Company: SKLZ
Filing Date: 2025-12-11
Form Type: 10-Q
Source: 0001801661-25-000070
Chunk: 58

Company: Skillz Inc.
Filing Date: 2025-12-11
Form: 10-Q
Item: Item 1
Chunk 58
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 worldwide.

Aarki (“Aarki”) is a subsidiary of the Company and is an artificial intelligence company that delivers advertising solutions to drive revenue growth for mobile app developers. Aarki enables brands to effectively engage audiences in a privacy-first world by using billions of contextual bidding signals coupled with proprietary machine learning and behavioral models. Aarki works with advertisers globally and manages ad requests on mobile devices.

Results of Operations 

Comparison for the three months ended March 31, 2025 and 2024.

Three Months Ended March 31,2025 to 2024 Change20252024Increase/(Decrease)AmountPercentageRevenue$21,897 $25,235 $(3,338)(13)%Costs and expenses:Cost of revenue2,965 3,451 (486)(14)%Research and development4,817 4,624 193 4 %Sales and marketing18,005 20,994 (2,989)(14)%General and administrative19,083 23,037 (3,954)(17)%Gain from litigation settlement(7,500)— (7,500)— %Total costs and expenses37,370 52,106 (14,736)(28)%Loss from operations(15,473)(26,871)11,398 42 %Interest (expense) income, net(1,071)112 (1,183)(1056)%Change in fair value of common stock warrant liabilities— 9 (9)(100)%Other (expense) income, net(559)65 (624)(960)%Loss before income taxes(17,103)(26,685)9,582 36 %Provision for income taxes39 38 1 3 %Net loss$(17,142)$(26,723)$9,581 36 %

Revenue

Revenue decreased by $3.3 million, or 13%, to $21.9 million in the three months ended March 31, 2025 from $25.2 million in the three months ended March 31, 2024. This was primarily due to lower tournament revenue of $5.2 million, partially offset by services and other revenue of $0.2 million from our Skillz segment. This decrease was also offset by higher advertising revenue of $1.7 million generated from our Aarki segment. 

Cost of Revenue

Cost of revenue decreased by $0.5 million, or 14%, to