Skillz (SKLZ) 10-Q 9 Nov 21 2021 Q3 Quarterly report Financial data

Cover

Cover - shares	9 Months Ended
	Sep. 30, 2021	Nov. 01, 2021
Entity Listings [Line Items]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Sep. 30, 2021
Document Transition Report	false
Entity File Number	001-39243
Entity Registrant Name	SKILLZ INC.
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	84-4478274
Entity Address, Address Line One	PO Box 445
Entity Address, City or Town	San Francisco
Entity Address, State or Province	CA
Entity Address, Postal Zip Code	94104
City Area Code	415
Local Phone Number	762-0511
Title of 12(b) Security	Class A common stock, par value $0.0001 per share
Trading Symbol	SKLZ
Security Exchange Name	NYSE
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	true
Entity Ex Transition Period	false
Entity Shell Company	false
Amendment Flag	false
Entity Central Index Key	0001801661
Document Fiscal Year Focus	2021
Document Fiscal Period Focus	Q3
Current Fiscal Year End Date	--12-31
Class A common stock, par value $0.0001 per share
Entity Listings [Line Items]
Entity Common Stock, Shares Outstanding		339,335,182
Class B Common Stock
Entity Listings [Line Items]
Entity Common Stock, Shares Outstanding		68,717,138

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands		3 Months Ended				9 Months Ended
		Sep. 30, 2021		Sep. 30, 2020		Sep. 30, 2021		Sep. 30, 2020
Income Statement [Abstract]
Revenue	[1]	$ 102,072		$ 59,955		$ 275,240		$ 162,392
Costs and expenses:
Cost of revenue	[1]	7,647		3,102		16,289		8,806
Research and development	[1]	13,162		4,369		30,584		13,253
Sales and marketing	[1]	114,531		73,187		310,377		172,381
General and administrative	[1]	48,376		7,861		101,092		24,336
Total costs and expenses	[1]	183,716		88,519		458,342		218,776
Loss from operations	[1]	(81,644)		(28,564)		(183,102)		(56,384)
Interest expense, net	[1]	(87)		(24)		(136)		(1,297)
Change in fair value of common stock warrant liabilities	[1]	113,601		0		81,898		0
Other income (expense), net	[1]	(22)		(14,216)		108		(20,749)
Income (loss) before income taxes	[1]	31,848		(42,804)		(101,232)		(78,430)
(Benefit) provision for income taxes	[1]	(18,933)		47		(18,826)		100
Net income (loss)		$ 50,781	[1]	$ (42,851)	[2]	$ (82,406)	[1]	$ (78,530)	[1]
Net income (loss) per share attributable to common stockholders - basic (in dollars per share)	[1]	$ 0.13		$ (0.14)		$ (0.22)		$ (0.27)
Weighted average common shares outstanding - basic (in shares)	[1]	395,053,445		298,713,456		379,450,553		288,958,713
Net loss attributable to common stockholders – diluted	[1]	$ (62,820)		$ (42,851)		$ (164,304)		$ (78,530)
Net loss per share attributable to common stockholders - diluted (in dollars per share)	[1]	$ (0.16)		$ (0.14)		$ (0.43)		$ (0.27)
Weighted average common shares outstanding - diluted (in shares)	[1]	396,030,131		298,713,456		385,451,806		288,958,713
[1]	Retroactively restated for the reverse recapitalization as described in Notes 1 and 3.
[2]	Retroactively restated for the reverse recapitalization as described in Notes 1 and 3.

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands		Sep. 30, 2021	Dec. 31, 2020
Current assets:
Cash and cash equivalents		$ 540,308	$ 262,728
Accounts receivable, net		12,725	0
Prepaid expenses and other current assets		17,309	10,491
Total current assets		570,342	273,219
Property and equipment, net		10,852	5,292
Investments in non-marketable equity securities		55,628	0
Net Carrying Amount		83,241	0
Goodwill		87,230	0
Other long-term assets		3,839	3,910
Total assets		811,132	282,421
Current liabilities:
Accounts payable		10,047	22,039
Accrued professional fees		0	5,699
Other current liabilities		70,157	19,618
Total current liabilities		80,204	47,356
Long-term common stock warrant liabilities		12,318	178,232
Other long-term liabilities		14,274	46
Total liabilities		106,796	225,634
Commitments and contingencies (Note 7)
Stockholders' equity:
Preferred stock $0.0001 par value; 10 million shares authorized — 0 issued and outstanding as of September 30, 2021 and December 31, 2020		0	0
Common stock $0.0001 par value; 625 million shares authorized; Class A common stock – 500 million shares authorized; 339 million and 292 million shares issued and outstanding as of September 30, 2021 and December 31, 2020, respectively; Class B common stock – 125 million shares authorized; 69 million and 78 million shares issued and outstanding as of September 30, 2021 and December 31, 2020, respectively		40	37
Additional paid-in capital		1,025,017	295,065
Accumulated deficit		(320,721)	(238,315)
Total stockholders’ equity	[1]	704,336	56,787
Total liabilities and stockholders’ equity		$ 811,132	$ 282,421
[1]	Retroactively restated for the reverse recapitalization as described in Notes 1 and 3.

CONDENSED CONSOLIDATED BALANC_2

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Sep. 30, 2021	Dec. 31, 2020
Convertible preferred stock, par value (in dollars per share)	$ 0.0001	$ 0.0001
Convertible preferred stock, shares authorized (in shares)	10,000,000	10,000,000
Preferred stock, shares issued (in shares)	0	0
Preferred stock, shares outstanding (in shares)	0	0
Common stock, par value (in dollars per share)	$ 0.0001	$ 0.0001
Common stock, shares authorized (in shares)	625,000,000	625,000,000
Class A Common Stock
Common stock, shares authorized (in shares)	500,000,000	500,000,000
Common stock, shares issued (in shares)	339,000,000	292,000,000
Common stock, shares outstanding (in shares)	339,000,000	292,000,000
Class B Common Stock
Common stock, par value (in dollars per share)	$ 0.0001
Common stock, shares authorized (in shares)	125,000,000	125,000,000
Common stock, shares issued (in shares)	69,000,000	78,000,000
Common stock, shares outstanding (in shares)	69,000,000	78,000,000

CONDENSED CONSOLIDATED STATEM_2

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY - USD ($) $ in Thousands		Total		Common Stock		Preferred Stock	[1]	Common Stock	Common StockCommon Stock	Common StockPreferred Stock	Additional paid-in capital	Accumulated deficit		Accumulated deficitCommon Stock	Accumulated deficitPreferred Stock
Shares, beginning balance (in shares) at Dec. 31, 2019	[1]							286,074,923
Beginning balance at Dec. 31, 2019	[1]	$ 18,665						$ 29			$ 108,892	$ (90,256)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of common stock upon exercise of stock options (in shares)	[1]							829,348
Issuance of common stock upon exercise of stock options	[1]	241									241
Stock-based compensation	[1]	357									357
Net loss	[1]	(15,522)										(15,522)
Shares, ending balance (in shares) at Mar. 31, 2020	[1]							286,904,271
Ending balance at Mar. 31, 2020	[1]	3,741						$ 29			109,490	(105,778)
Shares, beginning balance (in shares) at Dec. 31, 2019	[1]							286,074,923
Beginning balance at Dec. 31, 2019	[1]	18,665						$ 29			108,892	(90,256)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net loss	[2]	(78,530)
Shares, ending balance (in shares) at Sep. 30, 2020	[1]							319,814,293
Ending balance at Sep. 30, 2020	[1]	46,232						$ 32			217,435	(171,235)
Shares, beginning balance (in shares) at Mar. 31, 2020	[1]							286,904,271
Beginning balance at Mar. 31, 2020	[1]	3,741						$ 29			109,490	(105,778)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of common stock upon exercise of stock options (in shares)	[1]							1,029,833
Issuance of common stock upon exercise of stock options	[1]	130									130
Stock-based compensation	[1]	5,546									5,546
Net loss	[1]	(20,157)										(20,157)
Shares issued (in shares)	[1]							15,091,869
Shares issued	[1]	64,879						$ 2			64,877
Issuance of common stock upon exercise of stock options with promissory note (in shares)	[1]							12,700,357
Issuance of common stock upon exercise of stock options with promissory note	[1]	1						$ 1
Repurchase of stock (in shares)	[1]								(270,599)
Repurchase of stock	[1]			$ (543)										$ (543)
Shares, ending balance (in shares) at Jun. 30, 2020	[1]							315,455,731
Ending balance at Jun. 30, 2020	[1]	53,597						$ 32			180,043	(126,478)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of common stock upon exercise of stock options (in shares)	[1]							2,102,672
Issuance of common stock upon exercise of stock options	[1]	302									302
Stock-based compensation	[1]	3,662									3,662
Net loss	[1]	(42,851)										(42,851)
Shares issued (in shares)	[1]							2,739,398
Shares issued	[1]	33,428						$ 0			33,428
Issuance of common stock upon exercise of stock options with promissory note (in shares)	[1]							0
Issuance of common stock upon exercise of stock options with promissory note	[1]	0						$ 0
Repurchase of stock (in shares)	[1]								(186,775)	(296,733)
Repurchase of stock				$ (695)	[1]	$ (1,211)								$ (695)	$ (1,211)
Shares, ending balance (in shares) at Sep. 30, 2020	[1]							319,814,293
Ending balance at Sep. 30, 2020	[1]	46,232						$ 32			217,435	(171,235)
Shares, beginning balance (in shares) at Dec. 31, 2020	[1]							369,797,524
Beginning balance at Dec. 31, 2020	[1]	56,787						$ 37			295,065	(238,315)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of common stock upon exercise of stock options (in shares)	[1]							268,426
Issuance of common stock upon exercise of stock options	[1]	12									12
Stock-based compensation	[1]	10,945									10,945
Net loss	[1]	(53,592)										(53,592)
Shares issued (in shares)	[1]							17,000,000
Shares issued	[1]	402,240						$ 2			402,238
Issuance of common stock upon exercise of warrants and other, net (in shares)	[1]							8,741,863
Issuance of common stock upon exercise of warrants and other, net	[1]	172,519									172,519
Shares, ending balance (in shares) at Mar. 31, 2021	[1]							395,807,813
Ending balance at Mar. 31, 2021	[1]	588,911						$ 39			880,779	(291,907)
Shares, beginning balance (in shares) at Dec. 31, 2020	[1]							369,797,524
Beginning balance at Dec. 31, 2020	[1]	$ 56,787						$ 37			295,065	(238,315)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of common stock upon exercise of stock options (in shares)		4,896,629
Net loss	[2]	$ (82,406)
Shares, ending balance (in shares) at Sep. 30, 2021	[1]							407,702,608
Ending balance at Sep. 30, 2021	[1]	704,336						$ 40			1,025,017	(320,721)
Shares, beginning balance (in shares) at Mar. 31, 2021	[1]							395,807,813
Beginning balance at Mar. 31, 2021	[1]	588,911						$ 39			880,779	(291,907)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of common stock upon exercise of stock options (in shares)	[1]							235,054
Issuance of common stock upon exercise of stock options	[1]	97									97
Stock-based compensation	[1]	15,774									15,774
Net loss	[1]	(79,595)										(79,595)
Issuance of common stock upon exercise of warrants and other, net (in shares)	[1]							628,576
Issuance of common stock upon exercise of warrants and other, net	[1]	9,625									9,625
Shares, ending balance (in shares) at Jun. 30, 2021	[1]							396,671,443
Ending balance at Jun. 30, 2021	[1]	534,812						$ 39			906,275	(371,502)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of common stock upon exercise of stock options (in shares)	[1]							4,393,149
Issuance of common stock upon exercise of stock options	[1]	3,056									3,056
Stock-based compensation	[1]	15,812									15,812
Net loss		50,781	[2]									50,781	[1]
Issuance of common stock upon exercise of warrants and other, net (in shares)	[1]							2,236,383
Issuance of common stock upon exercise of warrants and other, net	[1]	32,968						$ 1			32,967
Issuance of common stock for business combination (in shares)	[1]							4,401,633
Issuance of common stock for business combination	[1]	66,907									66,907
Shares, ending balance (in shares) at Sep. 30, 2021	[1]							407,702,608
Ending balance at Sep. 30, 2021	[1]	$ 704,336						$ 40			$ 1,025,017	$ (320,721)
[1]	Retroactively restated for the reverse recapitalization as described in Notes 1 and 3.
[2]	Retroactively restated for the reverse recapitalization as described in Notes 1 and 3.

CONDENSED CONSOLIDATED STATEM_3

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands		9 Months Ended
		Sep. 30, 2021	Sep. 30, 2020
Operating Activities
Net loss	[1]	$ (82,406)	$ (78,530)
Adjustment to reconcile net loss to net cash used in operating activities:
Depreciation and amortization		6,093	1,092
Stock-based compensation		42,531	9,565
Accretion of unamortized discount and amortization of issuance costs		28	548
Fair value adjustment of financial instruments		0	20,808
Impairment charge		0	3,395
Deferred income taxes		(18,825)	0
Change in fair value of common stock warrant liabilities	[1]	(81,898)	0
Changes in operating assets and liabilities:
Accounts receivable, net		975	0
Prepaid expenses and other assets		(7,217)	(3,858)
Deferred offering costs		0	(13,507)
Accounts payable		(3,445)	3,078
Accrued professional fees		(3,989)	12,199
Loss contingency accrual		11,557	0
Other liabilities		33,270	15,466
Net cash used in operating activities		(103,326)	(29,744)
Investing Activities
Purchases of property and equipment, including internal-use software		(2,068)	(3,009)
Investment in non-marketable equity securities		(54,748)	0
Business combination, net of cash acquired		(83,987)	0
Net cash used in investing activities		(140,803)	(3,009)
Financing Activities
Payments of capital lease obligations		(946)	0
Payments for debt issuance costs		0	(201)
Payments under debt agreements		0	(10,000)
Proceeds from issuance of common stock in follow-on offering, net of underwriting commissions, and offering costs		402,139	0
Payments made towards offering costs		(13,221)	(653)
Proceeds from issuance of redeemable convertible preferred stock, net of issuance costs		0	76,617
Proceeds from exercise of stock options and issuance of common stock		3,166	673
Proceeds from exercise of common stock warrants, net of redemptions		130,571	0
Payments made to repurchase common stock and preferred stock		0	(2,450)
Net cash provided by financing activities		521,709	63,986
Net change in cash, cash equivalents and restricted cash		277,580	31,233
Cash, cash equivalents and restricted cash – beginning of year		265,648	28,548
Cash, cash equivalents and restricted cash – end of year		543,228	59,781
Cash paid during the period for:
Interest		161	800
Noncash investing and financing activities:
Issuance of common stock for business combination		67,051	0
Remeasurement of redeemable convertible preferred stock		0	865,952
Settlement of the Redeemable convertible Series E preferred stock forward contract liability		0	21,688
Deferred offering costs in accounts payable and accrued liabilities		0	12,795
Warrant liability reclassified to additional paid-in capital		$ 84,016	$ 0
[1]	Retroactively restated for the reverse recapitalization as described in Notes 1 and 3.

