Latest news with #Skillz
Yahoo
30-06-2025
- Business
- Yahoo
Skillz's Q1 Earnings Call: Our Top 5 Analyst Questions
Skillz's first quarter results were received positively by the market, with management attributing performance to ongoing improvements in user engagement and operational cost controls. CEO Andrew Paradise emphasized the impact of their four-pillar strategy, noting that new initiatives such as the Accelerator program and focused marketing to lapsed users helped drive sequential growth in paying users. Management also highlighted ongoing industry litigation as a factor affecting the competitive landscape, underscoring the company's commitment to fair play and transparency. CFO Gaetano Franceschi pointed to reduced operating expenses and improved cash management as key elements supporting financial stability during the quarter. Is now the time to buy SKLZ? Find out in our full research report (it's free). Revenue: $22.41 million vs analyst estimates of $20.75 million (11.2% year-on-year decline, 8% beat) EPS (GAAP): -$0.92 vs analyst estimates of -$1.10 (16.4% beat) Adjusted EBITDA: -$15.06 million vs analyst estimates of -$15.95 million (-67.2% margin, 5.6% beat) Operating Margin: -59.2%, up from -106% in the same quarter last year Paying Monthly Active Users: 124,000, up 3,000 year on year Market Capitalization: $106.2 million While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention. Analysts would likely have asked for more details on the expected timeline and measurable impact of the Accelerator program on user growth and revenue. Questions may have centered around the company's ability to maintain or further improve its cost structure, and expectations for reaching positive adjusted EBITDA. Given ongoing litigation, analysts would have probed management about legal expenses, settlement timing, and any risk to cash reserves or operations. There would have been interest in how Skillz plans to differentiate itself against international competitors allegedly using unfair tactics, and how that impacts market share. Analysts might have sought clarification on trends in user reactivation—specifically, the sustainability of sequential gains in paying monthly active users and conversion rates. In the coming quarters, the StockStory team will be watching (1) the impact of the Accelerator program on new game launches and user acquisition, (2) continued progress in reducing operating expenses and improving cash flow, and (3) any developments in industry litigation that might influence market share or competitive dynamics. Demonstrated growth in paying users and traction with new game genres will also be critical signposts for Skillz's turnaround. Skillz currently trades at $6.47, up from $5.28 just before the earnings. Is there an opportunity in the stock?The answer lies in our full research report (it's free). Market indices reached historic highs following Donald Trump's presidential victory in November 2024, but the outlook for 2025 is clouded by new trade policies that could impact business confidence and growth. While this has caused many investors to adopt a "fearful" wait-and-see approach, we're leaning into our best ideas that can grow regardless of the political or macroeconomic climate. Take advantage of Mr. Market by checking out our Top 5 Growth Stocks for this month. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025). Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-small-cap company Exlservice (+354% five-year return). Find your next big winner with StockStory today. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
24-06-2025
- Business
- Yahoo
1 Unprofitable Stock Worth Your Attention and 2 to Approach with Caution
Running at a loss can be a red flag. Many of these businesses face mounting challenges as competition increases and funding becomes harder to secure. Unprofitable companies face an uphill battle, but not all are created equal. Luckily for you, StockStory is here to separate the promising ones from the weak. Keeping that in mind, here is one unprofitable company investing heavily to secure market share and two best left off your radar. Trailing 12-Month GAAP Operating Margin: -37.5% Taking a new twist at video gaming, Skillz (NYSE:SKLZ) offers developers a platform to create and distribute mobile games where players can pay fees to compete for cash prizes. Why Should You Sell SKLZ? Struggled with new customer acquisition as its paying monthly active users averaged 33.6% declines Suboptimal cost structure is highlighted by its history of EBITDA margin losses Cash burn makes us question whether it can achieve sustainable long-term growth At $6.69 per share, Skillz trades at 1.3x forward price-to-gross profit. If you're considering SKLZ for your portfolio, see our FREE research report to learn more. Trailing 12-Month GAAP Operating Margin: -1% Founded in Toronto, Canada in 2014, The Real Brokerage (NASDAQ:REAX) is a technology-driven real estate brokerage firm combining a tech-centric model with an agent-centric philosophy. Why Is REAX Risky? Historical operating margin losses point to an inefficient cost structure Incremental sales over the last five years were much less profitable as its earnings per share fell by 9% annually while its revenue grew