Lento Salvatore Jr., the Controller at Skillz Inc. (NYSE:SKLZ), recently sold a portion of the company's Class A common stock according to a recent SEC filing. The transaction, dated November 15, involved the sale of 2,157 shares at a price of $5.016 per share, totaling $10,819. Following this transaction, Salvatore Jr. holds 6,855 shares directly. This filing provides investors with insight into the trading activities of Skillz's executive team.
In other recent news, Skillz Inc. experienced a downward revision of its stock price target to $6 by Stifel, which maintained a Buy rating. This adjustment followed the release of the company's third-quarter earnings, revealing a 33% decrease in revenue to $25 million compared to the same period last year. However, Skillz Inc. reported a 25% year-over-year improvement in adjusted EBITDA loss, now standing at $13.9 million, and stable monthly active users.
Stifel's analysis also led to a forecast of a larger adjusted EBITDA loss for Skillz in 2024, predicting a shortfall of $57 million. Despite this, the firm's projections for 2025 suggest a potential 15% year-over-year increase in revenue to $114 million.
Recent developments for Skillz Inc. include efforts toward compliance with NYSE listing standards and finalization of its unaudited interim financial statements. The company is also exploring publishing deals to increase revenue share and support marketing budgets for promising games. CEO Andrew Paradise expressed confidence in the company's path towards consistent growth and profitability by 2025, focusing on enhancing the platform, organizational improvements, and optimizing user acquisition spending.
InvestingPro Insights
The recent stock sale by Skillz Inc.'s Controller comes at a time when the company faces significant challenges. According to InvestingPro data, Skillz's revenue for the last twelve months as of Q3 2023 stood at $106.2 million, with a concerning revenue growth decline of 36.73% over the same period. This decline is further emphasized by a quarterly revenue drop of 32.57% in Q3 2023.
Despite these headwinds, Skillz maintains some financial strengths. An InvestingPro Tip highlights that the company holds more cash than debt on its balance sheet, which could provide some financial flexibility in turbulent times. Additionally, Skillz boasts impressive gross profit margins, with the latest data showing a gross profit margin of 87.17% for the last twelve months as of Q3 2023.
The stock's current trading dynamics also present an interesting picture. Skillz is trading at a low Price / Book multiple of 0.47, potentially indicating that the stock might be undervalued relative to its book value. However, investors should note that analysts anticipate a sales decline in the current year, and the company is not expected to be profitable this year, according to additional InvestingPro Tips.
For investors seeking a more comprehensive analysis, InvestingPro offers 10 additional tips for Skillz, providing a deeper understanding of the company's financial health and market position.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.