Description of the Business and

Description of the Business and Basis of Presentation	9 Months Ended
	Sep. 30, 2021
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Description of the Business and Basis of Presentation	Description of the Business and Basis of Presentation Business 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. The Company was originally incorporated in Delaware on March 2, 2020 as a special purpose acquisition company under the name Flying Eagle Acquisition Corp. (“FEAC”) for the purpose of effecting a merger, capital stock exchange, asset acquisition, stock purchase, reorganization or similar business combination involving FEAC and one or more businesses. On December 16, 2020 (the “Closing”), the 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 “FEAC Business Combination”). On the closing date of the business combination, FEAC changed its name to Skillz Inc. (the “Company” or “Skillz”) and Old Skillz changed its name to Skillz Platform Inc. The Company’s common stock is now listed on the NYSE under the symbol “SKLZ” and warrants to purchase the common stock at an exercise price of $11.50 per share were listed on the NYSE under the symbol “SKLZ.WS.” 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. Basis of Presentation The Company’s condensed 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 was 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. Unaudited Interim Financial Statements The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with U.S. GAAP for interim financial information and in accordance with the rules and regulations of the SEC. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. The unaudited condensed consolidated financial statements reflect all normal and recurring adjustments that are, in the opinion of the Company’s management, necessary for the fair presentation of the results of operations for the interim periods. Operating results for the three and nine months ended September 30, 2021 are not necessarily indicative of the results that may be expected for the year ending December 31, 2021. These unaudited interim condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and related notes included in the Company’s Annual Report on Form 10-K/A for the fiscal year ended December 31, 2020, as filed with the SEC on May 13, 2021. Comprehensive Loss Through September 30, 2021, 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	9 Months Ended
	Sep. 30, 2021
Accounting Policies [Abstract]
Summary of Significant Accounting Policies	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 condensed 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, valuation of Public and Private Common Stock Warrants, the fair values of goodwill and intangible assets and the useful lives of the Company’s intangible assets. 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 September 30, 2021 and 2020. Games provided by two developer partners accounted for 43% and 37% of the Company’s revenue in the three months ended September 30, 2021 and 56% and 31% of the Company’s revenue in the three months ended September 30, 2020. Games provided by two developer partners accounted for 43% and 39% of the Company’s revenue in the nine months ended September 30, 2021 and 63% and 25% of the Company’s revenue in the nine months ended September 30, 2020. In the three and nine months ended September 30, 2021 and 2020, the Company generated less than 12% and 10% of its revenue from users outside of North America, respectively. 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 virtual currency earned for every Competition played based on the amount of the entry fee (“Ticketz”). Ticketz can be redeemed for prizes, including bonus cash prizes, a promotional incentive that cannot be withdrawn and can only be used by end-users to enter into paid entry fee contests (“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 three months ended September 30, 2021 and 2020, the Company recognized a reduction of revenue of $18.7 million and $13.0 million, respectively, related to these end-user incentives. For the nine months ended September 30, 2021 and 2020, the Company recognized a reduction of revenue of $54.9 million and $36.6 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 three months ended September 30, 2021 and 2020, the Company recognized sales and marketing expense of $47.0 million and $24.2 million, respectively, related to these end-user incentives. For the nine months ended September 30, 2021 and 2020, the Company recognized sales and marketing expense of $122.6 million and $61.4 million, respectively, related to these end-user incentives. Including all other engagement marketing programs, total engagement marketing included in sales and marketing expense was $50.0 million and $26.6 million for the three months ended September 30, 2021 and 2020, respectively. For the nine months ended September 30, 2021 and 2020 total engagement marketing was $130.9 million and $67.2 million, respectively. 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. 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. 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 Condensed Consolidated Balance Sheet to cash, cash equivalents and restricted cash in the Condensed Consolidated Statement of Cash Flows is as follows: September 30, December 31, 2021 2020 Cash and cash equivalents $ 540,308 $ 262,728 Restricted cash included in other long-term assets 2,920 2,920 Cash, cash equivalents and restricted cash $ 543,228 $ 265,648 Accounts Receivable, Net Accounts receivable, net, is comprised of trade accounts receivable recorded at the invoiced amounts for programmatic media campaigns, net of an allowance for expected losses. The Company evaluates the collectability of its trade accounts receivable based on a number of factors. In circumstances where it becomes aware of a specific customer’s inability to meet its financial obligations to us, a specific reserve for bad debts is estimated and recorded which reduces the recognized receivable to the estimated amount that management believes will ultimately be collected. In addition to specific customer identification of potential bad debts, bad debt charges are recorded based on our historical losses and an overall assessment of past due trade accounts receivable outstanding. At September 30, 2021, the Company’s reserve recorded for uncollectible accounts receivable was not significant to the condensed consolidated financial statements. 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 condensed 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. Business Combinations The results of businesses acquired in a business combination are included in our consolidated financial statements from the date of the acquisition. The Company uses the acquisition method of accounting and allocates the purchase price, including the fair value of any non-cash consideration, to the identifiable assets and liabilities of the relevant acquired business at their acquisition date fair values. Any excess consideration over the fair value of assets acquired and liabilities assumed is recognized as goodwill. While the Company uses its best estimates and assumptions to accurately value assets acquired and liabilities assumed at the acquisition date as well as contingent consideration, where applicable, its estimates are inherently uncertain and subject to refinement. As a result, during the measurement period, which may be up to one year from the acquisition date, the Company records adjustments to the assets acquired and liabilities assumed with the corresponding offset to goodwill. Upon the conclusion of the measurement period or final determination of the values of assets acquired or liabilities assumed, whichever comes first, any subsequent adjustments are recorded to the consolidated statements of operations. Determining the fair value of assets acquired and liabilities assumed requires the Company to perform valuations with significant judgment and estimates, including the selection of valuation methodologies, estimates of future revenue, costs and cash flows, discount rates and selection of comparable companies. The Company engages the assistance of valuation specialists in concluding on fair value measurements in connection with determining fair values of assets acquired and liabilities assumed in a business combination. Transaction costs associated with business combinations are expensed as incurred, and are included in general and administrative expense in the consolidated statements of operations. Goodwill Goodwill represents the excess of the purchase price over the fair value of net assets acquired in a business combination. Goodwill is tested for impairment at the reporting unit level, which is the same or one level below the operating segment. The Company has one operating segment: Skillz Platform, Inc. The Company identifies its reporting unit by assessing whether there are components of its operating segment which constitute businesses for which discrete financial information is available and reviewed regularly by segment managers. The Company tests goodwill for impairment at least annually during the fourth fiscal quarter, or more frequently if indicators of impairment exist during the fiscal year. Events or circumstances which could trigger an impairment review include a significant adverse change in legal factors or in the business climate, loss of key customers, an adverse action or assessment by a regulator, unanticipated competition, a loss of key personnel, significant changes in the manner of the Company’s use of the acquired assets or the strategy for the Company’s overall business, significant negative industry or economic trends or significant underperformance relative to expected historical or projected future results of operations. When testing goodwill for impairment, the Company first performs a qualitative assessment. If the Company determines it is not more likely than not a reporting unit’s fair value is less than its carrying amount, then no further analysis is necessary. If the Company determines it is more likely than not that a reporting unit’s fair value is less than its carrying amount, then the Company compares the estimated fair value of the reporting unit with its carrying amount, including goodwill. If the estimated fair value of the reporting unit exceeds its carrying amount, goodwill is not considered to be impaired. If, however, the fair value of the reporting unit is less than its carrying amount, then such balance would be recorded as an impairment loss. Any impairment loss is limited to the carrying amount of goodwill allocated to the reporting unit. Impairment of Long-Lived Assets Long-lived assets consist of property, plant equipment and intangible assets with estimable useful lives subject to depreciation and amortization. Intangible assets consist of purchased intangible assets including developed technology, customer relationships, trademarks and tradenames and are amortized over their useful lives ranging from one asset or asset group exceeds its estimated future cash flows, an impairment charge is recognized in the amount by which the carrying amount of the asset or asset group exceeds the fair value of the asset or asset group. Investment in Non-Marketable Equity Securities The Company has elected to measure its existing investments in non-marketable equity securities at cost, less impairments, with remeasurements to fair value only upon the occurrence of observable price changes in orderly transactions for the identical or similar securities of the same issuer (“measurement alternative”). This election is reassessed each reporting period to determine whether non-marketable equity securities have a readily determinable fair value, in which case they would no longer be eligible for this election. The Company evaluates its non-marketable equity securities for impairment at each reporting period based on a qualitative assessment that considers various potential impairment indicators. Impairment indicators might include, but would not necessarily be limited to, a significant deterioration in the earnings performance, credit rating, asset quality, or business prospects of the investee, a significant adverse change in the regulatory, economic, or technological environment of the investee, a bona fide offer to purchase, an offer by the investee to sell, or a completed auction process for the same or similar securities for an amount less than the carrying amount of the investments in those securities. If an impairment exists, a loss is recognized in the consolidated statements of operations for the amount by which the carrying value exceeds the fair value of the investment. Gains and losses resulting from the remeasurement of non-marketable equity securities, including impairment, are recorded through other income (expense), net in the consolidated statement of operations. The Company separately presents investments in non-marketable equity securities within long-term assets on the consolidated balance sheets. Advertising and Promotional Expense Advertising and promotional expenses are included in sales and marketing expenses within the consolidated statements of operations and are expensed when incurred, not including marketing promotions related to the Company’s end-user incentive programs. Advertising expenses were $55.2 million and $43.6 million during the three months ended September 30, 2021 and 2020, respectively, and $156.6 million and $96.2 million during the nine months ended September 30, 2021 and 2020, 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. 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 in the year-to-date period ended September 30, 2020. The changes to the redemption values of the redeemable convertible preferred stock were previously accounted for 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, see Note 3. Public and Private Common Stock Warrant Liabilities As part of FEAC’s initial public offering, FEAC issued to third party investors 69.0 million units, consisting of one share of Class A common stock of FEAC and one-fourth of one warrant, at a price of $10.00 per unit. Each whole warrant entitles the holder to purchase one share of Class A common stock at an exercise price of $11.50 per share (the “Public Warrants”). Simultaneously with the closing of FEAC’s initial public offering, FEAC completed the private sale of 10,033,333 warrants to FEAC’s sponsor at a purchase price of $1.50 per warrant (the “Private Warrants”). In connection with the Business Combination, FEAC’s sponsor agreed to forfeit 5,016,666 Private Warrants. Each Private Warrant allows the sponsor to purchase one share of Class A common stock at $11.50 per share. Subsequent to the Business Combination, zero Public Warrants and 4,535,728 Private Warrants remained outstanding as of September 30, 2021. The Private Warrants and the shares of common stock issuable upon the exercise of the Private Warrants are not transferable, assignable or salable until after the completion of a Business Combination, subject to certain limited exceptions. Additionally, the Private Warrants are exercisable for cash or on a cashless basis, and are non-redeemable so long as they are held by the initial purchasers or their permitted transferees. If the Private Warrants are held by someone other than the initial purchasers or their permitted transferees, the Private Warrants will be redeemable by the Company and exercisable by such holders on the same basis as the Public Warrants. The Company evaluated the Public and Private Common Stock Warrants under ASC 815-40, Derivatives and Hedging—Contracts in Entity’s Own Equity , (“ASC 815-40”), and concluded that they do not meet the criteria to be classified in stockholders’ equity. Specifically, the exercise of the Public and Private Common Stock Warrants may be settled in cash upon the occurrence of a tender offer or exchange that involves 50% or more of the Company’s Class A stockholders. As there are two classes of common stock, not all of the stockholders need to participate in such tender offer or exchange to trigger the potential cash settlement and the Company does not control the occurrence of such an event, the Company concluded that the Public Warrants and Private Warrants do not meet the conditions to be classified in equity. Since the Public and Private Common Stock Warrants meet the definition of a derivative under ASC 815, the Company recorded these warrants as liabilities on the balance sheet at fair value, with subsequent changes in their respective fair values recognized in the consolidated statement of operations at each reporting date. Because the Public Warrants were publicly traded and thus had an observable market price in an active market, they were valued based on their trading price as of each reporting date. The Private Warrants were valued using the Black-Scholes-Merton Option (“BSM”) pricing model that is based on the individual characteristics of the warrants on the valuation date, which include the Company’s stock price and assumptions for expected volatility, expected life and risk-free interest rate, as well as the present value of the minimum cash payment component of the instrument for the warrants, when applicable. Changes in the assumptions used could have a material impact on the resulting fair value of each warrant. The primary inputs affecting the value of the warrant liability are the Company’s stock price and volatility in the Company's stock price, as well as assumptions about the probability and timing of certain events, such as a change in control or future equity offerings. Increases in the fair value of the underlying stock or increases in the volatility of the stock price generally result in a corresponding increase in the fair value of the warrant liability; conversely, decreases in the fair value of the underlying stock or decreases in the volatility of the stock price generally result in a corresponding decrease in the fair value of the warrant liability. 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 consolidated statements of operations. 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 identified as the derived service period over which the market conditions are expected to be achieved, and is not reversed if the market condition is not satisfied. See Note 9 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 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 expirati

