Shares of Skillz (NYSE: SKLZ) plunged 20% on Thursday after the mobile gaming company's mounting losses alarmed investors.
Skillz's revenue rose 61% year over year to $108.8 million in the fourth quarter. The gains were driven by a 56% rise in paying monthly active users to 0.6 million and a 3% increase in average revenue per paying user to $59.
However, Skillz was forced to spend heavily to attract and retain those users. The company's sales and marketing expenses surged 95% to $155 million, outpacing its revenue by a startling 42%.
Source Fool.com