Skillz (SKLZ) 10-Q 8 Nov 23 2023 Q3 Quarterly report Financial data

Cover

Cover - shares	9 Months Ended
	Sep. 30, 2023	Nov. 01, 2023
Entity Listings [Line Items]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Sep. 30, 2023
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	6625 Badura Avenue
Entity Address, City or Town	Las Vegas
Entity Address, State or Province	NV
Entity Address, Postal Zip Code	89118
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	Accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Shell Company	false
Amendment flag	false
Central Index Key	0001801661
Entity Fiscal Year Focus	2023
Entity Fiscal Period Focus	Q3
Current Fiscal Year End	--12-31
Class A common stock, par value $0.0001 per share
Entity Listings [Line Items]
Entity Common Stock, Shares Outstanding		18,017,597
Class B Common Stock
Entity Listings [Line Items]
Entity Common Stock, Shares Outstanding		3,430,063

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
Current assets:
Cash and cash equivalents	$ 330,158	$ 362,516
Marketable securities, current	4,800	127,268
Accounts receivable, net	9,265	7,177
Prepaid expenses and other current assets	6,275	4,722
Total current assets	350,498	501,683
Non-current assets:
Property, plant and equipment, net	13,812	2,991
Operating lease right-of-use assets, net	0	472
Marketable securities, non-current	2,058	56,728
Non-marketable equity securities	55,649	55,649
Restricted cash as other long-term assets	2,920	2,920
Other long-term assets	3,182	852
Total non-current assets	77,621	119,612
Total assets	428,119	621,295
Current liabilities:
Accounts payable	2,395	1,696
Operating lease liabilities, current	1,469	2,133
Other current liabilities	60,934	45,666
Total current liabilities	64,798	49,495
Non-current liabilities:
Operating lease liabilities, non-current	10,874	11,942
Common stock warrant liabilities, non-current	11	289
Long-term debt, non-current	123,535	272,781
Other long-term liabilities	1,167	8,387
Total non-current liabilities	135,587	293,399
Total liabilities	200,385	342,894
Stockholders’ equity:
Preferred stock $0.0001 par value; 10 million shares authorized — 0 issued and outstanding as of September 30, 2023 and December 31, 2022	0	0
Common stock $0.0001 par value; 31 million shares authorized; Class A common stock – 25 million shares authorized; 18 million and 18 million shares issued and outstanding as of September 30, 2023 and December 31, 2022, respectively; Class B common stock – 6 million shares authorized; 3 million shares issued and outstanding as of September 30, 2023 and December 31, 2022	41	41
Additional paid-in capital	1,186,686	1,153,031
Accumulated other comprehensive loss	(37)	(1,563)
Accumulated deficit	(958,956)	(873,108)
Total stockholders’ equity	227,734	278,401
Total liabilities and stockholders' equity	$ 428,119	$ 621,295

CONDENSED CONSOLIDATED BALANC_2

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Sep. 30, 2023	Dec. 31, 2022
Preferred stock, par value (in dollars per share)	$ 0.0001	$ 0.0001
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)	31,000,000	31,000,000
Class A Common Stock
Common stock, par value (in dollars per share)	$ 0.0001
Common stock, shares authorized (in shares)	25,000,000	25,000,000
Common stock, shares issued (in shares)	18,000,000	18,000,000
Common stock, shares outstanding (in shares)	18,000,000	18,000,000
Class B Common Stock
Common stock, par value (in dollars per share)	$ 0.0001
Common stock, shares authorized (in shares)	6,000,000	6,000,000
Common stock, shares issued (in shares)	3,000,000	3,000,000
Common stock, shares outstanding (in shares)	3,000,000	3,000,000

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Income Statement [Abstract]
Revenue	$ 36,427	$ 59,216	$ 120,975	$ 222,837
Costs and expenses:
Cost of revenue	3,693	7,599	11,923	25,802
Research and development	7,852	7,937	24,757	44,840
Sales and marketing	31,925	51,480	99,510	242,556
General and administrative	24,389	20,936	78,080	140,540
Impairment of intangible assets and other charges	0	51,230	455	51,230
Total costs and expenses	67,859	139,182	214,725	504,968
Loss from operations	(31,432)	(79,966)	(93,750)	(282,131)
Gain on extinguishment of debt	0	2,553	15,205	2,553
Interest expense, net	(2,279)	(6,360)	(7,486)	(22,113)
Change in fair value of common stock warrant liabilities	127	(80)	278	5,405
Other income, net	48	508	98	398
Loss before income taxes	(33,536)	(83,345)	(85,655)	(295,888)
Provision for (benefit from) income taxes	9	(120)	193	(488)
Net loss	$ (33,545)	$ (83,225)	$ (85,848)	$ (295,400)
Net loss per share attributable to common stockholders:
Basic (in dollars per share)	$ (1.57)	$ (4.02)	$ (4.05)	$ (14.48)
Diluted (in dollars per share)	$ (1.57)	$ (4.02)	$ (4.05)	$ (14.48)
Weighted average shares outstanding:
Basic (in shares)	21,305,470	20,691,704	21,175,797	20,396,317
Diluted (in shares)	21,305,470	20,691,704	21,175,797	20,396,317
Other comprehensive income (loss):
Change in unrealized loss on available-for-sale investments, net of tax	$ 135	$ 139	$ 1,526	$ (2,484)
Total other comprehensive income (loss)	135	139	1,526	(2,484)
Total comprehensive loss	$ (33,410)	$ (83,086)	$ (84,322)	$ (297,884)

CONDENSED CONSOLIDATED STATEM_2

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY - USD ($) $ in Thousands	Total	Common stock	Additional paid-in capital	Accumulated other comprehensive loss	Accumulated deficit
Beginning balance (in shares) at Dec. 31, 2021		20,437,692
Beginning balance at Dec. 31, 2021	$ 609,159	$ 40	$ 1,043,600	$ (248)	$ (434,233)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of common stock upon exercise of stock options and release of restricted stock units (in shares)		43,997
Issuance of common stock upon exercise of stock options and release of restricted stock units	236		236
Stock-based compensation	77,879		77,879
Other comprehensive income (loss)	(2,046)			(2,046)
Other, net	(64)		(64)
Net loss	(149,564)				(149,564)
Ending balance (in shares) at Mar. 31, 2022		20,481,689
Ending balance at Mar. 31, 2022	535,600	$ 40	1,121,651	(2,294)	(583,797)
Beginning balance (in shares) at Dec. 31, 2021		20,437,692
Beginning balance at Dec. 31, 2021	609,159	$ 40	1,043,600	(248)	(434,233)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Other comprehensive income (loss)	(2,484)
Net loss	(295,400)
Ending balance (in shares) at Sep. 30, 2022		21,008,203
Ending balance at Sep. 30, 2022	409,432	$ 41	1,141,756	(2,732)	(729,633)
Beginning balance (in shares) at Mar. 31, 2022		20,481,689
Beginning balance at Mar. 31, 2022	535,600	$ 40	1,121,651	(2,294)	(583,797)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of common stock upon exercise of stock options and release of restricted stock units (in shares)		474,977
Issuance of common stock upon exercise of stock options and release of restricted stock units	617	$ 1	616
Stock-based compensation	13,431		13,431
Other comprehensive income (loss)	(577)			(577)
Net loss	(62,611)				(62,611)
Ending balance (in shares) at Jun. 30, 2022		20,956,666
Ending balance at Jun. 30, 2022	486,460	$ 41	1,135,698	(2,871)	(646,408)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of common stock upon exercise of stock options and release of restricted stock units (in shares)		51,537
Stock-based compensation	6,058		6,058
Other comprehensive income (loss)	139			139
Net loss	(83,225)				(83,225)
Ending balance (in shares) at Sep. 30, 2022		21,008,203
Ending balance at Sep. 30, 2022	409,432	$ 41	1,141,756	(2,732)	(729,633)
Beginning balance (in shares) at Dec. 31, 2022		21,068,697
Beginning balance at Dec. 31, 2022	278,401	$ 41	1,153,031	(1,563)	(873,108)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of common stock upon exercise of stock options and release of restricted stock units (in shares)		61,124
Issuance of common stock upon exercise of stock options and release of restricted stock units	33		33
Stock-based compensation	10,548		10,548
Other comprehensive income (loss)	997			997
Net loss	(35,593)				(35,593)
Ending balance (in shares) at Mar. 31, 2023		21,129,821
Ending balance at Mar. 31, 2023	254,386	$ 41	1,163,612	(566)	(908,701)
Beginning balance (in shares) at Dec. 31, 2022		21,068,697
Beginning balance at Dec. 31, 2022	278,401	$ 41	1,153,031	(1,563)	(873,108)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net loss	(52,304)
Ending balance (in shares) at Jun. 30, 2023		21,170,092
Ending balance at Jun. 30, 2023	248,729	$ 41	1,174,271	(172)	(925,411)
Beginning balance (in shares) at Dec. 31, 2022		21,068,697
Beginning balance at Dec. 31, 2022	$ 278,401	$ 41	1,153,031	(1,563)	(873,108)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of common stock upon exercise of stock options and release of restricted stock units (in shares)	95,911
Other comprehensive income (loss)	$ 1,526
Net loss	(85,848)
Ending balance (in shares) at Sep. 30, 2023		21,457,113
Ending balance at Sep. 30, 2023	227,734	$ 41	1,186,686	(37)	(958,956)
Beginning balance (in shares) at Mar. 31, 2023		21,129,821
Beginning balance at Mar. 31, 2023	254,386	$ 41	1,163,612	(566)	(908,701)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of common stock upon exercise of stock options and release of restricted stock units (in shares)		40,271
Issuance of common stock upon exercise of stock options and release of restricted stock units	37		37
Stock-based compensation	10,622		10,622
Other comprehensive income (loss)	394			394
Net loss	(16,710)				(16,710)
Ending balance (in shares) at Jun. 30, 2023		21,170,092
Ending balance at Jun. 30, 2023	248,729	$ 41	1,174,271	(172)	(925,411)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of common stock upon exercise of stock options and release of restricted stock units (in shares)		287,021
Issuance of common stock upon exercise of stock options and release of restricted stock units	(25)		(25)
Stock-based compensation	12,440		12,440
Other comprehensive income (loss)	135			135
Net loss	(33,545)				(33,545)
Ending balance (in shares) at Sep. 30, 2023		21,457,113
Ending balance at Sep. 30, 2023	$ 227,734	$ 41	$ 1,186,686	$ (37)	$ (958,956)

CONDENSED CONSOLIDATED STATEM_3

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022
Operating Activities
Net loss	$ (85,848)	$ (295,400)
Adjustment to reconcile net loss to net cash used in operating activities:
Depreciation and amortization	1,858	15,705
Stock-based compensation	33,610	97,368
Gain on extinguishment of debt	(15,205)	(2,553)
Accretion of unamortized debt discount and amortization of debt issuance costs	1,815	2,930
Amortization of premium (accretion of discount) for marketable securities	839	2,819
Deferred income taxes	0	(481)
Change in fair value of common stock warrant liabilities	(278)	(5,405)
Impairment charges	455	51,230
Noncash operating lease costs	17	1,145
Changes in operating assets and liabilities:
Accounts receivable, net	(2,088)	4,597
Prepaid expenses and other assets	(1,883)	(2,247)
Accounts payable	699	(14,020)
Loss contingency accrual	0	(4,605)
Operating lease liabilities	(1,732)	(895)
Other accruals and liabilities	8,255	(16,972)
Net cash used in operating activities	(59,486)	(166,784)
Investing Activities
Purchases of property and equipment, including internal-use software	(12,081)	(1,957)
Investment in loan receivable	(2,000)	0
Purchases of marketable securities	0	(432,873)
Proceeds from maturities of marketable securities	121,226	485,565
Proceeds from sales of marketable securities	56,599	125,306
Net cash provided by investing activities	163,744	176,041
Financing Activities
Principal payments on finance leases obligations	(807)	(2,044)
Payments for debt issuance costs	0	(2,005)
Payments for extinguishment of debt	(135,855)	(7,540)
Net proceeds from exercise of stock options and issuance of common stock	46	852
Net cash used in financing activities	(136,616)	(10,737)
Net change in cash, cash equivalents and restricted cash	(32,358)	(1,480)
Cash, cash equivalents and restricted cash – beginning of year	365,436	244,252
Cash, cash equivalents and restricted cash – end of period	333,078	242,772
Cash paid during the period for:
Interest	12,261	15,420
Taxes	$ 200	$ 0

Basis of Presentation

Basis of Presentation	9 Months Ended
	Sep. 30, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Basis of Presentation	Basis of Presentation Business Skillz (the “Company” or “Skillz”) operates a competitive mobile gaming platform, driving the future of entertainment by accelerating the convergence of sports, video games and media. The Company’s principal activities are to develop and support a proprietary online-hosted technology platform that enables independent game developers to host tournaments and provide competitive gaming activity (“Competitions”) to end-users worldwide. Basis of Presentation The Company’s 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”). Consolidation The Company consolidates the variable interest entity due to controlling financial interest and when the Company is the primary beneficiary. All intercompany balances and transactions have been eliminated in consolidation. 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 nine months ended September 30, 2023 are not necessarily indicative of the results that may be expected for the year ending December 31, 2023. 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 for the fiscal year ended December 31, 2022, as filed with the SEC on March 31, 2023.

