Skillz (SKLZ) POS AM 17 Mar 21 Prospectus update (post-effective amendment) Financial data

Document and Entity Information

Document and Entity Information	12 Months Ended
	Dec. 31, 2020
Document and Entity Information [Abstract]
Document Type	POS AM
Document Period End Date	Dec. 31, 2020
Entity Registrant Name	SKILLZ INC.
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	true
Entity Ex Transition Period	false
Entity Central Index Key	0001801661
Amendment Flag	true
Amendment Description	Amendment No. 1

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands		Dec. 31, 2020	Dec. 31, 2019
Current assets:
Cash and cash equivalents		$ 262,728	$ 25,628
Prepaid expenses and other current assets		10,491	9,464
Total current assets		273,219	35,092
Property and equipment, net		5,292	3,648
Other long-term assets		3,910	116
Total assets		282,421	38,856
Current liabilities:
Accounts payable		22,039	2,944
Accrued professional fees		5,699	0
Other current liabilities		19,618	7,537
Total current liabilities		47,356	10,481
Long-term debt, non-current		0	9,628
Other long-term liabilities		46	82
Total liabilities		47,402	20,191
Commitments and contingencies (Note 7)		0	0
Stockholders' equity:
Preferred stock $0.0001 par value; 10 million shares authorized - 0 issued and outstanding as of December 31, 2020 and 2019	[1]	0	0
Common stock $0.0001 par value; 625 million shares authorized; Class A common stock - 500 million shares authorized; 292 million and 248 million shares issued and outstanding as of December 31, 2020 and 2019, respectively; Class B common stock - 125 million shares authorized; 78 million and 38 million shares issued and outstanding as of December 31, 2020 and 2019, respectively	[1]	37	29
Additional paid-in capital		450,248	108,892
Accumulated deficit		(215,266)	(90,256)
Total stockholders' equity		235,019	18,665
Total liabilities and stockholders' equity		$ 282,421	$ 38,856
[1]	Retroactively restated for the reverse recapitalization as described in Notes 1 and 2.

CONSOLIDATED BALANCE SHEETS (Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Dec. 31, 2020	Dec. 31, 2019
Common stock, par value	$ 0.0001	$ 0.0001
Common stock, shares authorized	625,000,000	625,000,000
Common stock, shares issued	500,000,000
Preferred Stock, Par or Stated Value Per Share	$ 0.0001	$ 0.0001
Preferred Stock, Shares Authorized	10,000,000	10,000,000
Preferred Stock, Shares Issued	0	0
Preferred Stock, Shares Outstanding	0	0
Class A common stock
Common stock, par value	$ 0.0001
Common stock, shares authorized	500,000,000	500,000,000
Common stock, shares issued	292,000,000	292,000,000
Common stock, shares outstanding	212,000,000	212,000,000
Class B common stock
Common stock, par value	$ 0.0001
Common stock, shares authorized	125,000,000	125,000,000
Common stock, shares issued	78,000,000	78,000,000
Common stock, shares outstanding	74,000,000	74,000,000

CONSOLIDATED STATEMENTS OF OPER

CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
CONSOLIDATED STATEMENTS OF OPERATIONS
Revenue	$ 230,115	$ 119,872	$ 50,778
Costs and expenses:
Cost of revenue	12,281	5,713	2,112
Research and development	23,225	11,241	7,547
Sales and marketing	251,941	111,370	51,689
General and administrative	42,289	16,376	14,975
Total costs and expenses	329,736	144,700	76,323
Loss from operations	(99,621)	(24,828)	(25,545)
Interest expense, net	(1,325)	(2,497)	(2,190)
Other income (expense), net	(21,400)	3,720	(45)
Loss before income taxes	(122,346)	(23,605)	(27,780)
Provision for income taxes	115	0
Net loss	$ (122,461)	$ (23,605)	$ (27,780)
Net loss per common share
Net loss per share attributable to common stockholders - basic and diluted	$ (0.42)	$ (0.09)	$ (0.12)
Weighted average shares outstanding
Weighted average common shares outstanding - basic and diluted	294,549,146	261,228,108	236,040,717

CONSOLIDATED STATEMENTS OF STOC

CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (DEFICIT) - USD ($) $ in Thousands	Redeemable convertible preferred stockPreviously Reported [Member]	Redeemable convertible preferred stockRevision of Prior Period, Adjustment [Member]	Previously Reported [Member]Preferred stock	Previously Reported [Member]Common stock	Previously Reported [Member]Additional paid-in capital	Previously Reported [Member]Accumulated deficit	Previously Reported [Member]	Revision of Prior Period, Adjustment [Member]Preferred stock	Revision of Prior Period, Adjustment [Member]Common stock	Revision of Prior Period, Adjustment [Member]Additional paid-in capital	Revision of Prior Period, Adjustment [Member]	Common stock	Additional paid-in capital	Accumulated deficit	Total
Balance at the beginning at Dec. 31, 2017	$ 17,040	$ (17,040)
Balance at the beginning (in shares) at Dec. 31, 2017	4,404,840	(4,404,840)
Balance at the beginning at Dec. 31, 2017			$ 25,560	$ 1	$ 36	$ (38,871)	$ (13,274)	$ (25,560)	$ 22	$ 42,578	$ 17,040	$ 23	$ 42,614	$ (38,871)	$ 3,766
Balance at the beginning (in shares) at Dec. 31, 2017			13,621,802	126,464,480				(13,621,802)	102,694,176			229,158,656
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of Old Skillz redeemable convertible Series D preferred stock												$ 2	18,216		18,218
Issuance of Old Skillz redeemable convertible Series D preferred stock (In Shares)												16,705,320
Issuance of Old Skillz redeemable convertible Series E preferred stock												$ 2	18,216		18,218
Issuance of Old Skillz redeemable convertible Series E preferred stock (In Shares)												16,705,320
Issuance of common stock upon exercise of stock options													(192)		(192)
Issuance of common stock upon exercise of stock options (in shares)												4,036,200
Stock-based compensation													6,680		6,680
Temporary Equity, Stock Issued During Period, Value, New Issues												$ 2	18,216		18,218
Temporary Equity, Stock Issued During Period, Shares, New Issues												16,705,320
Net loss														(27,780)	(27,780)
Balance at the end at Dec. 31, 2018												$ 25	67,702	(66,651)	1,076
Balance at the end (in shares) at Dec. 31, 2018												249,900,176
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of Old Skillz redeemable convertible Series D preferred stock												$ 3	39,757		39,760
Issuance of Old Skillz redeemable convertible Series D preferred stock (In Shares)												23,718,385
Issuance of Old Skillz redeemable convertible Series E preferred stock												$ 3	39,757		39,760
Issuance of Old Skillz redeemable convertible Series E preferred stock (In Shares)												23,718,385
Issuance of common stock upon exercise of stock options													197		197
Issuance of common stock upon exercise of stock options (in shares)												3,485,844
Issuance of common stock upon early exercise of stock options with promissory note												$ 1	(1)
Issuance of common stock upon early exercise of stock options with promissory note (in shares)												8,970,518
Stock-based compensation													1,237		1,237
Temporary Equity, Stock Issued During Period, Value, New Issues												$ 3	39,757		39,760
Temporary Equity, Stock Issued During Period, Shares, New Issues												23,718,385
Net loss														(23,605)	(23,605)
Balance at the end at Dec. 31, 2019												$ 29	108,892	(90,256)	18,665
Balance at the end (in shares) at Dec. 31, 2019												286,074,923
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of Old Skillz redeemable convertible Series D preferred stock												$ 2	98,303		98,305
Issuance of Old Skillz redeemable convertible Series D preferred stock (In Shares)												17,834,808
Issuance of Old Skillz redeemable convertible Series E preferred stock												$ 2	98,303		98,305
Issuance of Old Skillz redeemable convertible Series E preferred stock (In Shares)												17,834,808
Issuance of common stock upon exercise of stock options												$ 1	1,242		1,243
Issuance of common stock upon exercise of stock options (in shares)												7,642,110
Conversion of Old Skillz preferred stock warrants													654		$ 654
Issuance of common stock upon early exercise of stock options with promissory note												$ 1	(1)
Issuance of common stock upon early exercise of stock options with promissory note (in shares)												12,700,358			15,000,000
Surrender of Old Skillz common stock upon net settlement of promissory notes (in Shares)												(1,037,535)
Taxes paid related to net share settlement of Old Skillz equity awards													(13,404)		$ (13,404)
Taxes paid related to net share settlement of Old Skillz equity awards (In shares)												(1,102,746)
Issuance of Old Skillz convertible Series A, Series A-1 and Series B preferred stock upon exercise of warrants												$ (1)	(1)		(2)
Issuance of Old Skillz convertible Series A, Series A-1 and Series B preferred stock upon exercise of warrants (In shares)												2,860,974
Issuance of Old Skillz common stock upon exercise of warrants													382		382
Issuance of Old Skillz common stock upon exercise of warrants (In shares)												726,063
Repurchase of Old Skillz common stock														(1,339)	(1,339)
Repurchase of Old Skillz common stock (in shares)												(468,270)
Repurchase of Old Skillz preferred stock												$ (1)		(1,210)	(1,211)
Repurchase of Old Skillz common stock (in shares)												(13,739)
Net cash contributions from Business Combination and PIPE financing												$ 4	230,422		230,426
Net cash contributions from Business Combination and PIPE financing (in Shares)												44,580,578
Stock-based compensation													23,757		23,757
Temporary Equity, Stock Issued During Period, Value, New Issues												$ 2	98,303		98,305
Temporary Equity, Stock Issued During Period, Shares, New Issues												17,834,808
Net loss														(122,461)	(122,461)
Balance at the end at Dec. 31, 2020												$ 37	$ 450,248	$ (215,266)	$ 235,019
Balance at the end (in shares) at Dec. 31, 2020												369,797,524

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Operating Activities
Net loss	$ (122,461)	$ (23,605)	$ (27,780)
Adjustment to reconcile net loss to net cash used in operating activities:
Depreciation and amortization	1,609	711	404
Stock-based compensation	23,757	1,237	6,680
Accretion of unamortized discount and amortization of issuance costs	558	2,139	1,287
Fair value adjustment of derivatives	21,463	(3,649)	45
Impairment charges	3,573
Changes in operating assets and liabilities:
Prepaid expenses and other assets	(7,505)	(4,307)	(992)
Accounts payable	10,729	(54)	1,851
Other liabilities	12,045	5,591	1,557
Net cash used in operating activities	(56,232)	(21,937)	(16,948)
Investing Activities
Purchases of property and equipment, including internal-use software	(3,246)	(3,223)	(867)
Net cash used in investing activities	(3,246)	(3,223)	(867)
Financing Activities
Borrowings under debt agreements, net of issuance costs		9,563	19,920
Payments for issuance costs	(201)
Payments under debt agreements	(10,000)	(3,500)	(5,000)
Net cash Business Combination and private placement financing	246,484
Payments made toward offering costs	(1,993)
Proceeds from issuance of redeemable convertible preferred stock, net of issuance costs	76,617	24,908	18,218
Proceeds from exercise of stock options and issuance of common stock	1,243	197	192
Proceeds from exercise of common stock warrants	382
Taxes paid related to net share settlement of equity awards	(13,404)
Payments made to repurchase common stock	(1,339)
Payments for redemption of preferred stock	(1,211)
Net cash provided by financing activities	296,578	31,168	33,330
Net change in cash, cash equivalents and restricted cash	237,100	6,008	15,515
Cash, cash equivalents and restricted cash - beginning of year	28,548	22,540	7,025
Cash, cash equivalents and restricted cash - end of year	265,648	28,548	22,540
Cash paid during the period for:
Interest	815	269	$ 196
Noncash investing and financing activities:
Carrying value of long-term debt and accrued interest converted to redeemable convertible preferred stock		$ 14,852
Settlement of the Redeemable Convertible Series E preferred stock forward contract liability	21,688
Deferred offering costs in accounts payable and accrued liabilities	14,065
Payment of promissory notes through surrender of shares	$ 18,673

Description of the Business and

Description of the Business and Basis of Presentation	12 Months Ended
	Dec. 31, 2020
Description of the Business and Basis of Presentation
Description of the Business and Basis of Presentation	1. Description of the Business and Basis of Presentation Business On December 16, 2020 (the “Closing”), Flying Eagle Acquisition Corp. (“FEAC”), a publicly traded special purpose acquisition company, consummated the merger agreement (the “Merger Agreement”) dated September 1, 2020, by and among, FEAC, Merger Sub Inc., a Delaware corporation (“Merger Sub”), Skillz Inc., a Delaware corporation (“Old Skillz”) and Andrew Paradise (the “Founder”), solely in his capacity as the representative of the stockholders of Old Skillz. Pursuant to the terms of the Merger Agreement, a business combination between FEAC and Old Skillz was effected through the merger of Merger Sub with and into Old Skillz, with Old Skillz surviving as the surviving company and a wholly-owned subsidiary of FEAC (the “Merger” and collectively with the other transaction described in the Merger Agreement, the “Business Combination”). On the Closing Date FEAC changed its name to Skillz Inc. (the “Company” or “Skillz”) and Old Skillz changed its name to Skillz Platform Inc. Skillz Platform Inc. was originally formed as Professional Gaming, LLC on March 28, 2012, changed its name to Lookout Gaming, LLC on May 18, 2012, and to Skillz LLC on January 31, 2013, before converting to a Delaware corporation with the name Skillz Inc. on April 29, 2013. Skillz is a mobile eSports platform, driving the future of entertainment by accelerating the convergence of sports, video games and media. The Company’s principal activities are to develop and support a proprietary online-hosted technology platform that enables independent game developers to host tournaments and provide competitive gaming activity (“Competitions”) to end-users worldwide. Basis of Presentation The Company’s consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”) as determined by the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) and pursuant to the regulations of the U.S. Securities and Exchange Commission (“SEC”). Pursuant to the Merger Agreement, the merger between Merger Sub and Old Skillz was accounted for as a reverse recapitalization in accordance with U.S. GAAP (the “Reverse Recapitalization”). Under this method of accounting, FEAC was treated as the “acquired” company and Old Skillz is treated as the acquirer for financial reporting purposes. Accordingly, for accounting purposes, the Reverse Recapitalization was treated as the equivalent of Old Skillz issuing stock for the net assets of FEAC, accompanied by a recapitalization. The net assets of FEAC are stated at historical cost, with no goodwill or other intangible assets recorded. Old Skillz was determined to be the accounting acquirer based on the following predominant factors: · Old Skillz’s existing stockholders have the greatest voting interest in the Company; · The largest individual minority stockholder in the Company is an existing stockholder of Old Skillz; · Old Skillz’s directors represented the majority of the new board of directors of the Company; · Old Skillz’s senior management is the senior management of the Company; and · Old Skillz is the larger entity based on historical revenue and has the larger employee base. The consolidated assets, liabilities and results of operations prior to the Reverse Recapitalization are those of Old Skillz. The shares and corresponding capital amounts and losses per share, prior to the Reverse Recapitalization, have been retroactively restated based on shares reflecting the exchange ratio of 0.7471 established in the Business Combination. Comprehensive Loss Through December 31, 2020, there are no components of comprehensive loss which are not included in net loss; therefore, a separate statement of comprehensive loss has not been presented.

