Skillz ( NYSE: SKLZ ) fell 12.2% postmarket Wednesday following second-quarter earnings where revenues fell and missed substantially, and the company slashed its full-year outlook.
Second-quarter revenues fell 18% to $73.3M, and were down 22% from the first quarter. And the company cut its full-year outlook for revenue to $275M, well short of consensus for $399.1M.
That cut is based on engagement marketing making up 42% of revenue, implying that revenue after engagement marketing will come in at $160M for the full year.
Correspondingly, it expects full-year margin on earnings before interest, taxes, depreciation and amortization will be about -56%.
Gross profit had fallen 24% sequentially to $64M.
CEO Andrew Paradise focused on cutting net loss by 59% quarter-over-quarter (net loss improved to $61M from last quarter's loss of $148M).
In operating metrics, paying monthly active users fell 26% from last quarter, to 0.42M. Monthly average revenue per paying user rose 6% over that period, to $58 from $55.
At quarter-end, liquidity was $590M, with about $300M in debt outstanding.
Conference call to come at 5:30 p.m. ET .
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Skillz slips 12% as revenue misses, outlook points to 2022 shortfall