Skillz Inc. (SKLZ) Q3 Loss Widens, Surpassing Consensus Estimate
In a recent financial report, Skillz Inc. (SKLZ) announced a wider-than-expected quarterly loss for Q3 2022. The loss amounted to $1.50 per share, surpassing the Zacks Consensus Estimate of a loss of $1.07 per share. This represents a significant increase compared to the loss of $1.04 per share reported in the same quarter last year.
Detailed Analysis of Skillz Inc.’s Q3 Financial Performance
Skillz Inc., a leading mobile games platform, reported a disappointing Q3 performance with a larger-than-anticipated loss. This unexpected outcome was influenced by several factors, including increased operating expenses and decreased revenue.
Operating Expenses
- The company’s operating expenses rose by 27% year-over-year, reaching $131.3 million in Q3 2022.
- The primary contributors to this increase were sales and marketing expenses, which grew by 37% to $101.5 million, and research and development expenses, which grew by 16% to $30.1 million.
Revenue
- Total revenue for Q3 2022 came in at $118.3 million, marking a 13% decrease from the same period last year.
- The decline in revenue was driven by a decrease in average bookings per daily active user (DAU) and a decrease in the number of DAUs.
Impact on Individual Investors
The wider-than-expected loss reported by Skillz Inc. may negatively impact individual investors holding SKLZ stocks. The company’s stock price dropped by approximately 10% following the release of the Q3 financial report.
Global Implications
- The disappointing financial performance of Skillz Inc. could potentially impact the mobile gaming industry as a whole, as investors may lose confidence in the sector.
- Additionally, the company’s increased operating expenses may put pressure on other mobile gaming companies to manage their expenses more carefully.
Conclusion
Skillz Inc.’s Q3 financial report revealed a wider-than-expected loss, with the company reporting a loss of $1.50 per share versus the Zacks Consensus Estimate of $1.07. This outcome was influenced by increased operating expenses and decreased revenue. The negative impact on individual investors holding SKLZ stocks is evident, with the stock price dropping by approximately 10% following the report. Additionally, the global implications of this disappointing performance may put pressure on the mobile gaming industry as a whole.
Investors and industry experts will be closely monitoring Skillz Inc.’s future financial reports to assess the company’s ability to turn its financial performance around. The company’s management team will need to address the underlying causes of the increased operating expenses and decreased revenue in order to regain investor confidence.
