Mobile game developer Skillz (NYSE: SKLZ) will be reporting results this Thursday before market hours. Here’s what you need to know.
Skillz beat analysts’ revenue expectations by 19.9% last quarter, reporting revenues of $27.37 million, up 8.2% year on year. It was an incredible quarter for the company, with a solid beat of analysts’ EBITDA estimates and an impressive beat of analysts’ revenue estimates. It reported 146,000 monthly active users, up 19.7% year on year.
Is Skillz a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, analysts are expecting Skillz’s revenue to grow 18.3% year on year to $29.07 million, a reversal from the 32.6% decrease it recorded in the same quarter last year. Adjusted loss is expected to come in at -$1.28 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Skillz has missed Wall Street’s revenue estimates six times over the last two years.
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. Electronic Arts’s revenues decreased 11.5% year on year, beating analysts’ expectations by 1%, and EverQuote reported revenues up 20.3%, topping estimates by 4.3%. Electronic Arts’s stock price was unchanged after the resultswhile EverQuote was up 8.3%.
Read our full analysis of Electronic Arts’s results here and EverQuote’s results here.
The outlook for 2025 remains clouded by potential trade policy changes and corporate tax discussions, which could impact business confidence and growth. While some of the consumer internet stocks have shown solid performance in this choppy environment, the group has generally underperformed, with share prices down 7.7% on average over the last month. Skillz is down 21.4% during the same time and is heading into earnings with an average analyst price target of $10.75 (compared to the current share price of $6.16).
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