#1skillz#2Investor Presentation skillz THE FUTURE OF ENTERTAINMENT#3skillz SKILLZ EXPANDS THE GAMING ECOSYSTEM a Developers to share their art with the world Gamers to connect through meaningful competition#4skillz SKILLZ IS THE COMPETITION LAYER FOR THE INTERNET a $2.4B Gross Marketplace Volume (GMV) 的 2.5B Tournaments Per Year Note: GMV represents entry fees that may be paid using cash deposits, prior cash winnings that have not been withdrawn, and end-user incentives in 2021. Tournaments represents number of tournament entries in 2021.#5skillz WE BUILT SOMETHING GAMERS DON'T JUST LIKE, THEY LOVE POOL 8 PLAY ULTIMATE 8-BALL#6skillz WE'VE REDESIGNED MOBILE GAMING TO BRING DEVELOPERS AND GAMERS TOGETHER Gamers More engagement = more revenue skillz Developers More content = more engagement 6#7skillz $384M Revenue (2021) FAST COMPANY BEST WORKPLACES BEST-IN-CLASS RESULTS AND RECOGNITION FOR INNOVATORS 2021 67% Revenue Growth (2021 YoY) CNBC DISRUPTOR 50 2017 2019 Note: Payor conversion rate is defined as Paying Monthly Active Users divided by Monthly Active Users. 94% Gross Margin (2021) FAST COMPANY MOST 2019 NOVATIVE 17% Payor Conversion Rate (2021) FASTEST AMERICA'S PRIVATE GROWING COMPANIES 7#8skillz Skillz makes gaming better for everyone with a proprietary, highly scalable SOFTWARE PLATFORM 8#9skillz COMPREHENSIVE TECHNOLOGY PLATFORM 888 Gamer competition engine n of Live ops system Network data science technologies a Developer console 9#10GAMING PLATFORM Key Features skillz 88 Tournaments and leagues Player rating and matching Anti-cheat & anti-fraud Social features Loyalty rewards Payments Content discovery 24/7 support 10#11skillz MOBILE GAMING IS THE FUTURE OF ENTERTAINMENT 11#12'16-'21 CAGR skillz GAMING HAS ECLIPSED MOVIES, MUSIC, AND BOOKS MOVIES $21B -11% MUSIC $40B -3% BOOKS $138B 2% GAMING $180B MOBILE $93B 13% 20% Source: Newzoo, PWC, Grandview Research. OTT is "over the top" (i.e. streaming media offered directly to viewers via the internet). Movies - Global Film Box Office. TELEVISION $219B -2% OTT $65B 12#13skillz ANYONE CAN EMBRACE THEIR INNER CHAMPION 13#14$100K- $150K $75K- $100K 11% skillz $150K+ 9% 30% OUR DEMOGRAPHIC IS THE MASS MARKET $50K-$75K 7% <$25k 10% Income 33% $25k- $50K Male 43% Female 57% Gender 56-65 46-55 15% 23% 66+ Source: Income and Age demographics from Axciom survey data of paying users (2018). Gender demographics from Ad Network install data (2019). 8% Age 18-25 10% 23% 22% 26-35 36-45 14#15BUSINESS MODEL GAMER 1 YOU WIN! GAMER 2 YOU LOSE $0.60 Entry Fee $0.60 Entry Fee $1.20 Gross Marketplace Volume ($1.01) Prizes, Incentives & Dev Profit Share $0.19 x 94% $0.18 $0.16 $0.02 Revenue (16% take-rate) Gross margin Gross profit OpEx (excl. SBC, D&A, non-recurring items and UA) Adj. EBITDA before UA (13% of Revenue) Note: All dollar amounts are illustrative and based on actual take-rate and margin structure and reflect rounding. The Company defines and calculates Adjusted EBITDA as net income (loss) before interest, other non-operating expense or income, (benefit) provision for income taxes, and depreciation and amortization, and further adjusted for stock-based compensation and other special items determined by management, including, but not limited to, fair value adjustments for certain financial liabilities (including derivatives) associated with debt and equity transactions, impairment charges, acquisition related expenses for transaction costs and certain loss contingency accruals. D&A means Depreciation and Amortization. UA or UA Marketing is the total cost to acquire new users in that skillz period. UA Marketing was $242.2 million in 2021. See Appendix for a reconciliation of Adjusted EBITDA to the most comparable GAAP metrics. 