Summary of Significant Accounti

Summary of Significant Accounting Policies	9 Months Ended
	Sep. 30, 2023
Accounting Policies [Abstract]
Summary of Significant Accounting Policies	Summary of Significant Accounting Policies Use of Estimates The preparation of condensed consolidated financial statements in conformity with U.S. GAAP requires management to make certain estimates, judgments, and assumptions that affect the reported amounts of assets and liabilities and the related disclosures at the date of the consolidated financial statements, as well as the reported amounts of revenues and expenses during the periods presented. Estimates are used in several areas including, but not limited to, end user incentive program, stock-based compensation, valuation of common stock warrants and indirect tax liabilities. 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 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. Entry fees used to enter paid competitions can include net cash deposits, cash from prior winnings, and end-user incentives. The game developers earn revenue share from monthly net cash deposits received from end-users, calculated based on paid entry fees attributable to their games as a percentage of total entry fees. End-user incentives are not paid for by game developers. In addition, the Company accounts for end-user incentives either as a reduction of revenue or as sales and marketing expense as noted below. 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 the amounts withheld by the Company is not subject to significant judgment. Certain of the Company’s larger developer agreements provide the Company with the right to receive additional consideration from the game developer related to user acquisition costs incurred by the Company to provide its Monetization Services. The amount and timing of the additional consideration the Company expects to receive is uncertain and based on the future performance of the respective developer’s games. The Company has not included these amounts of additional consideration in the transaction price related to its Monetization Services as it is not probable that a significant reversal of cumulative revenue recognized related to these amounts will not occur. 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 recognize 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 the Company’s 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 did not have any transaction price allocated to performance obligations that are unsatisfied (or partially satisfied) as of September 30, 2023 and 2022. Games provided by two developer partners accounted for 81% and 80% of the Company’s revenue from Monetization Services in the three months ended September 30, 2023 and 2022, respectively. Games provided by two developer partners accounted for 80% and 80% in the nine months ended September 30, 2023 and 2022, 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. The Company’s primary end-user incentive is Bonus Cash (“Bonus Cash”), which is a promotional incentive that cannot be withdrawn and can only be used by end-users to enter into paid-entry fee contests. Bonus Cash used as entry fees for paid competitions can include newly issued Bonus Cash and/or Bonus Cash that had been returned from prior winnings to an end-user. The Company recognizes the entire cost of Bonus Cash as a sales and marketing expense or a reduction of revenue (as discussed below) only when the Bonus Cash is lost in a competition, as that is the point at which the Company incurs the cost of the Bonus Cash and when revenue is recognized from such Bonus Cash. When Bonus Cash used as entry fees for a paid competition is returned to an end-user as winnings, the Company does not record a sales and marketing expense or a reduction of revenue for such Bonus Cash. Further, if the Bonus Cash is returned to an end-user and is used to enter subsequent competitions and the end-user continues to win, the Company does not record any sales and marketing expense or a reduction of revenue each time the Bonus Cash is returned to the winning end-user. • 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. 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 until it is won by another end-user. For the three months ended September 30, 2023 and 2022, the Company recognized a reduction of revenue of $6.7 million and $10.9 million, respectively, related to these end-user incentives. For the nine months ended September 30, 2023 and 2022, the Company recognized a reduction of revenue of $21.9 million and $40.4 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, 2023 and 2022, the Company recognized sales and marketing expense of $15.5 million and $21.4 million, respectively, related to these end-user incentives. For the nine months ended September 30, 2023 and 2022, the Company recognized sales and marketing expense of $48.1 million and $87.2 million, respectively, related to these end-user incentives. 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. Total engagement marketing accounted for as sales and marketing expense recognized in the three months ended September 30, 2023 and 2022 was $16.9 million and $23.5 million, respectively. Total engagement marketing accounted for as sales and marketing expense recognized in the nine months ended September 30, 2023 and 2022 was $51.6 million and $97.6 million, respectively. Cost of Revenue Cost of revenue primarily comprises of third-party payment processing fees, server costs, amortization of developed technology, personnel expenses, direct software costs, amortization of internal use software, hosting expenses, and allocation of shared facility and other costs. Cash, Cash Equivalents and Restricted Cash Cash and cash equivalents consist of cash, commercial paper, money market funds and U.S government agency securities 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. For the nine months ended September 30, 2023, restricted cash of $2.9 million mainly relates to the letter of credit for the Company’s headquarters in San Francisco. A reconciliation of the Company’s cash and cash equivalents in the condensed consolidated balance sheets to cash, cash equivalents and restricted cash in the condensed consolidated statements of cash flows is as follows: September 30, December 31, 2023 2022 Cash $ 21,948 $ 130,068 Money market funds 308,210 232,448 Restricted cash included in other long-term assets 2,920 2,920 Cash, cash equivalents and restricted cash $ 333,078 $ 365,436 Concentrations of Credit Risk Financial instruments that potentially subject the Company to significant concentrations of credit risk consist of cash, cash equivalents, restricted cash, and marketable securities. Although the Company deposits its cash with multiple well-established financial institutions, the deposits, at times, may exceed federally insured limits. The Company has not experienced any losses on its deposits of cash and cash equivalents. Marketable securities primarily consist of corporate debt securities, asset backed securities and debt instruments issued by foreign governments. The Company limits the amount of credit exposure to any one issuer and monitors the financial condition of the financial institutions on a regular basis. 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 credit losses. The allowance for credit losses is recorded as an offset to accounts receivable and changes in such are classified as general and administrative expense in the condensed consolidated statements of operations and comprehensive loss. The Company assesses collectability by reviewing accounts receivable on a collective basis where similar characteristics exist and on an individual basis when there are specific customers with known disputes or collectability issues. In determining the amount of the allowance for credit losses, the Company considers historical collectability based on past due status and makes judgments about the creditworthiness of customers based on ongoing credit evaluations. The Company also considers customer-specific information, current market conditions and reasonable and supportable forecasts of future economic conditions to inform adjustments to historical loss data. At September 30, 2023, the Company’s allowance for credit losses on accounts receivable was not significant to the condensed consolidated financial statements. Fair Value Measurement The Company applies fair value accounting for 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. Certain financial instruments, including debt, are not measured at fair value on a recurring basis in the consolidated balance sheets. The fair value of debt was estimated using primarily level 2 inputs, including quoted market prices or present value of future payments discounted by the market interest rates or the fixed rates based on current rates offered to the Company for debt with similar terms and maturities. Long-Lived Assets Long-lived assets consist of property and equipment with estimable useful lives subject to depreciation and amortization. The Company reviews long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset or asset group may not be recoverable. When impairment indicators are identified, the Company assesses its long-lived assets for impairment. Recoverability of an asset or asset group to be held and used is measured by a comparison of the carrying amount of an asset or asset group to the estimated undiscounted future cash flows expected to be generated by the asset or asset group. If the carrying amount of the 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. On March 15, 2023, the Company completed the purchase of an office building in Las Vegas, Nevada for $11.5 million, with $10.5 million and $1.0 million allocated to building and land components, respectively. The Company intends to use the building as the Company’s future headquarters. The building will be depreciated on a straight-line basis over its estimated useful life of 39 years. The land is not subject to depreciation. During the nine months ended September 30, 2022, the Company recognized $11.3 million of amortization expense associated with finite-lived intangible assets, including developed technology, customer relationships, trademarks and tradenames, in the condensed consolidated statements of operations and comprehensive loss. As these finite-lived intangible assets were fully impaired and written off as of December 31, 2022, the Company did not recognize amortization expense during the nine months ended September 30, 2023. Investments The Company considers all highly liquid interest-earning investments with a maturity of three months or less at the date of purchase to be cash equivalents. The fair values of these investments approximate their carrying values. In general, investments with original maturities of greater than three months and remaining maturities of less than one year are classified as short-term investments. Investments with maturities beyond one year are classified as non-current marketable securities. Dividend and interest income are recognized when earned. Marketable securities are classified as available-for-sale and realized gains and losses are recorded using the specific identification method. Changes in fair value, excluding credit losses and impairments, are recorded in other comprehensive income (loss) in the consolidated statements of operations and comprehensive loss. Fair value is calculated based on publicly available market information or other estimates determined by management. If the cost of an investment exceeds its fair value, the Company evaluates, among other factors, general market conditions, credit quality of debt instrument issuers, and the extent to which the fair value is less than cost. To determine credit losses, the Company employs a systematic methodology that considers available quantitative and qualitative evidence. In addition, the Company considers specific adverse conditions related to the financial health of, and business outlook for, the investee. If the Company plans to sell the security or it is more likely than not that the Company will be required to sell the security before recovery, then a decline in fair value below cost is recorded as an impairment charge in other income (expense), net in the condensed consolidated statements of operations and comprehensive loss and a new cost basis in the investment is established. If market, industry, and/or investee conditions deteriorate, the Company may incur future impairments. 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 and would be measured at fair value. 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 condensed consolidated statements of operations and comprehensive loss 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 condensed consolidated statements of operations and comprehensive loss. The Company separately presents investments in non-marketable equity securities within long-term assets on the condensed consolidated balance sheets. Advertising and Promotional Expense Advertising and promotional expenses are included in sales and marketing expenses within the condensed consolidated statements of operations and comprehensive loss and are expensed when incurred. Excluding marketing promotions related to the Company’s end-user incentive programs, advertising expenses were $9.7 million and $18.8 million for the three months ended September 30, 2023 and 2022, respectively, and $26.8 million and $109.4 million for the nine months ended September 30, 2023 and 2022, respectively. 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, Stock-Based Compensation, for more information. The Company accounts for forfeitures as they occur. If an employee stock-based award is canceled without the concurrent grant or offer of a replacement award, the cancellation is treated as a settlement for no consideration and any previously unrecognized compensation cost shall be recognized at the cancellation date. Stock-based awards granted to employees are primarily stock options and restricted stock units. The Company has primarily granted restricted stock units (“RSUs”), which have a service-based (and in certain circumstances, performance-based) vesting condition over a four-year period, to its employees and members of the Board of Directors since the start of 2021. The Board of Directors determines the fair value of each share of underlying common stock based on the closing price of the Company's common stock on the date of the grant. 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 Company’s limited market trading history, it has estimated the volatility of its common stock on the date of grant of awards with market conditions based on the weighted average historical stock price volatility of comparable publicly-traded companies in its industry group. The Company estimated the expected term of its awards with market conditions based on various exercise scenarios, as these awards are not considered “plain vanilla.” The Company utilized a risk-free interest rate based on the U.S. Treasury yield curve in effect at the time of grant. The Company estimated the expected date of a qualifying event, the expected capital raise percentage and the expected achievement date of market capitalization milestones based on management’s expectations at the time of measurement of the award’s value. Segments Operating segments are defined as components of an entity for which separate financial information is available and that is regularly reviewed by the Chief Operating Decision Maker (“CODM”) in deciding how to allocate resources to an individual segment and in assessing performance. During the three and nine months ended September 30, 2023, the Company continued to operate as a single operating and reportable segment as the CODM reviews financial information presented on a consolidated basis for the purposes of making operating decisions, allocation of resources, and evaluating financial performance. Recently Issued Accounting Pronouncements adopted In October 2021, the FASB issued ASU 2021-08, Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers , which requires entities to recognize and measure contract assets and contract liabilities acquired in a business combination in accordance with Topic 606, Revenue from Contracts with Customers, instead of fair value at the acquisition date in accordance with Topic 805. The amendments in ASU 2021-08 will result in the acquirer recording acquired contract assets and liabilities on the same basis that would have been recorded by the acquiree before the acquisition under ASC Topic 606. The amendments in ASU 2021-08 are effective for fiscal years beginning after December 15, 2022, with early adoption permitted. The Company adopted this guidance effective January 1, 2023 and it did not have an impact on the Company’s financial position, results of operations including per-share amounts, or cash flow statements.

Previously Issued Financial Sta

Previously Issued Financial Statements Correction of Immaterial Errors	9 Months Ended
	Sep. 30, 2023
Accounting Changes and Error Corrections [Abstract]
Previously Issued Financial Statements Correction of Immaterial Errors	Previously Issued Financial Statements Correction of Immaterial Errors During the preparation of the condensed consolidated financial statements for the period ended September, 30,2023, the Company identified certain immaterial errors related to $4.0M stock compensation expenses and $1.3M accrued expenses for the three and six-month ended June 30, 2023, which resulted in a net overstatement of operating expenses for the period. In accordance with Staff Accounting Bulletin No. 99, “ Materiality ,” the Company evaluated the misstatements and determined that the related impact was immaterial to the Company’s financial statements for the period ended June 30, 2023. Accordingly, the effect of correcting the immaterial errors in the condensed consolidated financial statements as applicable for the period ended June 30, 2023 is shown in the following table: Condensed Consolidated Balance Sheets As of June 30, 2023 As Previously Reported Adjustment As Adjusted Prepaid expenses and other current assets $ 6,038 $ (48) $ 5,990 Other current liabilities $ 58,339 $ (1,306) $ 57,033 Additional paid-in capital $ 1,178,290 $ (4,019) $ 1,174,271 Accumulated deficit $ (930,688) $ 5,277 $ (925,411) Total stockholders’ equity $ 247,471 $ 1,258 $ 248,729 Condensed Consolidated Statements of Operations and Comprehensive Loss Three Months Ended June 30, 2023 Six Months Ended June 30, 2023 As Previously As Previously Reported Adjustment As Adjusted Reported Adjustment As Adjusted Research and development $ 8,966 $ (941) $ 8,025 $ 17,847 $ (941) $ 16,906 Sales and marketing $ 33,085 $ (416) $ 32,669 $ 68,003 $ (416) $ 67,587 General and administrative $ 30,098 $ (4,024) $ 26,074 $ 58,168 $ (4,024) $ 54,144 Income (loss) before income taxes $ (21,977) $ 5,381 $ (16,596) $ (57,502) $ 5,381 $ (52,121) Provision for income taxes $ 10 $ 104 $ 114 $ 79 $ 104 $ 183 Net income (loss) $ (21,987) $ 5,277 $ (16,710) $ (57,581) $ 5,277 $ (52,304) Three Months Ended June 30, 2023 Six Months Ended June 30, 2023 As Previously As Previously Reported As Adjusted Reported As Adjusted Numerator: Net loss – basic and diluted $ (21,987) $ (16,710) $ (57,581) $ (52,304) Denominator: Weighted average common shares outstanding – basic and diluted 20,990,780 21,143,257 20,939,723 21,109,886 Net loss per share attributable to common stockholders – basic and diluted $ (1.05) $ (0.79) $ (2.75) $ (2.48)

Spin-Off Transaction

Spin-Off Transaction	9 Months Ended
	Sep. 30, 2023
Equity [Abstract]
Spin-Off Transaction	Spin-Off Transaction On August 31, 2023, in order to more directly incentivize the key employees of the Company’s subsidiary, Aarki, Inc. (“Aarki”), the Company made the determination to allow certain key employees of Aarki to receive equity awards in Aarki. On a fully diluted basis, the awards would represent approximately 20% of the ownership of Aarki. As of September 30, 2023 and November 8, 2023, no awards have been granted in connection with the foregoing and the Company continues to consolidate Aarki in its consolidated financial statements. In connection with the spin-off transaction, the Company is also investing $5,000,000 in the form of Series A Preferred Stock of Aarki to properly allocate working capital to the business. The Company does not intend to grant any future Skillz equity awards to any Aarki employees, and all unvested Skillz equity awards have been surrendered by Aarki employees. The Company recognized $3.3 million of stock compensation expense in connection with acceleration of these awards. In connection with the foregoing, Aarki is also being designated as an unrestricted subsidiary under the indenture governing the Company’s 10.250% Secured Notes due 2026.

