Mobile game developer Skillz (NYSE:SKLZ) will be reporting earnings tomorrow afternoon. Here's what to expect.
Last quarter Skillz reported revenues of $44.4 million, down 51.7% year on year, missing analyst expectations by 0.59%. It was a weak quarter for the company, with a decline in its user base and slow revenue growth. The company reported 214 thousand monthly active users, down 62.5% year on year.
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This quarter analysts are expecting Skillz's revenue to decline 41.9% year on year to $42.6 million, a further deceleration on the 18.1% year-over-year decrease in revenue the company had recorded in the same quarter last year. Adjusted loss is expected to come in at -$1.15 per share.
Majority of analysts covering the company have reconfirmed their estimates over the last thirty days, suggesting they are expecting the business to stay the course heading into the earnings. The company missed Wall St's revenue estimates five times over the last two years.
With Skillz being the first among its peers to report earnings this season, we don't have anywhere else to look at to get a hint at how this quarter will unravel for consumer internet stocks, but there has been positive sentiment among investors in the segment, with the stocks up on average 11.4% over the last month. Skillz is up 27.4% during the same time, and is heading into the earnings with analyst price target of $14.50, compared to share price of $12.14.
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The author has no position in any of the stocks mentioned.