15#16STRATEGIC BRAND PARTNERSHIPS Non-profits + skillz American Cancer Society® WWF American Red Cross FOREVER YOUNG FOUNDATION extra life Play Games Heal Kids RED NOSE DAY ADVANCEMENT ION FOR THE NAACP FOUNDED 1909 COLORED PEOPLE Hill ★★ ★★ NFL For-profits Bowlero UFC aMC NETWORKS T Mobile CHIP GANASSI RACING ORL 16#17skillz GROWING INDUSTRY - MORE GAME DEVELOPERS EQUALS MORE GAMES 137 30,000 (2009) Game Developers Note: Figures reflect company estimates. COMMAND DHE RRE FIFA 14 Wilm TITANFALL LG 15 million (today) Game Developers 17#18skillz THE OLD BUSINESS MODELS DON'T WORK ANYMORE 18#19skillz THE OLD BUSINESS MODELS Ads interrupt gameplay 8 In-game purchases lock users out of content ("pay to win") 19#20skillz $35.00 $6.61 $0.25 #1 Source: Apptopia and Liftoff. EXPLOSION IN GAME CONTENT MAKES IT HARD TO GET DISCOVERED Revenue Per Install (RPI) for the #1 iOS game in the world: $34 Avg. Cost Per Install (CPI): $5.28 (2021) Avg. Cost Per Install (CPI): $0.25 (2014) GAME RANK BY ESTIMATED REVENUE PER INSTALL (2021) #1,000,000 20#21WE ARE REDEFINING ENTERTAINMENT skillz S 21#22『 skillz GAMERS DEVELOPERS WHAT THEY VALUE ဂိရို့ Community Fun Discovery Monetization WHAT OLD MODELS DELIVER Pay to win Interruption Broken economics Gimmicks 23#23『 skillz GAMERS DEVELOPERS WHAT THEY VALUE ဂိရို့ Community Fun Discovery Monetization HOW SKILLZ DELIVERS Meaningful connection Fair competition Network exposure Financial Success F#24DEVELOPER SOLUTIONS Key Features skillz Anti-fraud and payments Event ops Marketing- as-a-service Game launch optimization Customer support Managed server hosting Prize fulfillment Analytics skillz Your Games ✔ Analytics Do Statements Documentation Downloads ? Support Forum Account Log Out Overview Tigers vs Lions by Unnamed Creator edit Unity Optimize Integration Asynchronous tournaments Integration Status Basic Integration Complete Game Analytics Analytics DAU Daily Active Users Next Step: Customize your theme Games with custom themes tend to have higher daily engagement with players. Real prize monetization SDK V22.0.15 Customize Theme Games Played 24#25LIVE OPERATIONS Key Features Multi-variate A testing Cross-application personalization Charity events Player incentive optimization Lifecycle engagement marketing Brand- sponsored tournaments Payor Conversion Rate skillz Note: Payor conversion rate is defined as Paying Monthly Active Users divided by Monthly Active Users. 20% 15% 10% 5% 0% PAYOR CONVERSION RATE 17% Skillz (¹) 2% Industry Average (2) Note: (1) Based on 2021 metrics; (2) According to Wappier, Gaming Apps conversion rates for mobile games were 1.6% to 2% in 2020. P GJ#26skillz ☆ Anti-cheat and anti-fraud OUR PLATFORM IS UNDERPINNED BY DATA SCIENCE 88 Player rating and matching Algorithmic skill vs. chance testing Segmentation engine 26#27skillz DEVELOPERS CAN MAKE A LIVING DOING WHAT THEY LOVE 27#28skillz #1 #2 #3 #4 #5 HEALTHY AND GROWING DEVELOPER ECOSYSTEM 2016 skillz 2017 skillz 2018 skillz 21 2019 21 2020 2021 21 21 7 2016 # OF GAMES >$1M ANNUALIZED GMV 10 2017 15 2018 23 2019 36 2020 44 2021 28#29skillz LTV (GPAEM basis) BUILDING ON LONG-LIVED USER COHORTS 500% 400% 300% 200% 100% 0% Q1 -Q1 2018 Q2 Q3 Q2 2018 Q2 2020 Q5 Q6 Q7 Q8 Q9 - Q1 2019 Q1 2021 Q4 -Q3 2018 Q3 2020 -Q4 2018 Q4 2020 Q10 - Q2 2019 Q2 2021 Q11 Q12 -Q3 2019 Q3 2021 Q13 Q14 Q15 Q16 Q4 2019 Q1 2020 Q4 2021 — Note: LTV (lifetime value) calculated based on cumulative gross profit after engagement marketing. LTV shown on a per paying user basis. LTV performance is indexed to the first quarter that the cohorts are acquired. 