million Investment
  • Exit Games is the Leader in Synchronous Gaming Technology, Powering Publishers Such as EA, Square Enix, and Ubisoft
  • Alliance Provides Skillz with Platform Exclusivity, Making Skillz a Preferred Partner for Publishers and Developers 

Skillz (NYSE: SKLZ), the leading mobile games platform bringing fair and fun competition to players worldwide, today announced it has formed a strategic partnership with Exit Games, global developer of Photon, the world’s most advanced synchronous multiplayer gaming technology. 

Headquartered in Hamburg, Germany, Exit Games allows developers to create and host real-time, synchronous multiplayer games. Its nearly 600,000 trusted partners include some of the most well-respected game publishers and developers in the world, such as EA, Square Enix, and Ubisoft, among others, powering gameplay in over 700,000 applications. 

Skillz’s investment in Exit Games will give the Company permanent access to Exit’s technology to power its esports tournaments and platform exclusively. The partnership will dramatically accelerate Skillz’s timeline to support multiplayer synchronous content on the platform, while also enabling Skillz to build unrivaled features in tandem with Exit’s gaming technology. Publishers and developers worldwide will now have the ability to build games on the Skillz platform in entirely new genres, such as battle royale, while continuing to provide gamers with the confidence that their contests will always live up to the Skillz promise of fairness. 

“Bringing the world’s best synchronous, multiplayer gaming technology to Skillz unlocks tremendous opportunity, greatly accelerating our entry into popular genres like fighting, first-person shooter, and racing,” said Andrew Paradise, CEO and Founder of Skillz. “Expanding into these new areas will grow our total universe of players and allow us to capture an even greater share of their leisure time and spend, while also introducing the technology and infrastructure necessary to attract more of the hottest, most creative developers, publishers, brands, and iconic franchises to our platform.”

Under the terms of the deal, Skillz has invested $50 million for a minority stake in Exit Games. In addition, Paradise will join the Board of Exit Games as a board observer. 

“We are big admirers of Skillz and how they are innovating in the field of competitive gaming,” said Christof Wegmann, the Founder and CTO of Exit Games. “This investment is a natural fit. We’re pleased to have Skillz as a long-term partner in bringing synchronous play to our developers and their gaming fans around the world.”

LionTree Advisors served as financial advisor and Orrick served as legal advisor to Skillz in the transaction. GP Bullhound served as financial advisor and Taylor Wessing served as legal advisor to Exit Games.

 

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 Exit Games

Founded in 2004, Exit Games is the provider of Photon, the world’s leading realtime multiplayer technology and cloud service for mobile, PC, Mac, Web, Console, VR, AR & MR. Developers are using Photon to create games and applications that offer true synchronous realtime experiences that scale to millions of users. Photon powers thousands of games and applications enjoyed by over 500 million users a month. About 600,000 developers including some of the world’s leading companies trust in Photon to fuel their realtime experiences, such as Disney, Square Enix, Ubisoft, Garmin, Oculus, Atari, RecRoom, BandaiNamco or Volkswagen. www.photonengine.com

 

Media Contact:

pr@skillz.com 

Source: Skillz Inc.

Skillz to Acquire Aarki to Form First Integrated Esports Advertising Platform

By Skillz on June 2, 2021 in Press Releases

  • Aarki’s Advanced Machine Learning Algorithms to be Augmented by Skillz’s Deep First Party Data
  • Aarki’s Reach of More Than 465 Million Monthly Users Will Extend Skillz’s Player Acquisition Capabilities
  • Acquisition Agreement Expected to Close in Third Quarter 2021

Skillz (NYSE: SKLZ), the leading mobile games platform bringing fair and fun competition to players worldwide, today announced it has entered into an agreement to acquire Aarki, a leading technology-driven marketing platform. The highly complementary acquisition will broaden Skillz’s footprint across the rapidly expanding mobile gaming industry by combining its competitive platform with Aarki’s advanced advertising capabilities.

Aarki is a growing demand-side platform (DSP) with global scale and a proven track record in the mobile gaming market. Aarki engages in more than five trillion monthly advertising auctions. The company leverages its robust creative services, rich data engines, and proprietary machine learning algorithms to deliver industry-leading ROI for performance advertisers.