Poor free cash flow margin of 3.3% for the last two years limits its freedom to invest in growth initiatives, execute share buybacks, or pay dividends The Real Brokerage is trading at $4.15 per share, or 15.5x forward EV-to-EBITDA. Read our free research report to see why you should think twice about including REAX in your portfolio, it's free. Trailing 12-Month GAAP Operating Margin: -1.3% Founded by Caltech professor Carver Mead and one of his students Chris Diorio, Impinj (NASDAQ:PI) is a maker of radio-frequency identification (RFID) hardware and software. Why Do We Watch PI? Impressive 11.9% annual revenue growth over the last two years indicates it's winning market share this cycle Incremental sales significantly boosted profitability as its annual earnings per share growth of 49.5% over the last five years outstripped its revenue performance Free cash flow margin expanded by 23.7 percentage points over the last five years, providing additional flexibility for investments and share buybacks/dividends Impinj's stock price of $108 implies a valuation ratio of 66.4x forward P/E. Is now the time to initiate a position? See for yourself in our full research report, it's free. Market indices reached historic highs following Donald Trump's presidential victory in November 2024, but the outlook for 2025 is clouded by new trade policies that could impact business confidence and growth. While this has caused many investors to adopt a "fearful" wait-and-see approach, we're leaning into our best ideas that can grow regardless of the political or macroeconomic climate. Take advantage of Mr. Market by checking out our Top 6 Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025). Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today for free. Find your next big winner with StockStory today. Find your next big winner with StockStory today Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
10-06-2025
- Business
- Yahoo
SKLZ Q1 Earnings Call: Management Details Litigation Progress and Product Pipeline Expansion
Mobile game developer Skillz (NYSE:SKLZ) reported Q1 CY2025 results beating Wall Street's revenue expectations , but sales fell by 11.2% year on year to $22.41 million. Its GAAP loss of $0.92 per share was 16.4% above analysts' consensus estimates. Is now the time to buy SKLZ? Find out in our full research report (it's free). Revenue: $22.41 million vs analyst estimates of $20.75 million (11.2% year-on-year decline, 8% beat) EPS (GAAP): -$0.92 vs analyst estimates of -$1.10 (16.4% beat) Adjusted EBITDA: -$15.06 million vs analyst estimates of -$15.95 million (-67.2% margin, 5.6% beat) Operating Margin: -59.2%, up from -106% in the same quarter last year Paying Monthly Active Users: 124,000, up 3,000 year on year Market Capitalization: $98.74 million Skillz's first quarter results were shaped by ongoing efforts to strengthen its platform and defend its position in the skill-based mobile gaming industry. CEO Andrew Paradise opened the call by emphasizing the importance of the company's litigation against competitors accused of unfair practices, which management believes have negatively impacted Skillz's performance. The company highlighted operational improvements, including the launch of its Accelerator program aimed at increasing developer engagement and expanding its portfolio of skill-based games. CFO Gaetano Franceschi noted that year-over-year declines in revenue were partially offset by sequential growth and improved user conversion rates, driven by targeted marketing to lapsed users and disciplined expense management. Looking ahead, Skillz's management is focused on advancing its four strategic pillars, with particular emphasis on expanding its game offerings and improving player engagement. Paradise stated, "Momentum around our Accelerator program helped make the recent Game Developer Conference one of our most successful to date in terms of developer engagement." The company expects to deploy up to $75 million over the next three years to support at least 25 new high-potential games, aiming to broaden its appeal beyond casual genres. Management also reiterated its intent to achieve positive adjusted EBITDA, with Franceschi highlighting that improving cash burn and a strong balance sheet provide flexibility for continued investment. However, the company acknowledged ongoing risks related to industry litigation and competitive pressures. Skillz's first quarter was influenced by ongoing legal disputes, targeted marketing to reengage users, and investments in new game development. Management pointed to both external pressures and internal changes as drivers of recent performance. Industry litigation and fair play: Management devoted significant attention to ongoing lawsuits against international competitors Papaya and Voodoo, alleging the use of bots to create unfair gameplay environments. Paradise asserted that these practices have undermined player trust and directly harmed Skillz's business, positioning the litigation as critical to both industry integrity and the company's own prospects. Accelerator program launch: The introduction of the Accelerator program was central to management's strategy for reinvigorating developer engagement and expanding the portfolio of skill-based games. The