Skillz Inc. (NYSE:SKLZ) Q2 2023 Earnings Call Transcript

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In fact, multiple of our existing developers who may have been on pause on further investment into the platform, have actually started investing again in building new content. It’s also led to second to several developers that had considered using Skillz to go to market in the past but they are now actually putting their games on the service. And then I’d say third, we’ve been getting a growing amount of very positive feedback in one-on-one discussions at developer conferences. So I think in general, the feedback is that the new model is a lot better, it’s easier to understand and it has rewards for developers in performing games which I think every one of our customers wants.

Jason Tilchen: Great. That was really helpful. One other question. Maybe you could just share a little bit more about the types of releases, we can maybe expect in that product pipeline. You talked about how you sort of see visibility for 18 months, is there anything else you can share that was — what we could maybe expect on that front?

Andrew Paradise: Yes. And thanks for asking about that, because probably the most encouraging thing that happened for me personally in the quarter is that we’ve started to release midsized features again. And make meaningful changes to retention, engagement and monetization. And we really entered turned around this business about a year ago. That just wasn’t the case. We haven’t put out a meaningful product in over 18 months. So we really came to a standstill on the development phase, as well as the testing phase and rollout. So where we are and some of the things that we can talk about from Q2, we launched daily challenges and we’re doing a full rollout in this quarter and in Q3. That is seeing double-digit improvements in our core metrics of retention, engagement and monetization.

We have key experience changes for the player coming in the back half of this year. So one of the things they call out is overhauling our league system as a genuine platform, you’d expect us to have really great leagues. We built a league technology that hasn’t seen an overhaul in quite some time. The new leagues will, I’d say, really deliver a more meaningful experience for every player at every level. And we think we — it’s too early to comment yet on the metrics there and what we’ll see. But we do believe that, that can result in a double-digit improvement in these core metrics of retention, engagement and monetization. We launched actually pretty excitingly end-to-end, we were able to release a feature in under 5 weeks which is much more like the old Skillz before we’ve gone to all the situation with the leasing product and that features instant match.

And what that is, is being able to pop a — basically a tile for a user as they’re playing and that says if — that gives them an opportunity to participate in a real-time match or potentially a slight upsell to their existing play behavior. That feature is already live in testing on the platform. And then I believe we’ll see roll out in Q3. We’ve overhauled chat but that’s in testing and not rolled. So that will be in the back half of this year. And also introducing probably long overdue for a platform but getting a single sign on up and really making that a reality for all the players in the platform. So maybe to recap that, because it’s quite a few things but progressively, instant matching, chat and single sign-on, with daily challenges launched in Q2 and enrolled in Q3.

Operator: Thank you. There are no additional questions waiting at this time. So I’ll pass the conference over to Andrew Paradise for any closing remarks.

Andrew Paradise: All right. Well, thank you all again for joining us today. We look forward to providing updates throughout the year in our progress as we return the company to sustain a profitable growth, including when to report on our third quarter results in November. I really appreciate the time and everyone’s patience as we complete this turnaround. And I feel confident that we can achieve many, many great things for the competition platform forward together.

Operator: This concludes today’s conference call. Thank you all for your participation. You may now disconnect your lines.

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