Summary of Significant Accounti

Summary of Significant Accounting Policies	12 Months Ended
	Dec. 31, 2020
Summary of Significant Accounting Policies
Summary of Significant Accounting Policies	2. Summary of Significant Accounting Policies Use of Estimates The preparation of consolidated financial statements in conformity with U.S.GAAP requires management to make certain estimates, judgments, and assumptions that affect the reported amounts of assets and liabilities and the related disclosures at the date of the consolidated financial statements, as well as the reported amounts of revenues and expenses during the periods presented. Estimates are used in several areas including, but not limited to, stock-based compensation. The Company bases these estimates on historical experience and on various other assumptions that it believes are reasonable under the circumstances, the results of which form the basis for making judgments about the carrying amounts of assets and liabilities. Actual results could differ materially from these estimates. Revenue Recognition The Company generates substantially all its revenues by providing a service to the game developers aimed at improving the monetization of their game content. The monetization service provided by Skillz allows developers to offer multi-player competition to their end-users which increases end-user retention and engagement. Skillz provides developers with a software development kit (“SDK”) that they can download and integrate with their existing games. The SDK serves as a data interface between Skillz and the game developers that enables Skillz to provide monetization services to the developer. The Company recognizes revenue for its services in accordance with the FASB Accounting Standards Codification (“ASC”) Topic 606, Revenue from Contracts with Customers (“ASC 606”). Revenues from Contracts with Customers The Company applies the five-step model to achieve the core principle of ASC 606. The Company determined that its customer in the provision of its technology platform and services is the game developer. The Company’s ordinary activities consist of providing game developers services through access to its technology platform using the Skillz SDK. The SDK acts as an application programming interface enabling communication of data between Skillz and the game developers, which when integrated with the developer’s game content, facilitates end-user registration into Competitions, managing and hosting end-user Competition accounts, matching players of similar skill levels, collecting end-user entry fees, distributing end-user prizes, resolving end-user disputes pertaining to their participation in Competitions, and running third-party marketing campaigns (“Monetization Services”). The Company provides Monetization Services to game developers enabling them to offer competitive games to their end-users. These activities are not distinct from each other as the Company provides an integrated service enabling the game developers to provide the competitive game service to the end-users, and as a result, they do not represent separate performance obligations. The Company is entitled to a revenue share based on total entry fees for paid Competitions, regardless of how they are paid, net of end-user prizes (i.e., winnings from the Competitions) and other costs to provide the Monetization services. The game developers’ revenue share, however, is calculated solely based upon entry fees paid by net cash deposits received from end-users. End-user incentives are not paid for by game developers. In addition, the Company reduces revenue for end-user incentives which are treated as a reduction of revenue. The Company collects the entry fees and related charges from end-users on behalf of game developers using the end-user’s pre-authorized credit card or PayPal account and withholds its fees before making the remaining disbursement to the game developer; thus, the game developer’s ability and intent to pay is not subject to significant judgment. Revenue is recognized at the time the performance obligation is satisfied by transferring control of the promised service in an amount that reflects the consideration that the Company expects to receive in exchange for the Monetization Services. The Company recognizes revenue upon completion of a game, which is when its performance obligation to the game developer is satisfied. The Company does not have contract assets or contract liabilities as the payment of the transaction price is concurrent with the fulfillment of the services. At the time of game completion, the Company has the right to receive payment for the services rendered. The Company’s agreements with game developers can generally be terminated for convenience by either party upon thirty days prior written notice, and in certain of our larger developer agreements, the developer, if required by the Company, must continue to make its games available on the platform for a period of up to twelve months. As the Company is able to terminate the developer agreements at its convenience, the Company has concluded the contract term for revenue recognition does not extend beyond the contractual notification period. The Company does not have any transaction price allocated to performance obligations that are unsatisfied (or partially satisfied) as of December 31, 2020, 2019 and 2018. Games provided by two developer partners (A and B) accounted for 59% and 28% of the Company’s revenue in the year ended December 31, 2020. Games provided by two developer partners (A and C) accounted for 83% and 7% , and 70% and 16% of the Company’s revenue in years ended December 31, 2019 and 2018, respectively. The Company did not generate material international revenues in the years ended December 31, 2020, 2019, and 2018. End-User Incentive Programs To drive traffic to the platform, the Company provides promotions and incentives to end-users in various forms. Evaluating whether a promotion or incentive is a payment to a customer may require significant judgment. Promotions and incentives which are consideration payable to a customer are recognized as a reduction of revenue at the later of when revenue is recognized or when the Company pays or promises to pay the incentive. Promotions and incentives recorded as sales and marketing expense are recognized when the related cost is incurred by the Company. In either case, the promotions and incentives are recognized when they are used by end-users to enter into a paid Competition. · Marketing promotions and discounts accounted for as a reduction of revenue. These promotions are typically pricing actions in the form of discounts that reduce the end-user entry fees and are offered on behalf of the game developers. Although not required based on the Company’s agreement with its developers, the Company considers that the game developers have a valid expectation that certain incentives will be offered to end-users. The determination of a valid expectation is based on the evaluation of all information reasonably available to the game developers regarding the Company’s customary business practices, published policies and specific statements. An example of an incentive for which the game developer has a valid expectation is Ticketz, which are a currency earned for every Competition played based on the amount of the entry fee. Ticketz can be redeemed for Bonus Cash. Another example is initial deposit Bonus Cash which is a promotional incentive that can be earned in fixed amounts when an end-user makes an initial deposit on the Skillz platform. Bonus Cash can only be used by end-users to enter into future paid entry fee Competitions and cannot be withdrawn by end-users. For the years ended December 31, 2020, 2019, and 2018, the Company recognized a reduction of revenue of $51.3 million, $27.7 million, and $11.6 million, respectively, related to these end-user incentives. · Marketing promotions accounted for as sales and marketing expense. When the Company concludes that the game developers do not have a valid expectation that the incentive will be offered, the Company records the related cost as sales and marketing expense. The Company’s assessment is based on an evaluation of all information reasonably available to the game developers regarding the Company’s customary business practices, published policies and specific statements. These promotions are offered to end-users to draw, re-engage, or generally increase end-users’ use of the Company’s platform. An example of this type of incentive is limited-time Bonus Cash offers, which are targeted to specific end-users, typically those who deposit more frequently or have not made a deposit recently, via email or in-app promotions. The Company targets groups of end-users differently, offering specific promotions it thinks will best stimulate engagement. Similar to Bonus Cash earned from a redemption of Ticketz or an initial deposit, limited-time Bonus Cash can only be used by end-users to enter into future paid entry fee competitions and cannot be withdrawn by end-users. The Company also hosts engagement marketing leagues run over a period of days or weeks, which award league prizes in the form of cash or luxury goods to end-users with the most medals at the end of the league. End-users accumulate medals by winning Skillz enabled paid entry fee Competitions. Skillz determines whether or not to run a league, what prizes should be awarded, over what time period the league should run, and to which end-users the prizes should be paid, all at its discretion. The league parameters vary from one league to the next and are not reasonably known to the game developers. League prizes in the form of cash can be withdrawn or used by end-users to enter into future paid entry fee Competitions. For the years ended December 31, 2020, 2019, and 2018, the Company recognized sales and marketing expense of $91.5 million, $45.2 million, and $18.7 million, respectively, related to these end-user incentives. Refunds From time to time, the Company issues credits or refunds to end-users that are unsatisfied by the level of service provided by the game developer. There is no contractual obligation for the Company to refund such end-users nor is there a valid expectation by the game developers for the Company to issue such credits or refunds to end-users on their behalf. The Company accounts for credits or refunds, which are not recoverable from the game developer, as sales and marketing expenses when incurred. Cost of Revenue Cost of revenue primarily comprises of third-party payment processing fees, direct software costs, amortization of internal use software, hosting expenses, allocation of shared facility and other costs, and personnel expenses. Cash, Cash Equivalents and Restricted Cash Cash and cash equivalents consist of cash and money market funds with maturities of three months or less when purchased. Restricted cash maintained under an agreement that legally restricts the use of such funds is not included within cash and cash equivalents and is reported within other long-term assets and other current assets as of December 31, 2020 and 2019, respectively. Restricted cash is comprised of $2.9 million which is pledged in the form of a letter of credit for the Company’s new headquarters in San Francisco. A reconciliation of the Company’s cash and cash equivalents in the Consolidated Balance Sheet to cash, cash equivalents and restricted cash in the Consolidated Statement of Cash Flows as of December 31, 2020 and 2019 is as follows: ​ December 31, ​ 2020 2019 Cash and cash equivalents $ 262,728 $ 25,628 Restricted Cash included in other long-term assets and other current assets as of December 31, 2020 and 2019, respectively 2,920 2,920 Cash, cash equivalents and restricted cash $ 265,648 $ 28,548 Concentrations of Credit Risk Financial instruments that potentially subject the Company to significant concentrations of credit risk consist of cash, cash equivalents and restricted cash. Although the Company deposits its cash with multiple well-established financial institutions, the deposits, at times, may exceed federally insured limits. The Company has not experienced any losses on its deposits of cash and cash equivalents. Management believes that the institutions are financially stable and, accordingly, minimal credit risk exists. Fair Value Measurement The Company applies fair value accounting for all financial assets and liabilities and non-financial assets and liabilities that are recognized or disclosed at fair value in the consolidated financial statements on a recurring basis. The Company defines fair value as the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining fair value measurements for assets and liabilities, the Company considers the principal or most advantageous market in which it would transact and the market-based risk measurements or assumptions that market participants would use in pricing the asset or liability, such as risks inherent in valuation techniques, transfer restrictions and credit risk. Fair value is estimated by applying the following hierarchy, which prioritizes the inputs used to measure fair value into three levels and bases the categorization within the hierarchy upon the lowest level of input that is available and significant to the fair value measurement: Level 1 — Observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets. Level 2 — Inputs reflect quoted prices for identical assets or liabilities in markets that are not active; quoted prices for similar assets or liabilities in active markets; inputs other than quoted prices that are observable for the assets or liabilities; or inputs that are derived principally from or corroborated by observable market data by correlation or other means. Level 3 — Unobservable inputs reflecting management’s estimate of assumptions incorporated in valuation techniques used to determine fair value. These assumptions are required to be consistent with market participant assumptions that are reasonably available. The fair value hierarchy also requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. Assets and liabilities measured at fair value are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. Advertising and Promotional Expense Advertising and promotional expenses are included in sales and marketing expenses within the statements of operations and are expensed when incurred. For the years ended December 31, 2020, 2019, and 2018, advertising expenses, not including marketing promotions related to the Company’s end-user incentive programs, were $136.8 million, $53.5 million, and $25.3 million, respectively. Redeemable Convertible Preferred Stock Prior to the Business Combination, preferred stock that was redeemable at a fixed or determinable price on a fixed or determinable date, at the option of the holder, or upon the occurrence of an event that is not solely within the control of the Company was classified outside of permanent equity. Convertible preferred stock that was probable of becoming redeemable in the future was recorded at its maximum redemption amount at each balance sheet date, with adjustments to the redemption amount recorded through equity. The fair value of the redeemable convertible preferred stock was estimated primarily based on valuation methodologies which utilized certain assumptions, including probability weighting of events, recent sales of stock to external investors, volatility, time to liquidity, a risk free interest rate, and an assumption for a discount for lack of marketability, where applicable. All redeemable convertible preferred stock previously classified outside of permanent equity was retroactively adjusted, converted into common stock, and reclassified to permanent equity as a result of the Business Combination. Additionally, changes to the redemption values of the redeemable convertible preferred stock were eliminated as a result of the retroactive adjustment. The Company recorded changes to the redemption value of its redeemable convertible preferred stock of $866.0 million, $62.5 million and $18.8 million in the year-to-date periods ended September 30, 2020, December 31, 2019 and December 31, 2018, respectively. The changes to the redemption values of the redeemable convertible preferred stock were previously presented as adjustments to net loss available to common stockholders for each of the respective periods ended. For further details regarding the accounting for the Business Combination, s ee Note 3. Derivative Financial Instruments The Company does not use derivative instruments to hedge exposures to cash flow, market, or foreign currency risks. The Company evaluates all of its financial instruments, including its long-term debt, preferred stock and stock purchase warrants, to determine if such instruments are derivatives or contain features that qualify as embedded derivatives. Embedded derivatives must be separately measured from the host contract if all the requirements for bifurcation are met. The assessment of the conditions surrounding the bifurcation of embedded derivatives depends on the nature of the host contract. Bifurcated embedded derivatives and freestanding derivative financial instruments that are classified as assets or liabilities are recognized at fair value with changes in fair value recognized as a component of Other income (expense), net in the Statements of Operations. Bifurcated embedded derivatives and freestanding derivative financial instruments are classified within as Other long-term assets and Other current liabilities in the Company’s Consolidated Balance Sheets. Stock-Based Compensation The Company measures and recognizes compensation expense for all stock-based awards based on estimated grant-date fair values recognized over the requisite service period. For awards that vest solely based on a service condition, the Company recognizes stock-based compensation expense on a straight-line basis over the requisite service period. The compensation expense related to awards with performance conditions is recognized over the requisite service period when the performance conditions are probable of being achieved. The compensation expense related to awards with market conditions is recognized on an accelerated attribution basis over the requisite service period and is not reversed if the market condition is not satisfied. See Note 10 for more information. The Company accounts for forfeitures as they occur. Stock-based awards granted to employees are primarily stock options. The fair value of stock options that vest solely based on a service condition is determined by the Black-Scholes-Merton Option (“BSM”) pricing model on the date of grant. This valuation model for stock-based compensation expense requires the Company to make assumptions and judgments about the variables used in the BSM model, including the deemed fair value of common stock, expected term, expected volatility, risk-free interest rate, and dividend yield. These judgments are made as follows: · Fair value of common stock—Subsequent to the Business Combination, the fair value of the Company’s common stock is based on the closing market price on the date of grant. Prior to the Business Combination, the absence of an active market for the Company’s common stock required the Company to estimate the fair value of common stock for purposes of granting stock options and for determining stock-based compensation expense for the periods presented. The Company considered numerous factors in assessing the fair value of common stock prior to the Business Combination, including: · The results of contemporaneous unrelated third-party valuations of the Company’s common stock · The prices of the recent redeemable convertible preferred stock sales by the Company to investors · The rights, preferences, and privileges of preferred stock relative to those of common stock · Market multiples of comparable public companies in the industry as indicated by their market capitalization and guideline merger and acquisition transactions · The Company’s performance and market position relative to competitors, which may change from time to time · The Company’s historical financial results and estimated trends and prospects for the Company’s future performance · The economic and competitive environment · The financial condition, results of operations, and capital resources · The industry outlook · The valuation of comparable companies · The likelihood and timeline of achieving a liquidity event, such as an initial public offering or sale of the Company, given prevailing market conditions · Any adjustments necessary to recognize a lack of marketability for the Company’s common stock · Precedent sales of or offers to purchase the Company’s capital stock · Expected term — The Company determines the expected term based on the average period the stock options are expected to remain outstanding, generally calculated as the midpoint of the stock options’ vesting term and contractual expiration period, as the Company does not have sufficient historical information to develop reasonable expectations about future exercise patterns and post-vesting employment termination behavior. · Expected volatility —  Given the limited market trading history prior to the Business Combination and no public market for the Company's shares prior to the Business Combination, the expected volatility rate is based on an average historical stock price volatility of comparable publicly-traded companies in the industry group. · Risk-free interest rate — The risk-free interest rate is based on the U.S. Treasury yield curve in effect at the time of grant for periods corresponding with the expected term of the option. · Expected dividend yield — The Company has not paid and does not expect to pay dividends. Consequently, the Company uses an expected dividend yield of zero. For awards with market conditions, the Company determines the grant date fair value utilizing a Monte Carlo valuation model, which incorporates various assumptions including expected stock price volatility, expected term, risk-free interest rates, expected date of a qualifying event, and expected capital raise percentage. Given the limited market trading history subsequent to the Business Combination and no public market for the Company's shares prior to the Business Combination, the Company estimates the volatility of common stock on the date of grant based on the weighted average historical stock price volatility of comparable publicly-traded companies in its industry group. The Company estimates the expected term based on various exercise scenarios, as these awards are not considered “plain vanilla.” The risk-free interest rate is based on the U.S. Treasury yield curve in effect at the time of grant. The Company estimates the expected date of a qualifying event and the expected capital raise percentage based on management’s expectations at the time of measurement of the award’s value. Income Taxes The Company accounts for income taxes using the asset and liability method, which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been recognized in the consolidated financial statements or in the Company’s tax returns. Deferred income taxes are recognized for differences between financial reporting and tax bases of assets and liabilities at the enacted statutory tax rates in effect for the years in which the temporary differences are expected to reverse. The effect on deferred taxes of a change in tax rates is recognized in income in the period that includes the enactment date. Realization of deferred tax assets is dependent upon future earnings, the timing and amount of which are uncertain. The Company records a valuation allowance to reduce deferred tax assets to the net amount that the Company believes is more likely than not to be realized. In assessing the need for a valuation allowance, the Company considered historical levels of income, expectations of future taxable income and ongoing tax planning strategies. Because of the uncertainty of the realization of the deferred tax assets, the Company recorded a full valuation allowance against deferred tax assets. Realization of deferred tax assets is dependent primarily upon future U.S. taxable income. The Company utilizes a two-step approach to recognize and measure uncertain tax positions. The first step is to evaluate the tax positions for recognition by determining if the weight of available evidence indicates that it is more likely than not that the position will be sustained upon tax authority examination, including resolution of related appeals or litigation processes, if any. The second step is to measure the tax benefit as the largest amount that is more than 50% likely of being realized upon ultimate settlement. Although the Company believes it has adequately reserved for the Company’s uncertain tax positions, the Company can provide no assurance that the final tax outcome of these matters will not be materially different. The Company evaluates its uncertain tax positions on a regular basis and evaluations are based on a number of factors, including changes in facts and circumstances, changes in tax law, correspondence with tax authorities during the course of an audit and effective settlement of audit issues. To the extent that the final tax outcome of these matters is different than the amounts recorded, such differences will affect the provision for income taxes in the period in which such determination is made and could have a material impact on the Company’s financial condition and operating results. The provision for income taxes includes the effects of any accruals that the Company believes are appropriate, as well as the related net interest and penalties. Property and Equipment, Net Property and equipment are stated at cost less accumulated depreciation and amortization. Depreciation is computed using the straight-line method over the estimated useful life of the related asset, generally three to five years. Leasehold improvements are amortized on a straight-line basis over the shorter of their estimated useful lives or the term of the related lease. Maintenance and repairs that do not extend the life or improve the asset are expensed as incurred. Upon disposal of property and equipment, assets and related accumulated depreciation are removed from the accounts, and the related gain or loss is included in the results from operations. Property and equipment are reviewed for impairment whenever events or changes in circumstances indicate the carrying amount of an asset may not be recoverable. Recoverability of these assets is measured by a comparison of the carrying amounts to the future undiscounted cash flows the assets are expected to generate. If property and equipment are considered to be impaired, the impairment to be recognized equals the amount by which the carrying value of the asset exceeds its fair value. No impairment to any long-lived assets has been recorded in any of the periods presented. The Company capitalizes certain costs related to developed or modified software solely for the Company’s internal use to deliver the Company’s services. The Company capitalizes costs during the application development stage once the preliminary project stage is complete, management authorizes and commits to funding the project, it is probable that the project will be completed, and that the software will be used to perform the function intended. Costs related to preliminary project activities and post-implementation activities are expensed as incurred. The following table presents the estimated useful lives of the Company’s property and equipment: Property and Equipment Useful Life Computer equipment and servers 3 years Capitalized internal-use software 3 years Office equipment and other 5 years Leased equipment and leasehold improvements Lesser of estimated useful life or remaining lease term Leases Leases are reviewed and classified as capital or operating at their inception. The Company records rent expense associated with its operating lease on a straight-line basis over the term of the lease. Net Loss Per Share Basic and diluted net loss per share attributable to common stockholders is presented in conformity with the two-class method required for participating securities. Basic loss per share is computed by dividing net loss available to common stockholders by the weighted average number of common shares outstanding. Net loss available to common stockholders represents net loss attributable to common stockholders reduced by the allocation of earnings to participating securities. Losses are not allocated to participating securities as the holders of the participating securities do not have a contractual obligation to share in any losses. Diluted loss per share adjusts basic loss per share for the potentially dilutive impact of stock options, warrants, restricted stock, and contingently issuable earnout shares. As the Company has reported losses for all periods presented, all potentially dilutive securities including stock options, warrants and contingently issuable earnout shares, are antidilutive and accordingly, basic net loss per share equals diluted net loss per share. The Company considers certain restricted shares of Class A Common stock issued upon exercise of executive stock options but subject to continued vesting requirements (Note 13) to be participating securities. Net loss per share calculations for all periods prior to the Business Combination have been retrospectively adjusted for the equivalent number of shares outstanding immediately after the Business Combination to effect the reverse recapitalization. Subsequent to the Business Combination, net loss per share was calculated based on the weighted average number of common stock then outstanding . Segments Operating segments are defined as components of an entity for which separate financial information is available and that is regularly reviewed by the Chief Operating Decision Maker (“CODM”) in deciding how to allocate resources to an individual segment and in assessing performance. The Company has determined that its Chief Executive Officer is the CODM. The Company operates in a single operating segment as the CODM reviews financial information presented on a consolidated basis, at the Company level, for the purposes of making operating decisions, allocation of resources, and evaluating financial performance. As of December 31, 2020 and 2019 and for the years ended December 31, 2020, 2019, and 2018, the Company did not have material revenue earned or assets located outside of the United States. Recently Issued Accounting Pronouncements Not Yet Adopted As an emerging growth company (“EGC”), the Jumpstart Our Business Startups Act (“JOBS Act”) allows the Company to delay adoption of new or revised accounting pronouncements applicable to public companies until such pronouncements are applicable to private companies. The Company has elected to use this extended transition period under the JOBS Act until such time as the Company is no longer considered to be an EGC. In August 2020, the FASB issued Accounting Standards Update (“ASU”) No. 2020‑06, Debt — Debt with Conversion and Other Options (Subtopic 470‑20) and Derivatives and Hedging — Contracts in Entity’s Own Equity (Subtopic 815‑40): Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity , which simplifies accounting for convertible instruments by removing major separation models required under current U.S. GAAP. The ASU removes certain settlement conditions that are required for equity contracts to qualify for the derivative scope exception and it also simplifies the diluted earnings per share calculation in certain areas. The ASU is effective for public companies, excluding entities eligible to be smaller reporting companies, for fiscal years beginning after December 15, 2021, including interim periods within those fiscal years. Early adoption is permitted, but no earlier than fiscal years beginning after December 15, 2020 and adoption must be as of the beginning of the Company’s annual fiscal year. The Company is currently evaluating the impact of this standard on its consolidated financial statements and related disclosures. In August 2018, the FASB issued ASU 2018‑15, Intangibles — Goodwill and Other — Internal-Use Software (Subtopic 350‑40)

