Skillz (NYSE:SKLZ) is nose-diving after hours, 29% lower after its fourth-quarter earnings missed on top and bottom lines amid a wider loss.
Revenues grew 61% to $108.8 million, short of consensus for $114.1 million.
That was primarily driven by growth in paying monthly active users, it says, which grew by 56% to 0.61 million. Monthly average revenue per paying user rose 3% year-over-year, to $59.
“We achieved a lot, but we did not accomplish all the aggressive goals we had set for 2021,” Skillz says – notably full-year revenue of $384.1 million that fell short of management guidance for $389 million.
Gross profit rose 56% to $100.4 million. But net loss widened to $99 million, from a prior-year loss of $67 million.
“Last year, we made substantial investments in our infrastructure necessary to build the competition layer of the Internet,” says CEO Andrew Paradise. “We are now entering a new phase, where we will shift focus to profitable growth through improving marketing efficiency, and deploying fewer but more impactful product features.”
It's initiating 2022 revenue guidance at $400 million, well short of consensus for $548.8 million. It's basing the estimate on an expected reduction in engagement marketing as a percentage of revenue of about 10 points, vs. the 49% or revenue in 2021.
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