Skillz ($SKLZ)

Investment notes regarding $SKLZ.

Last updated: 2024-08-17

• Company should be profitable by 1H2025.

• Shares outstanding: 14M!!!!

• Share repurchase approved for up to $65M of class A common shares of stock (59% of current market cap).

• Debt buyback being explored for up to $65M.

• Addressable market: $116B [Mobile gaming TAM]

• Company incentivises developers to make compelling games by making sure they get paid, have a better design experience, and have less friction because of integrated features.

• Market cap is $115M, ~one third of cash on hand ($335M). Stock has been beaten to a pulp.

• Levered cash flow is slightly negative indicating that a small push in the right direction could make it levered cash flow positive.

• Deveolper flywheel to teach developers how to make more engaging games (Innovate, Educate, Distribute, Monetize).

• Diverse age/gender worldwide customer base.

• Brand partnerships with the likes of T-Mobile and the NFL.