Skillz (SKLZ) 2020 Q4 Earnings Report in Focus

Skillz Inc. (NYSE:SKLZ) is an online mobile gaming platform that enables gamers to compete with each other in an online competition for cash prizes. All games available on the platform are skilled-based and designed by third-party developers. Skillz primarily makes money by receiving an entry fee from gamers to enter the platform. It went public in December by merging with a special purpose acquisition company named Flying Eagle Acquisition Corp.

The San Francisco, California-based gaming platform on Wednesday announced its quarterly results for the first time as a public company. Skillz reported revenue of $68 million for the fourth quarter ended December 31, well above $35 million in the comparable period of 2019.

Gross profit climbed 95 percent on a year-over-year basis to $64 million. However, net loss in the quarter increased to $44 million, as compared to a loss of $9 million in the year-ago quarter.

Skillz shares marginally moved up on Thursday after reporting its Q4 results. Overall, SKLZ stock has surged nearly 30 percent so far in 2021.

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

Skillz also issued its revenue outlook for fiscal 2021. The company expects to generate revenue of around $366 million in the current fiscal year, translating to year-over-year growth of 59 percent.

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The company currently depends on a limited number of games. However, it plans to grow by expanding its gaming lineup. As a part of that plan, Skillz recently inked a multi-year deal with the NFL to develop football games for mobile platforms.

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