Business Combination

Business Combination	12 Months Ended
	Dec. 31, 2020
Business Combinations
Business Combination	3. Business Combination As discussed in Note 1, on December 16, 2020, the Company consummated the Merger Agreement dated September 1, 2020, with Old Skillz surviving the merger as a wholly owned subsidiary of the Company. Old Skillz common stock issued and outstanding were canceled and converted into the right to receive 0.7471 shares (the "Exchange Ratio") of Common Stock. Unless otherwise stated, the Exchange Ratio was applied to the number of shares and share prices of Old Skillz throughout these consolidated financial statements. At the effective time of the Business Combination (the “Effective Time”), and subject to the terms and conditions of the Merger Agreement, holders of 359,518,849 shares of Old Skillz (“Stock Election Shares”) received merger consideration in the form of 191,932,860 shares of the Company’s Class A common stock and 76,663,551 shares of the Company’s Class B common stock, and holders of 75,786,931 shares of Old Skillz (“Cash Election Shares”) received cash consideration of $566,204,152. Pursuant to the Merger Agreement, Eagle Equity Partners II, LLC (the “Sponsor”) delivered 10,000,000 of its shares of FEAC Class B common stock into escrow that are subject to forfeiture if certain earnout conditions are not satisfied. If the earnout conditions are fully satisfied, 5,000,000 of such shares will be released to the Sponsor in the form of shares of the Company’s Class A common stock (the “Sponsor Earnout Shares”), and the other 5,000,000 shares will be released to the Old Skillz stockholders (the “Skillz Earnout Shares”, and collectively with the Sponsor Earnout Shares, the “Earnout Shares”), who will receive shares of the Company’s common stock as a result of the Business Combination in the form of shares of Class A common stock of the Company (other than the Founder and a trust for the benefit of his family members, who will receive shares of Class B common stock of the Company). The Earnout Shares are accounted for as equity classified equity instruments, were included as merger consideration as part of the Reverse Recapitalization, and recorded in Additional paid-in capital. Upon the closing of the Business Combination, the Company's certificate of incorporation was amended and restated to, among other things, increase the total number of authorized shares of all classes of capital stock to 635,000,000 shares, $0.0001 par value per share, of which, 500,000,000 shares are designated as Class A Common Stock, 125,000,000 shares are designated as Class B Common Stock, and 10,000,000 shares are designated as Preferred Stock. In connection with the Business Combination, certain institutional investors (the “Investors”) purchased from the Company an aggregate of 15,853,052 shares of Class A Common Stock (the “Private Placement”), for a purchase price of $10.00 per share and an aggregate purchase price of $158.5 million (the “Private Placement Shares”), pursuant to separate subscription agreements (each, a “Subscription Agreement”) entered into effective as of September 1, 2020. The Business Combination is accounted for as a reverse recapitalization in accordance with U.S. GAAP. Under this method of accounting, FEAC was treated as the “acquired” company and Old Skillz is treated as the acquirer for financial reporting purposes. Accordingly, for accounting purposes, the Business Combination was treated as the equivalent of Old Skillz issuing stock for the net assets of FEAC, accompanied by a recapitalization. The net assets of FEAC were stated at historical cost, with no goodwill or other intangible assets recorded. The following table reconciles the elements of the Business Combination to the Consolidated Statement of Cash Flows and the Consolidated Statement of Stockholders’ Equity for the year ended December 31, 2020: Recapitalization Cash - FEAC trust and cash, net of redemptions $ 689,979 Cash - Private Placement Financing 158,531 Non-cash net assets assumed from FEAC — Less: cash consideration paid to Old Skillz stockholders (566,204) Less: transaction costs and advisory fees (35,822) Net Business Combination and Private Placement Financing 246,484 Less: non-cash net assets assumed from FEAC — Less: accrued transaction costs and advisor fees (16,058) Net cash contributions from Business Combination and PIPE Financing $ 230,426 The number of shares of common stock issued immediately following the consummation of the Business Combination (share numbers are not in thousands): Recapitalization Common stock, outstanding prior to Business Combination 69,000,000 Less: redemption of FEAC shares (2,140) Common stock of FEAC 68,997,860 FEAC sponsor shares 6,350,200 Earnout shares 10,000,000 Shares issued in Private Placement Financing 15,853,052 Business Combination and Private Placement Financing shares - Class A common stock 101,201,112 Old Skillz shares converted to New Skillz Class A common stock (1) 191,932,861 Old Skillz shares converted to New Skillz Class B common stock (2) 76,663,551 Total shares of common stock immediately after Business Combination 369,797,524 (1) Class B common stock outstanding immediately prior to the closing of the Business Combination, including shares of redeemable convertible preferred stock, converted at the Exchange Ratio, less 56,620,419 shares of New Skillz stock which were repurchased from Old Skillz stockholders as part of the Business Combination. All fractional shares were rounded down. (2) Class A common stock outstanding immediately prior to the closing of the Business Combination, including shares of convertible preferred stock, converted at the Exchange Ratio. All fractional shares were rounded down.

Balance Sheet Components

Balance Sheet Components	12 Months Ended
	Dec. 31, 2020
Balance Sheet Components
Balance Sheet Components	4. Balance Sheet Components Prepaid Expenses and Other Current Assets Prepaid expenses and other current assets consisted of the following as of December 31, 2020 and 2019: December 31, 2020 2019 Credit card processing reserve $ 5,854 $ 2,650 Prepaid expenses 3,772 2,460 Other current assets 865 4,354 Prepaid expenses and other current assets $ 10,491 $ 9,464 The Company recorded an impairment charge of $3.4 million related to prepaid expenses and other current assets for the year ended December 31, 2020, in connection with a lease agreement for corporate facilities. Property and Equipment, Net Property and equipment consisted of the following as of December 31, 2020 and 2019: December 31, 2020 2019 Capitalized internal-use software $ 6,167 $ 3,554 Computer equipment and servers 631 458 Furniture and fixtures 184 238 Leasehold improvements 114 143 Construction in progress 1,037 519 Total property and equipment 8,133 4,912 Accumulated depreciation and amortization (2,841) (1,264) Property and equipment, net $ 5,292 $ 3,648 Depreciation and amortization expense related to property and equipment was $1.6 million, $0.7 million, and $0.4 million in 2020, 2019, and 2018, respectively. Other Current Liabilities Other current liabilities consisted of the following as of December 31, 2020 and 2019: December 31, 2020 2019 Accrued sales and marketing expenses $ 7,204 $ 1,630 Accrued compensation 3,825 2,531 End-user liability, net 2,789 1,418 Accrued developer revenue share 907 540 Other accrued expenses 4,893 1,418 Other current liabilities $ 19,618 $ 7,537

Fair Value Measurements

Fair Value Measurements	12 Months Ended
	Dec. 31, 2020
Fair Value Measurements
Fair Value Measurements	5. Fair Value Measurements As of December 31, 2020 and 2019, the recorded values of cash and cash equivalents, restricted cash and accounts payable approximate their respective fair values due to the short-term nature of the instruments. Cash and cash equivalents held by the Company as of December 31, 2020 and 2019 were $262.7 million and $25.6 million, respectively, and were comprised of cash on hand and money market funds classified within Level 1 of the fair value hierarchy. Forward Contract Liability The Company had no outstanding forward contract liability as it was settled during the year ended December 31, 2020. Prior to the Business Combination, the Company measured the Redeemable Convertible Series E preferred stock forward contract liability at fair value based on significant inputs not observable in the market, which causes it to be classified as a Level 3 measurement within the fair value hierarchy. The valuation of the Redeemable Convertible Series E preferred stock forward contract liability uses assumptions and estimates the Company believes would be made by a market participant in making the same valuation. The Company assessed these assumptions and estimates on an on-going basis in 2020 until settlement of the contract as additional data impacting the assumptions and estimates was obtained. Changes in the fair value of the redeemable convertible Series E preferred stock forward contract liability related to updated assumptions and estimates are recognized within Other income (expense), net in the Consolidated Statements of Operations. The table below reflects the fair value measurement of the Company’s Level 3 inputs as of September 10, 2020, the date on which the Redeemable Convertible Series E preferred forward contract liability was settled prior to giving effect to the Business Combination: Fair Value as of Valuation September 10, 2020 Technique Unobservable Input Description Input Redeemable Convertible Series E preferred stock forward contract liability $ 21,688 Discounted cash flow Fair value of Redeemable Convertible Series E preferred stock $ 9.17 The following table presents changes in Level 3 liabilities measured at fair value for the year ended December 31, 2020: Series E forward contract liability Fair value as of December 31, 2019 $ — Issuance of the Redeemable convertible Series E preferred stock forward contract liability — Change in fair value 21,688 Settlement of the Redeemable convertible Series E preferred stock forward contract liability (21,688) Fair value as of December 31, 2020 $ — The fair value of the redeemable convertible Series E preferred stock forward contract liability as of the September 10, 2020 settlement date was determined by multiplying the number of additional shares issued by the Company by the difference between the issuance price in accordance with the forward contract agreement and the estimated fair value of the redeemable convertible Series E preferred stock. Earnout Shares Pursuant to the Merger Agreement, FEAC delivered 10,000,000 of its shares of FEAC Class B common stock into escrow that are subject to forfeiture if certain earnout conditions described more fully in the Merger Agreement are not satisfied. If the earnout conditions are fully satisfied, 5,000,000 of such shares will be released to the Sponsor in the form of shares of Class A common stock of New Skillz, and the other 5,000,000 shares will be released to the Old Skillz stockholders, who will receive shares of New Skillz common stock as a result of the Business Combination in the form of shares of Class A common stock of New Skillz (other than the Founder and a trust for the benefit of his family members, who will receive shares of Class B common stock of New Skillz), in each case as further described in the Merger Agreement. The fair value of the Earnout Shares of $172.3 million was estimated using a model based on multiple stock price paths developed through the use of a Monte Carlo simulation that incorporates into the valuation the possibility that the market condition targets may not be satisfied. The Earnout Shares were included in the net consideration from the Business Combination and recorded in Additional paid-in capital with a corresponding offset to Additional paid-in capital. In January 2021, the earnout conditions were fully satisfied.

Long-Term Debt

Long-Term Debt	12 Months Ended
	Dec. 31, 2020
Long-Term Debt
Long-Term Debt	6. Long-Term Debt Components of long-term debt were as follows as of December 31, 2020 and 2019: December 31, 2020 2019 2019 Mezzanine Term Loan $ — $ 10,000 Unamortized debt discount — (372) Net carrying amount $ — $ 9,628 2019 Mezzanine Term Loan In December 2019, the Company entered into a mezzanine term loan for up to $40.0 million; $30.0 million of which is immediately available and an additional $10.0 million available upon the achievement of certain performance milestones (“2019 Mezzanine Term Loan”). No payments are due until the loan maturity date of December 2023. The facility shall bear interest on the outstanding daily balance for each 2019 Mezzanine Term Loan advance at a floating per annum rate equal to the greater of five percentage points (5.0%) above the prime rate or 9.75%. In 2019, the Company drew $10.0 million of the $30 million immediately available from the 2019 Mezzanine Term Loan and used the proceeds to pay off the outstanding balance and interest of a previous term loan. There are no financial covenants associated with the 2019 Mezzanine Term Loan. In June 2020, the Company paid the $10.0 million outstanding principal amount related to the 2019 Mezzanine Loan, plus all accrued and unpaid interest. The Company recognized a loss on extinguishment of $0.4 million related to unamortized issuance costs within Interest expense in the Consolidated Statements of Operations.

Commitments and Contingencies

Commitments and Contingencies	12 Months Ended
	Dec. 31, 2020
Commitments and Contingencies
Commitments and Contingencies	7. Commitments and Contingencies Operating Leases In November 2018, the Company entered into an operating lease agreement related to its office in Portland, Oregon, which requires monthly lease payments through May 2022. In May 2019, the Company entered into an operating lease related to its new headquarters in San Francisco. The lease is through July 2029 and will result in a total of $25.6 million in future minimum lease payments, which exclude a tenant improvement allowance from the landlord of up to $2.5 million. In December 2019, the Company entered into an operating lease related to additional office space in San Francisco. The lease is through March 31, 2021 and included a total of $8.8 million in minimum lease payments. The Company recorded an impairment charge of $3.4 million related to prepaid expenses and other current assets for the year ended December 31, 2020, in connection with this lease agreement. The Company recognizes rent expense on a straight-line basis over the lease period and accounts for the difference between straight-line rent and actual lease payments as deferred rent. Rent expense for all facility leases was $6.5 million, $1.9 million, and $1.2 million for the years ended December 31, 2020, 2019, and 2018, respectively. Future minimum payments under the Company’s non-cancelable leases as of December 31, 2020, are as follows: Operating Lease Commitments Year ended December 31, 2021 $ 4,528 2022 2,498 2023 2,368 2024 2,439 2025 2,513 Thereafter 11,795 Future minimum lease payments $ 26,141 Legal Matters The Company is a party to certain claims, suits, and proceedings which arise in the ordinary course of business. The Company records a liability when it believes that it is probable that a loss will be incurred and the amount can be reasonably estimated. If the Company determines that a loss is reasonably possible and the loss or range of loss can be reasonably estimated, the Company discloses the possible loss or range of loss. In the Company’s opinion, resolution of pending matters is not expected to have a material adverse impact on the results of operations, cash flows, or the Company’s financial position, as of December 31, 2020. Given the unpredictable nature of legal proceedings, there is a reasonable possibility that an unfavorable resolution of one or more such proceedings could in the future materially affect the results of operations, cash flows, or financial position in a particular period. However, based on the information known by the Company, any such amount is either immaterial or it is not possible to provide an estimated range of any such possible loss.

Retirement Plans

Retirement Plans	12 Months Ended
	Dec. 31, 2020
Retirement Plans
Retirement Plans	8. Retirement Plans 401(k) Plan The Company adopted a 401(k) Plan that qualifies as a deferred salary arrangement under Section 401 of the IRC. Under the 401(k) Plan, participating employees may defer a portion of their pretax earnings not to exceed the maximum amount allowable. Contributions for eligible employees for the year ended December 31, 2020 were $0.1 million. No contributions for eligible employees were made for the years ended December 31, 2019 and 2018.

Stockholders' Deficit

Stockholders' Deficit	12 Months Ended
	Dec. 31, 2020
Stockholders' Deficit
Stockholders' Deficit	9. Stockholders’ Equity The consolidated statements of equity (deficit) reflect the Business Combination as defined in Note 1 as of December 16, 2020. As Old Skillz was deemed the accounting acquirer in the Business Combination with FEAC, all periods prior to the consummation date reflect the balances and activity of Old Skillz. The balances as of December 31, 2019 and 2018 from the consolidated financial statements of Old Skillz as of that date, share activity (redeemable convertible preferred stock, preferred stock, common stock, additional paid in capital, and accumulated deficit) and per share amounts were retroactively adjusted, where applicable, using the recapitalization exchange ratio of 0.7471. All redeemable convertible preferred stock classified as redeemable equity was retroactively adjusted, converted into Class A common stock, and reclassified into permanent equity as a result of the Business Combination. Common Stock The Company’s amended and restated certificate of incorporation following the Business Combination authorizes the issuance of Class A common stock and Class B common stock. The rights of the holders of Class A common stock and Class B common stock are identical, expect with respect to voting and conversion. Holders of Class A common stock are entitled to one vote per share and holders of Class B common stock are entitled to 20 votes per share. Shares of Class B common stock are convertible into an equivalent number of shares of Class A common stock and generally convert into shares of Class A common stock upon transfer. Any dividends paid to the holders of Class A common stock and Class B common stock will be paid on a pro rata basis. On a liquidation event, any distribution to common stockholders is made on a pro rata basis to the holders of the Class A common stock and Class B common stock. As of December 31, 2020, the Company has authorized a total of 635 million shares, consisting of 500 million shares of Class A Common Stock, par value $0.0001 per share (“Class A Common Stock”), 125 million shares of Class B Common Stock, par value $0.0001 per share (“Class B Common Stock”), and 10 million shares of Preferred Stock, par value $0.0001 per share (“Preferred Stock”). Warrants As of December 31, 2020, the Company had 22,266,643 FEAC public and private placement warrants and 48,135 Old Skillz private warrants outstanding. These warrants are equity classified. Following the consummation of the Business Combination, holders of the FEAC warrants are entitled to acquire New Skillz Class A common stock. Each whole warrant entitles the registered holder to purchase one share of New Skillz Class A common stock at an exercise price of $11.50 per share, beginning the later of 30 days after the Closing and 12 months from the closing of FEAC’s initial public offering, which occurred on March 10, 2020. In connection with the Business Combination, the Old Skillz private warrants outstanding immediately prior to the Business Combination converted into warrants exercisable for New Skillz Class A common stock on the same terms and conditions as applied to the Old Skillz warrants, which were adjusted for the Exchange Ratio. The private warrants entitle the holder to purchase one share of Class A common stock at a price of $1.4991. Old Skillz Convertible Preferred Stock Immediately prior to the completion of the Business Combination on December 16, 2020, all outstanding shares of the Old Skillz’s Series A, Series A-1, and Series B convertible preferred stock converted into an aggregate 139.0 million shares of common stock. Each share of Old Skillz redeemable convertible preferred stock was converted to ten shares of Old Skillz common stock. Old Skillz Redeemable Convertible Preferred Stock In September 2019, the Company received $25.0 million in cash proceeds from the issuance of redeemable convertible Series D-1 preferred stock to a private investor at a price per share of $21.516. In conjunction with the issuance of the redeemable convertible Series D-1 preferred stock, $9.8 million of the convertible promissory notes issued in 2018, plus accrued interest, were converted into shares of redeemable convertible Series D-1 preferred stock. In March 2019, $5.0 million of the convertible promissory notes issued in 2018 plus accrued interest were converted into shares of redeemable convertible Series D preferred stock. In April and May 2020, the Old Skillz received $65.0 million in cash proceeds from the issuance of redeemable convertible Series E preferred stock to private investors at a price per share of $43.11. The Series E Stock Purchase Agreement required the Old Skillz to issue and sell, and the Series E investors to purchase, additional shares of redeemable convertible Series E preferred stock subsequent to the initial closing (the “redeemable convertible Series E preferred stock forward contract liability”). The Company concluded that the redeemable convertible Series E preferred stock forward contract liability met the definition of a freestanding financial instrument, as it was legally detachable and separately exercisable from the initial closing of the redeemable convertible Series E preferred stock. The forward contract liability had an immaterial value at the issue date. In September 2020, the Old Skillz received $11.7 million in cash proceeds as settlement for the outstanding redeemable convertible Series E preferred stock forward contract liability and issuance of the underlying redeemable convertible Series E preferred stock to a private investor at a price per share of $43.11. During the year ended December 31, 2020, the Company recognized a non-cash charge of $21.7 million related to changes in the fair value of the redeemable convertible Series E preferred stock forward contract liability, which was included in Other income (expense), net in the Consolidated Statements of Operations. Immediately prior to the completion of the Business Combination on December 16, 2020, all outstanding shares of the Company’s Series C, Series D, Series D-1, and Series E redeemable convertible preferred stock converted into an aggregate 122.0 million shares of common stock. Conversion of Old Skillz Preferred Stock and Redeemable Convertible Preferred Stock All preferred stock and redeemable convertible preferred stock classified as redeemable was retroactively adjusted, converted into New Skillz Class A common stock each as a result of the Business Combination using the recapitalization exchange ratio of 0.7471. Redeemable convertible preferred stock was also reclassified into permanent equity as a result of the Business Combination. Based on the conversion price set forth in the Company’s certificate of incorporation, amended in June 2018 to effect for a 10-for-1 stock split of its common stock, the Conversion Rate in effect as of the Closing Date of the Business Combination was ten shares of Class B common stock for each share of preferred stock. There were no redemption rights for the Series A, A-1, or B convertible preferred stock and the holders of these preferred shares could not unilaterally force a liquidation of the Company. Series C, Series D, Series D-1, Series E redeemable convertible preferred stock, redeemable convertible Series E preferred stock forward contract liability were redeemable at the option the of stockholder.