Business Combination

Business Combination	9 Months Ended
	Sep. 30, 2021
Business Combinations [Abstract]
Business Combination	Business Combinations Business Combination with Flying Eagle Acquisition Corp. 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. Shares of 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 FEAC 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 were subject to forfeiture if certain earnout conditions described more fully in the Merger Agreement were not satisfied. The earnout conditions have been fully satisfied and, in March 2021, the Earnout Shares (as defined below) were released from escrow in accordance with the terms of the Merger Agreement. When the earnout conditions were fully satisfied, 5,000,000 of such shares were 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 were released to the Old Skillz stockholders (the “Skillz Earnout Shares”, and collectively with the Sponsor Earnout Shares, the “Earnout Shares”), who received shares of the Company’s common stock as a result of the FEAC 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 received 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. In connection with the FEAC 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 FEAC 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 FEAC 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. Upon the closing of the FEAC 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. Acquisition of Aarki, Inc. On July 16, 2021, the Company completed the acquisition of Aarki, Inc. (“Aarki”) and acquired 100% of the outstanding equity and voting interest of Aarki under the terms of the Agreement and Plan of Merger. The Company transferred $162.3 million in consideration comprised of $95.3 million in cash and the remaining $67.1 million comprised of 4.4 million shares of Skillz Class A common stock to the existing Aarki stockholders. The addition of Aarki’s technology-driven marketing platform will result in significant efficiencies in user-acquisition costs, which can be reinvested to acquire more users to accelerate growth and provide a broader product offering, including media buying capabilities to better serve game developers. The financial results of Aarki have been included in the Company’s consolidated financial statements since the date of the acquisition. The Company has included the financial results of Aarki in the consolidated financial statements from the date of acquisition. During the three and nine months ended September 30, 2021, Aarki contributed revenue of $5.4 million and a net loss of $2.8 million. The following table summarizes the fair value of the purchase price to acquire Aarki: Description Amount Cash $ 95,296 Common stock issued (1) 67,051 Total purchase price $ 162,347 _______________ (1) The fair value of the Skillz Class A Common Stock issued in the merger is based on 4,401,663 shares issued on the July 16, 2021 acquisition date at the closing price of the Company’s common stock on such date of $15.23 per share. The following is an allocation of the purchase price as of July 16, 2021, the acquisition closing date, based on an estimate of the fair value of the assets acquired and liabilities assumed by the Company in the acquisition: Description Amount Cash and cash equivalents $ 11,309 Accounts receivable, net 13,700 Prepaid expenses and other current assets 356 Property, plant and equipment, net 5,075 Intangible assets, net 86,800 Other long-term assets 91 Accounts payable (445) Accrued professional fees (3,145) Other current liabilities (16,471) Deferred tax liabilities (20,460) Other long-term liabilities (1,693) Identifiable net assets acquired 75,117 Goodwill 87,230 Total purchase price $ 162,347 The following is a summary of identifiable intangible assets acquired and their expected lives: Type Weighted-average useful life (in years) Fair Value Developed technology 8 $ 60,400 Customer relationships 3 26,200 Trademark and trade name 0.3 200 Total identifiable intangible assets acquired $ 86,800 Assumptions in the Allocation of Purchase Price The Company prepared the purchase price allocation for Aarki and considered or relied upon reports of a third party valuation expert to calculate the fair value of identifiable intangible assets. Estimates of fair value require management to make significant estimates and assumptions. The goodwill recognized is attributable primarily to the acquired workforce, expected cost-saving synergies and other benefits that the Company believes will result from use of the Aarki technology-driven marketing platform with the operations of Skillz. The goodwill recorded in connection with the Aarki acquisition is not expected to be deductible for tax purposes. Certain liabilities included in the purchase price allocation are based on management’s best estimates of the amounts to be paid or settled and based on information available at the time the purchase price allocations were prepared. Updates to the valuations of certain assets acquired and liabilities assumed and including our evaluation of certain tax positions may result in changes to the recorded amounts of assets and liabilities, with corresponding adjustments to goodwill amounts in subsequent periods. The Company expects to complete the purchase price allocations within 12 months of the acquisition date. The fair value of the identified intangible assets acquired from the Aarki acquisition was estimated using income approaches. Under the income approach, an intangible asset’s fair value is equal to the present value of future economic benefits to be derived from ownership of the asset. Indications of value are developed by discounting future net cash flows to their present value at market-based rates of return. More specifically, the fair value of the developed technology was determined using the multi-period excess earnings method (“MPEEM”). MPEEM is an income approach to the fair value measurement attributable to a specific intangible asset being valued from the asset grouping’s overall cash-flow stream. MPEEM isolates the expected future discounted cash-flow stream to its net present value. Significant factors considered in the calculation of the developed technology intangible asset were the projected revenue, gross margins, operating expenses, technology migration curve and research and development costs attributed to maintenance of the acquired technology, along with the discount rate used to derive the estimated present value of future cash flows. The fair value of customer relationships was estimated using the "with and without" income approach, which measures the difference between cash flows generated assuming the existence of the current customer relationships and the cash flows assuming those relationships do not exist and are replaced over time. Estimated costs on projected revenues, excluding acquired contract backlog, were made using historical data pertaining to sales to new and existing customers. The Company valued the finite-lived trademark and trade name using the relief-from-royalty method income approach. The Company applied judgment which involved the use of significant assumptions with respect to its income forecast such as the level and timing of future cash flows. We believe the level and timing of expected future cash flows appropriately reflects market participant assumptions. Transaction Costs The Company incurred transaction costs of approximately $6.0 million and $7.0 million for the three and nine months ended September 30, 2021, respectively, in connection with the business combination for legal, accounting and other professional services fees. These costs are included in the general and administrative expenses on the consolidated statement of operations. Direct and incremental transaction costs related to equity offerings that would not otherwise have been incurred are treated as a reduction of the cash proceeds and are deducted from the Company’s additional paid-in capital. Accordingly, $0.1 million was incurred related to equity issuance costs for the three and nine months ended September 30, 2021 in connection with the issuance of Skillz Class A shares to the Aarki stockholders. Pro-Forma Financial Information The financial information in the table below summarizes the combined results of operations of the Company and Aarki, on a pro forma basis, as though the companies had been combined as of the beginning of the periods presented. The pro forma financial information is presented for informational purposes only and is not indicative of the results of operations that would have been achieved if the acquisition had taken place on January 1, 2020 or of results that may occur in the future. The table below presents the pro forma revenue and net loss of the Company for the three and nine ended September 30, 2021 and 2020. These pro forma results were based on estimates and assumptions, which the Company believes are reasonable. The pro forma results include adjustments primarily related to purchase accounting adjustments, acquisition costs and other non-recurring charges incurred which are included in the earliest period presented. Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 Revenue $ 103,416 $ 67,003 $ 290,420 $ 183,440 Net loss $ 38,684 $ (44,898) $ (97,557) $ (77,291)
Business Combination	Business Combinations Business Combination with Flying Eagle Acquisition Corp. 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. Shares of 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 FEAC 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 were subject to forfeiture if certain earnout conditions described more fully in the Merger Agreement were not satisfied. The earnout conditions have been fully satisfied and, in March 2021, the Earnout Shares (as defined below) were released from escrow in accordance with the terms of the Merger Agreement. When the earnout conditions were fully satisfied, 5,000,000 of such shares were 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 were released to the Old Skillz stockholders (the “Skillz Earnout Shares”, and collectively with the Sponsor Earnout Shares, the “Earnout Shares”), who received shares of the Company’s common stock as a result of the FEAC 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 received 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. In connection with the FEAC 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 FEAC 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 FEAC 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. Upon the closing of the FEAC 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. Acquisition of Aarki, Inc. On July 16, 2021, the Company completed the acquisition of Aarki, Inc. (“Aarki”) and acquired 100% of the outstanding equity and voting interest of Aarki under the terms of the Agreement and Plan of Merger. The Company transferred $162.3 million in consideration comprised of $95.3 million in cash and the remaining $67.1 million comprised of 4.4 million shares of Skillz Class A common stock to the existing Aarki stockholders. The addition of Aarki’s technology-driven marketing platform will result in significant efficiencies in user-acquisition costs, which can be reinvested to acquire more users to accelerate growth and provide a broader product offering, including media buying capabilities to better serve game developers. The financial results of Aarki have been included in the Company’s consolidated financial statements since the date of the acquisition. The Company has included the financial results of Aarki in the consolidated financial statements from the date of acquisition. During the three and nine months ended September 30, 2021, Aarki contributed revenue of $5.4 million and a net loss of $2.8 million. The following table summarizes the fair value of the purchase price to acquire Aarki: Description Amount Cash $ 95,296 Common stock issued (1) 67,051 Total purchase price $ 162,347 _______________ (1) The fair value of the Skillz Class A Common Stock issued in the merger is based on 4,401,663 shares issued on the July 16, 2021 acquisition date at the closing price of the Company’s common stock on such date of $15.23 per share. The following is an allocation of the purchase price as of July 16, 2021, the acquisition closing date, based on an estimate of the fair value of the assets acquired and liabilities assumed by the Company in the acquisition: Description Amount Cash and cash equivalents $ 11,309 Accounts receivable, net 13,700 Prepaid expenses and other current assets 356 Property, plant and equipment, net 5,075 Intangible assets, net 86,800 Other long-term assets 91 Accounts payable (445) Accrued professional fees (3,145) Other current liabilities (16,471) Deferred tax liabilities (20,460) Other long-term liabilities (1,693) Identifiable net assets acquired 75,117 Goodwill 87,230 Total purchase price $ 162,347 The following is a summary of identifiable intangible assets acquired and their expected lives: Type Weighted-average useful life (in years) Fair Value Developed technology 8 $ 60,400 Customer relationships 3 26,200 Trademark and trade name 0.3 200 Total identifiable intangible assets acquired $ 86,800 Assumptions in the Allocation of Purchase Price The Company prepared the purchase price allocation for Aarki and considered or relied upon reports of a third party valuation expert to calculate the fair value of identifiable intangible assets. Estimates of fair value require management to make significant estimates and assumptions. The goodwill recognized is attributable primarily to the acquired workforce, expected cost-saving synergies and other benefits that the Company believes will result from use of the Aarki technology-driven marketing platform with the operations of Skillz. The goodwill recorded in connection with the Aarki acquisition is not expected to be deductible for tax purposes. Certain liabilities included in the purchase price allocation are based on management’s best estimates of the amounts to be paid or settled and based on information available at the time the purchase price allocations were prepared. Updates to the valuations of certain assets acquired and liabilities assumed and including our evaluation of certain tax positions may result in changes to the recorded amounts of assets and liabilities, with corresponding adjustments to goodwill amounts in subsequent periods. The Company expects to complete the purchase price allocations within 12 months of the acquisition date. The fair value of the identified intangible assets acquired from the Aarki acquisition was estimated using income approaches. Under the income approach, an intangible asset’s fair value is equal to the present value of future economic benefits to be derived from ownership of the asset. Indications of value are developed by discounting future net cash flows to their present value at market-based rates of return. More specifically, the fair value of the developed technology was determined using the multi-period excess earnings method (“MPEEM”). MPEEM is an income approach to the fair value measurement attributable to a specific intangible asset being valued from the asset grouping’s overall cash-flow stream. MPEEM isolates the expected future discounted cash-flow stream to its net present value. Significant factors considered in the calculation of the developed technology intangible asset were the projected revenue, gross margins, operating expenses, technology migration curve and research and development costs attributed to maintenance of the acquired technology, along with the discount rate used to derive the estimated present value of future cash flows. The fair value of customer relationships was estimated using the "with and without" income approach, which measures the difference between cash flows generated assuming the existence of the current customer relationships and the cash flows assuming those relationships do not exist and are replaced over time. Estimated costs on projected revenues, excluding acquired contract backlog, were made using historical data pertaining to sales to new and existing customers. The Company valued the finite-lived trademark and trade name using the relief-from-royalty method income approach. The Company applied judgment which involved the use of significant assumptions with respect to its income forecast such as the level and timing of future cash flows. We believe the level and timing of expected future cash flows appropriately reflects market participant assumptions. Transaction Costs The Company incurred transaction costs of approximately $6.0 million and $7.0 million for the three and nine months ended September 30, 2021, respectively, in connection with the business combination for legal, accounting and other professional services fees. These costs are included in the general and administrative expenses on the consolidated statement of operations. Direct and incremental transaction costs related to equity offerings that would not otherwise have been incurred are treated as a reduction of the cash proceeds and are deducted from the Company’s additional paid-in capital. Accordingly, $0.1 million was incurred related to equity issuance costs for the three and nine months ended September 30, 2021 in connection with the issuance of Skillz Class A shares to the Aarki stockholders. Pro-Forma Financial Information The financial information in the table below summarizes the combined results of operations of the Company and Aarki, on a pro forma basis, as though the companies had been combined as of the beginning of the periods presented. The pro forma financial information is presented for informational purposes only and is not indicative of the results of operations that would have been achieved if the acquisition had taken place on January 1, 2020 or of results that may occur in the future. The table below presents the pro forma revenue and net loss of the Company for the three and nine ended September 30, 2021 and 2020. These pro forma results were based on estimates and assumptions, which the Company believes are reasonable. The pro forma results include adjustments primarily related to purchase accounting adjustments, acquisition costs and other non-recurring charges incurred which are included in the earliest period presented. Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 Revenue $ 103,416 $ 67,003 $ 290,420 $ 183,440 Net loss $ 38,684 $ (44,898) $ (97,557) $ (77,291)

Balance Sheet Components

Balance Sheet Components	9 Months Ended
	Sep. 30, 2021
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
Balance Sheet Components	Balance Sheet Components Prepaid Expenses and Other Current Assets Prepaid expenses and other current assets consisted of the following as of September 30, 2021 and December 31, 2020: September 30, December 31, 2021 2020 Credit card processing reserve $ 8,638 $ 5,854 Prepaid expenses 4,979 3,772 Other current assets 3,692 865 Prepaid expenses and other current assets $ 17,309 $ 10,491 Property and Equipment, Net Property and equipment consisted of the following as of September 30, 2021 and December 31, 2020: September 30, December 31, 2021 2020 Capitalized internal-use software $ 6,569 $ 6,167 Computer equipment and servers 5,416 631 Furniture and fixtures 360 184 Leasehold improvements 114 114 Construction in progress 2,877 1,037 Total property and equipment 15,336 8,133 Accumulated depreciation and amortization (4,484) (2,841) Property and equipment, net $ 10,852 $ 5,292 Depreciation and amortization expense related to property and equipment was $4.5 million and $0.5 million during the three months ended September 30, 2021 and 2020, respectively, and $4.6 million and $1.1 million during the nine months ended September 30, 2021 and 2020, respectively. Intangible Assets, Net The components of intangible assets consisted of the following as of September 30, 2021: Weighted Average Remaining Useful Life (in years) Gross Carrying Amount Accumulated Amortization Net Carrying Amount Developed technology 7.79 $ 60,400 $ (1,573) $ 58,827 Customer relationships 2.79 26,200 (1,819) 24,381 Trademark and trade name 0.04 200 (167) 33 Intangible assets, net $ 86,800 $ (3,559) $ 83,241 The following table sets forth the activity related to finite-lived intangible assets: Nine Months Ended September 30, 2021 Beginning balance at December 31, 2020 $ — Additions 86,800 Amortization (3,559) Ending balance at September 30, 2021 $ 83,241 The following table summarizes amortization expense associated with finite-lived intangible assets recognized in the consolidated statements of operations for the three and nine months ended September 30, 2021 as follows: Three and Nine Months Ended September 30, 2021 Cost of revenue $ 1,573 Sales and marketing 1,819 General and administrative 167 Total amortization expense $ 3,559 The following table outlines the estimated future amortization expense related to finite intangible assets as of September 30, 2021: Amount 2021 $ 4,104 2022 16,283 2023 16,283 2024 12,281 2025 7,550 Thereafter 26,740 Total $ 83,241 Goodwill The following table presents details of the Company’s goodwill for the nine months ended September 30, 2021: Goodwill Balance at December 31, 2020 $ — Goodwill acquired 87,230 Balance as of September 30, 2021 $ 87,230 Other Current Liabilities Other current liabilities consisted of the following as of September 30, 2021 and December 31, 2020: September 30, December 31, 2021 2020 Accrued sales and marketing expenses $ 22,438 $ 7,204 Accrued compensation 14,458 3,825 Accrued publisher fees 12,736 — End-user liability, net 4,358 2,789 Accrued developer revenue share 1,505 907 Short-term lease obligations 3,956 — Other accrued expenses 10,706 4,893 Other current liabilities $ 70,157 $ 19,618