Balance Sheet Components

Balance Sheet Components	9 Months Ended
	Sep. 30, 2023
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
Balance Sheet Components	Balance Sheet Components Note Receivable Note receivable included in other long-term assets on the consolidated balance sheets consisted of the following as of September 30, 2023 and December 31, 2022: September 30, December 31, 2023 2022 Note receivable $ 2,000 $ — Note receivable $ 2,000 $ — On July 7, 2023, the Company entered into a Loan and Security Agreement (together, the “Credit Agreement”) whereby it would lend approximately $2 million to Big Run Studio. The designated rate on the credit facility is 11.5%, with interest for the first six months being paid, at Big Run’s option each month, (1) in cash or (2) in-kind and compounded monthly to the principal. The interest-only period may be extended by six months upon mutual written agreement between Big Run and Skillz. After the interest-only period, principal and interest shall be payable monthly in equal installments. The default rate is 16.5% per annum. Late charges will be assessed at 5% of the payment amount overdue if not paid within five six six For the nine months ended September 30, 2023, the company recognized $0.1 million of interest income. Prepaid Expenses and Other Current Assets Prepaid expenses and other current assets consisted of the following as of September 30, 2023 and December 31, 2022: September 30, December 31, 2023 2022 Credit card processing reserve $ 1,000 $ 1,000 Prepaid expenses 4,483 2,234 Other current assets 792 1,488 Prepaid expenses and other current assets $ 6,275 $ 4,722 Property, Plant and Equipment, Net Property, plant and equipment consisted of the following as of September 30, 2023 and December 31, 2022: September 30, December 31, 2023 2022 Land $ 980 $ — Building 10,541 — Capitalized internal-use software 9,126 9,126 Computer equipment and servers 1,424 1,291 Furniture and fixtures 278 278 Leasehold improvements 115 114 Construction in progress 945 — Finance lease right-of-use assets — 10 Total property, plant and equipment 23,409 10,819 Less: Accumulated Depreciation 9,597 7,828 Property, plant and equipment, net $ 13,812 $ 2,991 Other Current Liabilities Other current liabilities consisted of the following as of September 30, 2023 and December 31, 2022: September 30, December 31, 2023 2022 Accrued sales and marketing expenses $ 3,728 $ 4,409 Accrued compensation 8,374 4,991 Accrued publisher fees 2,437 4,442 End-user liability, net 6,163 8,984 Accrued developer revenue share 1,639 2,017 Short-term lease obligation 890 1,525 Accrued legal expenses 5,249 1,984 Contingent liabilities 7,109 — Accrued interest expense 3,877 1,236 Indirect tax liabilities 11,908 10,909 Other accrued expenses 9,560 5,169 Other current liabilities $ 60,934 $ 45,666

Fair Value Measurements

Fair Value Measurements	9 Months Ended
	Sep. 30, 2023
Fair Value Disclosures [Abstract]
Fair Value Measurements	Fair Value Measurements As of September 30, 2023 and December 31, 2022, 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, 2023 and December 31, 2022 were $330.2 million and $362.5 million, respectively, and were comprised of cash on hand, money market funds, and highly liquid investments with original contractual maturity dates of three months or less. Cash and money market funds are classified within Level 1 of the fair value hierarchy. Highly liquid investments such as commercial papers and corporate bonds are classified within Level 2 of the fair value hierarchy. The following table presents the Company’s assets and liabilities that are measured at fair value on a recurring basis as of September 30, 2023 and December 31, 2022: As of September 30, 2023 Level 1 Level 2 Level 3 Total Assets: Cash Equivalents: Money market funds $ 308,210 $ — $ — 308,210 Available-for-Sale Investments: Asset-backed securities $ — $ 2,058 $ — $ 2,058 Corporate notes and bonds — 4,800 — 4,800 Total assets $ 308,210 $ 6,858 $ — $ 315,068 Liabilities: Private Common Stock Warrants $ — $ — $ 11 $ 11 Total liabilities $ — $ — $ 11 $ 11 As of December 31, 2022 Level 1 Level 2 Level 3 Total Assets: Cash Equivalents: Money market funds $ 232,448 $ — $ — $ 232,448 Available-for-Sale Investments: Asset-backed securities $ — $ 58,192 $ — $ 58,192 Corporate notes and bonds — 110,298 — 110,298 Commercial paper — 10,479 — 10,479 Foreign government securities — 5,027 — 5,027 US government and agency securities 86,898 — — 86,898 Total assets $ 319,346 $ 183,996 $ — $ 503,342 Liabilities: Private Common Stock Warrants $ — $ — $ 289 $ 289 Total liabilities $ — $ — $ 289 $ 289 Available-for-Sale Investments Available-for-sale investments were classified within Level 1 or Level 2 because the Company’s use quoted market prices or alternative pricing sources and models utilizing market observable inputs to determine their fair value. The market values of Level 2 investments are determined based on observable inputs for the securities other than quoted prices, such as interest rates, yield curves, and credit spreads, or quoted prices for identical or similar securities in markets that are not considered active. There were no transfers between levels during the periods presented. Private Common Stock Warrants The Private Warrants were classified within Level 3 as they were valued based on a Black-Scholes 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. The following sets forth the activity for Private Warrants: Private Warrants Balance at December 31, 2022 $ 289 Fair market value adjustment (278) Balance at September 30, 2023 $ 11

Investments

Investments	9 Months Ended
	Sep. 30, 2023
Investments, Debt and Equity Securities [Abstract]
Investments	Investments Investment Components The components of investments were as follows: As of September 30, 2023 Adjusted Cost Basis Unrealized Gains Unrealized Losses Fair Value Cash and Cash Equivalents Marketable Securities - Marketable Securities - Asset-backed securities $ 2,079 $ — $ (21) $ 2,058 $ — $ — $ 2,058 Corporate notes and bonds 4,816 — (16) 4,800 — 4,800 — Money market funds 308,210 — — 308,210 308,210 — — Total investments $ 315,105 $ — $ (37) $ 315,068 $ 308,210 $ 4,800 $ 2,058 As of December 31, 2022 Adjusted Cost Basis Unrealized Gains Unrealized Losses Fair Value Cash and Cash Equivalents Marketable Securities - Marketable Securities - Asset-backed securities $ 58,455 $ 1 $ (264) $ 58,192 $ — $ 1,464 $ 56,728 Corporate notes and bonds 111,592 — (1,294) 110,298 — 110,298 — Commercial paper 10,477 2 — 10,479 — 10,479 — Money market funds 232,448 — — 232,448 232,448 — Foreign government securities 5,064 — (37) 5,027 — 5,027 — US government and agency securities 86,869 29 — 86,898 86,898 — — Total investments $ 504,905 $ 32 $ (1,595) $ 503,342 $ 319,346 $ 127,268 $ 56,728 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, 2023 and December 31, 2022 and was classified within “non-marketable equity securities” in the condensed consolidated balance sheets. 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 nine months ended September 30, 2023. Unrealized Losses on Marketable Securities Marketable securities with continuous unrealized losses for less than 12 months and 12 months or more and their related fair values were as follows: As of September 30, 2023 Less than 12 Months 12 Months or more Total Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Asset-backed securities $ — $ — $ 2,058 $ (21) $ 2,058 $ (21) Corporate notes and bonds — — 4,800 (16) 4,800 (16) Total investments $ — $ — $ 6,858 $ (37) $ 6,858 $ (37) As of December 31, 2022 Less than 12 Months 12 Months or more Total Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Asset-backed securities $ 52,412 $ (229) $ 4,656 $ (35) $ 57,068 $ (264) Corporate notes and bonds 55,864 (571) 54,434 (723) 110,298 (1,294) Foreign government securities — — 5,027 (37) 5,027 (37) Total investments $ 108,276 $ (800) $ 64,117 $ (795) $ 172,393 $ (1,595) Marketable Securities Maturities Adjusted Estimated Cost Basis Fair Value September 30, 2023 Due in one year or less $ 4,816 $ 4,800 Due after one year through five years 2,079 2,058 Due after five years through ten years — — Total $ 6,895 $ 6,858

Long-Term Debt

Long-Term Debt	9 Months Ended
	Sep. 30, 2023
Debt Disclosure [Abstract]
Long-Term Debt	Long-Term Debt Components of long-term debt were as follows as of September 30, 2023 and December 31, 2022: September 30, December 31, 2023 2022 2021 Senior Secured Notes, non-current $ 129,671 $ 289,500 Unamortized discount and issuance costs (6,136) (16,719) Long-term debt, non-current $ 123,535 $ 272,781 2021 Senior Secured Notes In December 2021, the Company entered into a $300 million of 10.25% secured notes in a private placement to certain institutional buyers. The interest is payable semiannually on June 15 and December 15 of each year, beginning on June 15, 2022. At issuance, the effective interest rate on the notes was 12.14%. The notes will mature on December 15, 2026, unless repurchased or redeemed earlier. On September 1, 2022, the Company repurchased $10.5 million of the principal amount of the 2021 Senior Secured Notes at 69.5% for $7.3 million plus accrued interest of $0.2 million. This resulted in a gain on extinguishment of debt of $2.6 million as the notes were redeemed for total consideration below par value of the notes as well as the write-off of unamortized debt issuance costs and discounts. On April 13, 2023, the Company’s repurchased approximately $159.8 million of its senior secured notes. In connection with the repurchase, the Company’s recognized a gain on extinguishment of $15.2 million on the consolidated statements of operations. The gain primarily reflected the payment discounts as the notes were redeemed for total consideration below the notes par value of the notes as well as the write-off of unamortized debt issuance costs and discounts. After giving effect to the 2022 and the 2023 open market repurchases, as of September 30, 2023, $129.7 million of the senior secured notes remained outstanding and the effective interest rate is 12.09%. The secured notes contain customary covenants restricting the Company’s ability to incur debt, incur liens, make distributions to stockholders, make certain transactions with our affiliates, as well as certain other financial covenants. Aarki, Inc. “Aarki” incorporated as a separate legal entity effective September 1, 2023 through a spinoff transaction and was designated as an unrestricted subsidiary under the indenture governing by this secured notes. The Company was in compliance with all covenants as of September 30, 2023. In accounting for the senior secured notes, unamortized discount and issuance costs were deducted from the carrying value in the condensed consolidated balance sheets. Issuance costs was recognized as interest expense over the five-year term of the senior secured notes. The senior secured notes are classified as Level 2 financial instruments, and its fair value is presented for disclosure purposes only. The Company determined the fair value of the notes was $105.7 million as of September 30, 2023 based on secondary market quotes. Interest is paid semi-annually. Accrued interest as of September 30, 2023 was $3.9 million and was recorded within other current liabilities in the Company’s condensed consolidated balance sheets. The following table outlines maturities of the principle related to the Company’s long-term debt as of September 30, 2023: Amount 2023 (excluding the nine months ended September 30, 2023) $ — 2024 — 2025 — 2026 129,671 Total $ 129,671

Commitments and Contingencies

Commitments and Contingencies	9 Months Ended
	Sep. 30, 2023
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 its 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, other than as disclosed herein, 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, 2023. 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 the San Francisco Superior Court in California for claims including breach of contract, retaliation and wrongful termination. The case was tried in August and September 2021. The jury found in favor of the former employee and rendered a verdict against the Company for $11.6 million in compensatory damages, and the Company recorded a loss contingency accrual of $7.1 million and corresponding general and administrative expenses in such amount in the third quarter of 2021. In April 2022, the judge in the case determined, in light of the Company’s post-verdict motions, that the instructions given to the jury at trial were defective. Accordingly, the judge ordered a new trial on damages or, alternatively, permitted the plaintiff accept a reduced verdict in the amount of $4.35 million, which the plaintiff subsequently levied from the Company’s bank account. On May 25, 2022, the Company filed an appeal from the judgment seeking, in part, entry of judgment in the Company's favor notwithstanding the verdict. The plaintiff accepted the reduced verdict, and filed an appeal from the judgment on June 7, 2022, seeking in part, to reinstate the jury's original verdict (or an award less than the original verdict but greater than $4.35 million final judgment) and challenge the trial court’s conclusion that stock options are not “wages,” which was the basis for dismissing his wrongful termination and retaliation claims. Skillz filed its response and reply brief on July 7, 2023. After multiple extensions, the former employee filed a reply brief on October 6, 2023, which was limited to only his cross-appeal and did not raise any new request for relief. Management believes that this dispute will be resolved by the end of 2024 ca

Stockholders' Equity

Stockholders' Equity	9 Months Ended
	Sep. 30, 2023
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, except 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, 2023, after giving effect to the reverse stock split described below, the Company has authorized a total of 41 million shares, consisting of (i) 31 million shares of common stock, par value $0.0001 per share (“common stock”), including 25 million shares of Class A common stock, par value $0.0001 per share (“Class A common stock”), 6 million shares of Class B common stock, par value $0.0001 per share (“Class B common stock”), and (ii) 10 million shares of preferred stock, par value 0.0001 per share (“preferred stock”). Reverse Stock Split On June 23, 2023, the Company’s effectuated the one-for twenty reverse stock split of its issued and outstanding shares of Common Stock. As a result of the reverse stock split, every 20 shares of issued and outstanding Common Stock were combined and converted into one issued and outstanding share of Common Stock, and the number of authorized shares of Common Stock was reduced proportionately. The par value per share of Common Stock remains unchanged. The Company’s Class A Common Stock began trading on a split-adjusted basis on the NYSE at market open on June 26, 2023. All share and per-share amounts have been retrospectively adjusted to reflect the impact of the reverse stock split.

