– Fourth Quarter Revenue of $68 million, Up 95% Year-over-Year- Full Year Revenue of $230 million vs $225 million Guidance, Up 92% Year-over-Year- Initiates Full Year 2021 Revenue Guidance of $366 MillionSkillz Inc. (NYSE: SKLZ) (” Skillz” or the “Company”), the leading mobile video games platform bringing fair competition to players worldwide, today announced monetary outcomes for the 4th quarter and full year ended December 31, 2020 and initiated complete year 2021 earnings assistance. Net loss was $44 million during the 4th quarter of 2020, compared with a net loss of $9 million during the comparable quarter in 2019. Gross margin was 95% during 2020, the very same as the year prior.Net loss was $122 million throughout 2020, compared with a net loss of $24 million throughout 2019. Leveraging its patented technology, Skillz hosts billions of casual esports competitions for millions of mobile players worldwide, and distributes millions in prizes each month. The Company undertakes no commitment to update any positive declarations to show occasions or circumstances after the date of this press release or to show brand-new details or the event of unanticipated events, except as required by law.Source: Skillz Inc.Skillz Inc.Consolidated Statements of Operations( in thousands, except share and per share quantities) Three months endedDecember 31, Year ended December 31, 2020201920202019( unaudited)( unaudited) Revenue$ 67,723$ 34,746$ 230,115$ 119,872 Costs and expenses Cost of revenue3,4751,87812,2815,713 Research and development9,9723,43823,22511,241 Sales and marketing79,56033,428251,941111,370 General and administrative17,9534,38542,28916,376 Total costs and expenses110,96043,129329,736144,700 Loss from operations( 43,237)( 8,383)( 99,621)( 24,828) Interest expenditure, net( 28 )( 370 )( 1,325)( 2,497) Other income (expenditure), web( 651 )67( 21,400) 3,720 Loss before income taxes( 43,916)( 8,686)( 122,346)( 23,605) Provision for income taxes15– 115– Net loss$( 43,931)$( 8,686)$( 122,461)$( 23,605) Net loss per share attributable to typical investors– diluted and fundamental$( 0.14 )$( 0.07 )$( 0.42 )$( 0.09 )Weighted typical common shares exceptional– basic and diluted311,259,678120,926,970294,549,146261,228,108 Skillz Inc.Consolidated Balance Sheets( in thousands, except share and per share amounts) December 31, 20202019AssetsCurrent possessions: Cash and money equivalents$ 262,728$ 25,628 Prepaid costs and other existing assets10,4919,464 Total current assets273,21935,092 Property and devices, net5,2923,648 Other long-lasting assets3,910116 Total possessions$ 282,421$ 38,856 Liabilities and stockholders equity Current liabilities: Accounts payable$ 22,039$ 2,944 Accrued expert fees5,699– Other present liabilities19,6187,537 Total current liabilities47,35610,481Long-term debt, non-current– 9,628 Other long-term liabilities4682Total liabilities47,40220,191 Commitments and contingenciesStockholders equity: Preferred stock $0.0001 par worth; 10 million shares licensed– 0 provided and exceptional as of December 31, 2020 and 2019—- Common stock $0.0001 par worth; 625 million shares authorized; Class A common stock– 500 million shares licensed; 292 million and 99 million shares released and impressive as of December 31, 2020 and 2019, respectively; Class B common stock– 125 million shares authorized; 78 million and 51 million shares released and exceptional as of December 31, 2020 and 2019, respectively3729Additional paid-in capital450,248108,892 Accumulated deficit( 215,266)( 90,256) Total stockholders equity235,01918,665 Total liabilities and investors equity$ 282,421$ 38,856 Skillz Inc.Consolidated Statements of Cash Flows( in thousands) Year ended December 31, 20202019Operating Activities Net loss$( 122,461)$( 23,605) Adjustment to fix up net loss to net money used in running activities: Depreciation and amortization1,609711Stock-based compensation23,7571,237 Accretion of unamortized discount rate and amortization of issuance costs5582,139 Fair worth change of derivatives21,463( 3,649) Impairment charges3,573– Changes in running assets and liabilities: Prepaid costs and other possessions( 7,505)( 4,307) Accounts payable10,729( 54 )Other liabilities12,0455,591 Net money utilized in operating activities( 56,232)( 21,937) Investing Activities Purchases of property and equipment, including internal-use software application( 3,246)( 3,223) Net money used in investing activities( 3,246)( 3,223) Financing Activities Borrowings under debt agreements, web of issuance expenses– 9,563 Payments for issuance expenses( 201 )– Payments under financial