Mobile game developer Skillz (NYSE:SKLZ) will be reporting earnings tomorrow after the bell. Here's what investors should know.
Last quarter Skillz reported revenues of $60.3 million, down 41% year on year, beating analyst revenue expectations by 17.7%. It was a mixed quarter for the company, with an impressive beat of analyst estimates but declining number of users. The company reported 320 thousand monthly active users, down 37.3% year on year.
Is Skillz buy or sell heading into the earnings? Read our full analysis here, it's free.
This quarter analysts are expecting Skillz's revenue to decline 55.2% year on year to $48.7 million, a further deceleration on the 60.7% year-over-year decrease in revenue the company had recorded in the same quarter last year. Adjusted loss is expected to come in at -$0.14 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 three times over the last two years.
Looking at Skillz's peers in the video gaming segment, some of them have already reported Q4 earnings results, giving us a hint of what we can expect. SciPlay delivered top-line growth of 17.9% year on year, beating analyst estimates by 2.23% and PlayStudios reported revenues up 10.4% year on year, exceeding estimates by 13.2%. Both companies (SciPlay and PlayStudios) traded flat on the result. Read our full analysis of SciPlay's results here and PlayStudios's results here.
Technology stocks have been hit hard on fears of higher interest rates and while some of the video gaming stocks have fared somewhat better, they have not been spared, with share price declining 3.94% over the last month. Skillz is down 21.9% during the same time, and is heading into the earnings with analyst price target of $1.4, compared to share price of $0.49.
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The author has no position in any of the stocks mentioned.