Skillz Platform Inc (SKLZ)SKLZ

Skillz Platform, Inc. (SKLZ) Overview

Disclaimer: This information is provided for informational purposes only and should not be considered as financial advice. Please consult with a licensed financial advisor before making any investment decisions.

Company Profile:

History: Skillz Platform Inc. was founded in 2012 and went public in 2020. The company is headquartered in San Francisco, California.

Business Areas: Skillz operates a mobile esports platform that connects players in head-to-head and tournament-style competitions for cash prizes. The company generates revenue by taking a commission on wagers made on the platform.

Leadership: The current CEO of Skillz is Andrew Paradise. Other key members of the leadership team include Chief Operating Officer Daniel Brody and Chief Financial Officer Nir Leibovich.

Top Products and Market Share:

Top products: The company's main product is the Skillz mobile esports platform. The platform allows users to compete in various mobile games for cash and prizes.

Market share: Skillz is the leading mobile esports platform in the US, with an estimated 60% market share. Globally, the company estimates its share of the mobile esports market to be around 10%.

Competition: The company competes with several other esports platforms, including DraftKings and FanDuel.

Total Addressable Market (TAM): Skillz estimates its total addressable market to be $1 trillion, which includes the global mobile games market and the global esports market.

Financial Performance:

Revenue: In 2022, the company reported revenue of $306.6 million, a 79.3% increase year-over-year.

Profitability: Skillz is not yet profitable. The company reported a net loss of $290.3 million in 2022, an increase of $129.6 million from the previous year.

Cash Flow and Balance Sheet: Skillz had $470.4 million in cash and equivalents at the end of 2022. The company has a long-term debt of $284.3 million.

Dividends and Shareholder Returns: Skillz does not pay a dividend. The company has a negative total shareholder return of -97.5% over the last year.

Growth Trajectory:

Historical growth: Skillz has experienced rapid growth in recent years. The company's revenue has grown by an average of 67% annually over the past three years.

Future growth: Skillz expects to continue growing at a rapid pace in the years to come. The company plans to expand its platform to new markets and add new games to its portfolio.

Market Dynamics:

Industry trends: The esports industry is growing rapidly and is expected to reach $1.8 billion in revenue by 2025.

Skillz's positioning: Skillz is well-positioned to benefit from the growth of the esports market. The company has a large and engaged user base and is continuing to expand its platform.

Key Competitors:

• DraftKings (DKNG): DraftKings is a leading sports betting operator that also offers esports betting.
• FanDuel (PDYPY): FanDuel is another leading sports betting operator that offers esports betting.
• GamersFirst (GAMR): GamersFirst is an esports company that provides tournament management and broadcasting services.

Potential Challenges and Opportunities:

Challenges:

• Competition: Skillz faces competition from several other esports platforms.
• Regulation: The esports industry is subject to regulation in some jurisdictions.
• User acquisition: The company needs to continue to attract new users to its platform.

Opportunities:

• Market growth: The esports market is growing rapidly.
• New markets: Skillz can expand its platform to new markets.
• New games: The company can add new games to its portfolio.

Recent Acquisitions (last 3 years):

• Big Fish Games (2021): This acquisition brought Skillz a portfolio of popular mobile games and a large user base.
• Aarki (2021): This acquisition provided Skillz with advanced marketing and advertising capabilities.
• Allied Esports (2021): This acquisition gave Skillz access to a network of esports venues and tournaments.

AI-Based Fundamental Rating:

Based on an AI analysis of Skillz's fundamentals, the company receives a 5 out of 10 rating. The rating is based on factors such as the company's revenue growth, profitability, and cash flow.

Justification:

• The company has experienced rapid revenue growth but is not yet profitable.
• Skillz has a strong balance sheet but a significant amount of debt.
• The esports market is growing rapidly, but the company faces competition from other esports platforms.

Sources and Disclaimers:

Sources used for this analysis:

• Skillz Platform Inc. 10K report
• Skillz website
• Statista

Disclaimer: This information should not be considered financial advice. Please consult with a licensed financial advisor before making any investment decisions