XML 31 R20.htm IDEA: XBRL DOCUMENT v3.24.2.u1
Segment Reporting
 3 Months Ended
Mar. 31, 2024
Segment Reporting [Abstract]  
Segment Reporting Segment Reporting
Effective beginning in the fourth quarter of 2023, the Company had two operating and reportable segments.

In accordance with ASC 280, Segment Reporting, in the event of a change in the structure of a company’s organization that causes the composition of its reportable segments to change, the corresponding information for earlier periods is to be restated. The disclosures below reflect the change in the Company’s reportable segments (from one segment to two segments) for the first quarters of fiscal years 2024 and 2023.

A description of the Company’s two reportable segments, including products and services, is as follows.

Skillz

Skillz is a leading eSports gaming platform. Its platform enables game developers to monetize their content through multi-player competition. By utilizing Skillz’ monetization services, developers can enhance their end-user experiences by enabling them to compete in head-to-head matches, live tournaments, leagues, and charity events while also increasing player retention through referral bonus programs, loyalty perks, on-system achievements, and rewards / prizes. Skillz provides its monetization services to developers via a downloadable software development kit (“SDK”). The SDK integrates with developers’ existing games. Monetization services include end-user registration, player matching, fraud & fair play monitoring, and settlement for player billings and payouts. Skillz is headquartered in Las Vegas, NV with offices in Los Angeles, CA, Canada, and India.
Aarki

Aarki is an AI 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 hundreds of advertisers globally and manages approximately 5 million mobile ad requests per second from over 10 billion devices. Aarki is headquartered in San Francisco, CA, with offices in Europe, the Middle East and Asia.

The Company’s corporate operations primarily support Skillz and are included in the results for the Skillz segment. Likewise, Aarki has its own corporate operations, which are included in the Aarki segment.

The CODM evaluates the performance of the Company’s segments based on Segment Revenue and Segment Adjusted EBITDA. Segment Adjusted EBITDA is indicative of operational performance and is monitored by the CODM to evaluate past performance and identify actions required to improve profitability. The CODM does not review information regarding total assets on a reportable segment basis.

The following tables provide summarized information about the Company’s operations by reportable segment and a reconciliation of Segment Adjusted EBITDA to Net Loss in the three months ended March 31, 2024 and 2023.

Three Months Ended March 31,
20242023
Revenue
Skillz Segment$22,417 $40,028 
Aarki Segment2,865 4,513 
Elimination(47)(158)
Total Revenue$25,235 $44,383 
Segment Adjusted EBITDA
Skillz Segment$(15,691)$(19,682)
Aarki Segment(2,045)(1,212)
Total Segment Adjusted EBITDA$(17,736)$(20,894)
Items to reconcile Segment Adjusted EBITDA to Net Loss:
Interest income (expense), net$112 $(3,494)
Stock-based compensation(8,740)(10,548)
Change in fair value of warrant liability9 (1)
Provision for income taxes(38)(69)
Depreciation and amortization(395)(626)
Other income, net65 39 
Net Loss$(26,723)$(35,593)