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Skillz Inc. (SKLZ) Class A has submitted its 10-Q filing for the quarterly period ended September 30, 2024.
The filing includes financial statements for the quarter, showing a decrease in revenue to $24.6 million from $36.4 million in the same quarter the previous year. The decrease is attributed to a reduction in user acquisition and engagement marketing spend.
Cost of revenue for the quarter was $3.4 million, representing a decrease from $3.7 million in the same quarter of the previous year. This reduction was primarily due to lower payment processing and customer support costs.
The company reported a loss from operations of $21.0 million for the quarter, compared to $31.4 million in the previous year, with the improvement attributed to reduced operating expenses.
Interest income was $0.2 million for the quarter, compared to an interest expense of $2.3 million in the previous year, primarily due to the repurchase of debt.
Skillz recognized a gain from litigation settlement totaling $46.0 million for the nine months ended September 30, 2024, related to the settlement with AviaGames.
Research and development expenses decreased to $4.7 million from $7.9 million, primarily due to a reduction in employee-related costs.
Sales and marketing expenses decreased to $19.3 million from $31.9 million, driven by a strategic reduction in user acquisition and engagement marketing spend.
General and administrative expenses decreased to $18.1 million from $24.4 million, primarily due to lower legal fees and reduced reliance on temporary staffing.
The company reported a net loss of $21.1 million for the quarter, down from $33.5 million in the previous year. The improvement is attributed to reduced operating expenses and interest income.
Skillz had cash and cash equivalents of $301.4 million as of September 30, 2024. The company anticipates that existing liquidity resources are sufficient to continue operating activities for at least one year past the issuance date of the financial statements.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the Skillz Inc. Class A quarterly 10-Q report dated November 8, 2024. To report an error, please email earnings@qz.com.