(MT Newswires) -- Skillz (SKLZ) is expected to report fourth-quarter revenue that will exceed Wall Street expectations and guide for full-year 2022 revenue above estimates, Wedbush Securities said Tuesday.
The investment firm maintained Skillz's outperform rating and $25 price target.
"We expect Skillz to capture increasing wallet share through its unique business model, greater adoption of paid entry fee gaming, (marketing platform) Aarki, and several growth opportunities," said the firm's analysts, led by Michael Pachter.
Skillz will report its fourth-quarter results on Feb. 23.
Wedbush anticipates revenue of $114.8 million, compared with the $114 million consensus of analysts polled by Capital IQ and $102.1 million in the third quarter.
The projected sequential growth is driven by "the positive impacts from seasonality and omicron on gaming demand and modest contributions from Aarki and 'Big Buck Hunter: Marksman,'" Pachter said.
Wedbush, however, estimates an adjusted loss of earnings before interest, taxes, depreciation and amortization of $48 million, wider than the Street's view for a $39.2 million loss.
For 2022, the investment anticipates revenue of $590 million, above the Street's projection of $548.2 million.
In the longer term, Wedbush sees "many compelling opportunities" for the company and shareholders, including the expansion of the video game "Big Buck Hunter: Marksman" and the entry of "Trivia Crack Payday" into the trivia category.
Skillz's shares jumped almost 14% in late afternoon trading.
Price: 4.50, Change: +0.53, Percent Change: +13.35
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