obligation arrangements( 10,000)( 3,500) Net Business Combination and Private Placement Financing246,484– Payments made towards providing expenses( 1,993)– Proceeds from issuance of redeemable convertible favored stock, internet of issuance costs76,61724,908 Proceeds from workout of stock alternatives and issuance of typical stock1,243197 Proceeds from workout of common stock warrants379– Proceeds from workout of favored stock warrants3– Taxes paid associated to net share settlement of equity awards( 13,404)– Payments made to redeem common stock( 1,339)– Payments for redemption of favored stock( 1,211)– Net money supplied by funding activities296,57831,168 Net change in cash, cash equivalents and limited cash237,1006,008 Cash, cash equivalents and limited money– start of year28,54822,540 Cash, money equivalents and limited cash– end of year$ 265,648$ 28,548 Supplemental cash flow information: Cash paid throughout the duration for: Interest$ 815$ 269Noncash investing and financing activities: Carrying value of long-lasting debt and accumulated interest transformed to redeemable convertible preferred stock$–$ 14,852 Deferred offering costs in accounts payable and accumulated liabilities$ 14,065$– Payment of promissory notes through surrender of shares$ 18,673$– Skillz Inc.Reconciliation of GAAP Net loss to Adjusted EBITDA (UNAUDITED)( in thousands, except share and per share amounts) Three months endedDecember 31, Year ended December 31, 2020201920202019Net loss$( 43,931)$( 8,686)$( 122,461)$( 23,605) Interest expense, net283701,3252,497Stock-based compensation14,19226823,7571,237 Provision for income taxes15– 115– Depreciation and amortization5172691,609711 Other non-operating expenses (income)( 1 )( 2 )651( 67 )21,400( 3,648) Impairment charge( 3 )—- 3,395– One-time transaction related costs( 4 )4,747– 4,747– Adjusted EBITDA$( 23,781)$( 7,846)$( 66,113)$( 22,808)( 1) For 2020, other non-operating costs (earnings) is primarily attributed to a $20.8 million change to the fair value of the redeemable convertible Series E chose stock forward contract liability.

– Fourth Quarter Revenue of $68 million, Up 95% Year-over-Year- Full Year Revenue of $230 million vs $225 million Guidance, Up 92% Year-over-Year- Initiates Full Year 2021 Revenue Guidance of $366 MillionSkillz Inc. (NYSE: SKLZ) (” Skillz” or the “Company”), the leading mobile video games platform bringing reasonable competition to gamers worldwide, today announced monetary results for the 4th quarter and full year ended December 31, 2020 and started full year 2021 income assistance.” Our first quarter as a publicly traded business was our twentieth consecutive quarter of revenue development,” stated Andrew Paradise, CEO and creator. “We eagerly anticipate much more such quarters ahead.” Fourth Quarter Financial HighlightsRevenue grew to $68 million throughout the 4th quarter of 2020, 8% higher than expectations, and up 95% compared to $35 million throughout the equivalent quarter in 2019. Gross revenue grew 95% to $64 million during the 4th quarter of 2020, compared to $33 million during the comparable quarter in 2019. Gross margin was 95% during the fourth quarter of 2020, consistent with the equivalent quarter in 2019. Net loss was $44 million during the fourth quarter of 2020, compared with a bottom line of $9 million throughout the comparable quarter in 2019. Gross Marketplace Volume1 (” GMV”) grew 78% to $463 million throughout the fourth quarter of 2020, compared to $259 million throughout the equivalent quarter in 2019. Complete Year Financial HighlightsRevenue grew 92% to $230 million in 2020, compared to $120 million throughout 2019. Gross revenue grew 91% to $218 million during 2020, compared with $114 million in 2019. Gross margin was 95% during 2020, the very same as the year prior.Net loss was $122 million during 2020, compared with a bottom line of $24 million throughout 2019. GMV grew 80% to $1.6 billion throughout 2020, compared to $886 million throughout 2019. As of December 31, 2020, the Company had $263 million of cash and no debt.Recent Business HighlightsStory continuesWent public on the NYSE, offering greater access to capital and increasing the exposure and transparency of the platform for developers, users, and brands.Signed multi-year arrangement with the NFL subsequent to the end of the quarter, highlighting the relied on relationship Skillz is developing with leading brands.Blackout Bingo ended up being Skillzs # 1 video game based upon GMV, highlighting the ability of the platform to make it possible for ingenious developers to construct successful