Stock-Based Compensation

Stock-Based Compensation	9 Months Ended
	Sep. 30, 2023
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, 2023 and 2022 as follows: Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Research and development $ 1,415 $ (2,088) $ 3,581 $ 3,063 Sales and marketing 2,482 2,125 6,478 6,579 General and administrative 8,543 6,021 23,551 87,726 Total stock-based compensation expense (1) $ 12,440 $ 6,058 $ 33,610 $ 97,368 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 F lying Eagle Acquisition Corporation, a Delaware corporation (“ FEAC”) 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. RSUs are also granted under the 2020 Plan. These awards typically have a cliff vesting period of one year and continue to vest quarterly thereafter. The 2020 Plan also permits the Company to grant stock-based awards with performance or market conditions. In connection with the closing of the FEAC 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 5,392,022 shares of common stock pursuant to awards issued under the 2020 Plan, consisting of 750,000 shares which may be of Class A and/or Class B common stock, 3,694,871 shares of Class A common stock and 947,151 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 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, 2023 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, 2022 1,422,876 812,293 $ 263.00 7.27 $ 1,145 2,505,328 $ 24.60 Additional shares authorized 1,053,433 — — Granted (1,089,831) — — 1,089,831 11.13 Exercised/Vested — (95,911) 1.53 (292,505) 38.01 Cancelled/Forfeited/Expired 625,955 (11,067) 27.68 (614,888) 28.12 Balance at September 30, 2023 2,012,433 705,315 $ 302.25 7.14 $ 68 2,687,766 $ 14.69 Exercisable at September 30, 2023 101,001 9.24 5.23 67 Unvested at September 30, 2023 604,314 351.22 7.46 1 The number of RSUs granted and outstanding does not include 0.8 million performance-based RSUs which the Company issued as of September 30, 2023, as the performance-based RSUs are not deemed granted for accounting purposes because the performance-based RSUs are subjected to the further approval on the performance criteria. Additionally, the stock option and RSU activity presented in the table above does not include activity related to the 2022 CFO Restricted Stock Unit and Performance award, 2022 CEO Restricted Stock Unit and Performance Award, 2021 CEO Performance Award and Founders' Option Agreements, described below. As of September 30, 2023, unrecognized stock-based compensation expense related to unvested stock options, restricted common stock, RSUs, performance-based RSUs and performance stock units was $78.7 million. The weighted-average period over which such compensation expense will be recognized is 2.75 years . The aggregate intrinsic value of options exercised was $0.78 million and $0.7 million during the three months ended September 30, 2023 and 2022, respectively, and $0.82 million and $15.9 million during the nine months ended September 30, 2023 and 2022, respectively. 2022 CFO Restricted Stock Unit and Performance Award The Company granted the Company’s President and Chief Financial Officer (“CFO”) a restricted stock unit award covering shares of the Class A common stock with a grant date value equal to $15.0 million, comprised of 0.5 million restricted stock units. Such grant vests 25% on the first anniversary of CFO’s start date and the remainder vests in 12 substantially equal quarterly installments, in each case subject to continuous service with the Company through each applicable vesting date, provided that the grant vests in full if the CFO is terminated without cause following a change of control of the Company. On September 30, 2022, the number of shares became fixed, as such the restricted stock unit award was re-measured based on the fair value of an underlying share of the Class A common stock, which was equal to $10.7 million, and the Company then reclassified the liability classified award to additional paid-in capital. During the three and nine months ended September 30, 2023, the Company recognized $0.7 million and $2.0 million, respectively, in compensation expense related to this grant. As of September 30, 2023, the unrecognized stock-based compensation cost related to the non-vested CFO restricted stock unit award was $7.6 million. The Company expects this cost to be recognized over a remaining weighted-average period of approximately 3 years. In addition, the Company issued to the CFO a performance stock unit award covering shares of the Class A common stock with a fair value of $5.0 million as of the issuance date, comprised of 0.2 million performance stock units. Such award vests over four one-year periods, with pro-rata vesting for the first and last performance periods, in each case subject to continuous service with the Company through each applicable vesting date and the attainment of certain corporate performance goals. The Company did not award any performance stock units for the year ended 2022. As of September 30, 2023, the award was not considered granted for accounting purposes because the performance-based units are subjected to the further approval on the performance criteria. 2022 CEO Restricted Stock Unit and Performance Award The Company granted the Company’s Chief Executive Officer (“CEO”) a restricted stock unit award covering shares of the Class A common stock with a grant date value equal to $25.9 million, comprised of 1.4 million restricted stock units. Such grant vests 25% on the first anniversary of January 1, 2023 and the remainder vests in 12 substantially equal quarterly installments, in each case subject to continuous service with the Company through each applicable vesting date, provided that the grant vests in full if the CEO is terminated without cause following a change of control of the Company. During the three and nine months ended September 30, 2023, the Company recognized $0.9 million and $2.7 million, respectively, in compensation expense related to this grant. As of September 30, 2023, the unrecognized stock-based compensation cost related to the non-vested CEO restricted stock unit award was $11.5 million. The Company expects this cost to be recognized over a remaining weighted-average period of approximately 3.23 years. In addition, the Company issued to the CEO a performance stock unit award covering shares of the Class A common stock with a fair value of $8.6 million as of the issuance date, comprised of 0.5 million performance stock units. Such award vests over four one-year periods, in each case subject to continuous service with the Company through each applicable vesting date and the attainment of certain corporate performance goals. The Company did not award any performance stock units for the year ended 2022. As of September 30, 2023, the award was not considered granted for accounting purposes because the performance-based units are subjected to the further approval on the performance criteria. 2021 CEO Performance Award In September 2021, the Company granted the CEO, an award of up to 0.8 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 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 performance stock units were 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 vested 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 was 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. The Company’s market capitalization baseline was 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 $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. On March 14, 2022 (“cancellation date”), the Board of Directors and the CEO, entered into an agreement to cancel this CEO Performance Award. The Company determined that the cancellation of the CEO Performance Award was a settlement for no consideration and not accompanied by a concurrent grant (or offer to grant) of a replacement award. As a result, the Company recorded the remaining unrecognized compensation costs related to the CEO Performance Award of $65.1 million during three months ended March 31, 2022. Founders’ Option Agreements In December 2020, the Company entered into option agreements with each of the CEO and Chief Strategy Officer (“CSO”) (the “Option Agreements”) awarding options to purchase (i) 498,000 shares of Class B common stock to the CEO and (ii) 102,000 shares of Class A common stock to the CSO with an exercise price of $353.60. The options will vest in three equal increments as follows (i) one-third (1/3) of the options shall vest and become exercisable as of the date, following the grant date, that the volume weighted average price on the NYSE over a ten (10) trading day period of underlying Class A common stock (“VWAP”) equals or exceeds 3.0x the VWAP of the shares as of the Closing Date (as defined in the Options Agreements), (ii) one-third (1/3) of the options shall vest and become exercisable as of the date, following the grant date, that the VWAP of the shares equals or exceeds 4.0x the VWAP of the shares as of the Closing Date; and (iii) one-third (1/3) of the options shall vest and become exercisable as of the date, following the grant date, that the VWAP of the shares equals or exceeds 5.0x the VWAP of the shares as of the Closing Date. The $93.4 million grant date fair value of the Founders’ Options was estimated using a model based on multiple stock price paths developed through the use of a Monte Carlo simulation that incorporates into the valuation the possibility that the market condition targets may not be satisfied. The significant inputs to the valuation included the Class A stock price and the risk-free interest rate as of the grant date, as well as the estimated volatility of the Class A common stock. For the three and nine months ended September 30, 2023 and 2022, the Company recognized $4.9 million and $14.5 million, respectively, in compensation expense related to these grants. As of September 30, 2023, the unrecognized stock-based compensation cost related to the Option Agreements was $39.2 million.

Income Taxes

Income Taxes	9 Months Ended
	Sep. 30, 2023
Income Tax Disclosure [Abstract]
Income Taxes	Income TaxesThe Company’s provision for (benefit from) income taxes was $0.01 million and $(0.12) million for the three months ended September 30, 2023 and 2022, respectively. This represents an effective tax rate for the respective periods of (0.03)% and 0.14%. The Company’s provision for (benefit from) income taxes was $0.2 million and $(0.5) million for the nine months ended September 30, 2023 and 2022, respectively. This represents an effective tax rate for the respective periods of (0.23)% and 0.16%. The Company has historically been in an overall loss position and is only subject to state and foreign taxes. The Company maintains a valuation allowance for substantially all of its net deferred tax assets. The effective tax rate differs from the federal statutory rate due to the valuation allowance, as well as due to foreign taxes and state taxes.

Related-Party Transactions

Related-Party Transactions	9 Months Ended
	Sep. 30, 2023
Related Party Transactions [Abstract]
Related-Party Transactions	Related-Party Transactions The Company did not have any material related party transactions in the nine months ended September 30, 2023.

Net Loss Per Share

Net Loss Per Share	9 Months Ended
	Sep. 30, 2023
Earnings Per Share [Abstract]
Net Loss Per Share	Net Loss Per ShareThe Company computes net loss per share of the Class A common stock and Class B common stock using the two-class method required for participating securities. Basic and diluted loss per share 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 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, 2023 2022 2023 2022 Numerator: Net loss – basic and diluted $ (33,545) $ (83,225) $ (85,848) $ (295,400) Denominator: Weighted average common shares outstanding – basic and diluted 21,305,470 20,691,704 21,175,797 20,396,317 Net loss per share attributable to common stockholders – basic and diluted $ (1.57) $ (4.02) $ (4.05) $ (14.48) The following outstanding common stock equivalents were considered antidilutive, and therefore, excluded from the computation of diluted net loss per share attributable to common stockholders for the periods presented (share numbers are not in thousands). As of September 30, 2023 2022 Common stock warrants 226,786 226,786 Common stock options 705,315 1,102,048 Restricted stock units 2,687,766 475,631 Total 3,619,867 1,804,465

Geographical Information

Geographical Information	9 Months Ended
	Sep. 30, 2023
Segment Reporting [Abstract]
Geographical Information	Geographical Information No sales to a country other than the United States accounted for more than 10% of revenue for the three and nine months ended September 30, 2023 or 2022. Revenue, classified by the major geographic areas where the end users were located when they entered paid competitions, was as follows: Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 United States $ 30,853 $ 46,988 $ 101,866 $ 168,692 Other countries 5,574 12,228 19,109 54,145 Total $ 36,427 $ 59,216 $ 120,975 $ 222,837 Property and equipment, net and operating lease right-of-use assets by geography was as follows: September 30, December 31, 2023 2022 United States $ 13,425 $ 3,058 Other countries 387 405 Total $ 13,812 $ 3,463

Subsequent Events

Subsequent Events	9 Months Ended
	Sep. 30, 2023
Subsequent Events [Abstract]
Subsequent Events	Subsequent EventsOn August 18, 2023, the Board has determined that it is advisable and in the best interests of the Company and its stockholders to authorize the Company to repurchase, at any time or from time to time but for a period no longer than one year from the date hereof, shares of the Company’s Class A common stock, par value $0.0001 per share (the “Common Stock”), having an aggregate purchase price not to exceed $65.0 million (a) on the New York Stock Exchange (the “NYSE”) or any other national securities exchange on which the Common Stock is then traded, (b) pursuant to a plan effected pursuant to Rule 10b5-1 (a “Rule 10b5-1 Plan”) promulgated under the Exchange Act, and/or (c) pursuant to accelerated share repurchase arrangements, tender offers, privately negotiated transactions or otherwise (the “Share Repurchase Program”).As of November 7, 2023 the Company has repurchased 1,156,693 shares of its common stock at an average price of $5.21/share for a total cost (including commission) of $6,055,173.

