Thursday, April 22, 2021 10:18:12 PM
• Skillz operates at 95% gross margins. Take out 40% for Bonus Cash incentives. Say the R&D rate — currently 10% — drops to 5%. Say the G&A rate — currently 18% — drops to 10%. Say the non-incentive S&M rate — currently 70% — drops to a more normal 15%. You’re talking a total opex base of 70%.
• Now, let’s assume stock comp runs about 5% of revenues, which is fairly reasonable.
• 95% gross margins (-) 70% opex rate (+) 5% stock comp (=) 30% adjusted EBITDA margins. That’s assume to leverage on the incentive line. Any leverage there will result in 30%-plus EBITDA margins.
• 30% is the exact adjusted EBITDA margin Skillz management is targeting in the long run.
• We think that’s entirely doable.
• We also think that Skillz has an opportunity grow its revenues by more than ten-fold over the next decade, from ~$370 million this year to over $4 billion by 2030.
• On those assumptions, we believe SKLZ stock is worth over $40 today
Recent SKLZ News
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 09/13/2024 08:14:27 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 09/10/2024 08:13:00 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 09/09/2024 08:30:14 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 09/06/2024 06:30:08 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 09/06/2024 05:09:04 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 09/06/2024 05:08:01 PM
- Form 10-Q - Quarterly report [Sections 13 or 15(d)] • Edgar (US Regulatory) • 08/29/2024 08:14:26 PM
- Form 10-Q - Quarterly report [Sections 13 or 15(d)] • Edgar (US Regulatory) • 08/29/2024 08:08:05 PM
- Form 10-K - Annual report [Section 13 and 15(d), not S-K Item 405] • Edgar (US Regulatory) • 08/29/2024 08:03:34 PM
- Form 8-K - Current report • Edgar (US Regulatory) • 08/15/2024 08:08:23 PM
- Form NT 10-Q - Notification of inability to timely file Form 10-Q or 10-QSB • Edgar (US Regulatory) • 08/09/2024 08:03:32 PM
- Form 8-K - Current report • Edgar (US Regulatory) • 08/01/2024 08:07:31 PM
- Skillz Announces Second Quarter 2024 Results • Business Wire • 08/01/2024 08:05:00 PM
- Skillz to Report 2024 Second Quarter Results on August 1 and Host Conference Call and Webcast • Business Wire • 07/29/2024 03:00:00 PM
- Form SC 13D/A - General statement of acquisition of beneficial ownership: [Amend] • Edgar (US Regulatory) • 06/11/2024 01:53:56 PM
- Form NT 10-Q - Notification of inability to timely file Form 10-Q or 10-QSB • Edgar (US Regulatory) • 05/10/2024 08:02:00 PM
- Form 8-K - Current report • Edgar (US Regulatory) • 05/09/2024 08:08:21 PM
- Skillz Announces First Quarter 2024 Results • Business Wire • 05/09/2024 08:05:00 PM
- Form 3 - Initial statement of beneficial ownership of securities • Edgar (US Regulatory) • 05/08/2024 07:53:04 PM
- Skillz to Report 2024 First Quarter Results on May 9 and Host Conference Call and Webcast • Business Wire • 05/07/2024 03:30:00 PM
- Skillz Receives NYSE Notice Regarding Late Form 10-K Filing • Business Wire • 04/08/2024 08:30:00 PM
- Skillz Reports 2023 Fourth Quarter and Full Year 2023 Results • Business Wire • 03/14/2024 08:05:00 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 03/07/2024 12:57:29 AM
- Skillz to Report 2023 Fourth Quarter and Full Year Results on March 14 and Host Conference Call and Webcast • Business Wire • 03/05/2024 04:30:00 PM
- Form 144 - Report of proposed sale of securities • Edgar (US Regulatory) • 02/29/2024 08:25:24 PM
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