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Skillz (Skillz) Gross Margin % : 88.14% (As of Dec. 2023)


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What is Skillz Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Skillz's Gross Profit for the three months ended in Dec. 2023 was $25.7 Mil. Skillz's Revenue for the three months ended in Dec. 2023 was $29.1 Mil. Therefore, Skillz's Gross Margin % for the quarter that ended in Dec. 2023 was 88.14%.

Warning Sign:

Skillz Inc gross margin has been in long-term decline. The average rate of decline per year is -1.6%.


The historical rank and industry rank for Skillz's Gross Margin % or its related term are showing as below:

SKLZ' s Gross Margin % Range Over the Past 10 Years
Min: 88.61   Med: 94   Max: 95.84
Current: 89.75


During the past 6 years, the highest Gross Margin % of Skillz was 95.84%. The lowest was 88.61%. And the median was 94.00%.

SKLZ's Gross Margin % is ranked better than
77.59% of 522 companies
in the Interactive Media industry
Industry Median: 60.895 vs SKLZ: 89.75

Skillz had a gross margin of 88.14% for the quarter that ended in Dec. 2023 => Durable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Skillz was -1.60% per year.


Skillz Gross Margin % Historical Data

The historical data trend for Skillz's Gross Margin % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Skillz Gross Margin % Chart

Skillz Annual Data
Trend Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Gross Margin %
Get a 7-Day Free Trial 95.23 94.64 93.36 88.61 89.76

Skillz Quarterly Data
Dec18 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
Gross Margin % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 89.51 89.68 90.91 89.86 88.14

Competitive Comparison of Skillz's Gross Margin %

For the Electronic Gaming & Multimedia subindustry, Skillz's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Skillz's Gross Margin % Distribution in the Interactive Media Industry

For the Interactive Media industry and Communication Services sector, Skillz's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Skillz's Gross Margin % falls into.



Skillz Gross Margin % Calculation

Gross Margin is the percentage of Gross Profit out of sales or Revenue.

Skillz's Gross Margin for the fiscal year that ended in Dec. 2023 is calculated as

Gross Margin % (A: Dec. 2023 )=Gross Profit (A: Dec. 2023 ) / Revenue (A: Dec. 2023 )
=134.7 / 150.113
=(Revenue - Cost of Goods Sold) / Revenue
=(150.113 - 15.379) / 150.113
=89.76 %

Skillz's Gross Margin for the quarter that ended in Dec. 2023 is calculated as


Gross Margin % (Q: Dec. 2023 )=Gross Profit (Q: Dec. 2023 ) / Revenue (Q: Dec. 2023 )
=25.7 / 29.138
=(Revenue - Cost of Goods Sold) / Revenue
=(29.138 - 3.455) / 29.138
=88.14 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.


Skillz  (NYSE:SKLZ) Gross Margin % Explanation

Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.

Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %

1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key

Skillz had a gross margin of 88.14% for the quarter that ended in Dec. 2023 => Durable competitive advantage


Be Aware

If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.


Skillz Gross Margin % Related Terms

Thank you for viewing the detailed overview of Skillz's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.


Skillz (Skillz) Business Description

Traded in Other Exchanges
Address
P.O. Box 445, San francisco, CA, USA, 94104
Skillz Inc is a mobile game development company. It is engaged in re-inventing competitive mobile gaming and thereby expanding the mobile gaming market.
Executives
Jason Roswig officer: President & CFO PO BOX 445, SAN FRANCISCO CA 94104
Andrew Paradise director, officer: Chief Executive Officer SKILLZ INC., C/O CHARLOTTE EDELMAN, P.O. BOX 445, SAN FRANCISCO CA 94104-0445
Andrew Dahlinghaus officer: General Counsel P.O. BOX 445, SAN FRANCISCO CA 94104
Kevin Chessen director 1061 MARKET STREET, 6TH FLOOR, SAN FRANCISCO CA 94103
Elly Ryu officer: Controller/Head of Accounting 245 FIRST STREET, SUITE 1800, CAMBRIDGE MA 02142
Alvin Lobo officer: Chief Financial Officer P.O. BOX 445, SAN FRANCISCO CA 94104
Alexander Mandel director 1061 MARKET STREET, 6TH FLOOR, SAN FRANCISCO CA 94103
Stanley Mbugua officer: Chief Accounting Officer SKILLZ INC, PO BOX 455, SAN FRAN CA 94104
Seth Schorr director PO BOX 445, SAN FRANCISCO CA 94104
Henry M. Hoffman director PO BOX 445, SAN FRANCISCO CA 94104
Shari Glazer director PO BOX 445, SAN FRANCISCO CA 94104
Harry Sloan director, 10 percent owner, officer: CEO, Chairman 1450 2ND STREET, SUITE 247, SANTA MONICA CA 90401
Jerome Leon Bruckheimer director PHILPOTT MEEKS, 10030 VENTURA BOULEVARD, SUITE 380, ENCINO CA 91436
Christopher S Gaffney director C/O GREAT HILL PARTNERS, L.P., 200 CLARENDON STREET, 29TH FLOOR, BOSTON MA 02116
Casey Chafkin director, officer: Chief Revenue Officer SKILLZ INC., C/O CHARLOTTE EDELMAN, P.O. BOX 445, SAN FRANCISCO CA 94104-0445