Summary of Significant Accoun_2

Summary of Significant Accounting Policies (Policies)	9 Months Ended
	Sep. 30, 2023
Accounting Policies [Abstract]
Basis of Presentation And Unaudited Interim Financial Statements	Basis of PresentationThe 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”). 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 nine months ended September 30, 2023 are not necessarily indicative of the results that may be expected for the year ending December 31, 2023. 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 for the fiscal year ended December 31, 2022, as filed with the SEC on March 31, 2023.
Consolidation	Consolidation The Company consolidates the variable interest entity due to controlling financial interest and when the Company is the primary beneficiary. All intercompany balances and transactions have been eliminated in consolidation.
Use of Estimates	Use of Estimates The preparation of condensed consolidated financial statements in conformity with U.S. GAAP requires management to make certain estimates, judgments, and assumptions that affect the reported amounts of assets and liabilities and the related disclosures at the date of the consolidated financial statements, as well as the reported amounts of revenues and expenses during the periods presented. Estimates are used in several areas including, but not limited to, end user incentive program, stock-based compensation, valuation of common stock warrants and indirect tax liabilities. 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 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. Entry fees used to enter paid competitions can include net cash deposits, cash from prior winnings, and end-user incentives. The game developers earn revenue share from monthly net cash deposits received from end-users, calculated based on paid entry fees attributable to their games as a percentage of total entry fees. End-user incentives are not paid for by game developers. In addition, the Company accounts for end-user incentives either as a reduction of revenue or as sales and marketing expense as noted below. 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 the amounts withheld by the Company is not subject to significant judgment. Certain of the Company’s larger developer agreements provide the Company with the right to receive additional consideration from the game developer related to user acquisition costs incurred by the Company to provide its Monetization Services. The amount and timing of the additional consideration the Company expects to receive is uncertain and based on the future performance of the respective developer’s games. The Company has not included these amounts of additional consideration in the transaction price related to its Monetization Services as it is not probable that a significant reversal of cumulative revenue recognized related to these amounts will not occur. 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 recognize 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 the Company’s 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 did not have any transaction price allocated to performance obligations that are unsatisfied (or partially satisfied) as of September 30, 2023 and 2022. Games provided by two developer partners accounted for 81% and 80% of the Company’s revenue from Monetization Services in the three months ended September 30, 2023 and 2022, respectively. Games provided by two developer partners accounted for 80% and 80% in the nine months ended September 30, 2023 and 2022, 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. The Company’s primary end-user incentive is Bonus Cash (“Bonus Cash”), which is a promotional incentive that cannot be withdrawn and can only be used by end-users to enter into paid-entry fee contests. Bonus Cash used as entry fees for paid competitions can include newly issued Bonus Cash and/or Bonus Cash that had been returned from prior winnings to an end-user. The Company recognizes the entire cost of Bonus Cash as a sales and marketing expense or a reduction of revenue (as discussed below) only when the Bonus Cash is lost in a competition, as that is the point at which the Company incurs the cost of the Bonus Cash and when revenue is recognized from such Bonus Cash. When Bonus Cash used as entry fees for a paid competition is returned to an end-user as winnings, the Company does not record a sales and marketing expense or a reduction of revenue for such Bonus Cash. Further, if the Bonus Cash is returned to an end-user and is used to enter subsequent competitions and the end-user continues to win, the Company does not record any sales and marketing expense or a reduction of revenue each time the Bonus Cash is returned to the winning end-user. • 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. 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 until it is won by another end-user. For the three months ended September 30, 2023 and 2022, the Company recognized a reduction of revenue of $6.7 million and $10.9 million, respectively, related to these end-user incentives. For the nine months ended September 30, 2023 and 2022, the Company recognized a reduction of revenue of $21.9 million and $40.4 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, 2023 and 2022, the Company recognized sales and marketing expense of $15.5 million and $21.4 million, respectively, related to these end-user incentives. For the nine months ended September 30, 2023 and 2022, the Company recognized sales and marketing expense of $48.1 million and $87.2 million, respectively, related to these end-user incentives. 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. Total engagement marketing accounted for as sales and marketing expense recognized in the three months ended September 30, 2023 and 2022 was $16.9 million and $23.5 million, respectively. Total engagement marketing accounted for as sales and marketing expense recognized in the nine months ended September 30, 2023 and 2022 was $51.6 million and $97.6 million, respectively.
Cost of Revenue	Cost of Revenue Cost of revenue primarily comprises of third-party payment processing fees, server costs, amortization of developed technology, personnel expenses, direct software costs, amortization of internal use software, hosting expenses, and allocation of shared facility and other costs.
Cash, Cash Equivalents and Restricted Cash	Cash, Cash Equivalents and Restricted Cash Cash and cash equivalents consist of cash, commercial paper, money market funds and U.S government agency securities with maturities of three months or less when purchased.
Concentrations of Credit Risk	Concentrations of Credit Risk Financial instruments that potentially subject the Company to significant concentrations of credit risk consist of cash, cash equivalents, restricted cash, and marketable securities. Although the Company deposits its cash with multiple well-established financial institutions, the deposits, at times, may exceed federally insured limits. The Company has not experienced any losses on its deposits of cash and cash equivalents. Marketable securities primarily consist of corporate debt securities, asset backed securities and debt instruments issued by foreign governments. The Company limits the amount of credit exposure to any one issuer and monitors the financial condition of the financial institutions on a regular basis.
Accounts Receivable, Net	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 credit losses. The allowance for credit losses is recorded as an offset to accounts receivable and changes in such are classified as general and administrative expense in the condensed consolidated statements of operations and comprehensive loss. The Company assesses collectability by reviewing accounts receivable on a collective basis where similar characteristics exist and on an individual basis when there are specific customers with known disputes or collectability issues. In determining the amount of the allowance for credit losses, the Company considers historical collectability based on past due status and makes judgments about the creditworthiness of customers based on ongoing credit evaluations. The Company also considers customer-specific information, current market conditions and reasonable and
Fair Value Measurement	Fair Value Measurement The Company applies fair value accounting for 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. Certain financial instruments, including debt, are not measured at fair value on a recurring basis in the consolidated balance sheets. The fair value of debt was estimated using primarily level 2 inputs, including quoted market prices or present value of future payments discounted by the market interest rates or the fixed rates based on current rates offered to the Company for debt with similar terms and maturities.
Long-Lived Assets	Long-Lived Assets Long-lived assets consist of property and equipment with estimable useful lives subject to depreciation and amortization. The Company reviews long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset or asset group may not be recoverable. When impairment indicators are identified, the Company assesses its long-lived assets for impairment. Recoverability of an asset or asset group to be held and used is measured by a comparison of the carrying amount of an asset or asset group to the estimated undiscounted future cash flows expected to be generated by the asset or asset group. If the carrying amount of the 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. On March 15, 2023, the Company completed the purchase of an office building in Las Vegas, Nevada for $11.5 million, with $10.5 million and $1.0 million allocated to building and land components, respectively. The Company intends to use the building as the Company’s future headquarters. The building will be depreciated on a straight-line basis over its estimated useful life of 39 years. The land is not subject to depreciation. During the nine months ended September 30, 2022, the Company recognized $11.3 million of amortization expense associated with finite-lived intangible assets, including developed technology, customer relationships, trademarks and tradenames, in the condensed consolidated statements of operations and comprehensive loss. As these finite-lived intangible assets were fully impaired and written off as of December 31, 2022, the Company did not recognize amortization expense during the nine months ended September 30, 2023.
Investments	Investments The Company considers all highly liquid interest-earning investments with a maturity of three months or less at the date of purchase to be cash equivalents. The fair values of these investments approximate their carrying values. In general, investments with original maturities of greater than three months and remaining maturities of less than one year are classified as short-term investments. Investments with maturities beyond one year are classified as non-current marketable securities. Dividend and interest income are recognized when earned. Marketable securities are classified as available-for-sale and realized gains and losses are recorded using the specific identification method. Changes in fair value, excluding credit losses and impairments, are recorded in other comprehensive income (loss) in the consolidated statements of operations and comprehensive loss. Fair value is calculated based on publicly available market information or other estimates determined by management. If the cost of an investment exceeds its fair value, the Company evaluates, among other factors, general market conditions, credit quality of debt instrument issuers, and the extent to which the fair value is less than cost. To determine credit losses, the Company employs a systematic methodology that considers available quantitative and qualitative evidence. In addition, the Company considers specific adverse conditions related to the financial health of, and business outlook for, the investee. If the Company plans to sell the security or it is more likely than not that the Company will be required to sell the security before recovery, then a decline in fair value below cost is recorded as an impairment charge in other income (expense), net in the condensed consolidated statements of operations and comprehensive loss and a new cost basis in the investment is established. If market, industry, and/or investee conditions deteriorate, the Company may incur future impairments. 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 and would be measured at fair value. 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 condensed consolidated statements of operations and comprehensive loss 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 condensed consolidated statements of operations and comprehensive loss. The Company separately presents investments in non-marketable equity securities within long-term assets on the condensed consolidated balance sheets.
Advertising and Promotional Expense	Advertising and Promotional ExpenseAdvertising and promotional expenses are included in sales and marketing expenses within the condensed consolidated statements of operations and comprehensive loss and are expensed when incurred. Excluding marketing promotions related to the Company’s end-user incentive programs,
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, Stock-Based Compensation, for more information. The Company accounts for forfeitures as they occur. If an employee stock-based award is canceled without the concurrent grant or offer of a replacement award, the cancellation is treated as a settlement for no consideration and any previously unrecognized compensation cost shall be recognized at the cancellation date. Stock-based awards granted to employees are primarily stock options and restricted stock units. The Company has primarily granted restricted stock units (“RSUs”), which have a service-based (and in certain circumstances, performance-based) vesting condition over a four-year period, to its employees and members of the Board of Directors since the start of 2021. The Board of Directors determines the fair value of each share of underlying common stock based on the closing price of the Company's common stock on the date of the grant. 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 Company’s limited market trading history, it has estimated the volatility of its common stock on the date of grant of awards with market conditions based on the weighted average historical stock price volatility of comparable publicly-traded companies in its industry group. The Company estimated the expected term of its awards with market conditions based on various exercise scenarios, as these awards are not considered “plain vanilla.” The Company utilized a risk-free interest rate based on the U.S. Treasury yield curve in effect at the time of grant. The Company estimated the expected date of a qualifying event, the expected capital raise percentage and the expected achievement date of market capitalization milestones based on management’s expectations at the time of measurement of the award’s value.
Segments	Segments Operating segments are defined as components of an entity for which separate financial information is available and that is regularly reviewed by the Chief Operating Decision Maker (“CODM”) in deciding how to allocate resources to an individual segment and in assessing performance. During the three and nine months ended September 30, 2023, the Company continued to operate as a single operating and reportable segment as the CODM reviews financial information presented on a consolidated basis for the purposes of making operating decisions, allocation of resources, and evaluating financial performance.
Recently Issued Accounting Pronouncements adopted	Recently Issued Accounting Pronouncements adopted In October 2021, the FASB issued ASU 2021-08, Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers , which requires entities to recognize and measure contract assets and contract liabilities acquired in a business combination in accordance with Topic 606, Revenue from Contracts with Customers, instead of fair value at the acquisition date in accordance with Topic 805. The amendments in ASU 2021-08 will result in the acquirer recording acquired contract assets and liabilities on the same basis that would have been recorded by the acquiree before the acquisition under ASC Topic 606. The amendments in ASU 2021-08 are effective for fiscal years beginning after December 15, 2022, with early adoption permitted. The Company adopted this guidance effective January 1, 2023 and it did not have an impact on the Company’s financial position, results of operations including per-share amounts, or cash flow statements.

Summary of Significant Accoun_3

Summary of Significant Accounting Policies (Tables)	9 Months Ended
	Sep. 30, 2023
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 sheets to cash, cash equivalents and restricted cash in the condensed consolidated statements of cash flows is as follows: September 30, December 31, 2023 2022 Cash $ 21,948 $ 130,068 Money market funds 308,210 232,448 Restricted cash included in other long-term assets 2,920 2,920 Cash, cash equivalents and restricted cash $ 333,078 $ 365,436
Schedule of Cash, Cash Equivalents and Restricted Cash	A reconciliation of the Company’s cash and cash equivalents in the condensed consolidated balance sheets to cash, cash equivalents and restricted cash in the condensed consolidated statements of cash flows is as follows: September 30, December 31, 2023 2022 Cash $ 21,948 $ 130,068 Money market funds 308,210 232,448 Restricted cash included in other long-term assets 2,920 2,920 Cash, cash equivalents and restricted cash $ 333,078 $ 365,436

Previously Issued Financial S_2

Previously Issued Financial Statements Correction of Immaterial Errors (Tables)	9 Months Ended
	Sep. 30, 2023
Accounting Changes and Error Corrections [Abstract]
Schedule of Corrections to Impacted Financial Statements	Accordingly, the effect of correcting the immaterial errors in the condensed consolidated financial statements as applicable for the period ended June 30, 2023 is shown in the following table: Condensed Consolidated Balance Sheets As of June 30, 2023 As Previously Reported Adjustment As Adjusted Prepaid expenses and other current assets $ 6,038 $ (48) $ 5,990 Other current liabilities $ 58,339 $ (1,306) $ 57,033 Additional paid-in capital $ 1,178,290 $ (4,019) $ 1,174,271 Accumulated deficit $ (930,688) $ 5,277 $ (925,411) Total stockholders’ equity $ 247,471 $ 1,258 $ 248,729 Condensed Consolidated Statements of Operations and Comprehensive Loss Three Months Ended June 30, 2023 Six Months Ended June 30, 2023 As Previously As Previously Reported Adjustment As Adjusted Reported Adjustment As Adjusted Research and development $ 8,966 $ (941) $ 8,025 $ 17,847 $ (941) $ 16,906 Sales and marketing $ 33,085 $ (416) $ 32,669 $ 68,003 $ (416) $ 67,587 General and administrative $ 30,098 $ (4,024) $ 26,074 $ 58,168 $ (4,024) $ 54,144 Income (loss) before income taxes $ (21,977) $ 5,381 $ (16,596) $ (57,502) $ 5,381 $ (52,121) Provision for income taxes $ 10 $ 104 $ 114 $ 79 $ 104 $ 183 Net income (loss) $ (21,987) $ 5,277 $ (16,710) $ (57,581) $ 5,277 $ (52,304) Three Months Ended June 30, 2023 Six Months Ended June 30, 2023 As Previously As Previously Reported As Adjusted Reported As Adjusted Numerator: Net loss – basic and diluted $ (21,987) $ (16,710) $ (57,581) $ (52,304) Denominator: Weighted average common shares outstanding – basic and diluted 20,990,780 21,143,257 20,939,723 21,109,886 Net loss per share attributable to common stockholders – basic and diluted $ (1.05) $ (0.79) $ (2.75) $ (2.48)

Balance Sheet Components (Table

Balance Sheet Components (Tables)	9 Months Ended
	Sep. 30, 2023
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
Schedule of Notes Receivable	Note receivable included in other long-term assets on the consolidated balance sheets consisted of the following as of September 30, 2023 and December 31, 2022: September 30, December 31, 2023 2022 Note receivable $ 2,000 $ — Note receivable $ 2,000 $ —
Schedule of Prepaid Expenses and Other Current Assets	Prepaid expenses and other current assets consisted of the following as of September 30, 2023 and December 31, 2022: September 30, December 31, 2023 2022 Credit card processing reserve $ 1,000 $ 1,000 Prepaid expenses 4,483 2,234 Other current assets 792 1,488 Prepaid expenses and other current assets $ 6,275 $ 4,722
Schedule of Property, Plant and Equipment, Net	Property, plant and equipment consisted of the following as of September 30, 2023 and December 31, 2022: September 30, December 31, 2023 2022 Land $ 980 $ — Building 10,541 — Capitalized internal-use software 9,126 9,126 Computer equipment and servers 1,424 1,291 Furniture and fixtures 278 278 Leasehold improvements 115 114 Construction in progress 945 — Finance lease right-of-use assets — 10 Total property, plant and equipment 23,409 10,819 Less: Accumulated Depreciation 9,597 7,828 Property, plant and equipment, net $ 13,812 $ 2,991
Schedule of Other Current Liabilities	Other current liabilities consisted of the following as of September 30, 2023 and December 31, 2022: September 30, December 31, 2023 2022 Accrued sales and marketing expenses $ 3,728 $ 4,409 Accrued compensation 8,374 4,991 Accrued publisher fees 2,437 4,442 End-user liability, net 6,163 8,984 Accrued developer revenue share 1,639 2,017 Short-term lease obligation 890 1,525 Accrued legal expenses 5,249 1,984 Contingent liabilities 7,109 — Accrued interest expense 3,877 1,236 Indirect tax liabilities 11,908 10,909 Other accrued expenses 9,560 5,169 Other current liabilities $ 60,934 $ 45,666