Fair Value Measurements

Fair Value Measurements	9 Months Ended
	Sep. 30, 2021
Fair Value Disclosures [Abstract]
Fair Value Measurements	Fair Value Measurements As of September 30, 2021 and December 31, 2020, the recorded values of cash and cash equivalents, restricted cash, accounts receivable 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 September 30, 2021 and December 31, 2020 were $540.3 million and $262.7 million, respectively, and were comprised of cash on hand and money market funds classified within Level 1 of the fair value hierarchy. Public and Private Common Stock Warrants Fair Value Measurements as of September 30, 2021 Liabilities included in: Level 1 Level 2 Level 3 Total Private Common Stock Warrants — — 12,318 12,318 Total fair value $ — $ — $ 12,318 $ 12,318 Fair Value Measurements as of December 31, 2020 Liabilities included in: Level 1 Level 2 Level 3 Total Public Common Stock Warrants $ 124,545 $ — $ — $ 124,545 Private Common Stock Warrants — — 53,687 53,687 Total fair value $ 124,545 $ — $ 53,687 $ 178,232 The Public Warrants were classified within Level 1 as they are publicly traded and had an observable market price in an active market. The Private Warrants were classified within Level 3 as they were valued based on a BSM pricing model, which involved the use of certain unobservable inputs, such as expected volatility estimated based on the average historical stock price volatility of comparable companies. As of December 31, 2020, the fair value of the Private Warrants liability was $53.7 million. During the three and nine months ended September 30, 2021, the fair value of the Private Warrants liability decreased by $48.4 million and $41.4 million, respectively. As of September 30, 2021, the fair value of the Private Warrants liability was $12.3 million.

Investments in Non-Marketable E

Investments in Non-Marketable Equity Securities	9 Months Ended
	Sep. 30, 2021
Investments, Debt and Equity Securities [Abstract]
Investments in Non-Marketable Equity Securities	Investments in Non-Marketable Equity SecuritiesThe Company’s non-marketable equity securities are investments in privately held companies without readily determinable fair values. The carrying value of the Company’s investments without readily determinable fair values was $55.6 million as of September 30, 2021 and is classified within “Investments in non-marketable equity securities” in our consolidated balance sheets. The Company did not have any investments without readily determinable fair value as of December 31, 2020. The Company did not record any adjustments to the carrying value of its non-marketable equity securities accounted for under the measurement alternative, and did not recognize any gains or losses related to the sale of non-marketable equity securities in the three and nine months ended September 30, 2021.

Commitment and Contingencies

Commitment and Contingencies	9 Months Ended
	Sep. 30, 2021
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitments and Contingencies Legal Matters The Company is a party to certain claims, suits, and proceedings which arise in the ordinary course and conduct of our business and has certain unresolved claims pending, the outcomes of which are not determinable at this time. 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 September 30, 2021. 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, except as set forth herein, any such amount is either immaterial or it is not possible to provide an estimated range of any such possible loss. On May 15, 2019, a former employee of the Company filed a suit against the Company in California for claims including breach of contract, retaliation and wrongful termination. The case was tried in September 2021 and the jury ruled in favor of the former employee and rendered a verdict against the Company for $11.6 million in compensatory damages. Accordingly, the Company has recorded a loss contingency accrual and corresponding general and administrative expense for this amount. The Company believes that the jury verdict is the result of significant trial error and seeks to overturn the verdict in post-trial motions before the court and, if necessary, appeal the matter.

Common Stock Warrants

Common Stock Warrants	9 Months Ended
	Sep. 30, 2021
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Common Stock Warrants	Common Stock Warrants As of September 30, 2021, the Company had zero Public Warrants and 4,535,728 Private Warrants outstanding. During the nine months ended September 30, 2021, 11,361,683 and 480,938 of Public Warrants and Private Warrants, respectively, were exercised for total proceeds of $130.6 million. As part of FEAC’s initial public offering, 17,250,000 Public Warrants were sold. The Public Warrants entitle the holder thereof to purchase one share of Class A common stock at a price of $11.50 per share, subject to adjustments. The Public Warrants were only exercisable for a whole number of shares of Class A common stock. No fractional shares were issued upon exercise of the warrants. The Public Warrants had an expiration date of 5:00 p.m. New York City time on December 16, 2025, or earlier upon redemption or liquidation. The Public Warrants were listed on the NYSE under the symbol “SKLZ.WS.” The Company was permitted to call the Public Warrants for redemption starting anytime, in whole and not in part, at a price of $0.01 per warrant, so long as the Company provides not less than 30 days’ prior written notice of redemption to each warrant holder, and if, and only if, the reported last sale price of Class A common stock equaled or exceeded $18.00 per share for any $20.00 trading days within a 30-trading day period ending on the third trading day prior to the date the Company sent the notice of redemption to the warrant holders, provided there was an effective registration statement covering the shares of Class A common stock issuable upon exercise of the warrants at such time. On July 16, 2021, the Company announced the redemption of all Public Warrants that remained outstanding on August 16, 2021. On August 16, 2021, 5,888,294 Public Warrants remained unexercised at 5pm New York City time, and such warrants expired and were no longer exercisable, and the holders of those Public Warrants are entitled to receive only the redemption price of $0.01 per warrant.

Stockholders' Equity

Stockholders' Equity	9 Months Ended
	Sep. 30, 2021
Equity [Abstract]
Stockholders' Equity	Stockholders’ Equity Common Stock The Company’s amended and restated certificate of incorporation 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 September 30, 2021, 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”).

Stock Based Compensation

Stock Based Compensation	9 Months Ended
	Sep. 30, 2021
Share-based Payment Arrangement [Abstract]
Stock Based Compensation	Stock-Based Compensation The following table summarizes stock-based compensation expense recognized for the three and nine months ended September 30, 2021 and 2020 as follows: Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 Research and development $ 1,814 $ 523 $ 5,237 $ 1,544 Sales and marketing 1,637 468 6,025 1,542 General and administrative 12,361 2,671 31,269 6,479 Total stock-based compensation expense $ 15,812 $ 3,662 $ 42,531 $ 9,565 Equity Incentive Plans 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 1 year and continue to vest quarterly thereafter. The 2020 Plan also permits the Company to grant stock-based awards with performance or market conditions. In connection with the closing of the Business Combination, the Company entered into certain option agreements that include vesting conditions contingent upon the attainment of volume weighted average price targets related to the Company’s Class A common stock on the NYSE. 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 of Class A and/or Class B common stock, 24,669,278 shares of Class A common stock and 8,172,581 shares of Class B common stock. The total number of shares of Class A common stock and Class B common stock 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 during the nine months ended September 30, 2021 is as follows (in thousands, except for share, per share, and contractual term data): Options Outstanding Restricted Stock Units Number of Number of Weighted- Weighted- Aggregate Number of Plan shares outstanding Weighted-Average Grant Date Fair Value per share Balance at December 31, 2020 35,500,603 38,404,493 $ 5.89 8.27 $ 542,074 341,256 $ 17.68 Options and restricted stock units granted (3,743,376) 64,839 12.58 3,678,537 20.28 Options exercised and restricted stock units released — (4,896,629) 0.65 (20,303) 17.48 Options and restricted stock units canceled 4,039,561 (3,390,960) 1.22 (648,601) 22.46 Balance at September 30, 2021 35,796,788 30,181,743 $ 7.24 7.31 $ 172,203 3,350,889 $ 19.61 Exercisable at December 31, 2020 14,248,234 $ 0.18 6.45 $ 282,364 Exercisable at September 30, 2021 13,459,112 0.16 5.37 129,935 Unvested at December 31, 2020 24,156,259 9.25 9.34 259,710 Unvested at September 30, 2021 16,722,631 12.93 8.87 42,268 The number of unvested stock options as of September 30, 2021 and December 31, 2020 does not include 9.1 million and 13.3 million shares of restricted common stock, respectively, previously issued upon the early exercise of grants by certain executives. The number of RSUs granted does not include 0.2 million performance based RSUs which the Company issued in 2021 and 2020, as the performance-based RSUs are not deemed granted for accounting purposes. The number of RSUs granted excludes 16.1 million of performance stock units granted during September 2021 to the Chief Executive Officer. Refer to the 2021 CEO Performance Award disclosure below for further details. As of September 30, 2021, unrecognized stock-based compensation expense related to unvested stock options, restricted common stock, RSUs, performance-based RSUs and performance stock units was $233.7 million. The weighted-average period over which such compensation expense will be recognized is 3.52 years. On May 4, 2021, the Company entered into a transition and release agreement providing for Mr. Henry’s retirement from his position as Chief Financial Officer (“CFO”) of the Company, effective June 20, 2021. As part of the transition and release agreement, certain stock options of the CFO were modified to vest through August 10, 2021, the separation date, based on Mr. Henry’s continuous service to the Company in an executive advisor role from June 21, 2021 through the separation date. This modification resulted in $6.4 million of incremental stock-based compensation expense recorded in the condensed consolidated statement of operations through the third quarter of 2021. The Company recognized $2.7 million and $6.4 million of this expense for the three and nine months ended September 30, 2021, respectively. The aggregate intrinsic value of options exercised was $47.8 million and $20.4 million during the three months ended September 30, 2021 and 2020, respectively, and $59.6 million and $47.8 million during the nine months ended September 30, 2021 and 2020, respectively. The assumptions used to estimate the fair value of stock options granted and the resulting fair values for the three and nine months ended September 30, 2021 and 2020 were as follows: Three Months Ended September 30, Nine Months Ended September 30, 2021 (1) 2020 2021 (1) 2020 Expected volatility 48.71% 48.65% - 48.9% 48.71% 47.24% - 48.93% Risk-free interest rate 0.02% 0.35% - 0.41% 0.02% 0.35% - 1.44% Expected term (in years) 0.25 6.00 - 6.1 0.25 6.00 - 6.25 Expected dividend yield — — — — Weighted average estimated fair value of stock options granted during the period $15.63 $7.95 $15.63 $2.98 (1) For the three and nine months ended September 30, 2021, the above assumptions were used to estimate the fair value of certain stock options previously granted to the CFO, that were modified as part of the transition and release agreement. 2021 CEO Performance Award In September 2021, the Company granted the Company’s Chief Executive Officer (“CEO”), an award of up to 16.1 million performance stock units (the “CEO Performance Award”) under the Company’s 2020 Plan, pursuant to which the CEO may earn one share of the Company’s Class A Common Stock for each performance stock unit that vests based on the achievement of certain Market Capitalization Milestones (as defined in the award agreement for the CEO Performance Award, the “Award Agreement”). The performance stock units are divided into four tranches, with each tranche corresponding to a Market Capitalization Milestone ranging from two to five times the Company’s market capitalization baseline. Each tranche will vest if and when the Company’s market capitalization equals or exceeds the corresponding Market Capitalization Milestone at any point during the seven-year performance period following the grant date (the “Performance Period”). For purposes of determining achievement of the Market Capitalization Milestones, the Company’s market capitalization is calculated based on the trailing 60-trading day volume weighted average price per share (“VWAP”) of the Company’s Class A common stock and the average number of outstanding shares during such period. At the end of the Performance Period, a tranche may vest pro-rata using straight-line interpolation. The Company’s market capitalization baseline is calculated using the trailing 30-trading day VWAP of the Company’s Class A common stock on the grant date and the average number of outstanding shares during such period. The CEO’s service as Chief Executive Officer (or Chairman and Chief Product Officer) of the Company other than (i) by the Company for Cause (as defined in the Award Agreement) or (ii) by the CEO without Good Reason (as defined in the Award Agreement), any unvested tranche will remain outstanding until the earlier of nine months following such termination of service and the end of the Performance Period and will vest if and when the Market Capitalization Milestones are achieved. Any unvested performance stock units will be forfeited automatically upon any other termination of the CEO’s service as Chief Executive Officer (or Chairman and Chief Product Officer) of the Company. If a Change in Control occurs during the Performance Period, any unvested tranche shall vest as of the effective time of such Change in Control to the extent that the Market Capitalization Milestones are achieved, using the higher of (1) the Company’s 60-trading day VWAP prior to the effective time of the Change in Control and (2) the price per share received by the Company’s stockholders in the Change in Control. The $70.8 million grant date fair value of the CEO Performance Award 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. During the three and nine months ended September 30, 2021, the Company recognized $0.8 million in compensation expense related to this grant. As of September 30, 2021, the unrecognized stock-based compensation cost related to non-vested CEO Performance Award was $70.0 million. The Company expects this cost to be recognized over a remaining weighted-average period of approximately 4.14 years. Employee Stock Purchase Plan In June 2021, the Company commenced its first offering period under the Skillz, Inc. Employee Stock Purchase Plan (the employee Stock Purchase Plan), which assists employees in acquiring a stock ownership interest in the Company and encourages them to remain in the employment of the Company. The Employee Stock Purchase Plan is intended to qualify under Section 423 of the Internal Revenue Code. The employee Stock Purchase Plan permits eligible employees to purchase common stock at a discount through payroll deductions during specified offering periods. No employee may purchase more than $25,000 worth of stock in any calendar year. The price of shares purchased under the Employee Stock Purchase Plan is equal to 85% of the fair market value of the common stock on the first or last day of the offering period, whichever is lower. The total Employee Stock Purchase plan expense for the three and nine months ended September 30, 2021 was $0.1 million and $0.2 million, respectively.

