Stock Story -
Mobile game developer Skillz (NYSE:SKLZ) will be announcing earnings results tomorrow afternoon. Here's what investors should know.
Last quarter Skillz reported revenues of $36.43 million, down 38.5% year on year, missing analyst expectations by 8.5%. It was a weak quarter for the company, with a decline in its user base and slow revenue growth. The company reported 168,000 monthly active users, down 47.5% year on year.
Is Skillz buy or sell heading into the earnings? Find out by reading the original article on StockStory.
This quarter analysts are expecting Skillz's revenue to decline 18.5% year on year to $38.19 million, improvement on the 56.7% year-over-year decrease in revenue the company had recorded in the same quarter last year.
Majority of analysts covering the company have reconfirmed their estimates over the last thirty days, suggesting they are expecting the business to stay the course heading into the earnings. The company missed Wall St's revenue estimates six times over the last two years.
Looking at Skillz's peers in the consumer internet segment, some of them have already reported Q4 earnings results, giving us a hint of what we can expect. PlayStudios's revenues decreased 3.3% year on year, beating analyst estimates by 1.9% and Remitly (NASDAQ:RELY) reported revenues up 38.6% year on year, exceeding estimates by 1.3%. PlayStudios traded down 4.8% on the results, and Remitly was up 11.6%.
Read the full analysis of PlayStudios's and Remitly's results on StockStory.
There has been positive sentiment among investors in the consumer internet segment, with the stocks up on average 8.8% over the last month. Skillz is down 0.7% during the same time, and is heading into the earnings with analyst price target of $10.5, compared to share price of $6.83.