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September 01, 2020 1:41pm
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Skillz (SKLZ) To Report Earnings Tomorrow: Here Is What To Expect

SKLZ Cover Image

Mobile game developer Skillz (NYSE:SKLZ) will be announcing earnings results tomorrow afternoon. Here’s what investors should know.

Skillz missed analysts’ revenue expectations by 4.3% last quarter, reporting revenues of $25.3 million, down 37% year on year. It was a disappointing quarter for the company, with a miss of analysts’ user estimates. It reported 122,000 monthly active users, down 37.8% year on year.

Is Skillz a buy or sell going into earnings? Read our full analysis here, it’s free.

This quarter, analysts are expecting Skillz’s revenue to decline 26.8% year on year to $26.66 million, improving from the 38.5% decrease it recorded in the same quarter last year. Adjusted loss is expected to come in at -$0.92 per share.

Skillz Total Revenue

The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings.

Looking at Skillz’s peers in the consumer internet segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Roblox delivered year-on-year revenue growth of 28.8%, beating analysts’ expectations by 3.8%, and Electronic Arts reported revenues up 5.8%, topping estimates by 2.3%. Roblox traded up 19.2% following the results while Electronic Arts was also up 2.5%.

Read our full analysis of Roblox’s results here and Electronic Arts’s results here.

There has been positive sentiment among investors in the consumer internet segment, with share prices up 8.6% on average over the last month. Skillz is up 5.4% during the same time and is heading into earnings with an average analyst price target of $9.50 (compared to the current share price of $5.68).

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