Income Taxes

Income Taxes	9 Months Ended
	Sep. 30, 2021
Income Tax Disclosure [Abstract]
Income Taxes	Income TaxesThe Company’s income tax (benefit) provision was $(18.9) million and $47 thousand for the three months ended September 30, 2021 and 2020, respectively. This represents an effective tax rate for the respective periods of (59.45)% and (0.11)%. The Company’s income tax (benefit) provision was $(18.8) million and $100 thousand for the nine months ended September 30, 2021 and 2020, respectively. This represents an effective tax rate for the respective periods of 18.60% and (0.13)%. The Company has historically been in an overall loss position and is only subject to state and foreign taxes. The Company maintains a full valuation allowance for all of its deferred tax assets. The purchase accounting for the Aarki acquisition gave rise to a deferred tax liability during the three and nine months ended September 30, 2021; this resulted in a partial release of prior valuation allowance and a discrete benefit of $19.0 million was recorded. The effective tax rate differs from the federal statutory rate due to the discrete benefit from the partial release of the valuation allowance, as well as due to foreign taxes and state taxes

Related Party Transactions

Related Party Transactions	9 Months Ended
	Sep. 30, 2021
Related Party Transactions [Abstract]
Related Party Transactions	Related-Party TransactionsThe Company did not have any significant related party transactions in the three and nine months ended September 30, 2021 and 2020 other than equity awards made to certain executives and the secondary sale as part of the follow-on offering.

Net Income (Loss) Per Share

Net Income (Loss) Per Share	9 Months Ended
	Sep. 30, 2021
Earnings Per Share [Abstract]
Net Income (Loss) Per Share	Net Income (Loss) Per Share Net income (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 income (loss) per share was calculated based on the weighted average number of common stock then outstanding. The Company computes net income (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 income (loss) per share are the same for each class of common stock because they are entitled to the same liquidation and dividend rights. The effect of potentially dilutive common shares is reflected in diluted earnings per share by application of the treasury stock method. The following table sets forth the computation of basic and diluted income (loss) per Class A common stock and Class B common stock (in thousands, except for share and per share data): Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 Numerator: Net income (loss) – basic $ 50,781 $ (42,851) $ (82,406) $ (78,530) Denominator: Weighted average common shares outstanding – basic 395,053,445 298,713,456 379,450,553 288,958,713 Net income (loss) per share attributable to common stockholders – basic $ 0.13 $ (0.14) $ (0.22) $ (0.27) Numerator: Net income (loss) – basic $ 50,781 $ (42,851) $ (82,406) $ (78,530) Decrease in fair value of public and private common stock warrant liabilities (113,601) — (81,898) — Net loss – diluted $ (62,820) $ (42,851) $ (164,304) $ (78,530) Denominator: Weighted average common shares outstanding – basic 395,053,445 298,713,456 379,450,553 288,958,713 Incremental common shares from assumed exercise of public and private common stock warrants 976,686 — 6,001,253 — Weighted average common shares outstanding – diluted 396,030,131 298,713,456 385,451,806 288,958,713 Net loss per share attributable to common stockholders – diluted $ (0.16) $ (0.14) $ (0.43) $ (0.27) The following outstanding common stock equivalents were considered antidilutive, and therefore, excluded from the computation of diluted net income (loss) per share attributable to common stockholders for the periods presented (share numbers are not in thousands): Number of Securities Outstanding at September 30, 2021 2020 Common and preferred stock warrants — 3,635,181 Common stock options 39,273,376 48,670,292 Performance stock units 16,146,630 — Restricted stock units 3,651,447 — Total 59,071,453 52,305,473

Summary of Significant Accoun_2

Summary of Significant Accounting Policies (Policies)	9 Months Ended
	Sep. 30, 2021
Accounting Policies [Abstract]
Basis of Presentation	Basis of Presentation The Company’s condensed 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 was 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. Unaudited Interim Financial Statements The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with U.S. GAAP for interim financial information and in accordance with the rules and regulations of the SEC. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. The unaudited condensed consolidated financial statements reflect all normal and recurring adjustments that are, in the opinion of the Company’s management, necessary for the fair presentation of the results of operations for the interim periods. Operating results for the three and nine months ended September 30, 2021 are not necessarily indicative of the results that may be expected for the year ending December 31, 2021. These unaudited interim condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and related notes included in the Company’s Annual Report on Form 10-K/A for the fiscal year ended December 31, 2020, as filed with the SEC on May 13, 2021.
Comprehensive Loss	Comprehensive Loss Through September 30, 2021, 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.
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 condensed 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, valuation of Public and Private Common Stock Warrants, the fair values of goodwill and intangible assets and the useful lives of the Company’s intangible assets. 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 September 30, 2021 and 2020. Games provided by two developer partners accounted for 43% and 37% of the Company’s revenue in the three months ended September 30, 2021 and 56% and 31% of the Company’s revenue in the three months ended September 30, 2020. Games provided by two developer partners accounted for 43% and 39% of the Company’s revenue in the nine months ended September 30, 2021 and 63% and 25% of the Company’s revenue in the nine months ended September 30, 2020. In the three and nine months ended September 30, 2021 and 2020, the Company generated less than 12% and 10% of its revenue from users outside of North America, respectively. 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 virtual currency earned for every Competition played based on the amount of the entry fee (“Ticketz”). Ticketz can be redeemed for prizes, including bonus cash prizes, a promotional incentive that cannot be withdrawn and can only be used by end-users to enter into paid entry fee contests (“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 three months ended September 30, 2021 and 2020, the Company recognized a reduction of revenue of $18.7 million and $13.0 million, respectively, related to these end-user incentives. For the nine months ended September 30, 2021 and 2020, the Company recognized a reduction of revenue of $54.9 million and $36.6 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.
Refunds	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.
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.
Accounts Receivable, Net	Accounts Receivable, NetAccounts receivable, net, is comprised of trade accounts receivable recorded at the invoiced amounts for programmatic media campaigns, net of an allowance for expected losses. The Company evaluates the collectability of its trade accounts receivable based on a number of factors. In circumstances where it becomes aware of a specific customer’s inability to meet its financial obligations to us, a specific reserve for bad debts is estimated and recorded which reduces the recognized receivable to the estimated amount that management believes will ultimately be collected. In addition to specific customer identification of potential bad debts, bad debt charges are recorded based on our historical losses and an overall assessment of past due trade accounts receivable outstanding.
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 condensed 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.
Business Combinations	Business Combinations The results of businesses acquired in a business combination are included in our consolidated financial statements from the date of the acquisition. The Company uses the acquisition method of accounting and allocates the purchase price, including the fair value of any non-cash consideration, to the identifiable assets and liabilities of the relevant acquired business at their acquisition date fair values. Any excess consideration over the fair value of assets acquired and liabilities assumed is recognized as goodwill. While the Company uses its best estimates and assumptions to accurately value assets acquired and liabilities assumed at the acquisition date as well as contingent consideration, where applicable, its estimates are inherently uncertain and subject to refinement. As a result, during the measurement period, which may be up to one year from the acquisition date, the Company records adjustments to the assets acquired and liabilities assumed with the corresponding offset to goodwill. Upon the conclusion of the measurement period or final determination of the values of assets acquired or liabilities assumed, whichever comes first, any subsequent adjustments are recorded to the consolidated statements of operations. Determining the fair value of assets acquired and liabilities assumed requires the Company to perform valuations with significant judgment and estimates, including the selection of valuation methodologies, estimates of future revenue, costs and cash flows, discount rates and selection of comparable companies. The Company engages the assistance of valuation specialists in concluding on fair value measurements in connection with determining fair values of assets acquired and liabilities assumed in a business combination. Transaction costs associated with business combinations are expensed as incurred, and are included in general and administrative expense in the consolidated statements of operations.
Goodwill	Goodwill Goodwill represents the excess of the purchase price over the fair value of net assets acquired in a business combination. Goodwill is tested for impairment at the reporting unit level, which is the same or one level below the operating segment. The Company has one operating segment: Skillz Platform, Inc. The Company identifies its reporting unit by assessing whether there are components of its operating segment which constitute businesses for which discrete financial information is available and reviewed regularly by segment managers. The Company tests goodwill for impairment at least annually during the fourth fiscal quarter, or more frequently if indicators of impairment exist during the fiscal year. Events or circumstances which could trigger an impairment review include a significant adverse change in legal factors or in the business climate, loss of key customers, an adverse action or assessment by a regulator, unanticipated competition, a loss of key personnel, significant changes in the manner of the Company’s use of the acquired assets or the strategy for the Company’s overall business, significant negative industry or economic trends or significant underperformance relative to expected historical or projected future results of operations. When testing goodwill for impairment, the Company first performs a qualitative assessment. If the Company determines it is not more likely than not a reporting unit’s fair value is less than its carrying amount, then no further analysis is necessary. If the Company determines it is more likely than not that a reporting unit’s fair value is less than its carrying amount, then the Company compares the estimated fair value of the reporting unit with its carrying amount, including goodwill. If the estimated fair value of the reporting unit exceeds its carrying amount, goodwill is not considered to be impaired. If, however, the fair value of the reporting unit is less than its carrying amount, then such balance would be recorded as an impairment loss. Any impairment loss is limited to the carrying amount of goodwill allocated to the reporting unit.
Impairment of Long-Lived Assets	Impairment of Long-Lived Assets Long-lived assets consist of property, plant equipment and intangible assets with estimable useful lives subject to depreciation and amortization. Intangible assets consist of purchased intangible assets including developed technology, customer relationships, trademarks and tradenames and are amortized over their useful lives ranging from one
Investment in Non-Marketable Equity Securities	Investment in Non-Marketable Equity Securities The Company has elected to measure its existing investments in non-marketable equity securities at cost, less impairments, with remeasurements to fair value only upon the occurrence of observable price changes in orderly transactions for the identical or similar securities of the same issuer (“measurement alternative”). This election is reassessed each reporting period to determine whether non-marketable equity securities have a readily determinable fair value, in which case they would no longer be eligible for this election. The Company evaluates its non-marketable equity securities for impairment at each reporting period based on a qualitative assessment that considers various potential impairment indicators. Impairment indicators might include, but would not necessarily be limited to, a significant deterioration in the earnings performance, credit rating, asset quality, or business prospects of the investee, a significant adverse change in the regulatory, economic, or technological environment of the investee, a bona fide offer to purchase, an offer by the investee to sell, or a completed auction process for the same or similar securities for an amount less than the carrying amount of the investments in those securities. If an impairment exists, a loss is recognized in the consolidated statements of operations for the amount by which the carrying value exceeds the fair value of the investment. Gains and losses resulting from the remeasurement of non-marketable equity securities, including impairment, are recorded through other income (expense), net in the consolidated statement of operations. The Company separately presents investments in non-marketable equity securities within long-term assets on the consolidated balance sheets.
Advertising and Promotional Expense	Advertising and Promotional ExpenseAdvertising and promotional expenses are included in sales and marketing expenses within the consolidated statements of operations and are expensed when incurred, not including marketing promotions related to the Company’s end-user incentive programs.
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. 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 in the year-to-date period ended September 30, 2020. The changes to the redemption values of the redeemable convertible preferred stock were previously accounted for 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, see Note 3.
Public and Private Common Stock Warrant Liabilities; Derivative Financial Instruments	Public and Private Common Stock Warrant Liabilities As part of FEAC’s initial public offering, FEAC issued to third party investors 69.0 million units, consisting of one share of Class A common stock of FEAC and one-fourth of one warrant, at a price of $10.00 per unit. Each whole warrant entitles the holder to purchase one share of Class A common stock at an exercise price of $11.50 per share (the “Public Warrants”). Simultaneously with the closing of FEAC’s initial public offering, FEAC completed the private sale of 10,033,333 warrants to FEAC’s sponsor at a purchase price of $1.50 per warrant (the “Private Warrants”). In connection with the Business Combination, FEAC’s sponsor agreed to forfeit 5,016,666 Private Warrants. Each Private Warrant allows the sponsor to purchase one share of Class A common stock at $11.50 per share. Subsequent to the Business Combination, zero Public Warrants and 4,535,728 Private Warrants remained outstanding as of September 30, 2021. The Private Warrants and the shares of common stock issuable upon the exercise of the Private Warrants are not transferable, assignable or salable until after the completion of a Business Combination, subject to certain limited exceptions. Additionally, the Private Warrants are exercisable for cash or on a cashless basis, and are non-redeemable so long as they are held by the initial purchasers or their permitted transferees. If the Private Warrants are held by someone other than the initial purchasers or their permitted transferees, the Private Warrants will be redeemable by the Company and exercisable by such holders on the same basis as the Public Warrants. The Company evaluated the Public and Private Common Stock Warrants under ASC 815-40, Derivatives and Hedging—Contracts in Entity’s Own Equity , (“ASC 815-40”), and concluded that they do not meet the criteria to be classified in stockholders’ equity. Specifically, the exercise of the Public and Private Common Stock Warrants may be settled in cash upon the occurrence of a tender offer or exchange that involves 50% or more of the Company’s Class A stockholders. As there are two classes of common stock, not all of the stockholders need to participate in such tender offer or exchange to trigger the potential cash settlement and the Company does not control the occurrence of such an event, the Company concluded that the Public Warrants and Private Warrants do not meet the conditions to be classified in equity. Since the Public and Private Common Stock Warrants meet the definition of a derivative under ASC 815, the Company recorded these warrants as liabilities on the balance sheet at fair value, with subsequent changes in their respective fair values recognized in the consolidated statement of operations at each reporting date. Because the Public Warrants were publicly traded and thus had an observable market price in an active market, they were valued based on their trading price as of each reporting date. The Private Warrants were valued using the Black-Scholes-Merton Option (“BSM”) pricing model that is based on the individual characteristics of the warrants on the valuation date, which include the Company’s stock price and assumptions for expected volatility, expected life and risk-free interest rate, as well as the present value of the minimum cash payment component of the instrument for the warrants, when applicable. Changes in the assumptions used could have a material impact on the resulting fair value of each warrant. The primary inputs affecting the value of the warrant liability are the Company’s stock price and volatility in the Company's stock price, as well as assumptions about the probability and timing of certain events, such as a change in control or future equity offerings. Increases in the fair value of the underlying stock or increases in the volatility of the stock price generally result in a corresponding increase in the fair value of the warrant liability; conversely, decreases in the fair value of the underlying stock or decreases in the volatility of the stock price generally result in a corresponding decrease in the fair value of the warrant liability. Derivative Financial Instruments
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 identified as the derived service period over which the market conditions are expected to be achieved, and is not reversed if the market condition is not satisfied. See Note 9 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 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, expected capital raise percentage and market capitalization milestones. 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
Segments	Segments As a result of the acquisition of Aarki, the Company is currently evaluating the impact to its operating and reportable segment based on how the business will be managed going forward. 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. During the three and nine months ended September 30, 2021, the Company continued to operate as a single operating and reportable 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.
Recently Issued Accounting Pronouncements Not Yet Adopted	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. Effective as of December 31, 2021, the Company is expected to become a large accelerated filer and is expected to cease to be an EGC. As a result, the Company will no longer be able to use the extended transition period for complying with new or revised accounting standards. In January 2020, the FASB issued Accounting Standards Update (“ASU”) 2020-01, Investments - Equity Securities (Topic 321), Investments - Equity Method and Joint Ventures (Topic 323), and Derivatives and Hedging (Topic 815): Clarifying the Interactions between Topic 321, Topic 323 and Topic 815 . ASU 2020-01 clarifies that an entity should consider observable transactions that require it to either apply or discontinue the equity method of accounting for the purposes of applying the fair value measurement alternative. For public business entities, the amendments are effective for fiscal years beginning after December 15, 2020, and interim periods within those fiscal years. For all other entities, the amendments are effective for fiscal years beginning after December 15, 2021, and interim periods within those fiscal years. The amendments should be applied prospectively. Under a prospective transition, an entity should apply the amendments at the beginning of the interim period that includes the adoption date. The Company does not expect the adoption of this standard to result in a material impact to the consolidated financial statements and related disclosures. In August 2020, the FASB issued 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 fiscal year. The Company does not expect the adoption of this standard to result in a material impact to the 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 will be required to adopt this standard in its annual report for the period ending December 31, 2021 and does not expect the adoption of this standard to result in a material impact to the consolidated financial statements and related disclosures. 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 final 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.

