Skillz reported a gross marketplace volume of $1.59 billion in 2020, reflecting an impressive growth of 80% in total entry fees paid by users for contests on its platform. For the year, Skillz incurred total costs amounting to $329.7 million. These costs included $251.9 million for sales and marketing, $42.3 million for general and administrative expenses, and $23.2 million for research and development. As a result, the company posted a loss from operations of $99.6 million.
In addition, interest expenses added another $1.3 million in losses, alongside $21.4 million classified as other expenses, culminating in a net loss of $122.5 million for 2020. This figure marks a significant increase from the net loss of $23.6 million recorded in 2019.
In the fourth quarter alone, Skillz achieved revenues of $67.7 million, representing a 95% increase from $34.7 million in the same quarter of 2019 and exceeding expectations by 8%. The company's gross profit for Q4 equaled $64.0 million, also up by 95%. However, the net loss for that quarter reached $44 million, with total costs and expenses totaling $111.0 million, compared to a net loss of $9 million in Q4 2019.
