Pursuing Profitable Growth

39 99 Business Model HOW THE BUSINESS MODEL WORKS $1.20 Gross Marketplace Volume ($1.00) Prizes, Incentives & Dev Profit Share GAMER 1 $0.60 Entry Fee $0.20 Revenue (14.7% take-rate) X 92% Gross margin YOU WIN! $0.18 Gross profit GAMER 2 $0.60 Entry Fee $0.17 OpEx (excl. SBC, D&A, non-recurring items and UA) YOU LOSE $0.01 Adj. EBITDA before UA (17% of Revenue) Note: All dollar amounts are illustrative and based on actual take-rate and margin structure and reflect rounding. Adjusted EBITDA is defined as EBITDA before non-recurring items and stock-based compensation ("SBC"). D&A means Depreciation and Amortization. UA or UA Marketing is the total cost to acquire new users in that period. UA Marketing was $85.6 million in Q4 '21. See Appendix for a reconciliation of Adjusted EBITDA to the most comparable GAAP metrics. skillz

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