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Skillz (SKLZ) to Report Q4 Earnings: What's in the Offing?

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Skillz Inc. (SKLZ - Free Report) is scheduled to report fourth-quarter 2021 results on Feb 23, after the closing bell. In the last reported quarter, the company’s earnings beat the Zacks Consensus Estimate by 46.2%.

Q4 Estimates

For the quarter to be reported, the Zacks Consensus Estimate for the bottom line is pegged at a loss per share of 14 cents, unchanged over the past 30 days. In the prior-year quarter, the company had reported an adjusted loss per share of 13 cents. The consensus mark for revenues stands at $114.4 million, suggesting growth of 68.9% year over year.

Factors to Note

The company’s fourth-quarter performance is likely to have benefited from increased paying monthly active users (MAU) and competitive advantage, courtesy of its in-app purchases. Aarki acquisition and high ad spending as well as rise in the company’s gross marketplace volume might have contributed to the to-be-reported quarter's top line.

The company has been benefiting from international expansion and conversion of playing users into paying users. Earlier, the company launched developer progression feature, which allows game developers to create in-game milestones for players. This might have enhanced player retention and engagement in fourth-quarter 2021.

However, a rise in costs and expenses is likely to have affected margins in the to-be-reported quarter. Precisely, Identifier for Advertisers (IDFA) disruption and higher user acquisition spending levels to attract new users may have weighed on its to-be-reported quarter's bottom line.

Skillz Inc. Price and EPS Surprise Skillz Inc. Price and EPS Surprise

Skillz Inc. price-eps-surprise | Skillz Inc. Quote

What Our Model Indicates

Our proven model does not conclusively predict an earnings beat for Skillz this time around. That is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. That is not the case here, as you will see.

Earnings ESP: Earnings ESP for Skillz is 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: The company currently has a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.

Stocks Worth a Look

Here are some stocks from the Zacks Consumer Discretionary space that investors may consider as our model shows that these have the right combination of elements to post an earnings beat:

PlayAGS, Inc. (AGS - Free Report) has an Earnings ESP of +38.68% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

Shares of AGS have gained 3.6% in the past three months. AGS’ earnings beat the consensus mark thrice in the trailing four quarters and missed once, the average surprise being 33.3%.

NeoGames S.A. has an Earnings ESP of +15.79% and a Zacks Rank #3.

Shares of NeoGames have declined 27.9% in the past year. NGMS’s earnings surpassed the consensus mark twice in the trailing four quarters and missed twice, the average surprise being 165.8%.

Vail Resorts, Inc. (MTN - Free Report) has an Earnings ESP of +5.48% and a Zacks Rank #3.

Shares of Vail Resorts have dropped 12.4% in the past year. MTN’s earnings topped the consensus mark in all of the trailing four quarters, the average surprise being 19%.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.


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