program is designed to support at least 25 new games from a mix of genres, with Paradise describing strong developer interest and plans to deploy up to $75 million over three years. Operational restructuring: Management discussed scaling and optimizing its teams in Las Vegas and Bangalore, which they believe will improve efficiency across product development, marketing, and analytics. These initiatives are intended to support long-term platform enhancements and operational consistency. Paying user growth via reengagement: The increase in paying monthly active users was attributed to cost-effective marketing campaigns targeting lapsed users. Management expects that spend from these reengaged players will increase over time, supporting both top-line growth and improved customer lifetime value metrics. Expense discipline and cash management: Franceschi highlighted lower general and administrative costs and improvements in cash burn, aided by a $7.5 million settlement payment from AviaGames. Management indicated that a strong cash balance and ongoing cost management provide runway for continued investment and turnaround initiatives. Skillz's outlook centers on broadening its game library, driving user engagement, and navigating ongoing legal and industry headwinds. Expansion into new game genres: Management is prioritizing the Accelerator program to diversify Skillz's content library, aiming to attract a wider audience by moving beyond traditional casual games. The company expects new game launches to drive higher engagement and potentially increase paying user conversion rates over time. Path to profitability: Management reiterated its goal of achieving positive adjusted EBITDA, focusing on both revenue growth and expense control. Franceschi noted that improving operating cash burn and disciplined marketing spend will be essential to reaching sustainable profitability. Litigation and industry risks: Ongoing legal disputes with competitors continue to represent a significant external risk. Management believes that resolving these issues in Skillz's favor could enhance the company's position in the industry, but acknowledged that uncertainty remains around the timing and outcome of litigation. In coming quarters, the StockStory team will be monitoring (1) progress in the development and release of new games under the Accelerator program, (2) trends in paying user growth and user engagement metrics, and (3) updates on the resolution or advancement of key legal disputes with international competitors. Additionally, we will track whether continued expense discipline translates into sustained improvements in operating margins and cash burn. Skillz currently trades at a forward price-to-gross profit ratio of 1.2×. In the wake of earnings, is it a buy or sell? Find out in our full research report (it's free). The market surged in 2024 and reached record highs after Donald Trump's presidential victory in November, but questions about new economic policies are adding much uncertainty for 2025. While the crowd speculates what might happen next, we're homing in on the companies that can succeed regardless of the political or macroeconomic environment. Put yourself in the driver's seat and build a durable portfolio by checking out our Top 9 Market-Beating Stocks. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025). Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
09-06-2025
- Business
- Yahoo
3 Hyped Up Stocks Skating on Thin Ice
The stocks featured in this article are seeing some big returns. Over the past month, they've outpaced the market due to new product launches, positive news, or even a dedicated social media following. However, not all companies with momentum are long-term winners, and many investors have lost money by following short-term trends. Keeping that in mind, here are three stocks getting more buzz than they deserve and some you should buy instead. One-Month Return: +12.9% Taking a new twist at video gaming, Skillz (NYSE:SKLZ) offers developers a platform to create and distribute mobile games where players can pay fees to compete for cash prizes. Why Is SKLZ Risky? Paying Monthly Active Users have declined by 33.6% annually over the last two years, suggesting it may need to revamp its features or user experience to stay competitive Poor expense management has led to EBITDA margin losses Cash-burning history makes us doubt the long-term viability of its business model Skillz's stock price of $6.30 implies a valuation ratio of 1.3x forward price-to-gross profit. To fully understand why you should be careful with SKLZ, check out our full research report (it's free). One-Month Return: +8.3% Formed from the merger of WarnerMedia and Discovery, Warner Bros. Discovery (NASDAQ:WBD) is a multinational media and entertainment company, offering television networks, streaming services, and film and television production. Why Do We Pass on WBD? Annual sales declines of 4.9% for the past two years show its products and services struggled to connect with the market Performance over the past five years shows its incremental sales were much less profitable, as its earnings per share fell by 55.1% annually Diminishing returns on capital from an already low starting point show that neither management's