Company: SKLZ
Filing Date: 2025-11-06
Form Type: 10-K
Source: 0001801661-25-000050
Chunk: 119

Company: Skillz Inc.
Filing Date: 2025-11-06
Form: 10-K
Item: Item 7
Chunk 119
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 2024 and 2023:

Year Ended December 31,20242023As a percentage of GMV(%)Prior winnings (1)81 %81 %Cash deposits (2)13 %11 %End-user incentives (3)6 %8 %As components of average GMV per paying monthly active user ($)Prior winnings$350.0 $364.1 Cash deposits$54.4 $52.9 End-user incentives$30.8 $31.8 As components of average GMV per monthly active user ($)Prior winnings$50.6 $62.4 Cash deposits$7.9 $9.1 End-user incentives$4.5 $5.5 

(1)    ‘Prior winnings’ include cash and Bonus Cash that are in the end-user’s account as a result of winnings from competitions. For the year ended December 31, 2024, prior winnings from cash and Bonus Cash were 84% and 16%, respectively. For the year ended December 31, 2023, prior winnings from cash and Bonus Cash were 83% and 17%, respectively.

(2)    ‘Cash deposits’ represent currency deposits into the end-user’s Skillz account during the respective period. 

(3)    ‘End-user incentives’ are based on amounts recorded as a reduction of revenue or sales and marketing expenses during the respective period. End-user incentives primarily consist of (i) Bonus Cash, (ii) Ticketz (which can be redeemed for Bonus Cash) and (iii) promotional offers. Bonus Cash relates to all Bonus Cash that has been lost during the period (i.e., when the related cost has been incurred by the Company). Refer to Note 2, Summary of Significant Accounting Policies, of our consolidated financial statements for further information.

The following are key elements of our financial model:

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•The scale, growth and engagement of the users — As we continue to acquire users, our ability improves to match comparable players, on both skill level and tournament template, in a fair and timely manner. Better matching leads to stronger engagement and the ability to create larger tournaments with more profitable take rates. This creates a stickier, more engaging, and continuously improving experience for our players, which in turn attracts more players to our platform, creating a positively reinforcing cycle leading to ever-improving gaming experiences. 

•The scale, growth and partnership of our developers — We