Stock Based Compensation

Stock Based Compensation	12 Months Ended
	Dec. 31, 2020
Stock Based Compensation
Stock Based Compensation	10. Stock Based Compensation The following table summarizes stock-based compensation expense recognized for the years ended December 31, 2020, 2019 and 2018, as follows: 2020 2019 2018 Research and development $ 6,110 $ 181 $ 361 Sales and marketing 4,505 111 114 General and administrative 13,142 945 6,205 Total stock-based compensation expense $ 23,757 $ 1,237 $ 6,680 Equity Incentive Plans 2012, 2015, and 2017 Equity Incentive Plans Prior to the Business Combination, the Company maintained a stock based compensation plan. Old Skillz’s 2012, 2015, and 2017 Equity Incentive Plans (the “Legacy Equity Incentive Plans”) provided for the grant of stock-based awards to purchase or directly issue shares of common stock to employees, directors and consultants. Options were granted at a price per share equal to the fair market value of the underlying common stock at the date of grant. Options granted to newly hired employees typically vest 25% on the first anniversary date of hire and ratably each quarter over the ensuing 36 month period. The maximum term for stock options granted under the Legacy Equity Incentive Plans may not exceed ten years from date of grant. Each Old Skillz option from the Legacy Equity Incentive Plans that was outstanding immediately prior to the Business Combination, whether vested or unvested, was converted into an option to acquire a number of shares of Class A Common Stock (other than in the case of the Founder, who received options exercisable for Class B common stock of the Company) (each such option, an "Exchanged Option") equal to the product (rounded down to the nearest whole number) of (i) the number of shares of Old Skillz common stock subject to such Old Skillz option immediately prior to the Business Combination and (ii) the Exchange Ratio, at an exercise price per share (rounded up to the nearest whole cent) equal to (A) the exercise price per share of such Old Skillz option immediately prior to the consummation of the Business Combination, divided by (B) the Exchange Ratio. Except as specifically provided in the Business Combination Agreement, following the Business Combination, each Exchanged Option will continue to be governed by the same terms and conditions (including vesting and exercisability terms) as were applicable to the corresponding former Old Skillz option immediately prior to the consummation of the Business Combination. All stock option activity was retroactively restated to reflect the Exchanged Options. Skillz Inc. 2020 Omnibus Incentive Plan In December 2020, the Board of Directors of the Company adopted the Skillz Inc. 2020 Omnibus Incentive Plan (the “2020 Plan”). The 2020 Plan became effective upon consummation of the Business Combination and succeeds the Company’s Legacy Equity Incentive Plans. Under the 2020 Plan, the Company may grant stock-based awards to purchase or directly issue shares of common stock to employees, directors and consultants. Options are granted at a price per share equal to the fair market value of the underlying common stock at the date of grant. Options granted are exercisable over a maximum term of 10 years from the date of grant. Restricted stock units (“RSUs”) are also granted under the 2020 Plan. These awards typically have a cliff vesting period of one year and continue to vest quarterly thereafter. The 2020 Plan permits the Company to deliver up to 47,841,859 shares of common stock pursuant to awards issued under the 2020 Plan, consisting of 15,000,000 shares which may be Class A and/or Class B common stock, 24,669,278 shares of Class A common stock and 8,172,581 shares of the Class B common stock. The total number of shares of Class A common stock and Class B Common stock, respectively, that will be reserved and that may be issued under the 2020 Plan will automatically increase on the first trading day of each calendar year, beginning with calendar year 2021, by a number of shares equal to five percent (5%) of the total number of shares of Class A common stock and Class B common stock, respectively, outstanding on the last day of the prior calendar year. Stock Options and Restricted Stock Units Stock option and RSU activity, prices, and values adjusted by the Exchange Ratio, during the year ended December 31, 2020 is as follows (in thousands, except for share, per share data, and contractual term ): Options Outstanding Restricted Stock Units Weighted- Average Weighted- Number of Number of Weighted- Remaining Average Shares Available Shares Average Contractual Aggregate Number of Grant Date for Issuance Outstanding Exercise Term Intrinsic Plan shares Fair Value Under the Plan Under the Plan Price (Years) Value outstanding per share Balance at December 31, 2019 3,855,385 38,794,307 $ 0.14 7.67 $ 13,056 Recapitalization Impact (975,027) (9,811,081) 0.05 Balance at December 31, 2019 2,880,358 28,983,226 $ 0.19 7.67 $ 13,056 — $ — Additional shares authorized 62,903,028 Options and restricted stock units granted (36,074,010) 35,732,754 6.70 341,256 17.68 Options exercised (1) and restricted stock units released — (20,138,817) 0.78 — — Options and restricted stock units canceled 5,791,227 (6,172,670) 0.51 — — Balance at December 31, 2020 35,500,603 38,404,493 5.89 8.27 542,074 341,256 $ 17.68 Exercisable at December 31, 2019 15,225,162 $ 0.08 6.85 $ 8,492 Exercisable at December 31, 2020 14,248,234 $ 0.18 6.45 $ 282,364 Unvested at December 31, 2019 13,758,064 $ 0.31 8.58 $ 4,564 Unvested at December 31, 2020 24,156,259 $ 9.25 9.34 $ 259,710 (1) The number of options exercised includes early exercises related to the Executive grants noted below. The number of unvested stock options as of December 31, 2020 and December 31, 2019 does not include 13.3 million and 8.2 million shares of restricted common stock issued upon the early exercise of the certain Executive grants described below. As of December 31, 2020, unrecognized stock-based compensation expense related to unvested stock options, restricted common stock, and RSUs was $156.9 million. The weighted-average period over which such compensation expense will be recognized is 3.53 years. The aggregate intrinsic value of options exercised was $89.9 million, $1.4 million and $0.5 million during the years ended December 31, 2020, 2019 and 2018, respectively. The assumptions used to estimate the fair value of stock options granted and the resulting fair values for the year ended December 31, 2020, 2019 and 2018 were as follows: 2020 2019 2018 Expected volatility 45.00% – 50.00 % 47.17% – 55.47 % 47.69% – 49.17 % Risk-free interest rate 0.27% – 1.44 % 1.57% – 2.64 % 2.60% – 3.06 % Expected term (in years) 4.14 – 6.25 5.00 – 6.86 5.49 – 6.13 Expected dividend yield — — — Weighted average estimated fair value of stock options granted during the year $ 5.06 $ 0.21 $ 0.11 Executive grants Executive Grants below were retroactively adjusted to give effect of the Reverse Recapitalization Exchange Ratio of 0.7471. 2019 CEO Executive Grant On April 29, 2019, the Board of Directors approved a grant to the Company’s co-founder and Chief Executive Officer of two separate options to purchase shares of Class A common stock at an exercise price of $0.43 per share. The first option was to purchase 2,990,172 shares of Old Skillz Class A common stock, which vest subject to continuous service over a four-year period, whereby 1/48 of the shares vest each month. Vesting will accelerate and (i) vest as to 50% of the then-outstanding shares upon the consummation of an IPO; and (ii) vest as to 100% of the then-outstanding shares upon the earlier of (A) the consummation of an Exit Transaction and (B) termination of service by the Company other than for cause (as defined by the plan), subject to continuous services through the consummation of such event. The $1.7 million grant date fair value of this option, estimated based on the BSM pricing model, will be recognized as compensation expense over the requisite service period. As of December 31, 2020, the Company recognized $0.7 million in compensation expense related to this grant. In connection with the Business Combination, the CEO elected to waive the right to vest as to 100% of the then-outstanding shares upon the consummation of an Exit Transaction. The second option was to purchase 5,980,344 shares of Old Skillz Class A common stock, which vest subject to continuous service and the achievement of eight market condition targets related to the valuation of the Company, ranging from $600 million to $2.7 billion, upon closing of either an Exit Transaction, Financing Event, or Initial Public Offering, on or before April 29, 2023 (“Market Condition Grant”). The Market Condition Grant has implied performance-based vesting conditions because no shares will vest unless the Exit Transaction, Financing Event, or Initial Public Offering occur. The $0.9 million grant date fair value of the Market Condition Grant was estimated using a model based on multiple stock price paths developed through the use of a Monte Carlo simulation that incorporates into the valuation the possibility that the market condition targets may not be satisfied. All compensation expense related to the Market Condition Grant was recognized during the year ended December 31, 2020 because the performance-based vesting condition was achieved. On April 30, 2019, the two separate options to purchase shares of Old Skillz Class A common stock were early exercised by entering into a promissory note and security agreement with the Company. The promissory note includes outstanding principal of $3.8 million and bears interest at a rate of 2.55%, compounded annually. The principal amount of the promissory note, together with all accrued but unpaid interest, shall become due upon the first to occur of (i) immediately prior to the closing of a deemed liquidation event or Exit Transaction, (ii) termination of the grantees’s employment, (iii) immediately prior to the filing of a registration statement under the Securities Act of 1933, (iv) immediately prior to this note becoming prohibited under Section 13(k) of the Securities Exchange Act of 1934, and (v) nine years. The promissory note is deemed to be non-recourse. Accordingly, the promissory note was recorded as a reduction to Additional paid-in capital, offsetting the proceeds from the early exercise, rather than as a note receivable on the Company’s Balance Sheet. The total 8,970,517 shares issued related to the executive grants are included in common stock issued and outstanding within these consolidated financial statements, as they provide the holder with stockholder rights, such as the right to vote the shares with the other holders of common stock and a right to cumulative declared dividends. Immediately prior to the consummation of the Business Combination, the CEO surrendered a portion of these shares to pay off the promissory note and security agreement with the Company. 2020 CEO Executive Grant On April 15, 2020, the Board of Directors approved a grant to the Company’s co-founder and Chief Executive Officer of options to purchase shares of Old Skillz Class A common stock at an exercise price of $1.15 per share. The option was to purchase 9,921,314 shares of Old Skillz Class A common stock, which vest subject to continuous service over a four-year period, whereby 25% of the shares shall vest on the one year anniversary of the grant date and 6.25% of the shares vest quarterly thereafter. Vesting will accelerate and (i) vest as to 50% of the then-outstanding shares upon the consummation of an IPO; and (ii) vest as to 100% of the then-outstanding shares upon the earlier of (A) the consummation of an Exit Transaction and (B) termination of service by the Company other than for cause (as defined by the plan), subject to continuous services through the consummation of such event. The grant date fair value of this option was estimated based on the BSM pricing model, and the total compensation expense that will be recognized over the requisite service period is $21.5 million. As of December 31, 2020, the Company recognized $3.8 million in compensation expense related to this grant. In connection with the Business Combination, the CEO elected to waive the right to vest as to 100% of the then-outstanding shares upon the consummation of an Exit Transaction. On May 14, 2020, the option to purchase shares of Old Skillz Class A common stock was early exercised by entering into a promissory note and security agreement with the Company. The promissory note includes outstanding principal of $11.4 million and bears interest at a rate of 0.58%, compounded annually. The principal amount of the promissory note, together with all accrued but unpaid interest, shall become due upon the first to occur of (i) immediately prior to the closing of a deemed liquidation event or Exit Transaction, (ii) termination of the grantee’s employment, (iii) immediately prior to the filing of a registration statement under the Securities Act of 1933, (iv) immediately prior to this note becoming prohibited under Section 13(k) of the Securities Exchange Act of 1934, and (v) nine years. The promissory note is deemed to be non-recourse. Accordingly, the promissory note was recorded as a reduction to Additional paid-in capital, offsetting the proceeds from the early exercise, rather than as a note receivable on the Company’s Balance Sheet. The 9,921,314 shares issued related to the 2020 CEO Executive grants are included in common stock issued and outstanding within these consolidated financial statements as they provide the holder with stockholder rights, such as the right to vote the shares with the other holders of common stock and a right to cumulative declared dividends. Immediately prior to the consummation of the Business Combination, the CEO surrendered a portion of these shares to pay off the promissory note and security agreement with the Company. 2020 CRO Executive Grant On April 15, 2020, the Board of Directors approved a grant to the Company’s co-founder and Chief Revenue Officer of two separate options to purchase shares of Class B common stock at an exercise price of $1.15 per share. The first option was to purchase 1,852,695 shares of Old Skillz Class B common stock, which vest subject to continuous service over a four-year period, whereby 25% of the shares shall vest on the one year anniversary of the grant date and 6.25% of the shares vest quarterly thereafter. Vesting will accelerate and (i) vest as to 50% of the then-outstanding shares upon the consummation of an IPO; and (ii) vest as to 100% of the then-outstanding shares upon the earlier of (A) the consummation of an Exit Transaction and (B) termination of service by the Company other than for cause (as defined by the plan), subject to continuous services through the consummation of such event. The grant date fair value of this option was estimated based on the BSM pricing model, and the total compensation expense that will be recognized over the requisite service period is $3.5 million. As of December 31, 2020, the Company recognized $0.6 million in compensation expense related to this grant. In connection with the Business Combination, the CRO elected to waive his right to vest as to 100% of the then-outstanding shares upon the consummation of an Exit Transaction. The second option was to purchase 926,347 shares of Old Skillz Class B common stock, which vest subject to continuous service and the achievement of five market condition targets related to the valuation of the Company, ranging from $1.5 billion to $2.7 billion, upon closing of either an Exit Transaction, Financing Event, or Initial Public Offering, on or before April 15, 2024 (“CRO Market Condition Grant”). The CRO Market Condition Grant has implied performance-based vesting conditions because no shares will vest unless the Exit Transaction, Financing Event, or Initial Public Offering occur. The $2.0 million grant date fair value of the CRO Market Condition Grant was estimated using a model based on multiple stock price paths developed through the use of a Monte Carlo simulation that incorporates into the valuation the possibility that the market condition targets may not be satisfied. As of December 31, 2020, all compensation expense related to the CRO Market Condition Grant was recognized because the performance-based vesting condition was achieved through the consummation of the Business Combination. On May 14, 2020, the two separate options to purchase shares of Old Skillz Class B common stock were early exercised by entering into a promissory note and security agreement with the Company. The promissory note includes outstanding principal of $3.2 million and bears interest at a rate of 0.58%, compounded annually. The principal amount of the promissory note, together with all accrued but unpaid interest, shall become due upon the first to occur of (i) immediately prior to the closing of a deemed liquidation event or Exit Transaction, (ii) termination of the grantee’s employment, (iii) immediately prior to the filing of a registration statement under the Securities Act of 1933, (iv) immediately prior to this note becoming prohibited under Section 13(k) of the Securities Exchange Act of 1934, and (v) nine years. The promissory note is deemed to be non-recourse and recorded as a reduction to Additional paid-in capital, offsetting the proceeds from the early exercise, rather than as a note receivable on the Company’s Balance Sheet. The total 2,779,042 shares issued related to the co-founder grants are included in common stock issued and outstanding within these consolidated financial statements as they provide the holder with stockholder rights, such as the right to vote the shares with the other holders of common stock and a right to cumulative declared dividends. Immediately prior to the consummation of the Business Combination, the CRO surrendered a portion of these shares to pay off the promissory note and security agreement with the Company. 2020 CTO Executive Grant On June 8, 2020, the Board of Directors approved a grant to the Company’s Chief Technology Officer of two separate options to purchase shares of Old Skillz Class B common stock at an exercise price of $1.33 per share. The first option was to purchase 1,520,736 shares of Old Skillz Class B common stock, which vest subject to continuous service over a four-year period, whereby 25% of the shares shall vest on the one year anniversary of the grant date and 6.25% of the shares vest quarterly thereafter. Vesting will accelerate and (i) vest as to 50% of the then-outstanding shares upon the consummation of an IPO; and (ii) vest as to 100% of the then-outstanding shares upon the earlier of (A) the consummation of an Exit Transaction and (B) termination of service by the Company for cause (as defined by the plan), subject to continuous services through the consummation of such event. The grant date fair value of this option was estimated based on the BSM pricing model, and the total compensation expense that will be recognized over the requisite service period is $9.0 million. As of December 31, 2020, the Company recognized $0.9 million in compensation expense related to this grant. In connection with the Business Combination, the CTO elected to waive the right to vest as to 100% of the then-outstanding shares upon the consummation of an Exit Transaction. The second option was to purchase 919,862 shares of Old Skillz Class B common stock, which vest subject to continuous service and the achievement of five market condition targets related to the valuation of the Company, ranging from $1.8 billion to $3.0 billion, upon closing of either an Exit Transaction, Financing Event, or Initial Public Offering, on or before June 8, 2024 (“CTO Market Condition Grant”). The CTO Market Condition Grant has implied performance-based vesting conditions because no shares will vest unless the Exit Transaction, Financing Event, or Initial Public Offering occur. The $3.7 million grant date fair value of the CTO Market Condition Grant was estimated using a model based on multiple stock price paths developed through the use of a Monte Carlo simulation that incorporates into the valuation the possibility that the market condition targets may not be satisfied. As of December 31, 2020, all compensation expense related to the CTO Market Condition Grant was recognized because the performance-based vesting condition was achieved through the consummation of the Business Combination. Founders’ Option Agreements In connection with the closing of the Business Combination, the Company entered into option agreements with each of the CEO and CRO (the “Option Agreements”) awarding options to purchase (i) 9,960,000 shares of New Skillz Class B common stock to the CEO and (ii) 2,040,000 shares of New Skillz Class A common stock to the CRO. The options will vest in three equal increments as follows (i) one-third (1/3) of the options shall vest and become exercisable as of the date, following the grant date, that the volume weighted average price on the NYSE over a ten (10) trading day period of underlying New Skillz Class A common stock (“VWAP”) equals or exceeds 3.0x the VWAP of the shares as of the Closing Date, (ii) one-third (1/3) of the options shall vest and become exercisable as of the date, following the grant date, that the VWAP of the shares equals or exceeds 4.0x the VWAP of the shares as of the Closing Date; and (iii) one-third (1/3) of the options shall vest and become exercisable as of the date, following the grant date, that the VWAP of the shares equals or exceeds 5.0x the VWAP of the shares as of the Closing Date. The $93.4 million grant date fair value of the Founders’ Options was estimated using a model based on multiple stock price paths developed through the use of a Monte Carlo simulation that incorporates into the valuation the possibility that the market condition targets may not be satisfied. The significant inputs to the valuation included the Company's Class A stock price and the risk-free interest rate as of the grant date, as well as the estimated volatility of the Company's Class A common stock. As of December 31, 2020, the Company recognized $0.8 million in compensation expense related to these grants. Other Stock-Based Compensation During the year ended December 31, 2019, certain existing and new external investors acquired $0.7 million of outstanding Old Skillz Class B common stock from a current employee at a purchase price greater than the estimated fair value at the time of the transactions. The Company recorded stock-based compensation expense for the difference between the price paid and the estimated fair value on the date of the transactions of $0.5 million in general and administrative expense. In April and May 2020, certain existing and new investors acquired $11.0 million of outstanding Old Skillz Class B common stock from employees. The Company recorded stock-based compensation expense for the difference between the price paid and the estimated fair value on the date of the transaction of $2.3 million in general and administrative, $0.7 million in sales and marketing, and $0.4 million in research and development. In August 2020, the Company’s Board of Directors granted an executive officer 2,757,886 non-qualified stock options, which vest 25% on the one year anniversary of the start of the vesting period, and 6.25% after each three months of continuous service subsequent to the first year. The grant date fair value of this option was estimated based on the BSM pricing model, and the total compensation expense that will be recognized over the requisite service period is $23.5 million. As of December 31, 2020, the Company recognized $2.3 million in compensation expense related to this grant.