prior nor current bets are going as planned At $9.82 per share, Warner Bros. Discovery trades at 178.5x forward P/E. Read our free research report to see why you should think twice about including WBD in your portfolio, it's free. One-Month Return: +8.7% Born from IBM's managed infrastructure services business in a 2021 spinoff, Kyndryl (NYSE:KD) is the world's largest IT infrastructure services provider that designs, builds, and manages technology environments for enterprise customers. Why Is KD Not Exciting? Customers postponed purchases of its products and services this cycle as its revenue declined by 6% annually over the last four years Poor free cash flow margin of 0.3% for the last five years limits its freedom to invest in growth initiatives, execute share buybacks, or pay dividends Push for growth has led to negative returns on capital, signaling value destruction Kyndryl is trading at $40.37 per share, or 19.5x forward P/E. Dive into our free research report to see why there are better opportunities than KD. The market surged in 2024 and reached record highs after Donald Trump's presidential victory in November, but questions about new economic policies are adding much uncertainty for 2025. While the crowd speculates what might happen next, we're homing in on the companies that can succeed regardless of the political or macroeconomic environment. Put yourself in the driver's seat and build a durable portfolio by checking out our Top 5 Growth Stocks for this month. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025). Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today for free. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
28-05-2025
- Business
- Yahoo
3 Reasons to Avoid SKLZ and 1 Stock to Buy Instead
While the broader market has struggled with the S&P 500 down 1.9% since November 2024, Skillz has surged ahead as its stock price has climbed by 10.7% to $6.31 per share. This was partly due to its solid quarterly results, and the run-up might have investors contemplating their next move. Is now the time to buy Skillz, or should you be careful about including it in your portfolio? Get the full stock story straight from our expert analysts, it's free. We're happy investors have made money, but we're cautious about Skillz. Here are three reasons why we avoid SKLZ and a stock we'd rather own. As a video gaming company, Skillz generates revenue growth by expanding both the number of people playing its games as well as how much each of those players spends on (or in) their games. Skillz struggled with new customer acquisition over the last two years as its paying monthly active users have declined by 33.6% annually to 124,000 in the latest quarter. This performance isn't ideal because internet usage is secular, meaning there are typically unaddressed market opportunities. If Skillz wants to accelerate growth, it likely needs to enhance the appeal of its current offerings or innovate with new products. EBITDA is a good way of judging operating profitability for consumer internet companies because it excludes various one-time or non-cash expenses (depreciation), providing a more standardized view of the business's profit potential. Skillz's expensive cost structure has contributed to an average EBITDA margin of negative 54.3% over the last two years. Unprofitable consumer internet companies require extra attention because they spend heaps of money to capture market share. As seen in its historically underwhelming revenue performance, this strategy hasn't worked so far, and it's unclear what would happen if Skillz reeled back its investments. Wall Street seems to think it will face some obstacles, and we tend to agree. If you've followed StockStory for a while, you know we emphasize free cash flow. Why, you ask? We believe that in the end, cash is king, and you can't use accounting profits to pay the bills. Skillz's demanding reinvestments have drained its resources over the last two years, putting it in a pinch and limiting its ability to return capital to investors. Its free cash flow margin averaged negative 36%, meaning it lit $36.04 of cash on fire for every $100 in revenue. We see the value of companies helping consumers, but in the case of Skillz, we're out. With its shares beating the market recently, the stock trades at 1.3× forward price-to-gross profit (or $6.31 per share). While this valuation is optically cheap, the potential downside is huge given its shaky fundamentals. There are better stocks to buy right now. We'd suggest looking at the most dominant software business in the world. Market indices reached historic highs following Donald Trump's presidential victory in November 2024, but the outlook for 2025 is clouded by new trade policies that could impact business confidence and growth. While this has caused many investors to adopt a "fearful" wait-and-see approach, we're leaning into our best ideas that can grow regardless of the political or macroeconomic climate. Take advantage of Mr. Market by checking out our Top 5 Strong Momentum Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025). Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Kadant (+351% five-year return). Find your next big winner with StockStory today. Sign in to access your portfolio
