Skillz reported a GAAP loss per share of USD 0.25 in Q4 2021, coming in below consensus expectations for a loss of USD 0.14, and slightly lower than the USD 0.22 loss per share it recorded in Q4 2020. Full-year 2021 GAAP loss per share improved slightly to USD 0.47 from USD 0.49 the previous year.

Total revenue was up 61% YoY to USD 109 million in Q4 2021, while full-year 2021 revenue was up 220% YoY to USD 384 million. Quarterly revenue missed analyst estimates of USD 114 million, while full-year revenue also missed the internal guidance of USD 389 million given in Q3 2021.

The Q4 and full-year 2021 revenue growth was mainly driven by a 40% YoY increase in gross market volume to USD 650 million, while the platform take rate increased 16.7% from 14.6% the previous year. Monthly active users grew 54% YoY; however, average revenue per user (ARPU) grew marginally (up 4% YoY) to USD 9.8. 

The Q4 and full-year 2021 GAAP gross margins declined by 300 and 170 basis points, respectively. Operating expenditure led by sales and marketing expenses (76% of the total), which almost doubled YoY, continued to weigh on earnings in Q4, leading to an operating loss of USD 104 million. Adjusted EBITDA losses more than tripled YoY to USD 77.8 million in Q4, while the full-year 2021 adjusted EBITDA loss was also down almost 3x YoY (USD 182 million).

Skillz initiated revenue guidance of USD 400 million for 2022, implying 4% YoY growth.