Earnings results often indicate what direction a company will take in the months ahead. With Q4 now behind us, let’s have a look at Skillz (NYSE:SKLZ) and its peers.

Since videogames were invented in the 1970s, they have gradually taken more share of entertainment time. Ubiquitous mobile devices have powered a surge in “snackable” games that can be played on the go. Over time, games have developed more social engagement features where friends can play games together over the internet. The business models of games publishers have become less volatile due to digitization of distribution, in game monetization, and like Hollywood, an increasing dependence on surefire hit franchises. Covid driven lockdowns accelerated adoption and usage of videogames – a trend that has not slowed.

The 4 video gaming stocks we track reported a weak Q4; on average, revenues missed analyst consensus estimates by 17.7%. while next quarter's revenue guidance was 11% below consensus. Inflation progressed towards the Fed's 2% goal at the end of 2023, leading to strong stock market performance. The start of 2024 has been a bumpier ride, as the market switches between optimism and pessimism around rate cuts due to mixed inflation data, and video gaming stocks have had a rough stretch, with share prices down 5.9% on average since the previous earnings results.

Weakest Q4: Skillz (NYSE:SKLZ)

Taking a new twist at video gaming, Skillz (NYSE:SKLZ) offers developers a platform to create and distribute mobile games where players can pay fees to compete for cash prizes.

Skillz reported revenues of $29.14 million, down 37.8% year on year, falling short of analyst expectations by 23.5%. It was a weak quarter for the company, with a decline in its users and slow revenue growth.

Skillz delivered the slowest revenue growth of the whole group. The company reported 137,000 monthly active users, down 41.7% year on year. The stock is down 3% since the results and currently trades at $6.21.

Read our full report on Skillz here, it's free.

Best Q4: Roblox (NYSE:RBLX)

Best known for its wide assortment of user-generated content, Roblox (NYSE:RBLX) is an online gaming platform and game creation system.

Roblox reported revenues of $749.9 million, up 29.5% year on year, falling short of analyst expectations by 30.4%. It was a slower quarter for the company, with a miss of analysts' revenue estimates.

Roblox achieved the fastest revenue growth but had the weakest performance against analyst estimates among its peers. The company reported 71.5 million daily active users, up 21.6% year on year. The stock is down 3.4% since the results and currently trades at $39.2.

Is now the time to buy Roblox? Access our full analysis of the earnings results here, it's free.

Electronic Arts (NASDAQ:EA)

Best known for its Madden NFL and FIFA sports franchises, Electronic Arts (NASDAQ:EA) is one of the world’s largest video game publishers.

Electronic Arts reported revenues of $1.95 billion, up 3.4% year on year, falling short of analyst expectations by 19.1%. It was a weak quarter for the company, with a miss of analysts' revenue estimates and slow revenue growth.

The stock is down 6.2% since the results and currently trades at $129.

Read our full analysis of Electronic Arts's results here.

Take-Two (NASDAQ:TTWO)

Best known for its Grand Theft Auto and NBA 2K franchises, Take Two (NASDAQ:TTWO) is one of the world’s largest video game publishers.

Take-Two reported revenues of $1.37 billion, down 2.9% year on year, surpassing analyst expectations by 2.2%. It was a weak quarter for the company, with slow revenue growth and underwhelming revenue guidance for the next quarter.

Take-Two pulled off the biggest analyst estimates beat among its peers. The stock is down 11% since the results and currently trades at $150.95.

Read our full, actionable report on Take-Two here, it's free.

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