“Aarki’s proven machine learning will pair with Skillz’s robust first-party data to create an unrivaled value proposition for game developers,” said Skillz CEO Andrew Paradise. “The integrated ecosystem will unlock new points of connectivity between consumers, developers, and brands, pairing the right impression with the right user at the right time, all while delivering a superior user experience.”

“Joining Skillz will offer tremendous advantages to both the Aarki team and our customer community,” said Aarki CEO Levon Budagyan. “Harnessing the combined power of our data science platforms will further increase our industry-leading performance marketing.”

Aarki is headquartered in Sunnyvale, CA and its approximately 160 employees will join the Skillz workforce, with Budagyan continuing to lead the business as a division of Skillz.

Skillz will acquire 100% of Aarki for approximately $150 million in cash and stock. The transaction is subject to customary closing conditions and is expected to close in the third quarter of 2021.

LionTree Advisors served as financial advisor and Latham & Watkins LLP served as legal advisor to Skillz in the transaction.

Investor Conference Call and Webcast

The Company will host a conference call and audio webcast at 8:30 am Eastern Time, June 2, 2021 to discuss the transaction. The conference call can be accessed by registering online at 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. An audio replay of the conference call will be available from 11:30 am Eastern Time on June 2, 2021 through June 9, 2021 and can be accessed by dialing (800) 585-8367 (domestic) or (416) 621-4642 (international).

The conference call can also be accessed online by registering at webcast registration. An archived replay of the webcast will be available on the Skillz investor relations website following the conclusion of the call.

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 Aarki

Aarki helps brands grow and re-engage their mobile users, using machine learning (AI), big data, and engaging creative. We strive to deliver performance at scale across different marketing objectives to meet the target return on investment. Our data offers deep insights into user intent and usage habits. To drive performance, we activate our data assets through proprietary machine learning algorithms and engage users in real time with personalized creative. Aarki raised one institutional round of capital led by Walden Venture Capital. www.aarki.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: close the proposed acquisition of Aarki within the expected timeframe or at all; achieve the intended benefits of acquiring Aarki; acquire any regulatory approvals that may be required for the transaction; manage the impact of the transaction on the Company’s business, including any synergies from the transaction; effectively compete in the global entertainment, gaming, and mobile advertising 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.

 

Media Contact:

pr@skillz.com

Source: Skillz Inc.

Skillz Awarded “Best Places to Work” Distinction

By Skillz on May 7, 2021 in Press Releases

San Francisco Business Times and Silicon Valley Business Journal Give Skillz High Marks in Categories Including Leadership, Communications, and Team Dynamics

Skillz (NYSE: SKLZ), the leading mobile games platform bringing fair competition to players worldwide, today was named to the San Francisco Business Times and Silicon Valley Business Journal list of “Best Places to Work.” 

This recognition, which is given to top companies “known for recruiting and retaining the best and brightest employees,” is a testament to the culture and community Skillz has established over the past nine years. The accolade also puts Skillz in a notable group alongside other leading companies, including Salesforce, Fidelity Investments, and SAP.

Winners of this special honor are determined based on employee responses to the third-party Best Places to Work survey. The survey explores six distinct categories: Communications and Resources, Individual Needs, Manager Effectiveness, Personal Engagement, Team Dynamics, and Trust in Leadership. 

“Being named a ‘Best Place to Work’ is a tribute to all of our incredible Skillzians,” said Andrew Paradise, CEO and founder of Skillz. “Our people drive our success, and we take pride in fostering a dynamic, inclusive culture that inspires them to collaborate, push the limits of innovation, and have fun along the way.”

Skillz is leveling the esports playing field, a goal that is reflected in its company culture, which embraces fairness and accessibility. Each employee and team embodies Skillz’s core values – such as honor, collaboration, willingness, and balance – and is committed to infusing them into all they do.

Even in the face of the global pandemic, Skillzians’ company pride and camaraderie took center stage over the past year, driven by virtual employee esports tournaments, hangouts, game nights, and lunches. It comes as no surprise that Skillz employees are encouraged to play games during the workday, which helps them maintain a sense of community through friendly competition and empowers them to improve the Skillz platform with new features and game ideas. 

For more information on why Skillz was named a “Best Place to Work” and how to join the rapidly growing team across a wide variety of departments and disciplines, please visit the Skillz careers page or LinkedIn.

 

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 Contact

skillz@methodcommunications.com 

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.