Skillz Inc. (NYSE:SKLZ) Q3 2022 Earnings Conference Call November 2, 2022 5:30 PM ET

Company Participants

Andrew Paradise – Chief Executive Officer

Casey Chafkin – Chief Revenue Officer

Jason Roswig – President and Chief Financial Officer

Conference Call Participants

Jason Tilchen – Canaccord Genuity

Clark Lampen – BTIG

Operator

Thank you for joining us today for Skillz Third Quarter 2022 Earnings Call. I will now turn the call over to [indiscernible] to cover the safe harbor. Taylor?

Unidentified Company Representative

Good afternoon, and welcome to the Skillz third quarter 2022 earnings conference call. With me today are Andrew Paradise, Skillz Chief Executive Officer; Casey Chafkin, Chief Revenue Officer; and Jason Roswig, President and Chief Financial Officer. Note, our full financial results were published earlier today and are available on our Investor Relations website.

Before I turn the call over to Andrew, please note that some of our management's comments today will include forward-looking statements within the meaning of the federal securities laws. Forward-looking statements, which are usually identified by the use of such words as will, expect, should or other similar phrases are subject to numerous risks and uncertainties that could cause actual results to differ materially from what we expect. Therefore, you should exercise caution in interpreting and relying on them. We refer to the company's SEC filings for a more detailed discussion of the risks that could impact future operating results and financial condition.

During the call, management will discuss non-GAAP measures, which we believe can be useful in evaluating the company's operating performance. These measures should not be considered in isolation or as a substitute for our financial results prepared in accordance with GAAP. A reconciliation of these measures to the most directly comparable GAAP measures is available in our third quarter 2022 earnings release.

With that, I'll turn the call over to Andrew for some brief opening remarks. Andrew?

Andrew Paradise

Good afternoon and thank you for joining us. Today, I'll touch upon the quarter and update you on our initiatives to reaccelerate growth and improve the bottom line. Then I'll turn the call over to Jason Roswig, our new President and CFO, to quickly touch on the numbers, before we open up the call for Q&A. Clearly, Skillz is in the time of transition as we right size the organization. During the quarter, revenue continued to be impacted by both the macro environment for mobile gaming as well as some of the internal product and organizational challenges that I referenced last quarter. Conversely, we made good progress in our march to profitability. We reduced adjusted EBITDA by 51% quarter-over-quarter, while improving our payback period through better platform engagement and retention.