Income Taxes

Income Taxes	12 Months Ended
	Dec. 31, 2020
Income Taxes
Income Taxes	11. Income Taxes The Company has historically generated net operating losses in each of the tax jurisdictions in which it operates and has provided a valuation allowance against net deferred tax assets due to uncertainties regarding the Company’s ability to realize these assets. The provision for income taxes consists of the following: Year Ended December 31, 2020 2019 2018 Current: Federal $ — $ — $ — State 115 — — Total Current 115 — — Deferred: Federal — — — State — — — Total Deferred — — — Provision for income taxes $ 115 $ — $ — A reconciliation of the Company’s effective tax rate to the statutory U.S. federal rate of 21% is as follows: Year Ended December 31, 2020 2019 2018 U.S. Federal provision (benefit) ​ ​ At statutory rate $ (25,693) $ (5,956) $ (5,608) State taxes 90 — — Valuation allowance 26,245 6,320 5,671 Stock based compensation (7,257) (182) (141) Permanent differences 6,730 (182) 78 Total $ 115 $ — $ — Deferred Tax Assets and Liabilities Deferred income taxes reflect the net tax effects of loss and credit carryforwards and temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Significant components of the Company’s deferred tax assets and liabilities for federal and state income taxes are as follows: December 31, 2020 2019 Deferred tax assets: Net operating loss carryforwards $ 47,864 $ 21,309 Stock-based compensation 2,492 1,646 Reserves and accruals 1,239 513 Other 291 2 Total deferred tax assets $ 51,886 $ 23,470 Less: valuation allowance (51,859) (23,455) Deferred tax assets, net of valuation allowance $ 27 $ 15 Deferred tax liabilities: Fixed assets (27) (15) Total deferred tax liabilities $ (27) $ (15) Net deferred tax assets $ — $ — A valuation allowance is required to be established when it is more likely than not that all or a portion of a deferred tax asset will not be realized. Realization of deferred tax assets is dependent upon future earnings, the timing and amount of which are uncertain. A full review of all positive and negative evidence needs to be considered. As of December 31, 2020 and 2019, the Company has provided a full valuation allowance on its deferred tax assets. The change in total valuation allowance from 2019 to 2020 was an increase of $28.4 million. The Company has net operating loss carryforwards for federal and state income tax purposes of approximately $201.3 million and $64.9 million, respectively, as of December 31, 2020. The federal and state net operating loss carryforwards, if not utilized, will expire beginning in 2033 and 2031, respectively. $165.3 million of the federal net operating loss carryforwards are not subject to expiration. Utilization of some of the federal and state net operating loss and credit carryforwards may be subject to annual limitations due to the “change in ownership” provisions of the Internal Revenue Code of 1986 and similar state provisions. The annual limitations may result in the expiration of net operating losses and credits before utilization. The Company has not performed a Section 382 study as of December 31, 2020. On March 27, 2020, the Coronavirus Aid, Relief and Economic Security ("CARES Act") was signed into law. Among other things, the CARES Act permits NOL carryovers and carrybacks to offset 100% of taxable income for taxable years beginning before 2021. In addition, the CARES Act allows NOLs incurred in 2018, 2019, and 2020 to be carried back to each of the five preceding taxable years to generate a refund of previously paid income taxes. The CARES Act also contains modifications on the limitation of business interest for tax years beginning in 2019 and 2020. The modifications to Section 163(j) increase the allowable business interest deduction from 30% of adjusted taxable income to 50% of adjusted taxable income. The CARES Act did not have a significant impact to the Company for any years. On June 29, 2020, California Governor Newsom signed to law the state's budget package which included Assembly Bill 85 (AB 85). AB 85 contained two major tax changes: (1) it suspends the usage of net operating losses (NOLs) for certain taxpayers; and (2) it limits certain business tax credits for tax years 2020, 2021, and 2022. Skillz is in a taxable loss position in 2020 and thus the bill has no impact on the 2020 provision. The Company will continue to monitor the impact of AB 85, if any, on future periods. The Company files tax returns in the U.S., California, Massachusetts, and Oregon. The Company is not currently under examination in any of these jurisdictions and all its tax years remain open to examination due to net operating loss carryforwards. The Company does not have any reserves for uncertain tax positions.

Related-Party Transactions

Related-Party Transactions	12 Months Ended
	Dec. 31, 2020
Related-Party Transactions
Related-Party Transactions	12. Related-Party Transactions Aside from preferred financing equity transactions discussed and Executive grants discussed in Note 10, the Company did not have any other significant related party transactions in the years ended December 31, 2020, 2019, and 2018.

Net Loss Per Share

Net Loss Per Share	12 Months Ended
	Dec. 31, 2020
Net Loss Per Share
Net Loss Per Share	13. Net Loss Per Share Net loss per share calculations for all periods prior to the Business Combination have been retrospectively adjusted for the equivalent number of shares outstanding immediately after the Business Combination to effect the reverse recapitalization. Subsequent to the Business Combination, net loss per share was calculated based on the weighted average number of common stock then outstanding. The Company computes net loss per share of the Class A Common Stock and Class B Common Stock using the two-class method required for participating securities. Basic and diluted loss per share was the same for each period presented as the inclusion of all potential Class A Common Stock and Class B Common Stock outstanding would have been antidilutive. Basic and diluted loss per share are the same for each class of common stock because they are entitled to the same liquidation and dividend rights. The following table sets forth the computation of basic and diluted loss per Class A Common Stock and Class B Common Stock (in thousands, except for share and per share data): Year Ended December 31, 2020 2019 2018 Numerator: Net loss - Basic and diluted $ (122,461) $ (23,605) $ (27,780) Denominator: Weighted average common shares outstanding – Basic and diluted 294,549,146 261,228,108 236,040,717 Net loss per share attributable to common stockholders – Basic and diluted $ (0.42) $ (0.09) $ (0.12) The following outstanding common stock equivalents were considered antidilutive, and therefore, excluded from the computation of diluted net loss per share attributable to common stockholders for the periods presented (share numbers are not in thousands): Number of Securities Outstanding at December 31, 2020 2019 2018 Convertible promissory notes — — 12,099,120 Common and preferred stock warrants 22,314,778 3,635,180 3,087,307 Common stock options 51,735,883 37,206,199 30,911,188 Restricted stock units 341,256 — — Earnout shares 10,000,000 — — Total 84,391,917 40,841,379 46,097,615

Subsequent Events

Subsequent Events	12 Months Ended
	Dec. 31, 2020
Subsequent Events
Subsequent Events	14. Subsequent Events In January 2021, the conditions for the release of the Earnout Shares were satisfied. The Sponsor will release 10,000,000 of its shares of FEAC Class B common stock from escrow as certain earnout conditions were satisfied. 5,000,000 of such shares will be released to the Sponsor in the form of shares of the Company’s Class A common stock and the other 5,000,000 shares will be released to the Old Skillz stockholders, who will receive shares of the Company’s common stock as a result of the Business Combination in the form of shares of Class A common stock of the Company (other than the Founder and a trust for the benefit of his family members, who will receive shares of Class B common stock of the Company).

Events subsequent to the origin

Events subsequent to the original issuance of audited consolidated financial statements (unaudited)	12 Months Ended
	Dec. 31, 2020
Subsequent Event [Line Items]
Events subsequent to the original issuance of audited consolidated financial statements (unaudited)	14. Subsequent Events In January 2021, the conditions for the release of the Earnout Shares were satisfied. The Sponsor will release 10,000,000 of its shares of FEAC Class B common stock from escrow as certain earnout conditions were satisfied. 5,000,000 of such shares will be released to the Sponsor in the form of shares of the Company’s Class A common stock and the other 5,000,000 shares will be released to the Old Skillz stockholders, who will receive shares of the Company’s common stock as a result of the Business Combination in the form of shares of Class A common stock of the Company (other than the Founder and a trust for the benefit of his family members, who will receive shares of Class B common stock of the Company).
Events Subsequent to Original Issuance [Member]
Subsequent Event [Line Items]
Events subsequent to the original issuance of audited consolidated financial statements (unaudited)	15. Events subsequent to the original issuance of audited consolidated financial statements (unaudited) On March 17, 2021, the Company announced that it commenced an underwritten public offering of 32,000,000 shares of its Class A common stock, consisting of 17,000,000 shares being offered by Skillz and 15,000,000 shares being offered by certain selling stockholders. The selling stockholders intend to grant the underwriters a 30-day option to purchase up to an additional 4,800,000 shares of Class A common stock.

