Overview

• Mobile games platform's Q1 revenue rose yr/yr but missed analyst expectations

• Adjusted EBITDA loss narrowed compared to prior year

• Company won $420 mln jury award in false advertising case, pending final court ruling

Outlook

• Company did not provide specific guidance for the current quarter or full year

Result Drivers

• OPERATIONAL IMPROVEMENTS - Co said it made progress in improving its core operating businesses and reducing fraud, per CEO Andrew Paradise

• COST CONTROL - Excluding litigation-related expenses, adjusted EBITDA improved 15% quarter-over-quarter on a normalized basis, per CFO Gaetano Franceschi

Company press release: ID:nBw8qGvgja

Key Details

Metric	Beat/Miss	Actual	Consensus Estimate
Q1 Revenue	Miss	$29.11 mln	$31.27 mln (2 Analysts)
Q1 Net Income		-$10.95 mln
Q1 Adjusted EBITDA		-$12.80 mln
Q1 Gross Profit		$25.50 mln
Q1 Operating Income		-$8.75 mln
Q1 Pretax Profit		-$10.87 mln

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 1 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the online services peer group is "buy"

• Wall Street's median 12-month price target for Skillz Inc is $2.50, about 61.6% below its May 14 closing price of $6.51

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