Skillz Inc. reported significant financial developments in its 10-Q filing for the quarter ending June 30, 2024. The company generated total revenue of $25.3 million for the three months ended June 30, 2024, a decrease of 37% from $40.2 million in the same period of 2023. For the six months ended June 30, 2024, revenue was $50.5 million, down 40% from $84.5 million year-over-year. This decline was attributed to a 24% drop in monthly active users and substantial reductions in user acquisition and engagement marketing spending, which fell by 40% and 44%, respectively.

Despite the revenue decline, Skillz reported a net income of $26.0 million for the three months ended June 30, 2024, compared to a net loss of $16.7 million in the same period of 2023. For the six months, the company recorded a net loss of $678,000, a significant improvement from a loss of $52.3 million in the prior year. The positive shift in net income for the quarter was bolstered by a $46.0 million gain from a litigation settlement with AviaGames.

Operating expenses also saw notable changes. Total costs and expenses for the six months ended June 30, 2024, were $51.8 million, a decrease of 65% from $146.9 million in the same period in 2023. This reduction was driven by lower sales and marketing costs, which fell by 38% to $41.8 million, and a 47% decrease in research and development expenses to $8.9 million.

Skillz's balance sheet showed cash and cash equivalents of $316.4 million as of June 30, 2024, an increase from $302.0 million at the end of 2023. The company also reported total assets of $402.9 million, up from $395.8 million at the end of the previous fiscal year. However, total current liabilities increased to $52.4 million from $49.9 million, and long-term debt remained relatively stable at $124.8 million.

Strategically, Skillz made significant moves, including the acquisition of an office building in Las Vegas for $11.5 million, which will serve as its new headquarters. The company also authorized a share repurchase program, allowing for the repurchase of up to $65.0 million in Class A common stock, with $10.8 million spent on repurchases in the first half of 2024.

Skillz operates two reportable segments: Skillz, its eSports gaming platform, and Aarki, which provides AI advertising solutions. The Skillz segment reported revenue of $22.7 million for the three months ended June 30, 2024, down from $36.6 million in the same period of 2023, while Aarki's revenue decreased to $2.6 million from $3.7 million.