Summary of Significant Accoun_2

Summary of Significant Accounting Policies (Policies)	12 Months Ended
	Dec. 31, 2020
Summary of Significant Accounting Policies
Use of Estimates	Use of Estimates The preparation of consolidated financial statements in conformity with U.S.GAAP requires management to make certain estimates, judgments, and assumptions that affect the reported amounts of assets and liabilities and the related disclosures at the date of the consolidated financial statements, as well as the reported amounts of revenues and expenses during the periods presented. Estimates are used in several areas including, but not limited to, stock-based compensation. The Company bases these estimates on historical experience and on various other assumptions that it believes are reasonable under the circumstances, the results of which form the basis for making judgments about the carrying amounts of assets and liabilities. Actual results could differ materially from these estimates.
Revenue Recognition	Revenue Recognition The Company generates substantially all its revenues by providing a service to the game developers aimed at improving the monetization of their game content. The monetization service provided by Skillz allows developers to offer multi-player competition to their end-users which increases end-user retention and engagement. Skillz provides developers with a software development kit (“SDK”) that they can download and integrate with their existing games. The SDK serves as a data interface between Skillz and the game developers that enables Skillz to provide monetization services to the developer. The Company recognizes revenue for its services in accordance with the FASB Accounting Standards Codification (“ASC”) Topic 606, Revenue from Contracts with Customers (“ASC 606”). Revenues from Contracts with Customers The Company applies the five-step model to achieve the core principle of ASC 606. The Company determined that its customer in the provision of its technology platform and services is the game developer. The Company’s ordinary activities consist of providing game developers services through access to its technology platform using the Skillz SDK. The SDK acts as an application programming interface enabling communication of data between Skillz and the game developers, which when integrated with the developer’s game content, facilitates end-user registration into Competitions, managing and hosting end-user Competition accounts, matching players of similar skill levels, collecting end-user entry fees, distributing end-user prizes, resolving end-user disputes pertaining to their participation in Competitions, and running third-party marketing campaigns (“Monetization Services”). The Company provides Monetization Services to game developers enabling them to offer competitive games to their end-users. These activities are not distinct from each other as the Company provides an integrated service enabling the game developers to provide the competitive game service to the end-users, and as a result, they do not represent separate performance obligations. The Company is entitled to a revenue share based on total entry fees for paid Competitions, regardless of how they are paid, net of end-user prizes (i.e., winnings from the Competitions) and other costs to provide the Monetization services. The game developers’ revenue share, however, is calculated solely based upon entry fees paid by net cash deposits received from end-users. End-user incentives are not paid for by game developers. In addition, the Company reduces revenue for end-user incentives which are treated as a reduction of revenue. The Company collects the entry fees and related charges from end-users on behalf of game developers using the end-user’s pre-authorized credit card or PayPal account and withholds its fees before making the remaining disbursement to the game developer; thus, the game developer’s ability and intent to pay is not subject to significant judgment. Revenue is recognized at the time the performance obligation is satisfied by transferring control of the promised service in an amount that reflects the consideration that the Company expects to receive in exchange for the Monetization Services. The Company recognizes revenue upon completion of a game, which is when its performance obligation to the game developer is satisfied. The Company does not have contract assets or contract liabilities as the payment of the transaction price is concurrent with the fulfillment of the services. At the time of game completion, the Company has the right to receive payment for the services rendered. The Company’s agreements with game developers can generally be terminated for convenience by either party upon thirty days prior written notice, and in certain of our larger developer agreements, the developer, if required by the Company, must continue to make its games available on the platform for a period of up to twelve months. As the Company is able to terminate the developer agreements at its convenience, the Company has concluded the contract term for revenue recognition does not extend beyond the contractual notification period. The Company does not have any transaction price allocated to performance obligations that are unsatisfied (or partially satisfied) as of December 31, 2020, 2019 and 2018. Games provided by two developer partners (A and B) accounted for 59% and 28% of the Company’s revenue in the year ended December 31, 2020. Games provided by two developer partners (A and C) accounted for 83% and 7% , and 70% and 16% of the Company’s revenue in years ended December 31, 2019 and 2018, respectively. The Company did not generate material international revenues in the years ended December 31, 2020, 2019, and 2018. End-User Incentive Programs To drive traffic to the platform, the Company provides promotions and incentives to end-users in various forms. Evaluating whether a promotion or incentive is a payment to a customer may require significant judgment. Promotions and incentives which are consideration payable to a customer are recognized as a reduction of revenue at the later of when revenue is recognized or when the Company pays or promises to pay the incentive. Promotions and incentives recorded as sales and marketing expense are recognized when the related cost is incurred by the Company. In either case, the promotions and incentives are recognized when they are used by end-users to enter into a paid Competition. · Marketing promotions and discounts accounted for as a reduction of revenue. These promotions are typically pricing actions in the form of discounts that reduce the end-user entry fees and are offered on behalf of the game developers. Although not required based on the Company’s agreement with its developers, the Company considers that the game developers have a valid expectation that certain incentives will be offered to end-users. The determination of a valid expectation is based on the evaluation of all information reasonably available to the game developers regarding the Company’s customary business practices, published policies and specific statements. An example of an incentive for which the game developer has a valid expectation is Ticketz, which are a currency earned for every Competition played based on the amount of the entry fee. Ticketz can be redeemed for Bonus Cash. Another example is initial deposit Bonus Cash which is a promotional incentive that can be earned in fixed amounts when an end-user makes an initial deposit on the Skillz platform. Bonus Cash can only be used by end-users to enter into future paid entry fee Competitions and cannot be withdrawn by end-users. For the years ended December 31, 2020, 2019, and 2018, the Company recognized a reduction of revenue of $51.3 million, $27.7 million, and $11.6 million, respectively, related to these end-user incentives. · Marketing promotions accounted for as sales and marketing expense. When the Company concludes that the game developers do not have a valid expectation that the incentive will be offered, the Company records the related cost as sales and marketing expense. The Company’s assessment is based on an evaluation of all information reasonably available to the game developers regarding the Company’s customary business practices, published policies and specific statements. These promotions are offered to end-users to draw, re-engage, or generally increase end-users’ use of the Company’s platform. An example of this type of incentive is limited-time Bonus Cash offers, which are targeted to specific end-users, typically those who deposit more frequently or have not made a deposit recently, via email or in-app promotions. The Company targets groups of end-users differently, offering specific promotions it thinks will best stimulate engagement. Similar to Bonus Cash earned from a redemption of Ticketz or an initial deposit, limited-time Bonus Cash can only be used by end-users to enter into future paid entry fee competitions and cannot be withdrawn by end-users. The Company also hosts engagement marketing leagues run over a period of days or weeks, which award league prizes in the form of cash or luxury goods to end-users with the most medals at the end of the league. End-users accumulate medals by winning Skillz enabled paid entry fee Competitions. Skillz determines whether or not to run a league, what prizes should be awarded, over what time period the league should run, and to which end-users the prizes should be paid, all at its discretion. The league parameters vary from one league to the next and are not reasonably known to the game developers. League prizes in the form of cash can be withdrawn or used by end-users to enter into future paid entry fee Competitions. For the years ended December 31, 2020, 2019, and 2018, the Company recognized sales and marketing expense of $91.5 million, $45.2 million, and $18.7 million, respectively, related to these end-user incentives. Refunds From time to time, the Company issues credits or refunds to end-users that are unsatisfied by the level of service provided by the game developer. There is no contractual obligation for the Company to refund such end-users nor is there a valid expectation by the game developers for the Company to issue such credits or refunds to end-users on their behalf. The Company accounts for credits or refunds, which are not recoverable from the game developer, as sales and marketing expenses when incurred.
Cost of Revenue	Cost of Revenue Cost of revenue primarily comprises of third-party payment processing fees, direct software costs, amortization of internal use software, hosting expenses, allocation of shared facility and other costs, and personnel expenses.
Cash, Cash Equivalents and Restricted Cash	Cash, Cash Equivalents and Restricted Cash Cash and cash equivalents consist of cash and money market funds with maturities of three months or less when purchased. Restricted cash maintained under an agreement that legally restricts the use of such funds is not included within cash and cash equivalents and is reported within other long-term assets and other current assets as of December 31, 2020 and 2019, respectively. Restricted cash is comprised of $2.9 million which is pledged in the form of a letter of credit for the Company’s new headquarters in San Francisco. A reconciliation of the Company’s cash and cash equivalents in the Consolidated Balance Sheet to cash, cash equivalents and restricted cash in the Consolidated Statement of Cash Flows as of December 31, 2020 and 2019 is as follows: ​ December 31, ​ 2020 2019 Cash and cash equivalents $ 262,728 $ 25,628 Restricted Cash included in other long-term assets and other current assets as of December 31, 2020 and 2019, respectively 2,920 2,920 Cash, cash equivalents and restricted cash $ 265,648 $ 28,548
Concentrations of Credit Risk	Concentrations of Credit Risk Financial instruments that potentially subject the Company to significant concentrations of credit risk consist of cash, cash equivalents and restricted cash. Although the Company deposits its cash with multiple well-established financial institutions, the deposits, at times, may exceed federally insured limits. The Company has not experienced any losses on its deposits of cash and cash equivalents. Management believes that the institutions are financially stable and, accordingly, minimal credit risk exists.
Fair Value Measurement	Fair Value Measurement The Company applies fair value accounting for all financial assets and liabilities and non-financial assets and liabilities that are recognized or disclosed at fair value in the consolidated financial statements on a recurring basis. The Company defines fair value as the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining fair value measurements for assets and liabilities, the Company considers the principal or most advantageous market in which it would transact and the market-based risk measurements or assumptions that market participants would use in pricing the asset or liability, such as risks inherent in valuation techniques, transfer restrictions and credit risk. Fair value is estimated by applying the following hierarchy, which prioritizes the inputs used to measure fair value into three levels and bases the categorization within the hierarchy upon the lowest level of input that is available and significant to the fair value measurement: Level 1 — Observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets. Level 2 — Inputs reflect quoted prices for identical assets or liabilities in markets that are not active; quoted prices for similar assets or liabilities in active markets; inputs other than quoted prices that are observable for the assets or liabilities; or inputs that are derived principally from or corroborated by observable market data by correlation or other means. Level 3 — Unobservable inputs reflecting management’s estimate of assumptions incorporated in valuation techniques used to determine fair value. These assumptions are required to be consistent with market participant assumptions that are reasonably available. The fair value hierarchy also requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. Assets and liabilities measured at fair value are classified in their entirety based on the lowest level of input that is significant to the fair value measurement.
Advertising and Promotional Expense	Advertising and Promotional Expense Advertising and promotional expenses are included in sales and marketing expenses within the statements of operations and are expensed when incurred. For the years ended December 31, 2020, 2019, and 2018, advertising expenses, not including marketing promotions related to the Company’s end-user incentive programs, were $136.8 million, $53.5 million, and $25.3 million, respectively.
Redeemable Convertible Preferred Stock	Redeemable Convertible Preferred Stock Prior to the Business Combination, preferred stock that was redeemable at a fixed or determinable price on a fixed or determinable date, at the option of the holder, or upon the occurrence of an event that is not solely within the control of the Company was classified outside of permanent equity. Convertible preferred stock that was probable of becoming redeemable in the future was recorded at its maximum redemption amount at each balance sheet date, with adjustments to the redemption amount recorded through equity. The fair value of the redeemable convertible preferred stock was estimated primarily based on valuation methodologies which utilized certain assumptions, including probability weighting of events, recent sales of stock to external investors, volatility, time to liquidity, a risk free interest rate, and an assumption for a discount for lack of marketability, where applicable. All redeemable convertible preferred stock previously classified outside of permanent equity was retroactively adjusted, converted into common stock, and reclassified to permanent equity as a result of the Business Combination. Additionally, changes to the redemption values of the redeemable convertible preferred stock were eliminated as a result of the retroactive adjustment. The Company recorded changes to the redemption value of its redeemable convertible preferred stock of $866.0 million, $62.5 million and $18.8 million in the year-to-date periods ended September 30, 2020, December 31, 2019 and December 31, 2018, respectively. The changes to the redemption values of the redeemable convertible preferred stock were previously presented as adjustments to net loss available to common stockholders for each of the respective periods ended. For further details regarding the accounting for the Business Combination, s ee Note 3.
Derivative Financial Instruments	Derivative Financial Instruments The Company does not use derivative instruments to hedge exposures to cash flow, market, or foreign currency risks. The Company evaluates all of its financial instruments, including its long-term debt, preferred stock and stock purchase warrants, to determine if such instruments are derivatives or contain features that qualify as embedded derivatives. Embedded derivatives must be separately measured from the host contract if all the requirements for bifurcation are met. The assessment of the conditions surrounding the bifurcation of embedded derivatives depends on the nature of the host contract. Bifurcated embedded derivatives and freestanding derivative financial instruments that are classified as assets or liabilities are recognized at fair value with changes in fair value recognized as a component of Other income (expense), net in the Statements of Operations. Bifurcated embedded derivatives and freestanding derivative financial instruments are classified within as Other long-term assets and Other current liabilities in the Company’s Consolidated Balance Sheets.
Stock-Based Compensation	Stock-Based Compensation The Company measures and recognizes compensation expense for all stock-based awards based on estimated grant-date fair values recognized over the requisite service period. For awards that vest solely based on a service condition, the Company recognizes stock-based compensation expense on a straight-line basis over the requisite service period. The compensation expense related to awards with performance conditions is recognized over the requisite service period when the performance conditions are probable of being achieved. The compensation expense related to awards with market conditions is recognized on an accelerated attribution basis over the requisite service period and is not reversed if the market condition is not satisfied. See Note 10 for more information. The Company accounts for forfeitures as they occur. Stock-based awards granted to employees are primarily stock options. The fair value of stock options that vest solely based on a service condition is determined by the Black-Scholes-Merton Option (“BSM”) pricing model on the date of grant. This valuation model for stock-based compensation expense requires the Company to make assumptions and judgments about the variables used in the BSM model, including the deemed fair value of common stock, expected term, expected volatility, risk-free interest rate, and dividend yield. These judgments are made as follows: · Fair value of common stock—Subsequent to the Business Combination, the fair value of the Company’s common stock is based on the closing market price on the date of grant. Prior to the Business Combination, the absence of an active market for the Company’s common stock required the Company to estimate the fair value of common stock for purposes of granting stock options and for determining stock-based compensation expense for the periods presented. The Company considered numerous factors in assessing the fair value of common stock prior to the Business Combination, including: · The results of contemporaneous unrelated third-party valuations of the Company’s common stock · The prices of the recent redeemable convertible preferred stock sales by the Company to investors · The rights, preferences, and privileges of preferred stock relative to those of common stock · Market multiples of comparable public companies in the industry as indicated by their market capitalization and guideline merger and acquisition transactions · The Company’s performance and market position relative to competitors, which may change from time to time · The Company’s historical financial results and estimated trends and prospects for the Company’s future performance · The economic and competitive environment · The financial condition, results of operations, and capital resources · The industry outlook · The valuation of comparable companies · The likelihood and timeline of achieving a liquidity event, such as an initial public offering or sale of the Company, given prevailing market conditions · Any adjustments necessary to recognize a lack of marketability for the Company’s common stock · Precedent sales of or offers to purchase the Company’s capital stock · Expected term — The Company determines the expected term based on the average period the stock options are expected to remain outstanding, generally calculated as the midpoint of the stock options’ vesting term and contractual expiration period, as the Company does not have sufficient historical information to develop reasonable expectations about future exercise patterns and post-vesting employment termination behavior. · Expected volatility —  Given the limited market trading history prior to the Business Combination and no public market for the Company's shares prior to the Business Combination, the expected volatility rate is based on an average historical stock price volatility of comparable publicly-traded companies in the industry group. · Risk-free interest rate — The risk-free interest rate is based on the U.S. Treasury yield curve in effect at the time of grant for periods corresponding with the expected term of the option. · Expected dividend yield — The Company has not paid and does not expect to pay dividends. Consequently, the Company uses an expected dividend yield of zero. For awards with market conditions, the Company determines the grant date fair value utilizing a Monte Carlo valuation model, which incorporates various assumptions including expected stock price volatility, expected term, risk-free interest rates, expected date of a qualifying event, and expected capital raise percentage. Given the limited market trading history subsequent to the Business Combination and no public market for the Company's shares prior to the Business Combination, the Company estimates the volatility of common stock on the date of grant based on the weighted average historical stock price volatility of comparable publicly-traded companies in its industry group. The Company estimates the expected term based on various exercise scenarios, as these awards are not considered “plain vanilla.” The risk-free interest rate is based on the U.S. Treasury yield curve in effect at the time of grant. The Company estimates the expected date of a qualifying event and the expected capital raise percentage based on management’s expectations at the time of measurement of the award’s value.
Income Taxes	Income Taxes The Company accounts for income taxes using the asset and liability method, which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been recognized in the consolidated financial statements or in the Company’s tax returns. Deferred income taxes are recognized for differences between financial reporting and tax bases of assets and liabilities at the enacted statutory tax rates in effect for the years in which the temporary differences are expected to reverse. The effect on deferred taxes of a change in tax rates is recognized in income in the period that includes the enactment date. Realization of deferred tax assets is dependent upon future earnings, the timing and amount of which are uncertain. The Company records a valuation allowance to reduce deferred tax assets to the net amount that the Company believes is more likely than not to be realized. In assessing the need for a valuation allowance, the Company considered historical levels of income, expectations of future taxable income and ongoing tax planning strategies. Because of the uncertainty of the realization of the deferred tax assets, the Company recorded a full valuation allowance against deferred tax assets. Realization of deferred tax assets is dependent primarily upon future U.S. taxable income. The Company utilizes a two-step approach to recognize and measure uncertain tax positions. The first step is to evaluate the tax positions for recognition by determining if the weight of available evidence indicates that it is more likely than not that the position will be sustained upon tax authority examination, including resolution of related appeals or litigation processes, if any. The second step is to measure the tax benefit as the largest amount that is more than 50% likely of being realized upon ultimate settlement. Although the Company believes it has adequately reserved for the Company’s uncertain tax positions, the Company can provide no assurance that the final tax outcome of these matters will not be materially different. The Company evaluates its uncertain tax positions on a regular basis and evaluations are based on a number of factors, including changes in facts and circumstances, changes in tax law, correspondence with tax authorities during the course of an audit and effective settlement of audit issues. To the extent that the final tax outcome of these matters is different than the amounts recorded, such differences will affect the provision for income taxes in the period in which such determination is made and could have a material impact on the Company’s financial condition and operating results. The provision for income taxes includes the effects of any accruals that the Company believes are appropriate, as well as the related net interest and penalties.
Property and Equipment, Net	Property and Equipment, Net Property and equipment are stated at cost less accumulated depreciation and amortization. Depreciation is computed using the straight-line method over the estimated useful life of the related asset, generally three to five years. Leasehold improvements are amortized on a straight-line basis over the shorter of their estimated useful lives or the term of the related lease. Maintenance and repairs that do not extend the life or improve the asset are expensed as incurred. Upon disposal of property and equipment, assets and related accumulated depreciation are removed from the accounts, and the related gain or loss is included in the results from operations. Property and equipment are reviewed for impairment whenever events or changes in circumstances indicate the carrying amount of an asset may not be recoverable. Recoverability of these assets is measured by a comparison of the carrying amounts to the future undiscounted cash flows the assets are expected to generate. If property and equipment are considered to be impaired, the impairment to be recognized equals the amount by which the carrying value of the asset exceeds its fair value. No impairment to any long-lived assets has been recorded in any of the periods presented. The Company capitalizes certain costs related to developed or modified software solely for the Company’s internal use to deliver the Company’s services. The Company capitalizes costs during the application development stage once the preliminary project stage is complete, management authorizes and commits to funding the project, it is probable that the project will be completed, and that the software will be used to perform the function intended. Costs related to preliminary project activities and post-implementation activities are expensed as incurred. The following table presents the estimated useful lives of the Company’s property and equipment: Property and Equipment Useful Life Computer equipment and servers 3 years Capitalized internal-use software 3 years Office equipment and other 5 years Leased equipment and leasehold improvements Lesser of estimated useful life or remaining lease term
Leases	Leases Leases are reviewed and classified as capital or operating at their inception. The Company records rent expense associated with its operating lease on a straight-line basis over the term of the lease.
Net Loss Per Share	Net Loss Per Share Basic and diluted net loss per share attributable to common stockholders is presented in conformity with the two-class method required for participating securities. Basic loss per share is computed by dividing net loss available to common stockholders by the weighted average number of common shares outstanding. Net loss available to common stockholders represents net loss attributable to common stockholders reduced by the allocation of earnings to participating securities. Losses are not allocated to participating securities as the holders of the participating securities do not have a contractual obligation to share in any losses. Diluted loss per share adjusts basic loss per share for the potentially dilutive impact of stock options, warrants, restricted stock, and contingently issuable earnout shares. As the Company has reported losses for all periods presented, all potentially dilutive securities including stock options, warrants and contingently issuable earnout shares, are antidilutive and accordingly, basic net loss per share equals diluted net loss per share. The Company considers certain restricted shares of Class A Common stock issued upon exercise of executive stock options but subject to continued vesting requirements (Note 13) to be participating securities. Net loss per share calculations for all periods prior to the Business Combination have been retrospectively adjusted for the equivalent number of shares outstanding immediately after the Business Combination to effect the reverse recapitalization. Subsequent to the Business Combination, net loss per share was calculated based on the weighted average number of common stock then outstanding .
Segments	Segments Operating segments are defined as components of an entity for which separate financial information is available and that is regularly reviewed by the Chief Operating Decision Maker (“CODM”) in deciding how to allocate resources to an individual segment and in assessing performance. The Company has determined that its Chief Executive Officer is the CODM. The Company operates in a single operating segment as the CODM reviews financial information presented on a consolidated basis, at the Company level, for the purposes of making operating decisions, allocation of resources, and evaluating financial performance. As of December 31, 2020 and 2019 and for the years ended December 31, 2020, 2019, and 2018, the Company did not have material revenue earned or assets located outside of the United States.
Recently Issued Accounting Pronouncements Not Yet Adopted and Recently Adopted Accounting Pronouncements	Recently Issued Accounting Pronouncements Not Yet Adopted As an emerging growth company (“EGC”), the Jumpstart Our Business Startups Act (“JOBS Act”) allows the Company to delay adoption of new or revised accounting pronouncements applicable to public companies until such pronouncements are applicable to private companies. The Company has elected to use this extended transition period under the JOBS Act until such time as the Company is no longer considered to be an EGC. In August 2020, the FASB issued Accounting Standards Update (“ASU”) No. 2020‑06, Debt — Debt with Conversion and Other Options (Subtopic 470‑20) and Derivatives and Hedging — Contracts in Entity’s Own Equity (Subtopic 815‑40): Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity , which simplifies accounting for convertible instruments by removing major separation models required under current U.S. GAAP. The ASU removes certain settlement conditions that are required for equity contracts to qualify for the derivative scope exception and it also simplifies the diluted earnings per share calculation in certain areas. The ASU is effective for public companies, excluding entities eligible to be smaller reporting companies, for fiscal years beginning after December 15, 2021, including interim periods within those fiscal years. Early adoption is permitted, but no earlier than fiscal years beginning after December 15, 2020 and adoption must be as of the beginning of the Company’s annual fiscal year. The Company is currently evaluating the impact of this standard on its consolidated financial statements and related disclosures. In August 2018, the FASB issued ASU 2018‑15, Intangibles — Goodwill and Other — Internal-Use Software (Subtopic 350‑40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract . This standard aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. The implementation costs incurred in a hosting arrangement that is a service contract should be presented as a prepaid asset in the balance sheet and expensed over the term of the hosting arrangement to the same line item in the statement of operations as the costs related to the hosting fees. For public business entities, this standard is effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. For all other entities, this standard is effective for fiscal years beginning after December 15, 2020, and interim periods within annual periods beginning after December 15, 2021. Early adoption is permitted for all entities, including adoption in any interim period. The amendments should be applied either retrospectively or prospectively to all implementation costs incurred after adoption. The Company will be required to adopt this standard in its annual period ending December 31, 2021 and is currently evaluating the impact of adopting this standard on its consolidated financial statements. In June 2016, the FASB issued ASU 2016‑13 (Topic 326), Financial Instruments — Credit Losses . ASU 2016‑13 changes how to recognize expected credit losses on financial assets. The standard requires more timely recognition of credit losses on loans and other financial assets and also provides additional transparency about credit risk. The current credit loss standard generally requires that a loss actually be incurred before it is recognized, while the new standard will require recognition of full lifetime expected losses upon initial recognition of the financial instrument. Originally, ASU 2016‑13 was effective for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2019, with early adoption permitted. An entity should apply the standard by recording a cumulative effect adjustment to retained earnings upon adoption. In November 2019, FASB issued ASU No. 2019‑10, Financial Instruments — Credit Losses (Topic 326), Derivatives and Hedging (Topic 815), and Leases (Topic 842) . This ASU defers the effective date of ASU 2016‑13 for non-public companies to fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. The Company is currently evaluating the impact of ASU 2016‑13 on its consolidated financial statements for future periods and has not elected early adoption. In February 2016, the FASB issued ASU 2016‑02 (Topic 842), Leases , and issued subsequent amendments to the initial guidance or implementation guidance including ASU 2017‑13, 2018‑01, 2018‑10, 2018‑11, 2018‑20 and 2019‑01 (collectively, including ASU 2016‑02, “ASC 842”), which supersedes the guidance in topic ASC 840, Leases . The new standard requires lessees to classify leases as either finance or operating based on whether or not the lease is effectively a financed purchase by the lessee. This classification will determine whether related expenses are recognized based on the effective interest method or on a straight-line basis over the term of the lease. For any leases with a term of greater than 12 months, ASU 2016‑02 requires lessees to recognize a lease liability for the obligation to make the lease payments arising from a lease, and a right-of-use asset for the right to use the underlying asset for the lease term. An election can be made to account for leases with a term of 12 months or less similar to existing guidance for operating leases under ASC 840. The new standard will also require new disclosures, including qualitative and quantitative requirements, providing additional information about the amounts recorded in the financial statements. For non-public entities, ASU No. 2016‑02 is effective for financial statements issued for fiscal years beginning after December 15, 2020, and interim periods within fiscal years beginning after December 15, 2021. Early adoption is permitted. The Company is in the initial stage of its assessment of the new standard and is currently evaluating the quantitative impact of adoption, and the related disclosure requirements. The Company expects that the adoption will result in the recognition of right-of-use assets and lease liabilities that were not previously recognized, which will increase total assets and liabilities on the Company’s balance sheet. The Company does not expect the adoption of Topic 842 to have a material impact to the statements of operations or to have any impact on its cash flows from operating, investing, or financing activities. Recently Adopted Accounting Pronouncements In November 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes , which simplifies the accounting for income taxes by removing certain exceptions to the general principles in Topic 740 and also improves consistent application of and simplify GAAP for other areas of Topic 740 by clarifying and amending existing guidance. The Company adopted this standard as of January 1, 2020, with no material impact on the Company’s consolidated financial statements. In June 2018, the FASB issued ASU 2018-07, Compensation — Stock Compensation (Topic 718): Improvements to Non-Employee Share-Based Payment Accounting , which expands the scope of Topic 718, to include share-based payments issued to non-employees for goods or services. The new standard supersedes Subtopic 505-50. The Company adopted this standard as of January 1, 2020, with no material impact on the Company’s consolidated financial statements.

Summary of Significant Accoun_3

Summary of Significant Accounting Policies (Tables)	12 Months Ended
	Dec. 31, 2020
Summary of Significant Accounting Policies
Schedule of estimated useful lives of the Company's property and equipment:	Property and Equipment Useful Life Computer equipment and servers 3 years Capitalized internal-use software 3 years Office equipment and other 5 years Leased equipment and leasehold improvements Lesser of estimated useful life or remaining lease term
Restrictions on cash and cash equivalents	​ December 31, ​ 2020 2019 Cash and cash equivalents $ 262,728 $ 25,628 Restricted Cash included in other long-term assets and other current assets as of December 31, 2020 and 2019, respectively 2,920 2,920 Cash, cash equivalents and restricted cash $ 265,648 $ 28,548

Business Combination (Tables)

Business Combination (Tables)	12 Months Ended
	Dec. 31, 2020
Business Combinations
Schedule of reconcile business combination of financial position	Recapitalization Cash - FEAC trust and cash, net of redemptions $ 689,979 Cash - Private Placement Financing 158,531 Non-cash net assets assumed from FEAC — Less: cash consideration paid to Old Skillz stockholders (566,204) Less: transaction costs and advisory fees (35,822) Net Business Combination and Private Placement Financing 246,484 Less: non-cash net assets assumed from FEAC — Less: accrued transaction costs and advisor fees (16,058) Net cash contributions from Business Combination and PIPE Financing $ 230,426
Schedule of business combination common stock issued	Recapitalization Common stock, outstanding prior to Business Combination 69,000,000 Less: redemption of FEAC shares (2,140) Common stock of FEAC 68,997,860 FEAC sponsor shares 6,350,200 Earnout shares 10,000,000 Shares issued in Private Placement Financing 15,853,052 Business Combination and Private Placement Financing shares - Class A common stock 101,201,112 Old Skillz shares converted to New Skillz Class A common stock (1) 191,932,861 Old Skillz shares converted to New Skillz Class B common stock (2) 76,663,551 Total shares of common stock immediately after Business Combination 369,797,524 (1) Class B common stock outstanding immediately prior to the closing of the Business Combination, including shares of redeemable convertible preferred stock, converted at the Exchange Ratio, less 56,620,419 shares of New Skillz stock which were repurchased from Old Skillz stockholders as part of the Business Combination. All fractional shares were rounded down. (2) Class A common stock outstanding immediately prior to the closing of the Business Combination, including shares of convertible preferred stock, converted at the Exchange Ratio. All fractional shares were rounded down.