29#30skillz CAPITAL EFFICIENT WITH COMPELLING ECONOMICS 30#31GENERATING STRONG GROWTH WITH CAPITAL EFFICIENCY skillz $654M Cash, Cash Equivalents & Marketable Securities $2.5B $1.9B $1.3B $0.6B $0.0B 2016 2017 2018 2019 2020 Note: Cash, Cash Equivalents & Marketable Securities as of March 31, 2022. $2.4B $400M GMV 2021 $320M $240M $160M $80M $OM 2016 2017 2018 2019 2020 $384M Revenue 2021 31#32skillz ROBUST OPPORTUNITIES TO INVEST IN GROWTH 1 2 3 Increase Marketing Efficiency Launch New Products Invest in Developer Ecosystem 32#33skillz THANK YOU 33#34APPENDIX: GROWTH IN PAYING USERS & REVENUE skillz PAYING MAU (M) 0.258 0.302 0.346 0.391 0.467 0.463 0.509 0.611 0.569 0.146 0.155 0.165 0.177 11 Q1'19 Q2'19 Q3'19 Q4'19 Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 $14.7 REVENUE AFTER ENGAGEMENT MARKETING ($M) $16.0 $17.9 $19.9 $26.4 $35.5 $33.3 $35.1 $47.7 $44.5 $52.1 $52.2 $51.3 Q1'19 Q2'19 Q3'19 Q4'19 Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 34#35APPENDIX: QUARTERLY RESULTS SUMMARY skillz ($ in millions) Revenue Revenue After Engagement Marketing (RAEM) Adj. EBITDA Adj. EBITDA Margin Q1 '21 $83.7 $47.7 ($31.1) (37.2%) Q1 '22 $93.4 $51.3 ($61.0) (65.3%) Y/Y 12% 8% nm Note: Adj. EBITDA margin calculated by dividing Adj. EBITDA by Revenue for the same period. See Appendix for a reconciliation of Adj. EBITDA to the most comparable GAAP metrics. 35#36APPENDIX: QUARTERLY SUPPLEMENTAL METRICS skillz ($ in millions) GMV Take Rate Paying MAU ARPPU MAU ARPU Q1 '21 $567 14.8% 0.47 $60 2.7 $10.35 Q1 '22 $552 16.9% 0.57 $55 3.2 $9.65 Y/Y (3%) 22% (8%) 20% (7%) Note: "Paying Monthly Active Users" or "Paying MAU" means the number of end-users who entered into a paid contest hosted on Skillz's platform at least once in a month, averaged over each month in the period. "Average Revenue Per Paying Monthly Active User" or "ARPPU" means the average revenue in a given month divided by Paying MAUS in that month, averaged over the period. "Monthly Active Users" or "MAUS" means the number of end-users who entered into a paid or free contest hosted on Skillz's platform at least once in a month, averaged over each month in the period. "Average Revenue Per Monthly Active User" or "ARPU" means the average revenue in a given month divided by MAUS in that month, averaged over the period. 36#37APPENDIX: RECONCILIATION TO NON-GAAP ITEMS skillz ($ in millions) Net Loss Interest Expense, net Change in fair value of common stock warrants liabilities Stock-based Compensation (Benefit from) provision for income taxes Depreciation and Amortization Other expense (income), net One-time nonrecurring expenses Adjusted EBITDA Q1 '21 ($53.6) 0.0 10.9 0.0 0.6 (0.1) 8.8 ($31.1) Q1 '22 ($148.1) 8.2 (4.5) 77.9 (0.2) 5.5 0.0 0.1 ($61.0) 37#38APPENDIX: BALANCE SHEET & CAPITALIZATION skillz ($ in millions) Cash, Cash Equivalents & Marketable Securities Prepaid Expenses and Other Current Assets Other Assets Total Assets Current Liabilities Common Stock Warrant Liabilities Debt Total Liabilities Stockholders' Equity Total Liabilities & Stockholders' Equity As of 3/31/22 $653.8 22.0 256.7 $932.5 $72.9 1.8 279.7 380.9 551.6 $932.5 (millions) Common Stock Warrants Outstanding Options & RSUS Outstanding Fully Diluted Shares Note: Debt is calculated based on face value of notes of $300 million less unamortized discount and issuance costs of $20.3 million on balance sheet as of March 31, 2022. As of 3/31/22 409.6 4.5 66.7 480.8 38#39skillz BONUS CASH OVERVIEW 39#40WHAT ARE END-USER INCENTIVES? Skillz provides bonus cash and real cash to end-users through various incentive programs · Bonus cash is a promotional incentive that cannot be withdrawn and can only be used by end-users to enter into paid entry fee contests • The most popular incentive programs offered as part of our engagement marketing are Deposit Incentives (bonus cash), Ticketz Loyalty Store Redemptions (bonus cash), and League Payouts (real cash). These three programs represent over 80% of our total end-user incentives ● skillz These engagement marketing programs enhance the user engagement, retention, and monetization on the system by providing users with rewards and awards for game play The cost of these programs are recorded as either a reduction in revenue or a sales & marketing expense 40#41HOW ARE THEY RECOGNIZED ON OUR INCOME STATEMENT? Depending on whether the Company concludes that the game developers have a valid expectation that the incentive will be offered, the Company records the related cost as a reduction of revenue or as a