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	9 Months Ended
	Sep. 30, 2023
Fair Value Disclosures [Abstract]
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis	The following table presents the Company’s assets and liabilities that are measured at fair value on a recurring basis as of September 30, 2023 and December 31, 2022: As of September 30, 2023 Level 1 Level 2 Level 3 Total Assets: Cash Equivalents: Money market funds $ 308,210 $ — $ — 308,210 Available-for-Sale Investments: Asset-backed securities $ — $ 2,058 $ — $ 2,058 Corporate notes and bonds — 4,800 — 4,800 Total assets $ 308,210 $ 6,858 $ — $ 315,068 Liabilities: Private Common Stock Warrants $ — $ — $ 11 $ 11 Total liabilities $ — $ — $ 11 $ 11 As of December 31, 2022 Level 1 Level 2 Level 3 Total Assets: Cash Equivalents: Money market funds $ 232,448 $ — $ — $ 232,448 Available-for-Sale Investments: Asset-backed securities $ — $ 58,192 $ — $ 58,192 Corporate notes and bonds — 110,298 — 110,298 Commercial paper — 10,479 — 10,479 Foreign government securities — 5,027 — 5,027 US government and agency securities 86,898 — — 86,898 Total assets $ 319,346 $ 183,996 $ — $ 503,342 Liabilities: Private Common Stock Warrants $ — $ — $ 289 $ 289 Total liabilities $ — $ — $ 289 $ 289
Schedule of Reconciliation of Level 3 Liabilities	The following sets forth the activity for Private Warrants: Private Warrants Balance at December 31, 2022 $ 289 Fair market value adjustment (278) Balance at September 30, 2023 $ 11

Investments (Tables)

Investments (Tables)	9 Months Ended
	Sep. 30, 2023
Investments, Debt and Equity Securities [Abstract]
Schedule of Components of Investments	The components of investments were as follows: As of September 30, 2023 Adjusted Cost Basis Unrealized Gains Unrealized Losses Fair Value Cash and Cash Equivalents Marketable Securities - Marketable Securities - Asset-backed securities $ 2,079 $ — $ (21) $ 2,058 $ — $ — $ 2,058 Corporate notes and bonds 4,816 — (16) 4,800 — 4,800 — Money market funds 308,210 — — 308,210 308,210 — — Total investments $ 315,105 $ — $ (37) $ 315,068 $ 308,210 $ 4,800 $ 2,058 As of December 31, 2022 Adjusted Cost Basis Unrealized Gains Unrealized Losses Fair Value Cash and Cash Equivalents Marketable Securities - Marketable Securities - Asset-backed securities $ 58,455 $ 1 $ (264) $ 58,192 $ — $ 1,464 $ 56,728 Corporate notes and bonds 111,592 — (1,294) 110,298 — 110,298 — Commercial paper 10,477 2 — 10,479 — 10,479 — Money market funds 232,448 — — 232,448 232,448 — Foreign government securities 5,064 — (37) 5,027 — 5,027 — US government and agency securities 86,869 29 — 86,898 86,898 — — Total investments $ 504,905 $ 32 $ (1,595) $ 503,342 $ 319,346 $ 127,268 $ 56,728
Schedule of Unrealized Losses on Debt Investments	Marketable securities with continuous unrealized losses for less than 12 months and 12 months or more and their related fair values were as follows: As of September 30, 2023 Less than 12 Months 12 Months or more Total Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Asset-backed securities $ — $ — $ 2,058 $ (21) $ 2,058 $ (21) Corporate notes and bonds — — 4,800 (16) 4,800 (16) Total investments $ — $ — $ 6,858 $ (37) $ 6,858 $ (37) As of December 31, 2022 Less than 12 Months 12 Months or more Total Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Asset-backed securities $ 52,412 $ (229) $ 4,656 $ (35) $ 57,068 $ (264) Corporate notes and bonds 55,864 (571) 54,434 (723) 110,298 (1,294) Foreign government securities — — 5,027 (37) 5,027 (37) Total investments $ 108,276 $ (800) $ 64,117 $ (795) $ 172,393 $ (1,595)
Schedule of Debt Investment Maturities	Adjusted Estimated Cost Basis Fair Value September 30, 2023 Due in one year or less $ 4,816 $ 4,800 Due after one year through five years 2,079 2,058 Due after five years through ten years — — Total $ 6,895 $ 6,858

Long-Term Debt (Tables)

Long-Term Debt (Tables)	9 Months Ended
	Sep. 30, 2023
Debt Disclosure [Abstract]
Schedule of Long-term Debt	Components of long-term debt were as follows as of September 30, 2023 and December 31, 2022: September 30, December 31, 2023 2022 2021 Senior Secured Notes, non-current $ 129,671 $ 289,500 Unamortized discount and issuance costs (6,136) (16,719) Long-term debt, non-current $ 123,535 $ 272,781
Schedule of Maturities	The following table outlines maturities of the principle related to the Company’s long-term debt as of September 30, 2023: Amount 2023 (excluding the nine months ended September 30, 2023) $ — 2024 — 2025 — 2026 129,671 Total $ 129,671

Stock-Based Compensation (Table

Stock-Based Compensation (Tables)	9 Months Ended
	Sep. 30, 2023
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, 2023 and 2022 as follows: Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Research and development $ 1,415 $ (2,088) $ 3,581 $ 3,063 Sales and marketing 2,482 2,125 6,478 6,579 General and administrative 8,543 6,021 23,551 87,726 Total stock-based compensation expense (1) $ 12,440 $ 6,058 $ 33,610 $ 97,368
Summary of Stock Option and RSU Activity	Stock option and RSU activity during the nine months ended September 30, 2023 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, 2022 1,422,876 812,293 $ 263.00 7.27 $ 1,145 2,505,328 $ 24.60 Additional shares authorized 1,053,433 — — Granted (1,089,831) — — 1,089,831 11.13 Exercised/Vested — (95,911) 1.53 (292,505) 38.01 Cancelled/Forfeited/Expired 625,955 (11,067) 27.68 (614,888) 28.12 Balance at September 30, 2023 2,012,433 705,315 $ 302.25 7.14 $ 68 2,687,766 $ 14.69 Exercisable at September 30, 2023 101,001 9.24 5.23 67 Unvested at September 30, 2023 604,314 351.22 7.46 1

Net Loss Per Share (Tables)

Net Loss Per Share (Tables)	9 Months Ended
	Sep. 30, 2023
Earnings Per Share [Abstract]
Schedule of Loss Per Share, Basic and Diluted	The following table sets forth the computation of basic and diluted loss per Class A common stock and Class B common stock (in thousands, except for share and per share data): Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Numerator: Net loss – basic and diluted $ (33,545) $ (83,225) $ (85,848) $ (295,400) Denominator: Weighted average common shares outstanding – basic and diluted 21,305,470 20,691,704 21,175,797 20,396,317 Net loss per share attributable to common stockholders – basic and diluted $ (1.57) $ (4.02) $ (4.05) $ (14.48)
Schedule of Antidilutive Securities Excluded from Computation of Loss Per Share	The following outstanding common stock equivalents were considered antidilutive, and therefore, excluded from the computation of diluted net loss per share attributable to common stockholders for the periods presented (share numbers are not in thousands). As of September 30, 2023 2022 Common stock warrants 226,786 226,786 Common stock options 705,315 1,102,048 Restricted stock units 2,687,766 475,631 Total 3,619,867 1,804,465

Geographical Information (Table

Geographical Information (Tables)	9 Months Ended
	Sep. 30, 2023
Segment Reporting [Abstract]
Schedule of Revenue by Geographic Areas	Revenue, classified by the major geographic areas where the end users were located when they entered paid competitions, was as follows: Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 United States $ 30,853 $ 46,988 $ 101,866 $ 168,692 Other countries 5,574 12,228 19,109 54,145 Total $ 36,427 $ 59,216 $ 120,975 $ 222,837
Schedule of Property and Equipment, Net and Operating Lease Right-of-use Assets by Geographic Area	Property and equipment, net and operating lease right-of-use assets by geography was as follows: September 30, December 31, 2023 2022 United States $ 13,425 $ 3,058 Other countries 387 405 Total $ 13,812 $ 3,463

Summary of Significant Accoun_4

Summary of Significant Accounting Policies - Narrative (Details) - USD ($)		3 Months Ended		9 Months Ended
	Mar. 15, 2023	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022	Dec. 31, 2022
Concentration Risk [Line Items]
Reduction to revenue, end-user incentives		$ 6,700,000	$ 10,900,000	$ 21,900,000	$ 40,400,000
Sales and marketing expense, end-user incentive		15,500,000	21,400,000	48,100,000	87,200,000
Engagement expense		16,900,000	23,500,000	51,600,000	97,600,000
Restricted cash		2,920,000		2,920,000		$ 2,920,000
Payment to acquire building	$ 11,500,000
Amortization expense				0	11,300,000
Advertising costs		$ 9,700,000	$ 18,800,000	$ 26,800,000	$ 109,400,000
Restricted stock units
Concentration Risk [Line Items]
Vesting period				4 years
Building
Concentration Risk [Line Items]
Payment to acquire building	10,500,000
Useful life		39 years		39 years
Land
Concentration Risk [Line Items]
Payment to acquire building	$ 1,000,000
Two Developers | Revenue | Customer Concentration Risk
Concentration Risk [Line Items]
Concentration risk, percentage (less than)		81%	80%	80%	80%

Summary of Significant Accoun_5

Summary of Significant Accounting Policies - Cash, Cash Equivalents, and Restricted Cash (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022	Sep. 30, 2022	Dec. 31, 2021
Accounting Policies [Abstract]
Cash	$ 21,948	$ 130,068
Money market funds	308,210	232,448
Restricted cash included in other long-term assets	2,920	2,920
Cash, cash equivalents and restricted cash	$ 333,078	$ 365,436	$ 242,772	$ 244,252

Previously Issued Financial S_3

Previously Issued Financial Statements Correction of Immaterial Errors - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended			6 Months Ended	9 Months Ended
	Sep. 30, 2023	Jun. 30, 2023	Sep. 30, 2022	Jun. 30, 2023	Sep. 30, 2023	Sep. 30, 2022	Dec. 31, 2022
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Total stock-based compensation expense	$ 12,440		$ 6,058		$ 33,610	$ 97,368
Other current liabilities	$ 60,934	$ 57,033		$ 57,033	$ 60,934		$ 45,666
Adjustment
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Other current liabilities		(1,306)		(1,306)
Adjustment | Immaterial Misstatements
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Total stock-based compensation expense		(4,000)		(4,000)
Other current liabilities		$ (1,300)		$ (1,300)

Previously Issued Financial S_4

Previously Issued Financial Statements Correction of Immaterial Errors - Revised Financial Statements (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended						6 Months Ended	9 Months Ended
	Sep. 30, 2023	Jun. 30, 2023	Mar. 31, 2023	Sep. 30, 2022	Jun. 30, 2022	Mar. 31, 2022	Jun. 30, 2023	Sep. 30, 2023	Sep. 30, 2022	Dec. 31, 2022	Dec. 31, 2021
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Other current liabilities	$ 60,934	$ 57,033					$ 57,033	$ 60,934		$ 45,666
Additional paid-in capital	1,186,686	1,174,271					1,174,271	1,186,686		1,153,031
Accumulated deficit	(958,956)	(925,411)					(925,411)	(958,956)		(873,108)
Total stockholders’ equity	227,734	248,729	$ 254,386	$ 409,432	$ 486,460	$ 535,600	248,729	227,734	$ 409,432	$ 278,401	$ 609,159
Research and development	7,852	8,025		7,937			16,906	24,757	44,840
Sales and marketing	31,925	32,669		51,480			67,587	99,510	242,556
General and administrative		26,074					54,144
Loss before income taxes	(33,536)	(16,596)		(83,345)			(52,121)	(85,655)	(295,888)
Provision for income taxes	9	114		(120)			183	193	(488)
Net loss	(33,545)	(16,710)	$ (35,593)	(83,225)	$ (62,611)	$ (149,564)	(52,304)	(85,848)	(295,400)
Net loss – basic	(33,545)	(16,710)		(83,225)			(52,304)	(85,848)	(295,400)
Net loss – diluted	$ (33,545)	$ (16,710)		$ (83,225)			$ (52,304)	$ (85,848)	$ (295,400)
Weighted average common shares outstanding - basic (in shares)	21,305,470	21,143,257		20,691,704			21,109,886	21,175,797	20,396,317
Weighted average common shares outstanding - diluted (in shares)	21,305,470	21,143,257		20,691,704			21,109,886	21,175,797	20,396,317
Net loss per share attributable to common stockholders – basic (in dollars per share)	$ (1.57)	$ (0.79)		$ (4.02)			$ (2.48)	$ (4.05)	$ (14.48)
Net loss per share attributable to common stockholders - diluted (in dollars per share)	$ (1.57)	$ (0.79)		$ (4.02)			$ (2.48)	$ (4.05)	$ (14.48)
As Previously Reported
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Other current liabilities		$ 58,339					$ 58,339
Additional paid-in capital		1,178,290					1,178,290
Accumulated deficit		(930,688)					(930,688)
Total stockholders’ equity		247,471					247,471
Research and development		8,966					17,847
Sales and marketing		33,085					68,003
General and administrative		30,098					58,168
Loss before income taxes		(21,977)					(57,502)
Provision for income taxes		10					79
Net loss		(21,987)					(57,581)
Net loss – basic		(21,987)					(57,581)
Net loss – diluted		$ (21,987)					$ (57,581)
Weighted average common shares outstanding - basic (in shares)		20,990,780					20,939,723
Weighted average common shares outstanding - diluted (in shares)		20,990,780					20,939,723
Net loss per share attributable to common stockholders – basic (in dollars per share)		$ (1.05)					$ (2.75)
Net loss per share attributable to common stockholders - diluted (in dollars per share)		$ (1.05)					$ (2.75)
Adjustment
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Other current liabilities		$ (1,306)					$ (1,306)
Additional paid-in capital		(4,019)					(4,019)
Accumulated deficit		5,277					5,277
Total stockholders’ equity		1,258					1,258
Research and development		(941)					(941)
Sales and marketing		(416)					(416)
General and administrative		(4,024)					(4,024)
Loss before income taxes		5,381					5,381
Provision for income taxes		104					104
Net loss		$ 5,277					$ 5,277

