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Skillz revenue up 92% in 2020 following public listing

News

Mobile multi-player gaming platform Skillz has released its fourth quarter and full year 2020 financial results, showing revenue of $230.1m for the year, up 92% from $119.9m in 2019.

Gross marketplace volume, meaning the total entry fees paid by users for contests hosted on Skillz’s platform, grew 80% to $1.59bn during 2020.

Total costs for the year came to $329.7m, with sales and marketing, general and administrative, and research and development costs accounting for $251.9m, $42.3m and $23.2m respectively.

This led to a loss from operations of $99.6m.

After a further $1.3m was lost in interest expenses and $21.4m in other expenses, net loss stood at $122.5m for 2020, compared to a net loss of $23.6m during 2019.

The fourth quarter saw the business bring in $67.7m in revenue, up 95% on the $34.7m earned in 2019, and 8% higher than expectations.

Gross profit for Q4 was $64.0m, up 95%. Net loss for the quarter was $44m following total costs and expenses of $111.0m, compared to a $9m net loss in Q4 2019.

The quarter saw Skillz bring in $463.0m in gross marketplace volume. As of December 31, Skillz held $262.7m in cash and no debt.

“Our first quarter as a publicly traded company was our twentieth consecutive quarter of revenue growth,” said Andrew Paradise, Skillz’s chief executive and founder. “We look forward to many more such quarters ahead.”

Last year, Skillz went public on the New York Stock Exchange through a merger with special purpose acquisition company Flying Eagle Acquisition Corp.

In February, it formed a partnership with the National Football League (NFL), for a competition to select a game developer to build a new, branded game for the league. The developer challenge is to launch in the second quarter of 2021.