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10 Mar, 19 tweets, 3 min read
$SKLZ Earnings call -

First introduced new board members which I spoke about.

First few statements about defending patents and stopping cheating as the core.

Focused on converting users to paid users.
$SKLZ CEO - We have been continually investing in synchronous gaming categories from RTS, FPS, racing genres. Synchronous content will expand our universe even more.
$SKLZ We have made significant investment in architecture for reliability and fast natured content.

$SKLZ In Q4 grew headcount by 64% (WOW). New investments in payments and software.
CEO told a story about someone who left Zynga and created their own studio just for $SKLZ games, receiving VC funding. This game is now the #1 game on the platform (Blackout Bingo)
Four investment focuses:
1) Content - Still not had a true blockbuster game, no #1 hit on either app store. Highlights Big Buck Hunter returning to make a game on $SKLZ. Highlights #NFL partnership developer challenge.
NFL Developer challenge based games are NOT in our forecasts.
2) International expansion - We expect to launch in India later this year. India is already 2/3 the size of the US mobile gaming market and growing 4x faster.
3) Partnered competitions - Nearly all revenue drops to the bottom line.

We are focused on a 100 year journey. This is year 8. We are focused on enabling game makers to compete with large studios.
(I missed one of the numbered four - maybe it was NFL)

CFO Speaking -
Average entry fee is $3 per tournament. We get about 84c per fee. We have millions of tx per day and [results will be based on take rate and transaction velocity].

CFO recites financials.
Our core profitability metric is EBITDA before user acquisition marketing. Adjusted EBITDA before UA is in line with revenue growth. We care more about Adj EBITDA rather than gross margin as GM can very by investment in infrastructure.
We rotate spending between new user acquisition cost to get new users and promos with existing users depending on where we see potential.

Our LTV/CAC is industry leading and we plan to improve over time. We have never had a cohort stop paying and they continue to grow.
Q&A -
1st) Short report: Question about revenue concentration, can you comment on it? Are download slowing?
A) In terms of developer concentration, concentration will be there but it shifts from game to game as they grow. All titles have increased over time.
2nd) Question on Google Terms of Service on betting
A) Google updated ToS to permit betting which doesn't impact Skillz but begins to open their ecosystem to other forms of revenue. May continue over time. Notes Android without Google Play is growing 2x the speed of iOS.
Missed 2nd part of last q

3rd) Back to commentary on S&M - how to think about spend on it between different levers?
A) We are a leader in a big market and now is the time to capitalize on it. We built a $225M annual rev company on $130M in capital.
We are making sure to pay attention to our paying users as they really drive revenue. Q4 16% of users were converted to payers, up from 10% in Q2.
4) Can you talk to us about IDFA - Channels for CAC that work best? Change as reopen?
A) IDFA will not expect any material effect. May be small positive as ads are less precise - lower CPMs for ad supported business models which makes Skillz more competitive.
We don't care about advertising to specific audiences as we can market to any audience so lower CPC makes our marketing cheaper.

5) How to scale # of players and # of tournaments as you scale users? Real time matches are fun but you need comparable skill level right?
Our data science investments in the company have been a fundamental feature of the company and we have methods to solve for this.
Paradise closing: Thank you. We will provide updates next time for Q1. Thanks.
Plant thoughts: Exactly as expected. This company should be strong and low stress relative to others IMO.

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More from @plantmath1

11 Mar
$SKLZ Investor Presentation! Lots of interesting data & charts!

Its fun to watch a new public company find their bearings around earnings. This should have been posted earlier.

I promise last $SKLZ post tonight.

Read for yourself here:…
$SKLZ Some metrics already posted & discussed.
$SKLZ The GMV chart is interesting. A Q2 bump from lock-down followed by a continuation of their previous growth curve.
Read 7 tweets
10 Mar
$SKLZ Earnings:
$SKLZ Q4 Revenue increased 95% YoY and 13.3% Sequentially from Q3. FY20 Revenue above winter SPAC estimates by ~$5M. (fixed tweet location)
Struggling to find anything to write about LOL. Not as complicated as $FSLY. The numbers are all there. $SKLZ
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Wolfpack, before slandering a company by insinuating they faked a partnership with the NFL, consider looking at the NFL's own communications site.

$SKLZ - Wolfpack, do you know people can look this stuff up? The largest existing shareholders sold less than 2% of their holdings in the offering. If I own 100 shares of $AAPL and sell 2 shares, that doesn't make me bearish on the company.

Wolfpack's short report on $SKLZ says "We’ve rarely experienced so many interviews with former employees who universally share such a negative opinion of their company’s CEO as we did with SKLZ and Andrew Paradise."

Compare to Glassdoor 85% CEO approval with nearly 200 reviews. ImageImage
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After some thought, my mistake with #Bitcoin was taking its stated purpose(s) at face value.

Some $BTC proponents say it will be a global currency alternative to the dollar.

Some say its is simply an alternative to gold, aka an inflation hedge.
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Neither of those make $BTC interesting to me as a growth investor.

I have no interest in hedging inflation as I don't carry any cash. Stocks themselves are a hedge against inflation.
I've never bought TIPS, gold, or REITS.

Likewise for other currencies.

I've never owned other currencies to hedge against the devaluing of the dollar. I simply own a few international growth companies to take advantage of it.

I don't think many others have either.
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Short thread:

Its a "high-tech" greenhouse/hydroponic grow operation.

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They call themselves a "high-tech greenhouse company"... Image
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