Analysts Have Lowered Expectations For Skillz Inc. (NYSE:SKLZ) After Its Latest Results

Ladies and gentlemen, buckle up! We've got a wild ride ahead as we dive into the latest developments surrounding Skillz Inc. (NYSE: SKLZ). The mobile gaming platform has just released its fourth-quarter and full-year 2024 financial results, and let me tell you, the market is not happy with what it sees. Analysts have slashed their expectations, and the stock is feeling the heat. Let's break it down!



First things first, the numbers are in, and they're not pretty. Skillz reported a revenue of $95.5 million for the full year 2024, a whopping 37.23% decrease from the previous year's $152.08 million. That's a massive hit, folks! And if that wasn't bad enough, the company posted a net loss of $48.2 million for the year. Ouch! The adjusted EBITDA for 2024 was a staggering $(63.0) million, highlighting the company's financial struggles.

Now, let's talk about the analysts. They've been busy revising their forecasts, and the news isn't good. The consensus now expects revenues of $87.4 million for 2025, an 8.5% decline from the previous year. And get this—the loss per share is forecasted to balloon by 87% to $5.06 per share. That's a brutal downgrade, folks!

But wait, there's more! The average price target for Skillz has been lifted 7.9% to $10.25, signaling that the weaker revenue and EPS outlook aren't expected to weigh on the stock over the longer term. However, the range of analyst price targets is wide, with the most optimistic at $15.00 per share and the most pessimistic at $5.50. That's a huge gap, indicating a lot of uncertainty in the market.

So, what's Skillz doing to turn things around? The company has launched a $75 million developer accelerator program to drive innovation and expand its offerings. This is a bold move, and it could pay off in the long run. But for now, the market is skeptical. The paying monthly active users (PMAU) have been improving sequentially each month from November 2024 through February 2025, which is a positive sign. However, the overall financial performance still leaves a lot to be desired.



Now, let's talk about the market sentiment. The stock has seen significant fluctuations, with a 5.18% increase over the past five days but a 2.98% decrease over the past year. This volatility is a clear indication of the mixed sentiment surrounding the company. Investors are torn between the company's recent financial struggles and its strategic initiatives aimed at driving growth.

So, what's the bottom line? Skillz Inc. is facing some serious challenges, and the market is reflecting that. The recent financial results have led to a downward revision of forecasts, and the stock is feeling the heat. However, the company's strategic initiatives, such as the $75 million developer accelerator program, could pay off in the long run. It's a risky play, but if you're bullish on the mobile gaming sector, this could be an opportunity to get in at a discount.

But remember, folks, this is a high-risk, high-reward situation. You need to do your own research and make an informed decision. Don't just follow the crowd—make your own call!

Stay tuned for more updates, and remember, the market is always full of surprises. Keep your eyes on the ball, and you'll be just fine!