Summary of Significant Accoun_3

Summary of Significant Accounting Policies (Tables)	9 Months Ended
	Sep. 30, 2021
Accounting Policies [Abstract]
Schedule of Cash, Cash Equivalents and Restricted Cash	A reconciliation of the Company’s cash and cash equivalents in the Condensed Consolidated Balance Sheet to cash, cash equivalents and restricted cash in the Condensed Consolidated Statement of Cash Flows is as follows: September 30, December 31, 2021 2020 Cash and cash equivalents $ 540,308 $ 262,728 Restricted cash included in other long-term assets 2,920 2,920 Cash, cash equivalents and restricted cash $ 543,228 $ 265,648
Schedule of Cash, Cash Equivalents and Restricted Cash	A reconciliation of the Company’s cash and cash equivalents in the Condensed Consolidated Balance Sheet to cash, cash equivalents and restricted cash in the Condensed Consolidated Statement of Cash Flows is as follows: September 30, December 31, 2021 2020 Cash and cash equivalents $ 540,308 $ 262,728 Restricted cash included in other long-term assets 2,920 2,920 Cash, cash equivalents and restricted cash $ 543,228 $ 265,648

Business Combination (Tables)

Business Combination (Tables)	9 Months Ended
	Sep. 30, 2021
Business Combinations [Abstract]
Schedule of Business Combination	The following table summarizes the fair value of the purchase price to acquire Aarki: Description Amount Cash $ 95,296 Common stock issued (1) 67,051 Total purchase price $ 162,347 _______________ (1) The fair value of the Skillz Class A Common Stock issued in the merger is based on 4,401,663 shares issued on the July 16, 2021 acquisition date at the closing price of the Company’s common stock on such date of $15.23 per share.
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed	The following is an allocation of the purchase price as of July 16, 2021, the acquisition closing date, based on an estimate of the fair value of the assets acquired and liabilities assumed by the Company in the acquisition: Description Amount Cash and cash equivalents $ 11,309 Accounts receivable, net 13,700 Prepaid expenses and other current assets 356 Property, plant and equipment, net 5,075 Intangible assets, net 86,800 Other long-term assets 91 Accounts payable (445) Accrued professional fees (3,145) Other current liabilities (16,471) Deferred tax liabilities (20,460) Other long-term liabilities (1,693) Identifiable net assets acquired 75,117 Goodwill 87,230 Total purchase price $ 162,347
Finite-Lived and Indefinite-Lived Intangible Assets Acquired as Part of Business Combination	The following is a summary of identifiable intangible assets acquired and their expected lives: Type Weighted-average useful life (in years) Fair Value Developed technology 8 $ 60,400 Customer relationships 3 26,200 Trademark and trade name 0.3 200 Total identifiable intangible assets acquired $ 86,800
Schedule of Pro-Forma Financial Information	The table below presents the pro forma revenue and net loss of the Company for the three and nine ended September 30, 2021 and 2020. These pro forma results were based on estimates and assumptions, which the Company believes are reasonable. The pro forma results include adjustments primarily related to purchase accounting adjustments, acquisition costs and other non-recurring charges incurred which are included in the earliest period presented. Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 Revenue $ 103,416 $ 67,003 $ 290,420 $ 183,440 Net loss $ 38,684 $ (44,898) $ (97,557) $ (77,291)

Balance Sheet Components (Table

Balance Sheet Components (Tables)	9 Months Ended
	Sep. 30, 2021
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
Schedule of Prepaid Expenses and Other Current Assets	Prepaid expenses and other current assets consisted of the following as of September 30, 2021 and December 31, 2020: September 30, December 31, 2021 2020 Credit card processing reserve $ 8,638 $ 5,854 Prepaid expenses 4,979 3,772 Other current assets 3,692 865 Prepaid expenses and other current assets $ 17,309 $ 10,491
Schedule of Property and Equipment	Property and equipment consisted of the following as of September 30, 2021 and December 31, 2020: September 30, December 31, 2021 2020 Capitalized internal-use software $ 6,569 $ 6,167 Computer equipment and servers 5,416 631 Furniture and fixtures 360 184 Leasehold improvements 114 114 Construction in progress 2,877 1,037 Total property and equipment 15,336 8,133 Accumulated depreciation and amortization (4,484) (2,841) Property and equipment, net $ 10,852 $ 5,292
Schedule of Finite-Lived Intangible Assets	The components of intangible assets consisted of the following as of September 30, 2021: Weighted Average Remaining Useful Life (in years) Gross Carrying Amount Accumulated Amortization Net Carrying Amount Developed technology 7.79 $ 60,400 $ (1,573) $ 58,827 Customer relationships 2.79 26,200 (1,819) 24,381 Trademark and trade name 0.04 200 (167) 33 Intangible assets, net $ 86,800 $ (3,559) $ 83,241 The following table sets forth the activity related to finite-lived intangible assets: Nine Months Ended September 30, 2021 Beginning balance at December 31, 2020 $ — Additions 86,800 Amortization (3,559) Ending balance at September 30, 2021 $ 83,241
Finite-lived Intangible Assets Amortization Expense	The following table summarizes amortization expense associated with finite-lived intangible assets recognized in the consolidated statements of operations for the three and nine months ended September 30, 2021 as follows: Three and Nine Months Ended September 30, 2021 Cost of revenue $ 1,573 Sales and marketing 1,819 General and administrative 167 Total amortization expense $ 3,559
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense	The following table outlines the estimated future amortization expense related to finite intangible assets as of September 30, 2021: Amount 2021 $ 4,104 2022 16,283 2023 16,283 2024 12,281 2025 7,550 Thereafter 26,740 Total $ 83,241
Schedule of Goodwill	Goodwill The following table presents details of the Company’s goodwill for the nine months ended September 30, 2021: Goodwill Balance at December 31, 2020 $ — Goodwill acquired 87,230 Balance as of September 30, 2021 $ 87,230
Schedule of Other Current Liabilities	Other current liabilities consisted of the following as of September 30, 2021 and December 31, 2020: September 30, December 31, 2021 2020 Accrued sales and marketing expenses $ 22,438 $ 7,204 Accrued compensation 14,458 3,825 Accrued publisher fees 12,736 — End-user liability, net 4,358 2,789 Accrued developer revenue share 1,505 907 Short-term lease obligations 3,956 — Other accrued expenses 10,706 4,893 Other current liabilities $ 70,157 $ 19,618

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	9 Months Ended
	Sep. 30, 2021
Fair Value Disclosures [Abstract]
Schedule of Fair Value Liabilities	Public and Private Common Stock Warrants Fair Value Measurements as of September 30, 2021 Liabilities included in: Level 1 Level 2 Level 3 Total Private Common Stock Warrants — — 12,318 12,318 Total fair value $ — $ — $ 12,318 $ 12,318 Fair Value Measurements as of December 31, 2020 Liabilities included in: Level 1 Level 2 Level 3 Total Public Common Stock Warrants $ 124,545 $ — $ — $ 124,545 Private Common Stock Warrants — — 53,687 53,687 Total fair value $ 124,545 $ — $ 53,687 $ 178,232

Stock Based Compensation (Table

Stock Based Compensation (Tables)	9 Months Ended
	Sep. 30, 2021
Share-based Payment Arrangement [Abstract]
Summary of Stock-Based Compensation Expense	The following table summarizes stock-based compensation expense recognized for the three and nine months ended September 30, 2021 and 2020 as follows: Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 Research and development $ 1,814 $ 523 $ 5,237 $ 1,544 Sales and marketing 1,637 468 6,025 1,542 General and administrative 12,361 2,671 31,269 6,479 Total stock-based compensation expense $ 15,812 $ 3,662 $ 42,531 $ 9,565
Summary of Stock Option and RSU Activity	Stock option and RSU activity during the nine months ended September 30, 2021 is as follows (in thousands, except for share, per share, and contractual term data): Options Outstanding Restricted Stock Units Number of Number of Weighted- Weighted- Aggregate Number of Plan shares outstanding Weighted-Average Grant Date Fair Value per share Balance at December 31, 2020 35,500,603 38,404,493 $ 5.89 8.27 $ 542,074 341,256 $ 17.68 Options and restricted stock units granted (3,743,376) 64,839 12.58 3,678,537 20.28 Options exercised and restricted stock units released — (4,896,629) 0.65 (20,303) 17.48 Options and restricted stock units canceled 4,039,561 (3,390,960) 1.22 (648,601) 22.46 Balance at September 30, 2021 35,796,788 30,181,743 $ 7.24 7.31 $ 172,203 3,350,889 $ 19.61 Exercisable at December 31, 2020 14,248,234 $ 0.18 6.45 $ 282,364 Exercisable at September 30, 2021 13,459,112 0.16 5.37 129,935 Unvested at December 31, 2020 24,156,259 9.25 9.34 259,710 Unvested at September 30, 2021 16,722,631 12.93 8.87 42,268
Summary of Stock Option Valuation Assumptions	The assumptions used to estimate the fair value of stock options granted and the resulting fair values for the three and nine months ended September 30, 2021 and 2020 were as follows: Three Months Ended September 30, Nine Months Ended September 30, 2021 (1) 2020 2021 (1) 2020 Expected volatility 48.71% 48.65% - 48.9% 48.71% 47.24% - 48.93% Risk-free interest rate 0.02% 0.35% - 0.41% 0.02% 0.35% - 1.44% Expected term (in years) 0.25 6.00 - 6.1 0.25 6.00 - 6.25 Expected dividend yield — — — — Weighted average estimated fair value of stock options granted during the period $15.63 $7.95 $15.63 $2.98 (1) For the three and nine months ended September 30, 2021, the above assumptions were used to estimate the fair value of certain stock options previously granted to the CFO, that were modified as part of the transition and release agreement.

Net Income (Loss) Per Share (Ta

Net Income (Loss) Per Share (Tables)	9 Months Ended
	Sep. 30, 2021
Earnings Per Share [Abstract]
Schedule of Earnings Per Share, Basic and Diluted	The following table sets forth the computation of basic and diluted income (loss) per Class A common stock and Class B common stock (in thousands, except for share and per share data): Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 Numerator: Net income (loss) – basic $ 50,781 $ (42,851) $ (82,406) $ (78,530) Denominator: Weighted average common shares outstanding – basic 395,053,445 298,713,456 379,450,553 288,958,713 Net income (loss) per share attributable to common stockholders – basic $ 0.13 $ (0.14) $ (0.22) $ (0.27) Numerator: Net income (loss) – basic $ 50,781 $ (42,851) $ (82,406) $ (78,530) Decrease in fair value of public and private common stock warrant liabilities (113,601) — (81,898) — Net loss – diluted $ (62,820) $ (42,851) $ (164,304) $ (78,530) Denominator: Weighted average common shares outstanding – basic 395,053,445 298,713,456 379,450,553 288,958,713 Incremental common shares from assumed exercise of public and private common stock warrants 976,686 — 6,001,253 — Weighted average common shares outstanding – diluted 396,030,131 298,713,456 385,451,806 288,958,713 Net loss per share attributable to common stockholders – diluted $ (0.16) $ (0.14) $ (0.43) $ (0.27)
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share	The following outstanding common stock equivalents were considered antidilutive, and therefore, excluded from the computation of diluted net income (loss) per share attributable to common stockholders for the periods presented (share numbers are not in thousands): Number of Securities Outstanding at September 30, 2021 2020 Common and preferred stock warrants — 3,635,181 Common stock options 39,273,376 48,670,292 Performance stock units 16,146,630 — Restricted stock units 3,651,447 — Total 59,071,453 52,305,473

Description of the Business a_2

Description of the Business and Basis of Presentation (Details) - $ / shares	Sep. 30, 2021	Dec. 16, 2020
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Warrant exercise price (in dollars per share)	$ 11.50
Recapitalization exchange ratio		74.71%