Balance Sheet Components (Table

Balance Sheet Components (Tables)	12 Months Ended
	Dec. 31, 2020
Balance Sheet Components
Schedule of Prepaid Expenses and Other Current Assets	December 31, 2020 2019 Credit card processing reserve $ 5,854 $ 2,650 Prepaid expenses 3,772 2,460 Other current assets 865 4,354 Prepaid expenses and other current assets $ 10,491 $ 9,464
Schedule of Property and Equipment, Net	December 31, 2020 2019 Capitalized internal-use software $ 6,167 $ 3,554 Computer equipment and servers 631 458 Furniture and fixtures 184 238 Leasehold improvements 114 143 Construction in progress 1,037 519 Total property and equipment 8,133 4,912 Accumulated depreciation and amortization (2,841) (1,264) Property and equipment, net $ 5,292 $ 3,648
Schedule of Other Current Liabilities	December 31, 2020 2019 Accrued sales and marketing expenses $ 7,204 $ 1,630 Accrued compensation 3,825 2,531 End-user liability, net 2,789 1,418 Accrued developer revenue share 907 540 Other accrued expenses 4,893 1,418 Other current liabilities $ 19,618 $ 7,537

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	12 Months Ended
	Dec. 31, 2020
Fair Value Measurements
Schedule of fair value, liabilities measured on recurring basis, unobservable input reconciliation	Fair Value as of Valuation September 10, 2020 Technique Unobservable Input Description Input Redeemable Convertible Series E preferred stock forward contract liability $ 21,688 Discounted cash flow Fair value of Redeemable Convertible Series E preferred stock $ 9.17
Schedule of changes in Level 3 liabilities measured at fair value	Series E forward contract liability Fair value as of December 31, 2019 $ — Issuance of the Redeemable convertible Series E preferred stock forward contract liability — Change in fair value 21,688 Settlement of the Redeemable convertible Series E preferred stock forward contract liability (21,688) Fair value as of December 31, 2020 $ —

Long-Term Debt (Tables)

Long-Term Debt (Tables)	12 Months Ended
	Dec. 31, 2020
Long-Term Debt
Summary of components of long-term debt	December 31, 2020 2019 2019 Mezzanine Term Loan $ — $ 10,000 Unamortized debt discount — (372) Net carrying amount $ — $ 9,628

Commitments and Contingencies (

Commitments and Contingencies (Tables)	12 Months Ended
	Dec. 31, 2020
Commitments and Contingencies
Schedule of Future minimum payments under non-cancelable leases	Operating Lease Commitments Year ended December 31, 2021 $ 4,528 2022 2,498 2023 2,368 2024 2,439 2025 2,513 Thereafter 11,795 Future minimum lease payments $ 26,141

Stock Based Compensation (Table

Stock Based Compensation (Tables)	12 Months Ended
	Dec. 31, 2020
Stock Based Compensation
Summary of stock-based compensation expense	The following table summarizes stock-based compensation expense recognized for the years ended December 31, 2020, 2019 and 2018, as follows: 2020 2019 2018 Research and development $ 6,110 $ 181 $ 361 Sales and marketing 4,505 111 114 General and administrative 13,142 945 6,205 Total stock-based compensation expense $ 23,757 $ 1,237 $ 6,680
Summary of stock option activity	Stock option and RSU activity, prices, and values adjusted by the Exchange Ratio, during the year ended December 31, 2020 is as follows (in thousands, except for share, per share data, and contractual term ): Options Outstanding Restricted Stock Units Weighted- Average Weighted- Number of Number of Weighted- Remaining Average Shares Available Shares Average Contractual Aggregate Number of Grant Date for Issuance Outstanding Exercise Term Intrinsic Plan shares Fair Value Under the Plan Under the Plan Price (Years) Value outstanding per share Balance at December 31, 2019 3,855,385 38,794,307 $ 0.14 7.67 $ 13,056 Recapitalization Impact (975,027) (9,811,081) 0.05 Balance at December 31, 2019 2,880,358 28,983,226 $ 0.19 7.67 $ 13,056 — $ — Additional shares authorized 62,903,028 Options and restricted stock units granted (36,074,010) 35,732,754 6.70 341,256 17.68 Options exercised (1) and restricted stock units released — (20,138,817) 0.78 — — Options and restricted stock units canceled 5,791,227 (6,172,670) 0.51 — — Balance at December 31, 2020 35,500,603 38,404,493 5.89 8.27 542,074 341,256 $ 17.68 Exercisable at December 31, 2019 15,225,162 $ 0.08 6.85 $ 8,492 Exercisable at December 31, 2020 14,248,234 $ 0.18 6.45 $ 282,364 Unvested at December 31, 2019 13,758,064 $ 0.31 8.58 $ 4,564 Unvested at December 31, 2020 24,156,259 $ 9.25 9.34 $ 259,710 (1) The number of options exercised includes early exercises related to the Executive grants noted below.
Summary of assumptions used to estimate the fair value of stock options granted and the resulting fair values	The assumptions used to estimate the fair value of stock options granted and the resulting fair values for the year ended December 31, 2020, 2019 and 2018 were as follows: 2020 2019 2018 Expected volatility 45.00% – 50.00 % 47.17% – 55.47 % 47.69% – 49.17 % Risk-free interest rate 0.27% – 1.44 % 1.57% – 2.64 % 2.60% – 3.06 % Expected term (in years) 4.14 – 6.25 5.00 – 6.86 5.49 – 6.13 Expected dividend yield — — — Weighted average estimated fair value of stock options granted during the year $ 5.06 $ 0.21 $ 0.11

Income Taxes (Tables)

Income Taxes (Tables)	12 Months Ended
	Dec. 31, 2020
Income Taxes
Schedule of provision for income taxes	The provision for income taxes consists of the following: Year Ended December 31, 2020 2019 2018 Current: Federal $ — $ — $ — State 115 — — Total Current 115 — — Deferred: Federal — — — State — — — Total Deferred — — — Provision for income taxes $ 115 $ — $ —
Schedule of reconciliation of the effective tax rate to the statutory U.S. federal rate	A reconciliation of the Company’s effective tax rate to the statutory U.S. federal rate of 21% is as follows: Year Ended December 31, 2020 2019 2018 U.S. Federal provision (benefit) ​ ​ At statutory rate $ (25,693) $ (5,956) $ (5,608) State taxes 90 — — Valuation allowance 26,245 6,320 5,671 Stock based compensation (7,257) (182) (141) Permanent differences 6,730 (182) 78 Total $ 115 $ — $ —
Schedule of significant components of the deferred tax assets and liabilities for federal and state income taxes	December 31, 2020 2019 Deferred tax assets: Net operating loss carryforwards $ 47,864 $ 21,309 Stock-based compensation 2,492 1,646 Reserves and accruals 1,239 513 Other 291 2 Total deferred tax assets $ 51,886 $ 23,470 Less: valuation allowance (51,859) (23,455) Deferred tax assets, net of valuation allowance $ 27 $ 15 Deferred tax liabilities: Fixed assets (27) (15) Total deferred tax liabilities $ (27) $ (15) Net deferred tax assets $ — $ —

Net Loss Per Share (Tables)

Net Loss Per Share (Tables)	12 Months Ended
	Dec. 31, 2020
Net Loss Per Share
Schedule of computation of basic and diluted loss per Share of Common Stock	The following table sets forth the computation of basic and diluted loss per Class A Common Stock and Class B Common Stock (in thousands, except for share and per share data): Year Ended December 31, 2020 2019 2018 Numerator: Net loss - Basic and diluted $ (122,461) $ (23,605) $ (27,780) Denominator: Weighted average common shares outstanding – Basic and diluted 294,549,146 261,228,108 236,040,717 Net loss per share attributable to common stockholders – Basic and diluted $ (0.42) $ (0.09) $ (0.12)
Schedule of outstanding common stock equivalents were considered antidilutive, and therefore, excluded from the computation of diluted net loss per share attributable to common stockholders	The following outstanding common stock equivalents were considered antidilutive, and therefore, excluded from the computation of diluted net loss per share attributable to common stockholders for the periods presented (share numbers are not in thousands): Number of Securities Outstanding at December 31, 2020 2019 2018 Convertible promissory notes — — 12,099,120 Common and preferred stock warrants 22,314,778 3,635,180 3,087,307 Common stock options 51,735,883 37,206,199 30,911,188 Restricted stock units 341,256 — — Earnout shares 10,000,000 — — Total 84,391,917 40,841,379 46,097,615

Description of the Business a_2

Description of the Business and Basis of Presentation (Details)	12 Months Ended
	Dec. 31, 2020
Description of the Business and Basis of Presentation
Recapitalization, have been retroactively restated based on shares reflecting the exchange ratio of 0.7471 established in the Business Combination.	0.7471

Summary of Significant Accoun_4

Summary of Significant Accounting Policies (Details) - USD ($)	9 Months Ended	12 Months Ended
	Sep. 30, 2020	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Concentration Risk [Line Items]
Marketing promotions and discounts , as a reduction of revenue		$ 51,300,000	$ 27,700,000	$ 11,600,000
Marketing promotions and discounts , as sales and marketing expense		91,500,000	45,200,000	18,700,000
Advertising expenses		136,800,000	53,500,000	25,300,000
Redeemable convertible preferred stock redemption	$ 866,000,000		$ 62,500,000	$ 18,800,000
Letter of credit
Concentration Risk [Line Items]
Restricted cash is comprised of $2.9 million which is pledged in the form of a letter of credit for the Company's new headquarters in San Francisco		$ 2,900,000
Revenue | Developer partners
Concentration Risk [Line Items]
Number of developer partners		2	2	2
Revenue | Developer partner one
Concentration Risk [Line Items]
Percentage of revenue		59.00%	83.00%	70.00%
Revenue | Developer partner two
Concentration Risk [Line Items]
Percentage of revenue		28.00%	7.00%	16.00%

Summary of Significant Accoun_5

Summary of Significant Accounting Policies - Estimated Useful Lives of Property and Equipment (Details)	12 Months Ended
	Dec. 31, 2020USD ($)
Property, Plant and Equipment [Line Items]
Impairment to long-lived assets	$ 0
Computer equipment and servers
Property, Plant and Equipment [Line Items]
Estimated useful life	P3Y
Capitalized internal-use software
Property, Plant and Equipment [Line Items]
Estimated useful life	P3Y
Office equipment and other
Property, Plant and Equipment [Line Items]
Estimated useful life	P5Y

Summary of Significant Accoun_6

Summary of Significant Accounting Policies - Cash, Cash Equivalents and Restricted Cash (Details) - USD ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Summary of Significant Accounting Policies
Cash and cash equivalents	$ 262,728	$ 25,628
Restricted Cash included in other long-term assets and other current assets as of December 31, 2020 and 2019, respectively	2,920	2,920
Cash, cash equivalents and restricted cash	$ 265,648	$ 28,548	$ 22,540	$ 7,025

Business Combination - Addition

Business Combination - Additional Information (Details) - USD ($) $ / shares in Units, $ in Millions	Dec. 16, 2020	Dec. 31, 2020	Dec. 31, 2019
Increase in number of authorized common stock shares		635,000,000
Common stock, par value		$ 0.0001	$ 0.0001
Number of shares designated		10,000,000
Shares issued in Private Placement Financing		15,853,052
Investor
Shares issued in Private Placement Financing		15,853,052
Business acquisition, share price		$ 10
Business acquisition, transaction costs		$ 158.5
Flying Eagle Acquisition Corporation [Member]
Number of shares released to sponsors		5,000,000
Number of shares released to shareholders		5,000,000
Stock Election Shares
Business combination subject to old common stock shares		359,518,849
Cash Election Shares
Business combination subject to old common stock shares		75,786,931
Convertible Common Stock
Conversion of Stock, Shares Converted		0.7471
Class A common stock
Conversion of Stock, Shares Converted	122,000,000	191,932,861
Business combination subject to old common stock shares		191,932,860
Number of shares released to sponsors		5,000,000
Number of shares released to shareholders		5,000,000
Increase in number of authorized common stock shares		500,000,000
Common stock, par value		$ 0.0001
Class B common stock
Conversion of Stock, Shares Converted		76,663,551
Business combination subject to old common stock shares		76,663,551
Increase in number of authorized common stock shares		125,000,000
Common stock, par value		$ 0.0001
Class B common stock | Flying Eagle Acquisition Corporation [Member]
Conversion of Stock, Shares Converted		10,000,000

Business Combination - Reconcil

Business Combination - Reconcile Business Combination Of Financial Position (Details) $ in Thousands	Dec. 31, 2020USD ($)
Business Acquisition [Line Items]
Less: cash consideration paid to Old Skillz stockholders	$ (566,204)
Less: transaction costs and advisory fees	(35,822)
Net Business Combination and Private Placement Financing	246,484
Less: accrued transaction costs and advisor fees	(16,058)
Net cash contributions from Business Combination and PIPE Financing	230,426
Corporation
Business Acquisition [Line Items]
Cash	689,979
Private placement financing
Business Acquisition [Line Items]
Cash	$ 158,531

Business Combination - Business

Business Combination - Business combination common stock issued (Details) - shares	Dec. 16, 2020	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Common stock, outstanding prior to Business Combination		69,000,000
Less: redemption of FEAC shares		(2,140)
Common stock of FEAC		68,997,860
FEAC sponsor shares		6,350,200
Earnout shares		10,000,000
Shares issued in Private Placement Financing		15,853,052
Business Combination and Private Placement Financing shares - Class A common stock		101,201,112
Common stock
Total shares of common stock immediately after Business Combination		369,797,524	286,074,923	249,900,176	229,158,656
Class A common stock
Old Skillz shares converted to New Skillz Class A common stock(1)	122,000,000	191,932,861
Immediately prior completion	122,000,000	191,932,861
Business combination shares converted		332,690,933
Repurchase of business combination shares converted		56,620,419
Class B common stock
Old Skillz shares converted to New Skillz Class A common stock(1)		76,663,551
Immediately prior completion		76,663,551
Business combination shares converted		102,614,847

Balance Sheet Components - Prep

Balance Sheet Components - Prepaid expenses and other current assets (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Credit card processing reserve	$ 5,854	$ 2,650
Prepaid expenses	3,772	2,460
Other current assets	865	4,354
Prepaid expenses and other current assets	10,491	$ 9,464
Impairment charges	3,573
Prepaid expenses and other current assets
Impairment charges	$ 3,400

Balance Sheet Components - Prop

Balance Sheet Components - Property and equipment, net (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Total property and equipment	$ 8,133	$ 4,912
Accumulated depreciation and amortization	(2,841)	(1,264)
Property and equipment, net	5,292	3,648
Depreciation and amortization expense	1,609	711	$ 404
Capitalized internal-use software
Total property and equipment	6,167	3,554
Computer equipment and servers
Total property and equipment	631	458
Furniture and fixtures
Total property and equipment	184	238
Leasehold improvements
Total property and equipment	114	143
Construction in progress
Total property and equipment	$ 1,037	$ 519

Balance Sheet Components - Othe

Balance Sheet Components - Other current liabilities (Details) - USD ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019
Balance Sheet Components
Accrued sales and marketing expenses	$ 7,204	$ 1,630
Accrued compensation	3,825	2,531
End-user liability, net	2,789	1,418
Accrued developer revenue share	907	540
Other accrued expenses	4,893	1,418
Other current liabilities	$ 19,618	$ 7,537

Fair Value Measurements - Redee

Fair Value Measurements - Redeemable Convertible Series E preferred forward contract liability (Details) - Redeemable Series E Convertible Preferred Stock - Valuation Technique, Discounted Cash Flow - Level 3	Sep. 10, 2020USD ($)$ / shares
Derivative Assets (Liabilities), at Fair Value, Net | $	$ 21,688
Share Price | $ / shares	$ 9.17

Fair Value Measurements - Recon

Fair Value Measurements - Reconciliation of unobservable inputs (Level 3) (Details) - Level 3 - Redeemable Series E Convertible Preferred Stock $ in Thousands	12 Months Ended
	Dec. 31, 2020USD ($)
Changes in Level 3 liabilities measured at fair value
Change in fair value	$ 21,688
Settlement of the Redeemable convertible Series E preferred stock forward contract liability	$ (21,688)

Fair Value Measurements - Addit

Fair Value Measurements - Additional Information (Details) - USD ($) $ in Thousands	Dec. 16, 2020	Dec. 31, 2020	Dec. 31, 2019
Fair Value
Cash and cash equivalents		$ 262,728	$ 25,628
Fair value of the Earnout Shares		172,300,000
Class A common stock
Fair Value
Conversion of Stock, Shares Converted	122,000,000	191,932,861
Number Of Shares Released to Sponsors		5,000,000
Number Of Shares Released to Shareholders		5,000,000
Class B common stock
Fair Value
Conversion of Stock, Shares Converted		76,663,551
Flying Eagle Acquisition Corporation [Member]
Fair Value
Number Of Shares Released to Sponsors		5,000,000
Number Of Shares Released to Shareholders		5,000,000
Flying Eagle Acquisition Corporation [Member] | Class B common stock
Fair Value
Conversion of Stock, Shares Converted		10,000,000
Level 1
Fair Value
Cash and cash equivalents		$ 262,700	$ 25,600

Long-Term Debt (Details)

Long-Term Debt (Details) - USD ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019
Long-Term Debt
Net carrying amount	$ 0	$ 9,628
2019 Mezzanine Term Loan
Long-Term Debt
Principal amount of debt	0	10,000
Unamortized debt discount	$ 0	$ (372)

Long-Term Debt - 2019 Mezzanine

Long-Term Debt - 2019 Mezzanine Term Loan (Details) - USD ($) $ in Thousands	1 Months Ended	12 Months Ended
	Jun. 30, 2020	Dec. 31, 2019	Dec. 31, 2018
Long-Term Debt
Available borrowing capacity		$ 30,000
Proceeds from issuance of debt		9,563	$ 19,920
2019 Mezzanine Term Loan
Long-Term Debt
Maximum borrowing capacity	$ 10,000	40,000
Available borrowing capacity		30,000
Borrowing capacity on achievement of certain performance milestones		$ 10,000
Spread on variable rate		5.00%
Line of credit facility, maximum borrowing capacity	10,000	$ 40,000
Gain (Loss) on Extinguishment of Debt	$ 400
2019 Mezzanine Term Loan | Prime rate
Long-Term Debt
Interest rate		9.75%

