Skillz Raises Guidance After 92% Revenue Growth, 21st Consecutive Quarter YoY Growth

Mobile esports company Skillz SKLZ reported first-quarter financial results after market close Tuesday.

What Happened: In the first quarter, Skillz reported revenue of $83.7 million, up 92% year-over-year and beat estimates of $78.6 million. Skillz said this was the 21st consecutive quarter of revenue growth for the company.

Skillz saw its paying monthly active users rise 81% year-over-year to 467,000. The company reported a company record average revenue per user of $10.35. The company reported a record paying user conversion rate of 17%, which it said is better than the gaming industry by a factor of eight.

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What’s Next: Skillz raised its full-year revenue guidance from $336 million to $375 million. The new total comes in ahead of the Street consensus of $369 million and would represent year-over-year growth of 63%.

Skillz invested heavily in ads in the first quarter, citing favorable ad rates. The company hired its first-ever chief marketing officer bringing in Tyler Williamson from Beats Electronics.

Skillz highlighted its patent portfolio in the first quarter report saying it has seen numerous copycats.

“We have begun and will continue to vigorously defend SKillz intellectual property from theft by enforcing our patents and copyrights where we see infringement,” the company said.

An upcoming NFL-themed game will be released through a global game developer challenge. Other themed games were also mentioned with categories like first-person shooters and real-time strategy named.

International expansion was highlighted with an upcoming launch in India being prepared with local content. The company currently gets 90% of revenue from North America.

Price Action: Shares of Skillz are down 2% to $16.67 in after-hours trading.