Skillz Investor Presentation Deck

HOW 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

View entire presentation