Why Skillz Shares Are Plummeting Today

Skillz Inc SKLZ is trading lower Thursday morning after the company reported worse-than-expected fourth-quarter revenue results and issued guidance below estimates. 

Skillz said revenue increased 61% year-over-year to $108.8 million, which came in below the estimate of $113.95 million. The company reported a net loss of $99 million, which was worse than the $67 million loss Skillz reported in the fourth quarter of 2020.

"Last year, we made substantial investments in our infrastructure necessary to build the competition layer of the Internet," said Andrew Paradise, CEO of Skillz. "We are now entering a new phase, where we will shift focus to profitable growth through improving marketing efficiency, and deploying fewer but more impactful product features."

Skillz expects full-year 2022 revenue of $400 million versus the estimate of $548.8 million.

Skillz operates a mobile game development company featuring a platform that enables social competition in its games.

See Also: 32 Stocks Moving in Thursday's Pre-Market Session

SKLZ Price Action: Skillz has traded as high as $36.50 over a 52-week period. It's making new 52-week lows Thursday.

The stock was down 38% at $2.24 at time of publication.

Photo: DrMedYourRasenn from Pixabay.