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Unpacking Q1 Earnings: Skillz (NYSE:SKLZ) In The Context Of Other Consumer Internet Stocks

StockStory - Fri Jun 30, 2023

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The end of the earnings season is always a good time to take a step back and see who shined (and who not so much). Let’s have a look at how the consumer internet stocks have fared in Q1, starting with Skillz (NYSE:SKLZ).

The ways people shop, transport, communicate, learn and play are undergoing a tremendous, technology-enabled change. Consumer internet companies are playing a key role in lives being transformed, simplified and made more accessible.

The 34 consumer internet stocks we track reported a mixed Q1; on average, revenues beat analyst consensus estimates by 2.57%, while on average next quarter revenue guidance was 1.22% under consensus. Increasing interest rates hurt growth companies as investors search for near-term cash flows, but consumer internet stocks held their ground better than others, with the share prices up 14.8% since the previous earnings results, on average.

Weakest Q1: 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 $44.4 million, down 52.5% year on year, missing analyst expectations by 0.59%. It was a weak quarter for the company, with declining users and revenue.

“In the first quarter, we continued to make progress on our four pillars to bring the company to profitability that we laid out last year,” said Andrew Paradise, Skillz’ CEO.

Skillz Total Revenue

Skillz delivered the slowest revenue growth of the whole group. The company reported 214 thousand monthly active users, down 62.5% year on year. The stock is down 21% since the results and currently trades at $9.19.

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

Best Q1: PlayStudios (NASDAQ:MYPS)

Founded by a team of former gaming industry executives, PlayStudios (NASDAQ:MYPS) offers free-to-play digital casino games.

PlayStudios reported revenues of $80.1 million, up 13.7% year on year, beating analyst expectations by 9.12%. It was a very strong quarter for the company, with growing number of users and an impressive beat of analyst estimates.

PlayStudios Total Revenue

PlayStudios achieved the strongest analyst estimates beat and highest full year guidance raise among its peers. The company reported 13.1 million monthly active users, up 89.2% year on year. The stock is up 8.64% since the results and currently trades at $4.65.

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

Match (NASDAQ:MTCH)

Match.com was an early innovator in dating apps and was actually launched as a dial-up service before widespread internet adoption. Match (NASDAQ:MTCH) today has a portfolio of apps including Tinder, OkCupid, Match.com, and Hinge.

Match reported revenues of $787.1 million, down 1.44% year on year, missing analyst expectations by 0.87%. It was a weak quarter for the company, with slow revenue growth and underwhelming revenue guidance for the next quarter.

The company reported 15.9 million paying users, down 2.45% year on year. The stock is up 20.5% since the results and currently trades at $41.65.

Read our full analysis of Match's results here.

Coursera (NYSE:COUR)

Founded by two Stanford University computer science professors, Coursera (NYSE:COUR) is an online learning platform that offers courses, specializations, and degrees from top universities and organizations around the world.

Coursera reported revenues of $147.6 million, up 22.6% year on year, beating analyst expectations by 6.39%. It was a strong quarter for the company, with a solid beat of analyst estimates and a growing number of users.

The company reported 124 million users, up 21.6% year on year. The stock is up 23.1% since the results and currently trades at $12.89.

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

Wayfair (NYSE:W)

Launched in 2002 by founder Niraj Shah, Wayfair (NYSE: W) is a leading online retailer for mass market home goods in the US, UK, Canada, and Germany.

Wayfair reported revenues of $2.77 billion, down 7.32% year on year, beating analyst expectations by 1.22%. It was a weak quarter for the company, with declining users and revenue. However, active customers also came in above estimates. The company nearly broke even on adjusted EBITDA, with management expecting to have positive Adjusted EBITDA in the second quarter.

The company reported 21.7 million active buyers, down 14.6% year on year. The stock is up 106% since the results and currently trades at $64.41.

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

The author has no position in any of the stocks mentioned

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