Shareholder letter
Page 1
August 3 , 2021 Fellow Stockholders , skillz Skillz Q2 2021 Stockholder Letter Skillz ( SKLZ ) delivered its 22nd consecutive quarter of revenue growth in Q2 . We generated 52 % revenue growth year - over - year , led by a 53 % growth in Paying Monthly Active Users ( PMAU ) . On a sequential basis , revenue grew 7 % , driven by 8 % growth in Monthly Average Revenue Per Paying User ( ARPPU ) . The primary driver of new user growth is User Acquisition ( UA ) marketing . Even though we reduced our UA marketing by 15 % , PMAU remained constant with the prior quarter . Revenue ( $ M ) Paying MAU ( M ) $ 100 $ 75 $ 50 $ 25 $ 35 $ 31 $ 28 $ 44 $ 59 $ 60 $ 68 0.5 $ 89 $ 84 0.4 0.3 0.2 0.155 0.165 0.177 0.1 0.391 0.346 0.302 0.25 0.467 0.463 $ 0 Q219 Q319 Q419 Q120 Q220 Q320 Q420 Q121 Q221 0.0 Q219 0319 0419 0120 Q220 Q320 Q420 Q121 0221 In Q2 , we made bold investments to capitalize on our first - mover advantage and capture the significant market opportunity we see ahead of us . We also enabled more developers to share their inventiveness with the world by providing them with the platform for the future of mobile gaming . Aarki : We announced the acquisition of Aarki , a growing demand - side platform ( DSP ) with substantial scale in mobile gaming that reaches an audience of more than 465 million monthly consumers . We expect this will result in significant efficiencies in our UA , which can be reinvested to acquire more users to accelerate growth and provide a broader product offering , including media buying capabilities to better serve game developers . Data Science : The investments we have been making in data science enable us to enhance the user experience on our platform through greater personalization , which in turn drives better conversion , retention , and monetization . Deploying artificial intelligence to our limited - time marketing programs drove improvements in monetization . Exit Games : Yesterday , we announced a $ 50 million strategic investment in Exit Games , whose advanced game engine technology is the literal definition of a 1