businesses.Bolstered Skillz Board of Directors with the addition of movie and television manufacturer, Jerry Bruckheimer, and Chris Gaffney, co-founder of Great Hill Partners.1 “GMV” or “Gross Marketplace Volume” suggests the total entry charges paid by users for contests hosted on Skillzs platform. Overall entry fees consist of entry charges paid by end-users utilizing money deposits, prior cash earnings from end-users accounts that have not been withdrawn, and end-user rewards utilized to get in paid entry cost contests.Financial OutlookThe Company is starting 2021 revenue assistance of $366 million, which relates to 59% year-over-year growth.Investor Conference Call and Webcast The Company will host a teleconference and audio webcast on Wednesday, March 10, 2021 at 5:00 pm Eastern Time. The teleconference can be accessed by registering online at http://www.directeventreg.com/registration/event/2977385 at which time registrants will receive dial-in details in addition to a passcode and registrant ID. At the time of the call, participants will dial in using the numbers in the verification email and enter their passcode and ID, upon which they will enter the conference call.Access to a live audio-webcast of the discussion in listen-only mode will be available through the “Investors” section of the Skillz website at www.skillz.com. A replay of the webcast will be archived on the Companys website.About Skillz Inc.Skillz (NYSE: SKLZ) is the leading mobile games platform that links players all over the world in fair, fun, and meaningful competitors. The Skillz platform helps developers construct multi-million dollar franchises by making it possible for social competitors in their games. Leveraging its patented technology, Skillz hosts billions of casual esports competitions for countless mobile players worldwide, and disperses millions in prizes each month. Skillz has actually earned recognition as one of Fast Companys Most Innovative Companies, CNBCs Disruptor 50, Forbes Next Billion-Dollar Startups, and the # 1 fastest-growing company in America on the Inc. 5000. www.skillz.comUse of Non-GAAP Financial Measure In this news release, the Company consists of Adjusted EBITDA which is a non-GAAP performance step that the Company utilizes to supplement its outcomes provided in accordance with U.S. GAAP. As needed by the rules of the Securities and Exchange Commission (” SEC”), the Company has actually offered herein a reconciliation of the non-GAAP monetary procedure included in this news release to the most directly equivalent measures under GAAP. The Companys management thinks Adjusted EBITDA works in assessing its operating efficiency and is a comparable step reported by publicly-listed U.S. competitors, and regularly utilized by security analysts, institutional investors, and other interested parties in evaluating operating performance and prospects. By supplying this non-GAAP measure, the Companys management intends to offer investors with a significant, constant contrast of the Companys profitability for the periods provided. Changed EBITDA is not intended to be a replacement for any U.S. GAAP financial measure and, as computed, might not be similar to other likewise titled measures of performance of other business in other markets or within the same industry.The Company computes and specifies Adjusted EBITDA as bottom line before interest, other non-operating cost or income, arrangement for income taxes, and depreciation and amortization, and further adjusted for stock-based payment and other unique products figured out by management, including, but not limited to, fair value adjustments for certain monetary liabilities (consisting of derivatives) connected with debt and equity deals and impairment charges as they are not indicative of organization operations.Forward-Looking StatementsThis press release includes “positive declarations” within the meaning of the “safe harbor” arrangements of the United States Private Securities Litigation Reform Act of 1995. The Companys actual results may differ from its forecasts, quotes, and expectations and, subsequently, you should not rely on these forward-looking declarations as predictions of future events. Words such as “anticipate,” “estimate,” “project,” “budget,” “projection,” “anticipate,” “mean,” “plan,” “may,” “will,” “could,” “should,” “thinks,” “forecasts,” “potential,” “continue,” and similar expressions (or the negative variations of such words or expressions) are intended to determine such positive statements.These positive statements include significant dangers and unpredictabilities that might