Skillz Inc (NYSE: SKLZ), a leading mobile games platform, recently announced its financial results for the three months that ended on June 30, 2021. The report revealed a strong revenue growth by the company after closing its acquisition deal with the marketing platform, Aarki.
Financial summary
The company reported $85.9 million net revenue in the second quarter of 2021, a 52% growth compared to the second quarter of 2020. Gross profit was $85.1 million, also a 52% growth from a similar period in 2020.
Net loss was $79.6 million in the second quarter of 2021, compared to $20.2 million in the same period last year. Adjusted EBITDA, on the other hand, was $31.6 million in 2Q2021, a $28.3 million decrease from 2Q2020. Gross Marketplace Volume was $608.5 million in the second quarter of 2021, a 47% growth from last year’s comparative period. The company also reported $692.8 million in cash on the balance sheet and no debt at the end of 2Q2021.
Second-quarter highlights
In 2Q2021, Skillz acquired Aarki, a growing demand-side platform with upwards of 450 million monthly users, strong data engines, and closed source machine learning algorithms that provide its advertiser customers with industry-leading ROI. Aarki widens Skiillz’s foundation by combining its advanced user acquisition capabilities with Skillz’s leading monetization.
The company also formed a strategic alliance with Exit Games, a private German company whose advanced technologies provide a platform for developers to host multiple, synchronous, real-time multiplayer games. Skillz invested $50 million for a minority stake in the company, which will allow it access to Exit’s technology to exclusively host its sports tournaments on its platform while also significantly accelerating the development of multiplayer content on its platform.
Skillz also officially unveiled its multi-phase partnership with the NFL, starting a developer challenge to identify new NFL branded mobile games. Numerous proposals were submitted, and Skillz, together with the NFL, narrowed it down to 14 semi-finalists who have since moved on to the development phase.
In the same period, the company launched Big Buck Hunter: Marksman, successfully creating a mobile version of the celebrated arcade game. The game is still in the scale testing phase, as Skillz optimizes it in preparation for scaling.