Spin-Off Transaction (Details)

Spin-Off Transaction (Details) - USD ($)	Aug. 31, 2023	Nov. 08, 2023	Sep. 30, 2023	Dec. 31, 2021
Senior Secured Notes, 2021 | Senior Notes
Subsidiary or Equity Method Investee [Line Items]
Interest rate	10.25%			10.25%
Spinoff | Aarki | Series A Preferred Stock
Subsidiary or Equity Method Investee [Line Items]
Spin-off transaction	$ 5,000,000
Stock Options And Restricted Stock Awards | Spinoff
Subsidiary or Equity Method Investee [Line Items]
Spin-off transaction award granted (in shares)			0
Stock-based compensation expense, accelerated cost	$ 3,300,000
Stock Options And Restricted Stock Awards | Spinoff | Subsequent Event
Subsidiary or Equity Method Investee [Line Items]
Spin-off transaction award granted (in shares)		0
Stock Options And Restricted Stock Awards | Spinoff | Aarki
Subsidiary or Equity Method Investee [Line Items]
Subsidiary, ownership percentage, noncontrolling owner	20%

Balance Sheet Components - Note

Balance Sheet Components - Notes Receivable (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Jul. 07, 2023	Dec. 31, 2022
Big Run Studios | Note receivable
Accounts, Notes, Loans and Financing Receivable [Line Items]
Note receivable	$ 2,000	$ 2,000	$ 0

Balance Sheet Components - Narr

Balance Sheet Components - Narrative (Details) - USD ($) $ in Thousands		9 Months Ended
	Jul. 07, 2023	Sep. 30, 2023	Dec. 31, 2022
Accounts, Notes, Loans and Financing Receivable [Line Items]
Interest income		$ 100
Big Run Studios | Note receivable
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing receivable, after allowance for credit loss	$ 2,000	$ 2,000	$ 0
Financing receivable, designated rate	11.50%
Financing receivable, extended interest period	6 months
Financing receivable, default rate	16.50%
Financing receivable, late charge rate	5%
Financing receivable, payment amount overdue, number of days	5 days
Financing receivable, permitted additional extension period	6 months

Balance Sheet Components - Prep

Balance Sheet Components - Prepaid Expenses and Other Current Assets (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
Credit card processing reserve	$ 1,000	$ 1,000
Prepaid expenses	4,483	2,234
Other current assets	792	1,488
Prepaid expenses and other current assets	$ 6,275	$ 4,722

Balance Sheet Components - Prop

Balance Sheet Components - Property and Equipment, Net (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
Property, Plant and Equipment [Line Items]
Finance lease right-of-use assets	$ 0	$ 10
Total property, plant and equipment	23,409	10,819
Less: Accumulated Depreciation	9,597	7,828
Property, plant and equipment, net	13,812	2,991
Land
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	980	0
Building
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	10,541	0
Capitalized internal-use software
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	9,126	9,126
Computer equipment and servers
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	1,424	1,291
Furniture and fixtures
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	278	278
Leasehold improvements
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	115	114
Construction in progress
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	$ 945	$ 0

Balance Sheet Components - Othe

Balance Sheet Components - Other Current Liabilities (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Jun. 30, 2023	Dec. 31, 2022
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
Accrued sales and marketing expenses	$ 3,728		$ 4,409
Accrued compensation	8,374		4,991
Accrued publisher fees	2,437		4,442
End-user liability, net	6,163		8,984
Accrued developer revenue share	1,639		2,017
Short-term lease obligation	890		1,525
Accrued legal expenses	5,249		1,984
Contingent liabilities	7,109		0
Accrued interest expense	3,877		1,236
Indirect tax liabilities	11,908		10,909
Other accrued expenses	9,560		5,169
Other current liabilities	$ 60,934	$ 57,033	$ 45,666

Fair Value Measurements - Narra

Fair Value Measurements - Narrative (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
Fair Value Disclosures [Abstract]
Cash and cash equivalents	$ 330,158	$ 362,516

Fair Value Measurements - Fair

Fair Value Measurements - Fair Value of Assets and Liabilities (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
Assets:
Cash Equivalents	$ 308,210	$ 319,346
Liabilities:
Private Common Stock Warrants	11	289
Asset-backed securities
Assets:
Cash Equivalents	0	0
Corporate notes and bonds
Assets:
Cash Equivalents	0	0
Commercial paper
Assets:
Cash Equivalents		0
Foreign government securities
Assets:
Cash Equivalents		0
US government and agency securities
Assets:
Cash Equivalents		86,898
Fair Value, Recurring
Assets:
Total assets	315,068	503,342
Liabilities:
Total liabilities	11	289
Fair Value, Recurring | Private Common Stock Warrants
Liabilities:
Private Common Stock Warrants	11	289
Fair Value, Recurring | Level 1
Assets:
Total assets	308,210	319,346
Liabilities:
Total liabilities	0	0
Fair Value, Recurring | Level 1 | Private Common Stock Warrants
Liabilities:
Private Common Stock Warrants	0	0
Fair Value, Recurring | Level 2
Assets:
Total assets	6,858	183,996
Liabilities:
Total liabilities	0	0
Fair Value, Recurring | Level 2 | Private Common Stock Warrants
Liabilities:
Private Common Stock Warrants	0	0
Fair Value, Recurring | Level 3
Assets:
Total assets	0	0
Liabilities:
Total liabilities	11	289
Fair Value, Recurring | Level 3 | Private Common Stock Warrants
Liabilities:
Private Common Stock Warrants	11	289
Fair Value, Recurring | Asset-backed securities
Assets:
Available-for-Sale Investments:	2,058	58,192
Fair Value, Recurring | Asset-backed securities | Level 1
Assets:
Available-for-Sale Investments:	0	0
Fair Value, Recurring | Asset-backed securities | Level 2
Assets:
Available-for-Sale Investments:	2,058	58,192
Fair Value, Recurring | Asset-backed securities | Level 3
Assets:
Available-for-Sale Investments:	0	0
Fair Value, Recurring | Corporate notes and bonds
Assets:
Available-for-Sale Investments:	4,800	110,298
Fair Value, Recurring | Corporate notes and bonds | Level 1
Assets:
Available-for-Sale Investments:	0	0
Fair Value, Recurring | Corporate notes and bonds | Level 2
Assets:
Available-for-Sale Investments:	4,800	110,298
Fair Value, Recurring | Corporate notes and bonds | Level 3
Assets:
Available-for-Sale Investments:	0	0
Fair Value, Recurring | Commercial paper
Assets:
Available-for-Sale Investments:		10,479
Fair Value, Recurring | Commercial paper | Level 1
Assets:
Available-for-Sale Investments:		0
Fair Value, Recurring | Commercial paper | Level 2
Assets:
Available-for-Sale Investments:		10,479
Fair Value, Recurring | Commercial paper | Level 3
Assets:
Available-for-Sale Investments:		0
Fair Value, Recurring | Foreign government securities
Assets:
Available-for-Sale Investments:		5,027
Fair Value, Recurring | Foreign government securities | Level 1
Assets:
Available-for-Sale Investments:		0
Fair Value, Recurring | Foreign government securities | Level 2
Assets:
Available-for-Sale Investments:		5,027
Fair Value, Recurring | Foreign government securities | Level 3
Assets:
Available-for-Sale Investments:		0
Fair Value, Recurring | US government and agency securities
Assets:
Available-for-Sale Investments:		86,898
Fair Value, Recurring | US government and agency securities | Level 1
Assets:
Available-for-Sale Investments:		86,898
Fair Value, Recurring | US government and agency securities | Level 2
Assets:
Available-for-Sale Investments:		0
Fair Value, Recurring | US government and agency securities | Level 3
Assets:
Available-for-Sale Investments:		0
Fair Value, Recurring | Money market funds
Assets:
Cash Equivalents	308,210	232,448
Fair Value, Recurring | Money market funds | Level 1
Assets:
Cash Equivalents	308,210	232,448
Fair Value, Recurring | Money market funds | Level 2
Assets:
Cash Equivalents	0	0
Fair Value, Recurring | Money market funds | Level 3
Assets:
Cash Equivalents	$ 0	$ 0

Fair Value Measurements - Unobs

Fair Value Measurements - Unobservable Input Reconciliation (Details) - Private Common Stock Warrants $ in Thousands	9 Months Ended
	Sep. 30, 2023 USD ($)
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Beginning balance	$ 289
Fair market value adjustment	(278)
Ending balance	$ 11

Investments - Components of Inv

Investments - Components of Investments (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
Debt Securities, Available-for-sale [Line Items]
Adjusted Cost Basis	$ 315,105	$ 504,905
Unrealized Gains	0	32
Unrealized Losses	(37)	(1,595)
Fair Value	315,068	503,342
Cash and Cash Equivalents	308,210	319,346
Marketable Securities - Current	4,800	127,268
Marketable Securities - Non-current	2,058	56,728
Asset-backed securities
Debt Securities, Available-for-sale [Line Items]
Adjusted Cost Basis	2,079	58,455
Unrealized Gains	0	1
Unrealized Losses	(21)	(264)
Fair Value	2,058	58,192
Cash and Cash Equivalents	0	0
Marketable Securities - Current	0	1,464
Marketable Securities - Non-current	2,058	56,728
Corporate notes and bonds
Debt Securities, Available-for-sale [Line Items]
Adjusted Cost Basis	4,816	111,592
Unrealized Gains	0	0
Unrealized Losses	(16)	(1,294)
Fair Value	4,800	110,298
Cash and Cash Equivalents	0	0
Marketable Securities - Current	4,800	110,298
Marketable Securities - Non-current	0	0
Commercial paper
Debt Securities, Available-for-sale [Line Items]
Adjusted Cost Basis		10,477
Unrealized Gains		2
Unrealized Losses		0
Fair Value		10,479
Cash and Cash Equivalents		0
Marketable Securities - Current		10,479
Marketable Securities - Non-current		0
Money market funds
Debt Securities, Available-for-sale [Line Items]
Adjusted Cost Basis	308,210	232,448
Unrealized Gains	0	0
Unrealized Losses	0	0
Fair Value	308,210	232,448
Cash and Cash Equivalents	308,210	232,448
Marketable Securities - Current	0	0
Marketable Securities - Non-current	$ 0
Foreign government securities
Debt Securities, Available-for-sale [Line Items]
Adjusted Cost Basis		5,064
Unrealized Gains		0
Unrealized Losses		(37)
Fair Value		5,027
Cash and Cash Equivalents		0
Marketable Securities - Current		5,027
Marketable Securities - Non-current		0
US government and agency securities
Debt Securities, Available-for-sale [Line Items]
Adjusted Cost Basis		86,869
Unrealized Gains		29
Unrealized Losses		0
Fair Value		86,898
Cash and Cash Equivalents		86,898
Marketable Securities - Current		0
Marketable Securities - Non-current		$ 0

Investments - Narrative (Detail

Investments - Narrative (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
Investments, Debt and Equity Securities [Abstract]
Non-marketable equity securities	$ 55,649	$ 55,649

Investments - Unrealized Loss P

Investments - Unrealized Loss Position (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
Fair Value
Less than 12 Months, Fair Value	$ 0	$ 108,276
12 Months or more, Fair Value	6,858	64,117
Total, Fair Value	6,858	172,393
Gross Unrealized Losses
Less than 12 Months, Gross Unrealized Loss	0	(800)
12 Months or more, Gross Unrealized Loss	(37)	(795)
Total, Gross Unrealized Losses	(37)	(1,595)
Asset-backed securities
Fair Value
Less than 12 Months, Fair Value	0	52,412
12 Months or more, Fair Value	2,058	4,656
Total, Fair Value	2,058	57,068
Gross Unrealized Losses
Less than 12 Months, Gross Unrealized Loss	0	(229)
12 Months or more, Gross Unrealized Loss	(21)	(35)
Total, Gross Unrealized Losses	(21)	(264)
Corporate notes and bonds
Fair Value
Less than 12 Months, Fair Value	0	55,864
12 Months or more, Fair Value	4,800	54,434
Total, Fair Value	4,800	110,298
Gross Unrealized Losses
Less than 12 Months, Gross Unrealized Loss	0	(571)
12 Months or more, Gross Unrealized Loss	(16)	(723)
Total, Gross Unrealized Losses	$ (16)	(1,294)
Foreign government securities
Fair Value
Less than 12 Months, Fair Value		0
12 Months or more, Fair Value		5,027
Total, Fair Value		5,027
Gross Unrealized Losses
Less than 12 Months, Gross Unrealized Loss		0
12 Months or more, Gross Unrealized Loss		(37)
Total, Gross Unrealized Losses		$ (37)

Investments - Maturities (Detai

Investments - Maturities (Details) $ in Thousands	Sep. 30, 2023 USD ($)
Adjusted Cost Basis
Due in one year or less	$ 4,816
Due after one year through five years	2,079
Due after five years through ten years	0
Total	6,895
Estimated Fair Value
Due in one year or less	4,800
Due after one year through five years	2,058
Due after five years through ten years	0
Total	$ 6,858

Long-Term Debt - Schedule of De

Long-Term Debt - Schedule of Debt (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
Long-Term Debt, Non-current
Unamortized discount and issuance costs	$ (6,136)	$ (16,719)
Long-term debt, non-current	123,535	272,781
Senior Secured Notes, 2021
Long-Term Debt, Non-current
2021 Senior Secured Notes, non-current	$ 129,671	$ 289,500

Long-Term Debt - Narrative (Det

Long-Term Debt - Narrative (Details) - USD ($)			1 Months Ended	3 Months Ended		9 Months Ended
	Apr. 13, 2023	Sep. 01, 2022	Dec. 31, 2021	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022	Aug. 31, 2023	Dec. 31, 2022
Debt Instrument [Line Items]
Gain on extinguishment of debt				$ 0	$ 2,553,000	$ 15,205,000	$ 2,553,000
Long term debt, gross				129,671,000		129,671,000
Accrued interest expense				$ 3,877,000		$ 3,877,000			$ 1,236,000
Senior Notes | Senior Secured Notes, 2021
Debt Instrument [Line Items]
Face amount			$ 300,000,000
Interest rate			10.25%					10.25%
Effective interest rate			12.14%	12.09%		12.09%
Repurchased face amount		$ 10,500,000
Redemption price		69.50%
Debt instrument, repurchase amount	$ 159,800,000	$ 7,300,000
Accrued interest		200,000
Gain on extinguishment of debt	$ 15,200,000	$ 2,600,000
Long term debt, gross				$ 129,700,000		$ 129,700,000
Debt term			5 years
Fair value				$ 105,700,000		$ 105,700,000