cause the Companys actual outcomes to differ materially from those gone over in the positive statements. Most of these elements are outside of the Companys control and are hard to anticipate. Elements that may cause such distinctions consist of, however are not restricted to, the capability of Skillz to: recognize the benefits gotten out of the business mix; effectively complete in the worldwide home entertainment and video gaming markets; bring in and maintain successful relationships with the 3rd party designers that establish and upgrade all of the games hosted on Skillzs platform; comply with laws and guidelines appropriate to its service; and along with other risks and uncertainties suggested from time to time in the Companys SEC filings, including those under “Risk Factors” therein, which are available on the SECs site at www.sec.gov. Extra info will be provided in other filings that the Company makes from time to time with the SEC. In addition, any positive statements contained in this news release are based upon presumptions that the Company thinks to be reasonable as of this date. The Company carries out no commitment to upgrade any positive declarations to reflect occasions or circumstances after the date of this press release or to show brand-new details or the occurrence of unexpected events, except as required by law.Source: Skillz Inc.Skillz Inc.Consolidated Statements of Operations( in thousands, other than share and per share quantities) Three months endedDecember 31, Year ended December 31, 2020201920202019( unaudited)( unaudited) Revenue$ 67,723$ 34,746$ 230,115$ 119,872 Costs and costs Cost of revenue3,4751,87812,2815,713 Research and development9,9723,43823,22511,241 Sales and marketing79,56033,428251,941111,370 General and administrative17,9534,38542,28916,376 Total costs and expenses110,96043,129329,736144,700 Loss from operations( 43,237)( 8,383)( 99,621)( 24,828) Interest expenditure, web( 28 )( 370 )( 1,325)( 2,497) Other earnings (expenditure), internet( 651 )67( 21,400) 3,720 Loss before income taxes( 43,916)( 8,686)( 122,346)( 23,605) Provision for income taxes15– 115– Net loss$( 43,931)$( 8,686)$( 122,461)$( 23,605) Net loss per share attributable to typical shareholders– diluted and fundamental$( 0.14 )$( 0.07 )$( 0.42 )$( 0.09 )Weighted average typical shares exceptional– basic and diluted311,259,678120,926,970294,549,146261,228,108 Skillz Inc.Consolidated Balance Sheets( in thousands, other than share and per share quantities) December 31, 20202019AssetsCurrent possessions: Cash and cash equivalents$ 262,728$ 25,628 Prepaid expenses and other current assets10,4919,464 Total existing assets273,21935,092 Property and devices, net5,2923,648 Other long-term assets3,910116 Total properties$ 282,421$ 38,856 Liabilities and investors equity Current liabilities: Accounts payable$ 22,039$ 2,944 Accrued expert fees5,699– Other current liabilities19,6187,537 Total present liabilities47,35610,481Long-term financial obligation, non-current– 9,628 Other long-lasting liabilities4682Total liabilities47,40220,191 Commitments and contingenciesStockholders equity: Preferred stock $0.0001 par value; 10 million shares licensed– 0 provided and outstanding as of December 31, 2020 and 2019—- Common stock $0.0001 par worth; 625 million shares authorized; Class A typical stock– 500 million shares authorized; 292 million and 99 million shares issued and exceptional since December 31, 2020 and 2019, respectively; Class B typical stock– 125 million shares authorized; 78 million and 51 million shares issued and exceptional since December 31, 2020 and 2019, respectively3729Additional paid-in capital450,248108,892 Accumulated deficit( 215,266)( 90,256) Total stockholders equity235,01918,665 Total liabilities and stockholders equity$ 282,421$ 38,856 Skillz Inc.Consolidated Statements of Cash Flows( in thousands) Year ended December 31, 20202019Operating Activities Net loss$( 122,461)$( 23,605) Adjustment to fix up net loss to net money utilized in operating activities: Depreciation and amortization1,609711Stock-based compensation23,7571,237 Accretion of unamortized discount and amortization of issuance costs5582,139 Fair value change of derivatives21,463( 3,649) Impairment charges3,573– Changes in operating possessions and liabilities: Prepaid expenses and other properties( 7,505)( 4,307) Accounts payable10,729( 54 )Other liabilities12,0455,591 Net cash utilized in operating activities( 56,232)( 21,937) Investing Activities Purchases of residential or commercial property and devices, consisting of internal-use software application( 3,246)( 