Summary of Significant Accoun_4

Summary of Significant Accounting Policies - Narrative (Details) $ / shares in Units, $ in Thousands	Dec. 16, 2020$ / sharesshares	Mar. 02, 2020$ / sharesshares	Sep. 30, 2021USD ($)$ / sharesshares	Sep. 30, 2020USD ($)	Sep. 30, 2021USD ($)segement$ / sharesshares	Sep. 30, 2020USD ($)	Mar. 31, 2021$ / shares	Dec. 31, 2020USD ($)
Concentration Risk [Line Items]
Reduction to revenue, end-user incentives | $			$ 18,700	$ 13,000	$ 54,900	$ 36,600
Sales and marketing expense, end-user incentive | $			47,000	24,200	122,600	61,400
Engagement expense | $			50,000	26,600	130,900	67,200
Restricted cash included in other long-term assets | $			2,920	2,900	$ 2,920	2,900		$ 2,920
Number of operating segments | segement					1
Advertising costs | $			$ 55,200	$ 43,600	$ 156,600	96,200
Remeasurement of redeemable convertible preferred stock | $					$ 0	$ 865,952
Number of shares issued in private placement (in shares)	15,853,052	69,000,000			10,033,333
Number of warrants per unit (in shares)	0.25
Stock sold, price per share (in dollars per share) | $ / shares	$ 10	$ 10					$ 23.34
Warrant exercise price (in dollars per share) | $ / shares			$ 11.50		$ 11.50
Warrants forfeited (in shares)					5,016,666
Expected dividend yield					0.00%
Minimum
Concentration Risk [Line Items]
Weighted Average Remaining Useful Life (in years)					1 year
Maximum
Concentration Risk [Line Items]
Weighted Average Remaining Useful Life (in years)					8 years
Sponsor
Concentration Risk [Line Items]
Warrants forfeited (in shares)	5,016,666
Public Warrant
Concentration Risk [Line Items]
Number of shares issued in private placement (in shares)		17,250,000,000,000
Warrant exercise price (in dollars per share) | $ / shares		$ 11.50
Warrants outstanding (in shares)			0		0
Private Warrant
Concentration Risk [Line Items]
Number of shares issued in private placement (in shares)		10,033,333
Stock sold, price per share (in dollars per share) | $ / shares		$ 1.50
Warrants outstanding (in shares)			4,535,728		4,535,728
Class A common stock, par value $0.0001 per share
Concentration Risk [Line Items]
Number of shares per unit (in shares)		1
Number of shares called by each warrant (in shares)		1	1		1
Class A common stock, par value $0.0001 per share | Public Warrant
Concentration Risk [Line Items]
Number of shares called by each warrant (in shares)		1
Class A common stock, par value $0.0001 per share | Private Warrant
Concentration Risk [Line Items]
Number of shares called by each warrant (in shares)		1
Revenue | Customer Concentration Risk | Game Developer A
Concentration Risk [Line Items]
Concentration risk, percentage (less than)			43.00%	56.00%	43.00%	63.00%
Revenue | Customer Concentration Risk | Game Developer B
Concentration Risk [Line Items]
Concentration risk, percentage (less than)			37.00%	31.00%	39.00%	25.00%
Revenue | Geographic Concentration Risk | Non-US
Concentration Risk [Line Items]
Concentration risk, percentage (less than)			12.00%	10.00%	12.00%	10.00%

Summary of Significant Accoun_5

Summary of Significant Accounting Policies - Cash, Cash Equivalents, and Restricted Cash (Details) - USD ($) $ in Thousands	Sep. 30, 2021	Dec. 31, 2020	Sep. 30, 2020	Dec. 31, 2019
Accounting Policies [Abstract]
Cash and cash equivalents	$ 540,308	$ 262,728
Restricted cash included in other long-term assets	2,920	2,920	$ 2,900
Cash, cash equivalents and restricted cash	$ 543,228	$ 265,648	$ 59,781	$ 28,548

Business Combination - Narrativ

Business Combination - Narrative (Details) - USD ($)	Jul. 16, 2021	Dec. 16, 2020	Mar. 02, 2020	Mar. 31, 2021	Sep. 30, 2021	Mar. 31, 2021	Sep. 30, 2021	Sep. 30, 2020	Dec. 31, 2020
Business Acquisition [Line Items]
Recapitalization exchange ratio		74.71%
Cash consideration		$ 566,204,152
Number of shares issued in private placement (in shares)		15,853,052	69,000,000				10,033,333
Stock sold, price per share (in dollars per share)		$ 10	$ 10	$ 23.34		$ 23.34
Aggregate consideration		$ 158,500,000		$ 408,000,000
Shares authorized (in shares)		635,000,000			635,000,000		635,000,000
Common stock, par value (in dollars per share)		$ 0.0001			$ 0.0001		$ 0.0001		$ 0.0001
Preferred stock, par value (in dollars per share)		$ 0.0001			$ 0.0001		$ 0.0001		$ 0.0001
Common stock, shares authorized (in shares)					625,000,000		625,000,000		625,000,000
Preferred stock, shares authorized (in shares)		10,000,000			10,000,000		10,000,000		10,000,000
Revenue					$ 5,400,000		$ 5,400,000
Net loss					2,800,000		2,800,000
Issuance costs				$ 5,900,000		$ 6,800,000	13,221,000	$ 653,000
Aarki
Business Acquisition [Line Items]
Percentage of voting interest acquired	100.00%
Total purchase price	$ 162,347,000
Cash	95,296,000
Common stock issued	$ 67,051,000
Number of shares issued (in shares)	4,401,663
Transaction costs					6,000,000		7,000,000
Issuance costs					$ 100,000		$ 100,000
Class A common stock, par value $0.0001 per share
Business Acquisition [Line Items]
Common stock, shares outstanding (in shares)					339,000,000		339,000,000		292,000,000
Common stock, shares authorized (in shares)		500,000,000			500,000,000		500,000,000		500,000,000
Class B Common Stock
Business Acquisition [Line Items]
Common stock, shares outstanding (in shares)					69,000,000		69,000,000		78,000,000
Common stock, par value (in dollars per share)					$ 0.0001		$ 0.0001
Common stock, shares authorized (in shares)		125,000,000			125,000,000		125,000,000		125,000,000
Stock Election Shareholders
Business Acquisition [Line Items]
Common stock, shares outstanding (in shares)		359,518,849
Stock Election Shareholders | Class A common stock, par value $0.0001 per share
Business Acquisition [Line Items]
Merger consideration in shares (in shares)		191,932,860
Stock Election Shareholders | Class B Common Stock
Business Acquisition [Line Items]
Merger consideration in shares (in shares)		76,663,551
Cash Election Shareholders
Business Acquisition [Line Items]
Common stock, shares outstanding (in shares)		75,786,931
Sponsor | Class B Common Stock
Business Acquisition [Line Items]
Shares in escrow (in shares)		10,000,000
Sponsor Earnout Shares | Class A common stock, par value $0.0001 per share
Business Acquisition [Line Items]
Number of shares issued in private placement (in shares)		5,000,000
Skillz Earnout Shares | Class A common stock, par value $0.0001 per share
Business Acquisition [Line Items]
Number of shares issued in private placement (in shares)		5,000,000

Business Combinations - Acquisi

Business Combinations - Acquisition of Aarki, Inc (Details) - USD ($) $ / shares in Units, $ in Thousands	Jul. 16, 2021	Sep. 30, 2021	Dec. 31, 2020
Business Acquisition [Line Items]
Goodwill		$ 87,230	$ 0
Acquired Finite-Lived Intangible Assets [Line Items]
Fair Value		$ 86,800
Aarki
Business Acquisition [Line Items]
Cash	$ 95,296
Common stock issued	67,051
Total purchase price	$ 162,347
Number of shares issued (in shares)	4,401,663
Share price (in dollars per share)	$ 15.23
Cash and cash equivalents	$ 11,309
Accounts receivable, net	13,700
Prepaid expenses and other current assets	356
Property, plant and equipment, net	5,075
Intangible assets, net	86,800
Other long-term assets	91
Accounts payable	(445)
Accrued professional fees	(3,145)
Other current liabilities	(16,471)
Deferred tax liabilities	(20,460)
Other long-term liabilities	(1,693)
Identifiable net assets acquired	75,117
Goodwill	87,230
Total purchase price	162,347
Acquired Finite-Lived Intangible Assets [Line Items]
Fair Value	$ 86,800
Aarki | Developed technology
Acquired Finite-Lived Intangible Assets [Line Items]
Weighted-average useful life (in years)	8 years
Fair Value	$ 60,400
Aarki | Customer relationships
Acquired Finite-Lived Intangible Assets [Line Items]
Weighted-average useful life (in years)	3 years
Fair Value	$ 26,200
Aarki | Trademark and trade name
Acquired Finite-Lived Intangible Assets [Line Items]
Weighted-average useful life (in years)	3 months 18 days
Fair Value	$ 200

Business Combination - Pro-Form

Business Combination - Pro-Forma Information (Details) - Aarki - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Business Acquisition [Line Items]
Revenue	$ 103,416	$ 67,003	$ 290,420	$ 183,440
Net loss	$ 38,684	$ (44,898)	$ (97,557)	$ (77,291)

Balance Sheet Components - Prep

Balance Sheet Components - Prepaid Expenses and Other Current Assets (Details) - USD ($) $ in Thousands	Sep. 30, 2021	Dec. 31, 2020
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
Credit card processing reserve	$ 8,638	$ 5,854
Prepaid expenses	4,979	3,772
Other current assets	3,692	865
Prepaid expenses and other current assets	$ 17,309	$ 10,491

Balance Sheet Components - Prop

Balance Sheet Components - Property and Equipment, Net (Details) - USD ($) $ in Thousands	Sep. 30, 2021	Dec. 31, 2020
Property, Plant and Equipment [Line Items]
Total property and equipment	$ 15,336	$ 8,133
Accumulated depreciation and amortization	(4,484)	(2,841)
Property and equipment, net	10,852	5,292
Capitalized internal-use software
Property, Plant and Equipment [Line Items]
Total property and equipment	6,569	6,167
Computer equipment and servers
Property, Plant and Equipment [Line Items]
Total property and equipment	5,416	631
Furniture and fixtures
Property, Plant and Equipment [Line Items]
Total property and equipment	360	184
Leasehold improvements
Property, Plant and Equipment [Line Items]
Total property and equipment	114	114
Construction in progress
Property, Plant and Equipment [Line Items]
Total property and equipment	$ 2,877	$ 1,037

Balance Sheet Components - Narr

Balance Sheet Components - Narrative (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
Depreciation and amortization	$ 4.5	$ 0.5	$ 4.6	$ 1.1

Balance Sheet Components - Inta

Balance Sheet Components - Intangible Assets, Net (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2021	Dec. 31, 2020
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	$ 86,800
Accumulated Amortization	(3,559)
Net Carrying Amount	83,241	$ 0
Developed technology
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	60,400
Accumulated Amortization	(1,573)
Net Carrying Amount	$ 58,827
Developed technology | Weighted Average
Finite-Lived Intangible Assets [Line Items]
Weighted Average Remaining Useful Life (in years)	7 years 9 months 14 days
Customer relationships
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	$ 26,200
Accumulated Amortization	(1,819)
Net Carrying Amount	$ 24,381
Customer relationships | Weighted Average
Finite-Lived Intangible Assets [Line Items]
Weighted Average Remaining Useful Life (in years)	2 years 9 months 14 days
Trademark and trade name
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	$ 200
Accumulated Amortization	(167)
Net Carrying Amount	$ 33
Trademark and trade name | Weighted Average
Finite-Lived Intangible Assets [Line Items]
Weighted Average Remaining Useful Life (in years)	14 days

Balance Sheet Components - Fini

Balance Sheet Components - Finite-Lived Intangible Assets Activity (Details) - USD ($) $ in Thousands	3 Months Ended	9 Months Ended
	Sep. 30, 2021	Sep. 30, 2021
Finite-lived Intangible Assets [Roll Forward]
Beginning balance at December 31, 2020		$ 0
Fair Value		86,800
Amortization	$ (3,559)	(3,559)
Ending balance at September 30, 2021	$ 83,241	$ 83,241

Balance Sheet Components - Amor

Balance Sheet Components - Amortization Expense (Details) - USD ($) $ in Thousands	3 Months Ended	9 Months Ended
	Sep. 30, 2021	Sep. 30, 2021
Finite-Lived Intangible Assets [Line Items]
Total amortization expense	$ 3,559	$ 3,559
Cost of revenue
Finite-Lived Intangible Assets [Line Items]
Total amortization expense	1,573	1,573
Sales and marketing
Finite-Lived Intangible Assets [Line Items]
Total amortization expense	1,819	1,819
General and administrative
Finite-Lived Intangible Assets [Line Items]
Total amortization expense	$ 167	$ 167

Balance Sheet Components - Futu

Balance Sheet Components - Future Amortization Expense (Details) - USD ($) $ in Thousands	Sep. 30, 2021	Dec. 31, 2020
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
2021	$ 4,104
2022	16,283
2023	16,283
2024	12,281
2025	7,550
Thereafter	26,740
Net Carrying Amount	$ 83,241	$ 0

Balance Sheet Components - Good

Balance Sheet Components - Goodwill (Details) $ in Thousands	9 Months Ended
	Sep. 30, 2021USD ($)
Goodwill [Roll Forward]
Balance at December 31, 2020	$ 0
Goodwill acquired	87,230
Balance as of September 30, 2021	$ 87,230

Balance Sheet Components - Othe

Balance Sheet Components - Other Current Liabilities (Details) - USD ($) $ in Thousands	Sep. 30, 2021	Dec. 31, 2020
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
Accrued sales and marketing expenses	$ 22,438	$ 7,204
Accrued compensation	14,458	3,825
Accrued publisher fees	12,736	0
End-user liability, net	4,358	2,789
Accrued developer revenue share	1,505	907
Short-term lease obligations	3,956	0
Other accrued expenses	10,706	4,893
Other current liabilities	$ 70,157	$ 19,618

Fair Value Measurements - Narra

Fair Value Measurements - Narrative (Details) - USD ($) $ in Thousands		3 Months Ended		9 Months Ended
		Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020	Dec. 31, 2020
Class of Stock [Line Items]
Cash and cash equivalents		$ 540,308		$ 540,308		$ 262,728
Long-term common stock warrant liabilities		12,318		12,318		178,232
Change in fair value of common stock warrant liabilities	[1]	(113,601)	$ 0	(81,898)	$ 0
Private Warrant
Class of Stock [Line Items]
Long-term common stock warrant liabilities		12,300		12,300		$ 53,700
Change in fair value of common stock warrant liabilities		$ (48,400)		$ (41,400)
[1]	Retroactively restated for the reverse recapitalization as described in Notes 1 and 3.