Long-Term Debt - Maturities (De

Long-Term Debt - Maturities (Details) $ in Thousands	Sep. 30, 2023 USD ($)
Long-term Debt, Fiscal Year Maturity [Abstract]
2023 (excluding the nine months ended September 30, 2023)	$ 0
2024	0
2025	0
2026	129,671
Total	$ 129,671

Commitments and Contingencies (

Commitments and Contingencies (Details) - USD ($) $ in Thousands	1 Months Ended
	Apr. 30, 2022	Sep. 30, 2021
Commitments and Contingencies Disclosure [Abstract]
Damages awarded	$ 4,350	$ 11,600
Loss contingency accrual		$ 7,100

Stockholders' Equity (Details)

Stockholders' Equity (Details)	Jun. 23, 2023	Sep. 30, 2023 vote $ / shares shares	Aug. 18, 2023 $ / shares	Dec. 31, 2022 $ / shares shares
Class of Stock [Line Items]
Shares authorized (in shares)		41,000,000
Common stock, shares authorized (in shares)		31,000,000		31,000,000
Common stock, par value (in dollars per share) | $ / shares		$ 0.0001	$ 0.0001	$ 0.0001
Convertible preferred stock, shares authorized (in shares)		10,000,000		10,000,000
Convertible preferred stock, par value (in dollars per share) | $ / shares		$ 0.0001		$ 0.0001
Stock split	0.05
Class A Common Stock
Class of Stock [Line Items]
Common stock, votes per share | vote		1
Common stock, shares authorized (in shares)		25,000,000		25,000,000
Common stock, par value (in dollars per share) | $ / shares		$ 0.0001
Class B Common Stock
Class of Stock [Line Items]
Common stock, votes per share | vote		20
Common stock, shares authorized (in shares)		6,000,000		6,000,000
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, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total stock-based compensation expense	$ 12,440	$ 6,058	$ 33,610	$ 97,368
Research and development
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total stock-based compensation expense	1,415	(2,088)	3,581	3,063
Sales and marketing
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total stock-based compensation expense	2,482	2,125	6,478	6,579
General and administrative
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total stock-based compensation expense	$ 8,543	$ 6,021	$ 23,551	$ 87,726

Stock-Based Compensation - Narr

Stock-Based Compensation - Narrative (Details) $ / shares in Units, $ in Thousands		1 Months Ended		3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2022 USD ($)	Sep. 30, 2021 USD ($) multiplier tranche shares	Dec. 31, 2020 USD ($) installment $ / shares shares	Sep. 30, 2023 USD ($)	Sep. 30, 2022 USD ($)	Sep. 30, 2023 USD ($) vestingPeriod $ / shares shares	Sep. 30, 2022 USD ($)	Dec. 31, 2022 USD ($) shares	Mar. 31, 2022 USD ($)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Percentage of stock outstanding			5%
Unrecognized stock-based compensation expense				$ 78,700		$ 78,700
Unrecognized stock-based compensation expense, period for recognition						2 years 9 months
Aggregate intrinsic value				780	$ 700	$ 820	$ 15,900
Total stock-based compensation expense				12,440	6,058	$ 33,610	97,368
Granted (in dollars per share) | $ / shares						$ 0
Performance stock units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares issued (in shares) | shares						800,000
Restricted stock units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period						4 years
Granted (in shares) | shares						1,089,831
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			5,392,022
2020 Omnibus Incentive Plan | Performance stock units | Chief Executive Officer
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized stock-based compensation expense									$ 65,100
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			750,000
2020 Omnibus Incentive Plan | Class A Common Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares authorized (in shares) | shares			3,694,871
2020 Omnibus Incentive Plan | Class B Common Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares authorized (in shares) | shares			947,151
2022 CFO Restricted Stock Unit and Performance Award | Performance stock units | Chief Financial Officer
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Granted amount						$ 5,000
Granted (in shares) | shares						200,000		0
Number of vesting periods | vestingPeriod						4
2022 CFO Restricted Stock Unit and Performance Award | Performance stock units | Chief Financial Officer | Tranche one
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period						1 year
2022 CFO Restricted Stock Unit and Performance Award | Performance stock units | Chief Financial Officer | Tranche two
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period						1 year
2022 CFO Restricted Stock Unit and Performance Award | Performance stock units | Chief Financial Officer | Tranche three
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period						1 year
2022 CFO Restricted Stock Unit and Performance Award | Performance stock units | Chief Financial Officer | Tranche four
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period						1 year
2022 CFO Restricted Stock Unit and Performance Award | Restricted stock units | Chief Financial Officer
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized stock-based compensation expense				7,600		$ 7,600
Unrecognized stock-based compensation expense, period for recognition						3 years
Granted amount	$ 10,700							$ 15,000
Granted (in shares) | shares								500,000
Vesting percentage								25%
Total stock-based compensation expense				700		$ 2,000
Chief Executive Officer Restricted Stock Unit and Performance Award Plan 2022 | Performance stock units | Chief Executive Officer
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Granted amount						$ 8,600
Granted (in shares) | shares						500,000		0
Number of vesting periods | vestingPeriod						4
Chief Executive Officer Restricted Stock Unit and Performance Award Plan 2022 | Performance stock units | Chief Executive Officer | Tranche one
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period						1 year
Chief Executive Officer Restricted Stock Unit and Performance Award Plan 2022 | Performance stock units | Chief Executive Officer | Tranche two
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period						1 year
Chief Executive Officer Restricted Stock Unit and Performance Award Plan 2022 | Performance stock units | Chief Executive Officer | Tranche three
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period						1 year
Chief Executive Officer Restricted Stock Unit and Performance Award Plan 2022 | Performance stock units | Chief Executive Officer | Tranche four
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period						1 year
Chief Executive Officer Restricted Stock Unit and Performance Award Plan 2022 | Restricted stock units | Chief Executive Officer
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized stock-based compensation expense				11,500		$ 11,500
Unrecognized stock-based compensation expense, period for recognition						3 years 2 months 23 days
Granted amount								$ 25,900
Granted (in shares) | shares								1,400,000
Vesting percentage								25%
Total stock-based compensation expense				900		$ 2,700
2021 CEO Performance Award | Performance stock units | Chief Executive Officer
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period		7 years
Granted (in shares) | shares		800,000
Number of tranches | tranche		4
Market capitalization milestone, trading days		60 days
Trading days		30 days
Options, grant date fair value		$ 70,800
2021 CEO Performance Award | Performance stock units | Chief Executive Officer | Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Market capitalization baseline multiplier | multiplier		2
2021 CEO Performance Award | Performance stock units | Chief Executive Officer | Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Market capitalization baseline multiplier | multiplier		5
Option Agreements
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized stock-based compensation expense				39,200		39,200
Total stock-based compensation expense				$ 4,900	$ 14,500	$ 4,900	$ 14,500
Options, grant date fair value			$ 93,400
Number of installments | installment			3
Option Agreements | Tranche one
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting percentage						33.33%
Trading day period			10 days
Volume weighted average price multiplier			300%
Option Agreements | Tranche two
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting percentage						33.33%
Volume weighted average price multiplier			400%
Option Agreements | Tranche three
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting percentage						33.33%
Volume weighted average price multiplier			500%
Option Agreements | Class A Common Stock | Chief Strategy Officer
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares authorized (in shares) | shares			102,000
Granted (in dollars per share) | $ / shares			$ 353.60
Option Agreements | Class B Common Stock | Chief Executive Officer
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares authorized (in shares) | shares			498,000

Stock-Based Compensation - St_2

Stock-Based Compensation - Stock Activity (Details) $ / shares in Units, $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2023 USD ($) $ / shares shares	Dec. 31, 2022 USD ($) $ / shares shares
Number of Shares Available for Issuance Under the Plan
Beginning balance (in shares)	1,422,876
Additional shares authorized (in shares)	1,053,433
Granted (in shares)	(1,089,831)
Cancelled/Forfeited/Expired (in shares)	625,955
Ending balance (in shares)	2,012,433	1,422,876
Number of Shares Outstanding Under the Plan
Beginning balance (in shares)	812,293
Granted (in shares)	0
Excercised/Vested (in shares)	(95,911)
Cancelled/Forfeited/Expired (in shares)	(11,067)
Ending balance (in shares)	705,315	812,293
Exercisable (in shares)	101,001
Unvested (in shares)	604,314
Weighted- Average Exercise Price
Beginning balance (in dollars per share) | $ / shares	$ 263
Granted (in dollars per share) | $ / shares	0
Excercised/Vested (in dollars per share) | $ / shares	1.53
Cancelled/Forfeited/Expired (in dollars per share) | $ / shares	27.68
Ending balance (in dollars per share) | $ / shares	302.25	$ 263
Exercisable (in dollars per share) | $ / shares	9.24
Unvested (in dollars per share) | $ / shares	$ 351.22
Weighted-Average Remaining Contractual Term and Aggregate Intrinsic Value
Options outstanding, weighted-average remaining contractual term	7 years 1 month 20 days	7 years 3 months 7 days
Exercisable, weighted-average remaining contractual term	5 years 2 months 23 days
Unvested, weighted-average remaining contractual term	7 years 5 months 15 days
Options outstanding, aggregate intrinsic value | $	$ 68	$ 1,145
Exercisable, aggregate intrinsic value | $	67
Unvested, aggregate intrinsic value | $	$ 1
Restricted stock units
Number of Plan shares outstanding
Beginning balance (in shares)	2,505,328
Granted (in shares)	1,089,831
Excercised/Vested (in shares)	(292,505)
Cancelled/Forfeited/Expired (in shares)	(614,888)
Ending balance (in shares)	2,687,766	2,505,328
Weighted-Average Grant Date Fair Value per share
Beginning balance (in dollars per share) | $ / shares	$ 24.60
Restricted stock units granted (in dollars per share) | $ / shares	11.13
Restricted stock units exercised/vested (in dollars per share) | $ / shares	38.01
Restricted stock units cancelled/forfeited/expired (in dollars per share) | $ / shares	28.12
Ending balance (in dollars per share) | $ / shares	$ 14.69	$ 24.60

Income Taxes (Details)

Income Taxes (Details) - USD ($) $ in Thousands	3 Months Ended			6 Months Ended	9 Months Ended
	Sep. 30, 2023	Jun. 30, 2023	Sep. 30, 2022	Jun. 30, 2023	Sep. 30, 2023	Sep. 30, 2022
Income Tax Disclosure [Abstract]
Income tax expense (benefit)	$ 9	$ 114	$ (120)	$ 183	$ 193	$ (488)
Effective tax rate	(0.03%)		0.14%		(0.23%)	0.16%

Net Loss Per Share - Computatio

Net Loss Per Share - Computation of Net Loss Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended			6 Months Ended	9 Months Ended
	Sep. 30, 2023	Jun. 30, 2023	Sep. 30, 2022	Jun. 30, 2023	Sep. 30, 2023	Sep. 30, 2022
Numerator:
Net loss – basic	$ (33,545)	$ (16,710)	$ (83,225)	$ (52,304)	$ (85,848)	$ (295,400)
Net loss – diluted	$ (33,545)	$ (16,710)	$ (83,225)	$ (52,304)	$ (85,848)	$ (295,400)
Denominator:
Weighted average common shares outstanding - basic (in shares)	21,305,470	21,143,257	20,691,704	21,109,886	21,175,797	20,396,317
Weighted average common shares outstanding - diluted (in shares)	21,305,470	21,143,257	20,691,704	21,109,886	21,175,797	20,396,317
Net loss per share attributable to common stockholders – basic (in dollars per share)	$ (1.57)	$ (0.79)	$ (4.02)	$ (2.48)	$ (4.05)	$ (14.48)
Net loss per share attributable to common stockholders - diluted (in dollars per share)	$ (1.57)	$ (0.79)	$ (4.02)	$ (2.48)	$ (4.05)	$ (14.48)

Net Loss Per Share - Antidiluti

Net Loss Per Share - Antidilutive Shares (Details) - shares	9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total (in shares)	3,619,867	1,804,465
Common stock warrants
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total (in shares)	226,786	226,786
Common stock options
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total (in shares)	705,315	1,102,048
Restricted stock units
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total (in shares)	2,687,766	475,631

Geographical Information - Reve

Geographical Information - Revenue (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenue	$ 36,427	$ 59,216	$ 120,975	$ 222,837
United States
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenue	30,853	46,988	101,866	168,692
Other countries
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenue	$ 5,574	$ 12,228	$ 19,109	$ 54,145

Geographical Information - Prop

Geographical Information - Property and Equipment, Net and Operating Lease Right-of-Use Assets (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
Revenues from External Customers and Long-Lived Assets [Line Items]
Property and equipment, net and operating lease right-of-use assets	$ 13,812	$ 3,463
United States
Revenues from External Customers and Long-Lived Assets [Line Items]
Property and equipment, net and operating lease right-of-use assets	13,425	3,058
Other countries
Revenues from External Customers and Long-Lived Assets [Line Items]
Property and equipment, net and operating lease right-of-use assets	$ 387	$ 405

Subsequent Events (Details)

Subsequent Events (Details) - USD ($)	Nov. 07, 2023	Sep. 30, 2023	Aug. 18, 2023	Dec. 31, 2022
Subsequent Event [Line Items]
Common stock, par value (in dollars per share)		$ 0.0001	$ 0.0001	$ 0.0001
Authorized repurchase amount (not to exceed)			$ 65,000,000
Subsequent Event | Common stock
Subsequent Event [Line Items]
Repurchases of common stock (in shares)	1,156,693
Average stock repurchased price (in dollars per share)	$ 5.21
Repurchases of common stock	$ 6,055,173