3,223) Net money utilized in investing activities( 3,246)( 3,223) Financing Activities Borrowings under financial obligation arrangements, internet of issuance costs– 9,563 Payments for issuance expenses( 201 )– Payments under financial obligation arrangements( 10,000)( 3,500) Net Business Combination and Private Placement Financing246,484– Payments made towards providing costs( 1,993)– Proceeds from issuance of redeemable convertible favored stock, internet of issuance costs76,61724,908 Proceeds from workout of stock choices and issuance of typical stock1,243197 Proceeds from exercise of typical stock warrants379– Proceeds from workout of favored stock warrants3– Taxes paid associated to net share settlement of equity awards( 13,404)– Payments made to buy typical stock( 1,339)– Payments for redemption of preferred stock( 1,211)– Net cash supplied by funding activities296,57831,168 Net change in cash, money equivalents and limited cash237,1006,008 Cash, money equivalents and restricted cash– beginning of year28,54822,540 Cash, cash equivalents and restricted money– end of year$ 265,648$ 28,548 Supplemental capital information: Cash paid during the period for: Interest$ 815$ 269Noncash investing and funding activities: Carrying worth of long-term financial obligation and accrued interest transformed to redeemable convertible favored stock$–$ 14,852 Deferred offering expenses in accounts payable and accumulated liabilities$ 14,065$– Payment of promissory notes through surrender of shares$ 18,673$– Skillz Inc.Reconciliation of GAAP Net loss to Adjusted EBITDA (UNAUDITED)( in thousands, other than share and per share quantities) Three months endedDecember 31, Year ended December 31, 2020201920202019Net loss$( 43,931)$( 8,686)$( 122,461)$( 23,605) Interest cost, net283701,3252,497Stock-based compensation14,19226823,7571,237 Provision for earnings taxes15– 115– Depreciation and amortization5172691,609711 Other non-operating costs (income)( 1 )( 2 )651( 67 )21,400( 3,648) Impairment charge( 3 )—- 3,395– One-time deal related expenses( 4 )4,747– 4,747– Adjusted EBITDA$( 23,781)$( 7,846)$( 66,113)$( 22,808)( 1) For 2020, other non-operating costs (earnings) is primarily attributed to a $20.8 million change to the reasonable worth of the redeemable convertible Series E chose stock forward contract liability.( 2) For 2019, other non-operating expenses (earnings) consist of a $3.6 million remeasurement gain for the bifurcated acquired liability associated to the Companys 2018 Convertible Promissory Notes.( 3) This represents a disability charge of a lease deposit and prepayment in connection with a lease arrangement associated to our new corporate centers in San Francisco.( 4) For 2020, amounts represent one-time deal costs related to the Business Combination.Skillz Inc.Supplemental Financial Information (UNAUDITED)( in millions, other than ARPU and ARPPU) Three months endedDecember 31, Year Ended December 31,2020201920202019 Monthly active users (” MAUs”)( 1 )2.42.02.61.6 Average income per user (” ARPU”)( 2 )$ 9.42$ 5.86$ 7.49$ 6.30 Paying month-to-month active users (” pMAUs”)( 3 )0.3910.1770.3240.161 Average earnings per paying user (” ARPPU”)( 4 )$ 58$ 66$ 58$ 62Gross market volume (” GMV”)( 5 )$ 463$ 259$ 1,592$ 886( 1) “Monthly Active Users” or “MAUs” implies the variety of end-users who participated in a paid or complimentary contest hosted on Skillzs platform at least as soon as in a month, averaged over every month in the duration.( 2) “Paying Monthly Active Users” or “pMAUs” suggests the variety of end-users who participated in a paid contest hosted on Skillzs platform a minimum of once in a month, balanced over every month in the period.( 3) “Average Revenue Per Monthly Active User” or “ARPU” indicates the typical profits in a given month divided by MAUs because month, balanced over the period.( 4) “Average Revenue Per Paying Monthly Active User” or “ARPPU” indicates the typical profits in an offered month divided by Paying MAUs because month, averaged over the period.( 5) “GMV” or “Gross Marketplace Volume” implies the overall entry charges paid by users for contests hosted on Skillzs platform. Overall entry charges include entry costs paid by end-users using cash deposits, prior cash payouts from end-users accounts that have not been withdrawn, and end-user incentives utilized to get in paid entry charge contests.View source version on businesswire.com: https://www.businesswire.com/news/home/20210310005954/en/ContactsInvestors: ir@skillz.com Media: skillz@methodcommunications.com

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