Fair Value Measurements - Fair

Fair Value Measurements - Fair Value of Liabilities (Details) - USD ($) $ in Thousands	Sep. 30, 2021	Dec. 31, 2020
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Fair value of warrants	$ 12,318	$ 178,232
Private Warrant
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Fair value of warrants	12,300	53,700
Fair Value, Recurring
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Total fair value	12,318	178,232
Fair Value, Recurring | Public Warrant
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Fair value of warrants		124,545
Fair Value, Recurring | Private Warrant
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Fair value of warrants	12,318	53,687
Level 1 | Fair Value, Recurring
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Total fair value	0	124,545
Level 1 | Fair Value, Recurring | Public Warrant
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Fair value of warrants		124,545
Level 1 | Fair Value, Recurring | Private Warrant
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Fair value of warrants	0	0
Level 2 | Fair Value, Recurring
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Total fair value	0	0
Level 2 | Fair Value, Recurring | Public Warrant
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Fair value of warrants		0
Level 2 | Fair Value, Recurring | Private Warrant
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Fair value of warrants	0	0
Level 3 | Fair Value, Recurring
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Total fair value	12,318	53,687
Level 3 | Fair Value, Recurring | Public Warrant
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Fair value of warrants		0
Level 3 | Fair Value, Recurring | Private Warrant
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Fair value of warrants	$ 12,318	$ 53,687

Investments in Non-Marketable_2

Investments in Non-Marketable Equity Securities (Details) - USD ($) $ in Thousands	Sep. 30, 2021	Dec. 31, 2020
Investments, Debt and Equity Securities [Abstract]
Investments in non-marketable equity securities	$ 55,628	$ 0

Commitment and Contingencies -

Commitment and Contingencies - Narrative (Details) $ in Millions	1 Months Ended
	Sep. 30, 2021USD ($)
Commitments and Contingencies Disclosure [Abstract]
Damages awarded	$ 11.6

Common Stock Warrants (Details)

Common Stock Warrants (Details) $ / shares in Units, $ in Thousands	Dec. 16, 2020shares	Mar. 02, 2020$ / sharesshares	Sep. 30, 2021USD ($)daytrading_day$ / sharesshares	Sep. 30, 2020USD ($)	Aug. 16, 2021$ / sharesshares
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Proceeds from exercise of common stock warrants, net of redemptions | $			$ 130,571	$ 0
Number of shares issued in private placement (in shares)	15,853,052	69,000,000	10,033,333
Warrant exercise price (in dollars per share) | $ / shares			$ 11.50
Redemption price (in dollars per share) | $ / shares			$ 0.01
Minimum number of days for written notice of redemption | trading_day			30
Warrant redemption, sale price of common stock for warrants to be redeemed (in dollars per share) | $ / shares			$ 18
Warrant redemption, number of trading days | trading_day			20
Warrants forfeited (in shares)			5,016,666
Class A common stock, par value $0.0001 per share
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Number of shares called by each warrant (in shares)		1	1
Public Warrant
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Warrants outstanding (in shares)			0
Warrants exercised (in shares)			11,361,683
Number of shares issued in private placement (in shares)		17,250,000,000,000
Warrant exercise price (in dollars per share) | $ / shares		$ 11.50
Redemption price (in dollars per share) | $ / shares					$ 0.01
Number of warrants expired (in shares)					5,888,294
Public Warrant | Class A common stock, par value $0.0001 per share
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Number of shares called by each warrant (in shares)		1
Private Warrant
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Warrants outstanding (in shares)			4,535,728
Warrants exercised (in shares)			480,938
Number of shares issued in private placement (in shares)		10,033,333
Number of days to become transferable, assignable or saleable | day			30
Private Warrant | Class A common stock, par value $0.0001 per share
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Number of shares called by each warrant (in shares)		1

Stockholders' Equity (Details)

Stockholders' Equity (Details) $ / shares in Units, $ in Thousands	Dec. 16, 2020USD ($)$ / sharesshares	Mar. 02, 2020$ / sharesshares	Mar. 31, 2021USD ($)$ / sharesshares	Mar. 31, 2021USD ($)$ / shares	Sep. 30, 2021USD ($)option$ / sharesshares	Sep. 30, 2020USD ($)	Dec. 31, 2020$ / sharesshares
Class of Stock [Line Items]
Shares authorized (in shares)	635,000,000				635,000,000
Common stock, shares authorized (in shares)					625,000,000		625,000,000
Common stock, par value (in dollars per share) | $ / shares	$ 0.0001				$ 0.0001		$ 0.0001
Preferred stock, shares authorized (in shares)	10,000,000				10,000,000		10,000,000
Preferred stock, par value (in dollars per share) | $ / shares	$ 0.0001				$ 0.0001		$ 0.0001
Number of shares issued (in shares)	15,853,052	69,000,000			10,033,333
Aggregate consideration | $	$ 158,500		$ 408,000
Issuance costs | $			$ 5,900	$ 6,800	$ 13,221	$ 653
Stock sold, price per share (in dollars per share) | $ / shares	$ 10	$ 10	$ 23.34	$ 23.34
Underwritten Public Offering
Class of Stock [Line Items]
Number of shares issued (in shares)			17,000,000
Number of shares available at election (in shares)			19,800,000
Over-Allotment Option
Class of Stock [Line Items]
Number of shares available at election (in shares)			4,800,000
Class A common stock, par value $0.0001 per share
Class of Stock [Line Items]
Common stock, votes per share | option					1,000,000
Common stock, shares authorized (in shares)	500,000,000				500,000,000		500,000,000
Class B Common Stock
Class of Stock [Line Items]
Common stock, votes per share | option					20,000,000
Common stock, shares authorized (in shares)	125,000,000				125,000,000		125,000,000
Common stock, par value (in dollars per share) | $ / shares					$ 0.0001

Stock Based Compensation - Stoc

Stock Based Compensation - Stock-Based Compensation Expense (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total stock-based compensation expense	$ 15,812	$ 3,662	$ 42,531	$ 9,565
Research and development
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total stock-based compensation expense	1,814	523	5,237	1,544
Sales and marketing
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total stock-based compensation expense	1,637	468	6,025	1,542
General and administrative
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total stock-based compensation expense	$ 12,361	$ 2,671	$ 31,269	$ 6,479

Stock Based Compensation - Narr

Stock Based Compensation - Narrative (Details) $ in Thousands	1 Months Ended			3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2021USD ($)multipliershares	Jun. 30, 2021	Dec. 31, 2020	Sep. 30, 2021USD ($)multiplier	Sep. 30, 2020USD ($)	Sep. 30, 2021USD ($)multipliershares	Sep. 30, 2020USD ($)	Dec. 31, 2020shares	Dec. 15, 2020shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Percentage of stock outstanding			5.00%
Unrecognized stock-based compensation expense	$ 233,700			$ 233,700		$ 233,700
Unrecognized stock-based compensation expense, period for recognition						3 years 6 months 7 days
Total stock-based compensation expense				15,812	$ 3,662	$ 42,531	$ 9,565
Aggregate intrinsic value				47,800	$ 20,400	59,600	$ 47,800
Chief Financial Officer
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Incremental stock-based compensation expense				6,400
Total stock-based compensation expense				2,700		$ 6,400
Restricted stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares issued (in shares) | shares						9,100,000		13,300,000
Performance stock units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares issued (in shares) | shares						200,000
Employee Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total stock-based compensation expense				100		$ 200
Purchase price of common stock, percentage of fair market value		85.00%
2020 Omnibus Incentive Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expiration period			10 years
Vesting period			1 year
Shares authorized (in shares) | shares									47,841,859
2020 Omnibus Incentive Plan | Common Class A and B
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares authorized (in shares) | shares									15,000,000
2020 Omnibus Incentive Plan | Class A common stock, par value $0.0001 per share
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares authorized (in shares) | shares									24,669,278
2020 Omnibus Incentive Plan | Class B Common Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares authorized (in shares) | shares									8,172,581
2020 Omnibus Incentive Plan | Performance stock units | Chief Executive Officer
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period						7 years
Shares granted (in shares) | shares	16,100,000
Unrecognized stock-based compensation expense	$ 70,000			70,000		$ 70,000
Unrecognized stock-based compensation expense, period for recognition						4 years 1 month 20 days
Total stock-based compensation expense				$ 800		$ 800
Trading days	30 days
Market capitalization milestone, trading days						60 days
Change in control, trading days	60 days
Options, grant date fair value	$ 70,800
2020 Omnibus Incentive Plan | Performance stock units | Chief Executive Officer | Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Market capitalization baseline multiplier | multiplier	2			2		2
2020 Omnibus Incentive Plan | Performance stock units | Chief Executive Officer | Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Market capitalization baseline multiplier | multiplier	5			5		5

Stock Based Compensation - St_2

Stock Based Compensation - Stock Activity (Details) - USD ($) $ / shares in Units, $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2021	Dec. 31, 2020
Number of Shares Available for Issuance Under the Plan
Beginning balance (in shares)	35,500,603
Options and restricted stock units granted (in shares)	(3,743,376)
Options canceled (in shares)	4,039,561
Ending balance (in shares)	35,796,788	35,500,603
Number of Shares Outstanding Under the Plan
Beginning balance (in shares)	38,404,493
Options granted (in shares)	64,839
Options exercised (in shares)	(4,896,629)
Options canceled (in shares)	(3,390,960)
Ending balance (in shares)	30,181,743	38,404,493
Exercisable (in shares)	13,459,112	14,248,234
Unvested (in shares)	16,722,631	24,156,259
Weighted- Average Exercise Price
Beginning balance (in dollars per share)	$ 5.89
Options granted (in dollars per share)	12.58
Options exercised (in dollars per share)	0.65
Options canceled (in dollars per share)	1.22
Ending balance (in dollars per share)	7.24	$ 5.89
Exercisable, weighted-average exercise price (in dollars per share)	0.16	0.18
Unvested, weighted-average exercise price (in dollars per share)	$ 12.93	$ 9.25
Weighted-Average Remaining Contractual Term and Aggregate Intrinsic Value
Options outstanding, weighted-average remaining contractual term	7 years 3 months 21 days	8 years 3 months 7 days
Exercisable, weighted-average remaining contractual term	5 years 4 months 13 days	6 years 5 months 12 days
Unvested, weighted-average remaining contractual term	8 years 10 months 13 days	9 years 4 months 2 days
Options outstanding, aggregate intrinsic value	$ 172,203	$ 542,074
Exercisable, aggregate intrinsic value	129,935	282,364
Unvested, aggregate intrinsic value	$ 42,268	$ 259,710
Restricted stock units
Number of Plan shares outstanding
Beginning balance (in shares)	341,256
Restricted stock units granted (in shares)	3,678,537
Restricted stock units released (in shares)	(20,303)
Restricted stock units canceled (in shares)	(648,601)
Ending balance (in shares)	3,350,889	341,256
Weighted-Average Grant Date Fair Value per share
Beginning balance (in dollars per share)	$ 17.68
Granted (in dollars per share)	20.28
Vested (in dollars per share)	17.48
Forfeited (in dollars per share)	22.46
Ending balance (in dollars per share)	$ 19.61	$ 17.68

Stock Based Compensation - Valu

Stock Based Compensation - Valuation Assumptions (Details) - $ / shares	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected dividend yield			0.00%
Common stock options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected volatility	48.71%		48.71%
Expected volatility, minimum		48.65%		47.24%
Expected volatility, maximum		48.90%		48.93%
Risk-free interest rate, minimum		0.35%		0.35%
Risk-free interest rate, maximum		0.41%		1.44%
Risk-free interest rate	0.02%		0.02%
Expected term (in years)	3 months		3 months
Expected dividend yield	0.00%	0.00%	0.00%	0.00%
Weighted average estimated fair value of stock options granted during the year (in dollars per share)	$ 15.63	$ 7.95	$ 15.63	$ 2.98
Common stock options | Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected term (in years)		6 years		6 years
Common stock options | Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected term (in years)		6 years 1 month 6 days		6 years 3 months

Income Taxes - Narrative (Detai

Income Taxes - Narrative (Details) - USD ($) $ in Thousands		3 Months Ended		9 Months Ended
		Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Income Tax Disclosure [Abstract]
(Benefit) provision for income taxes	[1]	$ (18,933)	$ 47	$ (18,826)	$ 100
Effective tax rate		(59.45%)	(0.11%)	18.60%	(0.13%)
Discrete benefit		$ 19,000		$ 19,000
[1]	Retroactively restated for the reverse recapitalization as described in Notes 1 and 3.

Net Income (Loss) Per Share - C

Net Income (Loss) Per Share - Computation of Net Loss Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands		3 Months Ended												9 Months Ended
		Sep. 30, 2021		Jun. 30, 2021	[2]	Mar. 31, 2021	[2]	Sep. 30, 2020		Jun. 30, 2020	[2]	Mar. 31, 2020	[2]	Sep. 30, 2021		Sep. 30, 2020
Numerator:
Net income (loss) – basic		$ 50,781	[1]	$ (79,595)		$ (53,592)		$ (42,851)	[2]	$ (20,157)		$ (15,522)		$ (82,406)	[1]	$ (78,530)	[1]
Decrease in fair value of public and private common stock warrant liabilities		(113,601)						0						(81,898)		0
Net loss – diluted	[1]	$ (62,820)						$ (42,851)						$ (164,304)		$ (78,530)
Denominator:
Weighted average common shares outstanding - basic (in shares)	[1]	395,053,445						298,713,456						379,450,553		288,958,713
Incremental common shares from assumed exercise of private warrants (in shares)		976,686						0						6,001,253		0
Weighted average common shares outstanding - diluted (in shares)	[1]	396,030,131						298,713,456						385,451,806		288,958,713
Net income (loss) per share attributable to common stockholders - basic (in dollars per share)	[1]	$ 0.13						$ (0.14)						$ (0.22)		$ (0.27)
Net loss per share attributable to common stockholders - diluted (in dollars per share)	[1]	$ (0.16)						$ (0.14)						$ (0.43)		$ (0.27)
[1]	Retroactively restated for the reverse recapitalization as described in Notes 1 and 3.
[2]	Retroactively restated for the reverse recapitalization as described in Notes 1 and 3.

Net Income (Loss) Per Share - A

Net Income (Loss) Per Share - Antidilutive Shares (Details) - shares	9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total (in shares)	59,071,453	52,305,473
Common and preferred stock warrants
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total (in shares)	0	3,635,181
Common stock options
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total (in shares)	39,273,376	48,670,292
Performance stock units
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total (in shares)	16,146,630	0
Restricted stock units
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total (in shares)	3,651,447	0