sales and marketing expense. The Company categorizes the cost based on all available information and a set of pre-existing conditions • When is it a Reduction of Revenue? When Skillz concludes that the developers have a valid expectation that certain incentives will be offered to the end- users. skillz ● › Examples: Participation Ticketz, First-time User Deposit Incentive • When is it a Sales and Marketing Expense? When Skillz concludes that the developers do not have a valid expectation that the incentive will be offered • Examples: Limited-time User Deposit Incentive, League Payouts ● 41#42SCENARIO: BOTH USERS PAY REAL CASH FOR $1.00 PRIZE • Winner receives $1.00 of real cash Skillz receives $0.19 Developer receives $0.01 Contest Entry Real Cash Bonus Cash Total Contest Results Real Cash Bonus Cash Total skillz Player 1 (Loss) $0.60 $0.00 $0.60 $0.00 $0.00 $0.00 Player 2 (Win) $0.60 $0.00 $0.60 $1.00 $0.00 $1.00 Illustrative P&L Impact GMV Prizes End-User Incentives Dev. Profit Share Revenue $1.20 ($1.00) $0.00 ($0.01) $0.19 Illustrative Adj. EBITDA $0.19 Note: For illustrative purposes, assumes system-wide average developer profit share of 1% GMV and zero marginal tournament cost. User contest entry fees are 90% real cash and 10% bonus cash, unless the user does not have real cash in their account. 42#43SCENARIO: WINNER PAYS REAL CASH FOR $1.00 PRIZE Winner receives $1.00 of Real Cash Skillz receives $0.13 ($0.06 in Rev. Reduction / S&M) • Developer receives $0.01 ● Contest Entry Real Cash Bonus Cash Total Player 1 (Loss) skillz $0.54 $0.06 $0.60 Player 2 (Win) $0.60 $0.00 $0.60 Illustrative P&L Impact If BC is Revenue Reduction GMV Prizes End-User Incentives Dev. Profit Share Revenue $1.20 ($1.00) ($0.06) ($0.01) $0.13 If BC is Marketing Expense $1.20 ($1.00) $0.00 ($0.01) $0.19 Contest Results Real Cash $0.00 $1.00 Sales & Marketing Bonus Cash $0.00 $0.00 Illustrative Adj. EBITDA $0.13 $0.13 Total $0.00 $1.00 Note: For illustrative purposes, assumes system-wide average developer profit share of 1% GMV and zero marginal tournament cost. User contest entry fees are 90% real cash and 10% bonus cash, unless the user does not have real cash in their account. If Reduction, BC goes into I End-User Incentives ($0.06) If Marketing, BC goes into S&M L 43 J#44SCENARIO: WINNER PAYS REAL & BONUS CASH FOR $1.00 PRIZE • Winner receives $0.94 of Real Cash and $0.06 of Bonus Cash • Skillz receives $0.19 Developer receives $0.01 Contest Entry Real Cash Bonus Cash Total Contest Results Real Cash Bonus Cash Total skillz Player 1 (Loss) $0.60 $0.00 $0.60 $0.00 $0.00 $0.00 Player 2 (Win) $0.54 $0.06 $0.60 $0.94 $0.06 $1.00 Illustrative P&L Impact GMV Prizes End-User Incentives Dev. Profit Share Revenue $1.20 ($1.00) $0.00 ($0.01) $0.19 All BC is in Prizes Illustrative Adj. EBITDA $0.19 Note: For illustrative purposes, assumes system-wide average developer profit share of 1% GMV and zero marginal tournament cost. User contest entry fees are 90% real cash and 10% bonus cash, unless the user does not have real cash in their account. I r 44#45SCENARIO: BOTH USERS PAY WITH REAL & BONUS CASH FOR $1.00 PRIZE • Winner receives $0.94 of Real Cash and $0.06 of Bonus Cash • Skillz receives $0.13 ($0.06 in Rev. Reduction or S&M) ● • Developer receives $0.01 Contest Entry Real Cash Bonus Cash Total Player 1 (Loss) skillz $0.54 $0.06 $0.60 Player (Win) $0.00 $0.00 $0.00 $0.54 $0.06 $0.60 Illustrative P&L Impact Revenue Reduction GMV Prizes End-User Incentives Dev. Profit Share Revenue $1.20 ($1.00) ($0.06) ($0.01) $0.13 Marketing Expense $1.20 ($1.00) $0.00 ($0.01) $0.19 Contest Results Real Cash $0.94 Sales & Marketing Bonus Cash $0.06 Total $1.00 Illustrative Adj. EBITDA $0.13 $0.13 Note: For illustrative purposes, assumes system-wide average developer profit share of 1% GMV and zero marginal tournament cost. User contest entry fees are 90% real cash and 10% bonus cash, unless the user does not have real cash in their