Skillz (SKLZ)

What Moves the Stock

1. 01Monthly Active User (MAU) growth or contraction rates, particularly in core US market
2. 02Average Revenue Per User (ARPU) trends and user engagement metrics (sessions per user, tournament entry frequency)
3. 03Cash burn rate and runway to profitability or additional financing needs given negative operating cash flow
4. 04Regulatory developments affecting real-money gaming legality across US states and international markets
5. 05Partnership announcements with major game developers or distribution platforms
6. 06Platform transaction fees from cash-based competitive gaming tournaments (estimated 85-90% of revenue)
7. 07Advertising revenue from in-game placements and sponsorships (estimated 10-15% of revenue)
8. 08Developer partnership fees and revenue sharing arrangements

SKLZ Chart

My Notes

• Speculative growth investors and distressed/turnaround specialists.
• Rising interest rates negatively impact Skillz through multiple channels: (1) higher discount rates compress valuation multiples…
• Watch on earnings: US consumer sentiment (UMCSENT) as proxy for discretionary entertainment spending capacity, Federal funds rate and 10-year Treasury yield trends affecting valuation multiples for unprofitable tech, Personal consumption expenditures on recreation services as indicator of gaming spending appetite.