Commitments and Contingencies -

Commitments and Contingencies - Future minimum lease payments (Details) $ in Thousands	Dec. 31, 2020USD ($)
Year ended December 31,
2021	$ 4,528
2022	2,498
2023	2,368
2024	2,439
2025	2,513
Thereafter	11,795
Future minimum lease payments	$ 26,141

Commitments and Contingencies_2

Commitments and Contingencies - Additional information (Details) - USD ($) $ in Thousands	1 Months Ended	12 Months Ended
	May 31, 2019	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Property, Plant and Equipment [Line Items]
Future minimum lease payments		$ 26,141
Impairment charges		3,573
Rent expense		6,500	$ 1,900	$ 1,200
Prepaid expenses and other current assets
Property, Plant and Equipment [Line Items]
Impairment charges		$ 3,400
New headquarters in San Francisco
Property, Plant and Equipment [Line Items]
Future minimum lease payments	$ 25,600
Tenant improvement allowance	$ 2,500
Additional office space in San Francisco
Property, Plant and Equipment [Line Items]
Future minimum lease payments			$ 8,800

Retirement Plans (Details)

Retirement Plans (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Retirement Plans
Contributions for eligible employees made	$ 100	$ 0	$ 0

Stockholders' Deficit (Details)

Stockholders' Deficit (Details)	Dec. 16, 2020shares	Sep. 30, 2020USD ($)$ / shares	May 31, 2020USD ($)$ / shares	Dec. 31, 2020USD ($)$ / sharesshares	Dec. 31, 2019USD ($)$ / sharesshares	Dec. 31, 2018USD ($)	Mar. 31, 2019shares
Class of Stock
Shares authorized to issue				625,000,000	625,000,000
Par value per share | $ / shares				$ 0.0001	$ 0.0001
Cash proceeds from the issuance of redeemable convertible preferred stock | $				$ 76,617,000	$ 24,908,000	$ 18,218,000
Recapitalization, have been retroactively restated based on shares reflecting the exchange ratio of 0.7471 established in the Business Combination.				0.7471
Common stock issued				500,000,000
Private Warrants [Member]
Class of Stock
Warrants				48,135
Class A common stock
Class of Stock
Shares authorized to issue				500,000,000	500,000,000
Par value per share | $ / shares				$ 0.0001
Business combination | $ / shares				$ 1.4991
Convertible preferred stock	139,000,000
Immediately prior completion	122,000,000			191,932,861
Recapitalization, have been retroactively restated based on shares reflecting the exchange ratio of 0.7471 established in the Business Combination. | $					0.7471
Stock split of common stock					10-for-1
Common stock issued				292,000,000	292,000,000
Common stock outstanding				212,000,000	212,000,000
Class A common stock | FEAC Public and Private Placement Warrants [Member]
Class of Stock
Warrants				22,266,643
Class B common stock
Class of Stock
Shares authorized to issue				125,000,000	125,000,000
Par value per share | $ / shares				$ 0.0001
Immediately prior completion				76,663,551
Common stock issued				78,000,000	78,000,000
Common stock outstanding				74,000,000	74,000,000
New Skillz Class A common stock [Member]
Class of Stock
Business combination | $ / shares				$ 11.50
Series D Convertible Preferred Stock [Member]
Class of Stock
Convertible preferred stock							5,000,000
Series E Convertible Preferred Stock [Member]
Class of Stock
Shares from external investor | $ / shares		$ 43.11	$ 43.11
Cash proceeds from the issuance of redeemable convertible preferred stock | $		$ 11,700,000	$ 65,000,000
Private investor share | $ / shares		$ 43.11	$ 43.11
Non-cash charge | $				$ 21,700,000
Preferred stock
Class of Stock
Shares authorized to issue				10,000,000
Par value per share | $ / shares				$ 0.0001

Stock Based Compensation - Stoc

Stock Based Compensation - Stock-based Compensation Expense Recognized (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Stock Based Compensation
Total stock-based compensation expense	$ 23,757	$ 1,237	$ 6,680
Research and development
Stock Based Compensation
Total stock-based compensation expense	6,110	181	361
Sales and marketing
Stock Based Compensation
Total stock-based compensation expense	4,505	111	114
General and administrative
Stock Based Compensation
Total stock-based compensation expense	$ 13,142	$ 945	$ 6,205

Stock Based Compensation - St_2

Stock Based Compensation - Stock Options (Details) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Number of Shares Outstanding Under the Plan
Options granted (in shares)	47,841,859
Stock Options
Number of Shares Available for Issuance Under the Plan
Balance at the beginning (in shares)	2,880,358	3,855,385
Additional shares authorized (in shares)	62,903,028
Options granted (in shares)	(36,074,010)
Options exercised (in shares)	0
Options canceled (in shares)	5,791,227	(975,027)
Balance at the end (in shares)	35,500,603	2,880,358	3,855,385
Number of Shares Outstanding Under the Plan
Balance at the beginning (in shares)	28,983,226	38,794,307
Options granted (in shares)	35,732,754
Options exercised (in shares)	(20,138,817)
Options canceled (in shares)	(6,172,670)	(9,811,081)
Balance at the end (in shares)	38,404,493	28,983,226	38,794,307
Exercisable at the end (in shares)	14,248,234	15,225,162
Unvested at the end (in shares)	24,156,259	13,758,064
Weighted-Average Exercise Price
Balance at the beginning (in dollars per shares)	$ 0.19	$ 0.14
Options granted (in dollars per shares)	6.70
Options exercised (in dollars per shares)	0.78
Options canceled (in dollars per shares)	0.51	0.05
Balance at the end (in dollars per shares)	5.89	0.19	$ 0.14
Exercisable at the end (in dollars per shares)	0.18	0.08
Unvested at the end (in dollars per shares)	$ 9.25	$ 0.31
Weighted-Average Remaining Contractual Term (Years) and Aggregate Intrinsic Value
Weighted average remaining contractual life, outstanding	8 years 3 months 7 days	7 years 8 months 1 day	7 years 8 months 1 day
Exercisable at the end (in years)	6 years 5 months 12 days	6 years 10 months 6 days
Unvested at the end (in years)	9 years 4 months 2 days	8 years 6 months 29 days
Aggregate intrinsic value outstanding	$ 542,074	$ 13,056	$ 13,056
Exercisable at the end (in dollars)	$ 282,364	$ 8,492
Unvested at the end (in dollars)	259,710,000	4,564,000
Shares of restricted common stock issued upon the early exercise of the Executive grants	13,300,000	8,200,000
Unrecognized stock-based compensation expense	$ 156,900
Unrecognized stock-based compensation expense, weighted-average period of recognition	3 years 6 months 11 days
Aggregate intrinsic value of options exercised	$ 89,900	$ 1,400	$ 500
Restricted stock units
Number of Shares Outstanding Under the Plan
Balance at the beginning (in shares)	0
Options granted (in shares)	341,256
Balance at the end (in shares)	341,256	0
Restricted stock units | Weighted Average Grant Date Fair Value Per Share Member
Weighted-Average Exercise Price
Options granted (in dollars per shares)	$ 17.68
Unvested at the end (in dollars per shares)	$ 17.68

Stock Based Compensation - Assu

Stock Based Compensation - Assumptions estimate the fair value of stock options (Details) - Stock Options - $ / shares	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Stock Based Compensation
Expected volatility, minimum	45.00%	47.17%	47.69%
Expected volatility, maximum	50.00%	55.47%	49.17%
Risk-free interest rate, minimum		1.57%	2.60%
Risk-free interest rate, maximum		2.64%	3.06%
Expected dividend yield	0.00%	0.00%	0.00%
Weighted average estimated fair value of stock options granted during the year	$ 5.06	$ 0.21	$ 0.11
Minimum
Stock Based Compensation
Risk-free interest rate, minimum	0.27%
Expected term (in years)	4 years 1 month 21 days	5 years	5 years 5 months 27 days
Maximum
Stock Based Compensation
Risk-free interest rate, maximum	1.44%
Expected term (in years)	6 years 3 months	6 years 10 months 10 days	6 years 1 month 17 days

Stock Based Compensation - Exec

Stock Based Compensation - Executive grants (Details)	Jun. 08, 2020USD ($)$ / sharesshares	May 15, 2020USD ($)$ / sharesshares	May 14, 2020USD ($)	Apr. 15, 2020USD ($)$ / sharesshares	Apr. 30, 2019Option	Apr. 29, 2019Option$ / shares	Aug. 31, 2020USD ($)shares	Dec. 31, 2020USD ($)itemshares	Dec. 31, 2019USD ($)shares	Dec. 31, 2018USD ($)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Reverse Recapitalization Exchange Rate								0.7471
Chief executive officer options to purchase shares | shares								15,000,000
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage, Quarterly								5.00%
Share Based Compensation Related Shares Founder Grants								$ 47,841,859
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | shares								47,841,859
Share Based Compensation Related Shares Founder Grants								$ 47,841,859
Share-based Payment Arrangement, Expense								23,757,000	$ 1,237,000	$ 6,680,000
Compensation expense recognized								$ 23,757,000	$ 1,237,000	$ 6,680,000
Issuance of common stock upon early exercise of stock options with promissory note (in shares) | shares								15,000,000
Board of Directors Chairman [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage, Quarterly							6.25%
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Amount								$ 2,300,000
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | shares							2,757,886
Compensation expense							$ 23,500,000
Vesting percentage							25.00%
Founders Options [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Employee Benefits and Share-based Compensation								800,000
Grant date fair value of option recognized as compensation expense over the requisite service period								$ 93,400,000
Class A common stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Reverse Recapitalization Exchange Rate									0.7471
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | shares								24,669,278
Class B Common Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Employee Benefits and Share-based Compensation									$ 11,000,000
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | shares								8,172,581	700,000
Old Skillz Class A Common Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights								50
Vesting period								50
Old Skillz Class A Common Stock [Member] | Chief Executive Officer [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price | $ / shares				$ 1.15
Old Skillz Class B Common Stock [Member] | Chief Technology Officer [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights	50
Vesting period	50
New Skillz Class B Common Stock [Member] | Chief Executive Officer [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | shares								9,960,000
New Skillz Class A common stock [Member] | Chief Revenue Officer [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | shares								2,040,000
General and administrative
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Payment Arrangement, Expense									$ 2,300,000
Compensation expense recognized									2,300,000
Sales and marketing
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Payment Arrangement, Expense									700,000
Compensation expense recognized									700,000
Research and development
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Payment Arrangement, Expense									400,000
Compensation expense recognized									$ 400,000
Executive grants
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of separate options to purchase shares of Class A common stock | Option					2	2
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage, Quarterly								25.00%
Executive grants | Promissory note
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Debt Instrument, Interest Rate During Period			0.58%
Outstanding principal of promissory note			$ 11,400,000					$ 3,800,000
Interest rate								2.55%
Maximum term of promissory note								9 years
Executive grants | Chief Executive Officer [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Amount								$ 21,500,000
Employee Benefits and Share-based Compensation			$ 3,800,000
Vesting percentage								100.00%
Executive grants | Class A common stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Exercise price of options | $ / shares						$ 0.43
Executive grants | Class A common stock | Promissory note
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Issuance of common stock upon early exercise of stock options with promissory note (in shares) | shares								8,970,517
Executive grants | Class B Common Stock [Member] | Chief Executive Officer [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price | $ / shares		$ 1.15
Executive grants | Old Skillz Class A Common Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period								4 years
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage, Quarterly								6.25%
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights								100
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | shares								9,921,314
Vesting period								100
Vesting percentage								25.00%
Executive grants | Old Skillz Class B Common Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights		50
Vesting period		50
First option | Old Skillz Class B Common Stock [Member] | Chief Technology Officer [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period	4 years
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage, Quarterly	6.25%
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights	100
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Amount	$ 9,000,000
Employee Benefits and Share-based Compensation								$ 900,000
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | shares	1,520,736
Vesting period	100
Vesting percentage	25.00%							100.00%
First option | Executive grants
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Payment Arrangement, Expense								$ 700,000
Grant date fair value of option recognized as compensation expense over the requisite service period								1,700,000
Compensation expense recognized								$ 700,000
First option | Executive grants | Chief Revenue Officer [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage, Quarterly								100.00%
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Amount		$ 3,500,000
Employee Benefits and Share-based Compensation								$ 600,000
First option | Executive grants | Class A common stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Chief executive officer options to purchase shares | shares								2,990,172
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights								P4Y
Vesting period								P4Y
Vesting percentage								0.021%
First option | Executive grants | Class A common stock | Vesting of then-outstanding shares upon the consummation of an IPO
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting percentage								50.00%
First option | Executive grants | Class A common stock | Vesting of then-outstanding shares upon the earlier of Exit Transaction or termination of service
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting percentage								100.00%
First option | Executive grants | Old Skillz Class B Common Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period		4 years
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage, Quarterly		6.25%
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights		100
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | shares		1,852,695
Vesting period		100
Vesting percentage		25.00%
Second option | Old Skillz Class B Common Stock [Member] | Chief Technology Officer [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price | $ / shares	$ 1.33
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | shares	919,862
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested in Period, Fair Value	$ 3,700,000
Second option | Old Skillz Class B Common Stock [Member] | Minimum | Chief Technology Officer [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested in Period, Fair Value	1,800,000,000
Second option | Old Skillz Class B Common Stock [Member] | Maximum | Chief Technology Officer [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested in Period, Fair Value	$ 3,000,000,000
Second option | Executive grants | Chief Revenue Officer [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested in Period, Fair Value				$ 2,000,000
Second option | Executive grants | Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Market condition targets								$ 600,000,000
Second option | Executive grants | Class A common stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Chief executive officer options to purchase shares | shares								5,980,344
Number of market condition targets related to the valuation of the Company | item								8
Grant date fair value of option recognized as compensation expense over the requisite service period								$ 900,000
Second option | Executive grants | Class A common stock | Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Market condition targets								$ 2,700,000,000
Second option | Executive grants | Class B Common Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Debt Instrument, Interest Rate During Period			0.58%
Share Based Compensation Related Shares Founder Grants			$ 2,779,042
Share Based Compensation Related Shares Founder Grants			2,779,042
Outstanding principal of promissory note			$ 3,200,000
Second option | Executive grants | Old Skillz Class B Common Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | shares				926,347
Second option | Executive grants | Old Skillz Class B Common Stock [Member] | Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested in Period, Fair Value				$ 1,500,000,000
Second option | Executive grants | Old Skillz Class B Common Stock [Member] | Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested in Period, Fair Value				$ 2,700,000,000

Stock Based Compensation - Othe

Stock Based Compensation - Other Stock-Based Compensation (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total stock-based compensation expense	$ 23,757	$ 1,237	$ 6,680
General and administrative
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total stock-based compensation expense	13,142	945	6,205
Research and development
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total stock-based compensation expense	6,110	181	361
Sales and marketing
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total stock-based compensation expense	$ 4,505	111	$ 114
Class B common stock
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total stock-based compensation expense		$ 500

Income Taxes - provision for in

Income Taxes - provision for income taxes (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Current:
Federal		$ 0
State	$ 115	0
Total Current	115	0
Deferred:
Federal		0
State		0
Total Deferred		0
Provision for income taxes	115	0
Fixed assets	$ 27	$ 15

Income Taxes - Reconciliation o

Income Taxes - Reconciliation of Effective Tax Rate To Statutory U.S. Federal Rate (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Income Taxes
Statutory U.S. federal rate	21.00%
U.S. Federal provision (benefit)
At Statutory Rate	$ 25,693	$ 5,956	$ 5,608
State taxes	90
Valuation Allowance	26,245	6,320	5,671
Stock Based Compensation	(7,257)	(182)	(141)
Permanent Differences	6,730	(182)	$ 78
Provision for income taxes	$ 115	$ 0

Income Taxes - Components of De

Income Taxes - Components of Deferred Tax Assets and Liabilities for Federal and State Income Taxes (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Deferred tax assets:
Net operating loss carryforwards	$ 47,864	$ 21,309
Stock-based compensation	2,492	1,646
Reserves and accruals	1,239	513
Other	291	2
Total deferred tax assets	51,886	23,470
Less: valuation allowance	(51,859)	(23,455)
Deferred tax assets, net of valuation allowance	27	15
Deferred tax liabilities:
Fixed assets	27	15
Total deferred tax liabilities	(27)	$ (15)
Net deferred tax assets	0
Change in total valuation allowance	$ 28,400

Income Taxes (Details)

Income Taxes (Details) $ in Millions	Dec. 31, 2020USD ($)
Federal
Operating Loss Carryforwards [Line Items]
Net operating loss carryforwards	$ 201.3
Net operating loss carryforwards are not subject to expiration	165.3
State
Operating Loss Carryforwards [Line Items]
Net operating loss carryforwards	$ 64.9

Net Loss Per Share - Computatio

Net Loss Per Share - Computation of Basic and Diluted Loss Per Share of Common Stock (Details) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Numerator:
Net loss - Basic and diluted	$ (122,461)	$ (23,605)	$ (27,780)
Denominator:
Weighted average common shares outstanding - Basic and diluted	294,549,146	261,228,108	236,040,717
Net loss per share attributable to common stockholders - Basic and diluted	$ (0.42)	$ (0.09)	$ (0.12)

Net Loss Per Share - Outstandin

Net Loss Per Share - Outstanding Common Stock Equivalents Considered Antidilutive Excluded From Computation of Diluted Net Loss Per Share Attributable to Common Stockholders (Details) - shares	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total	84,391,917	40,841,379	46,097,615
Convertible promissory notes
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total	0	0	12,099,120
Common stock warrants
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total	22,314,778	3,635,180	3,087,307
Stock Options
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total	51,735,883	37,206,199	30,911,188
Restricted stock units
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total	341,256
Earnout shares
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total	10,000,000

Subsequent Events (Details)

Subsequent Events (Details) - Flying Eagle Acquisition Corporation [Member] - shares	1 Months Ended	12 Months Ended
	Jan. 31, 2021	Dec. 31, 2020
Subsequent Events
Number Of Shares Released to Sponsors		5,000,000
Number Of Shares Released to Shareholders		5,000,000
Subsequent event
Subsequent Events
Number Of Shares Released to Sponsors	5,000,000
Number Of Shares Released to Shareholders	5,000,000
Subsequent event | Class B common stock
Subsequent Events
Number Of Shares Released to Sponsors	10,000,000

Events subsequent to the orig_2

Events subsequent to the original issuance of audited consolidated financial statements (unaudited) (Details) - Events Subsequent to Original Issuance [Member] - Subsequent event	Mar. 17, 2021shares
Certain selling stockholders of Skills inc
Subsequent Event [Line Items]
Stock Issued During Period, Shares, New Issues	15,000,000
Skillz Inc
Subsequent Event [Line Items]
Stock Issued During Period, Shares, New Issues	17,000,000
Class A common stock
Subsequent Event [Line Items]
Number of Additional Shares to be Granted to Underwriters with 30 Day Option	4,800,000
Underwritten public offering | Class A common stock
Subsequent Event [Line Items]
Stock Issued During Period, Shares, New Issues	32,000,000