account. If Reduction, BC goes into I End-User Incentives ($0.06) If Marketing, BC goes into S&M 45#46DISCLAIMER The information contained herein does not purport to be all-inclusive. The data contained herein is derived from various internal and external sources and is based on information available as of the date hereof. No representation is made as to the reasonableness of the assumptions made within or the accuracy or completeness of any projections or modeling or any other information contained herein. Any data on past performance or modeling contained herein is not an indication as to future performance. Skillz assumes no obligation to update any information in this Investor Presentation, except as required by law. Industry and Market Data This presentation includes information and statistics regarding market participants in the sectors in which Skillz competes and other industry data which was obtained from third-party sources, including reports by market research firms and company filings. Trademarks This presentation may contain trademarks, service marks, trade names and copyrights of other companies, which are the property of their respective owners. Solely for convenience, some of the trademarks, service marks, trade names and copyrights referred to in this presentation may be listed without the TM, SMⒸ or ® symbols, but Skillz will assert, to the fullest extent under applicable law, the rights of the applicable owners, if any, to these trademarks, service marks, trade names and copyrights. Use of Non-GAAP Financial Measures This presentation includes non-GAAP financial measures. Skillz believes that these non-GAAP measures are useful to investors for two principal reasons. First, they believe these measures may assist investors in comparing performance over various reporting periods on a consistent basis by removing from operating results the impact of items that do not reflect core operating performance. Second, these measures are used by Skillz's management to assess its performance. Skillz believes that the use of these non-GAAP financial measures provides an additional tool for investors to use in evaluating ongoing operating results and trends. These non-GAAP measures should not be considered in isolation from, or as an alternative to, financial measures determined in accordance with GAAP. Other companies may calculate these non-GAAP financial measures differently, and therefore such financial measures may not be directly comparable to similarly titled measures of other companies. Forward Looking Statements and Investment Considerations This presentation also contains forward-looking statements, which may be identified by such words as "may", "plans", "expects", "believes", "anticipates" and similar expressions, or by their context. These statements are made on the basis of current knowledge and, by their nature, involve numerous assumptions and uncertainties. Nothing set forth herein should be regarded as a representation, warranty, or prediction that Skillz will achieve or is likely to achieve any particular future result. Various factors could cause actual future results, performance or events to differ materially from those described herein. Some of the factors that may impact future results and performance may include, without limitation, the ability of Skillz to: effectively compete in the global entertainment and gaming industries; attract and retain successful relationships with the third party developers that develop and update all of the games hosted on Skillz's platform; comply with laws and regulations applicable to its business; as well as other risks and uncertainties indicated from time to time in the Company's SEC filings, including those under "Risk Factors" therein, which are available on the SEC's website at www.sec.gov. Each investor must conduct and rely on its own evaluation, including of the associated risks, in making an investment decision. skillz