Mobile esports platform Skillz (SKLZ 4.35%) recorded yet another quarter of rising revenue, the 21st consecutive quarter in which revenue jumped year over year. And that was apparently enough for Wall Street's current investment guru, Cathie Wood, to load up again on its stock.
Wood's ARK Invest exchange-traded funds (ETFs) added another 3.1 million shares of Skillz yesterday (Wood's ETFs report their buys and sales daily), giving her nearly 15.6 million shares in total of the competitive-gameplay specialist.
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Although Skillz saw its revenue rise in the first quarter, it also reported wider losses for the period, with adjusted EBITDA coming in at a loss of $31.1 million, compared to losses of $14.6 million a year ago.
Still, the esports company was able to exceed its own expectations on paying monthly average users (MAUs), which came in at 467,000, some 17,000 more than it guided for last quarter. However, that was below the upper end of Wall Street's forecast of 469,000 MAUs.
Last month, short-seller Eagle Eye Research issued a report questioning Skillz's revenue-recognition policies. Another short-seller, Wolfpack Research, questioned the value of its recent deal with the National Football League.
Cathie Wood ended up coming to Skillz's defense, saying the allegations were "either exaggerated or incorrect" and stemmed from not understanding the esports company's business.
Wood's ARK Next Generation Internet ETF (ARKW +1.32%) now owns 7.05 million shares of Skillz; her ARK Innovation (ARKK +1.09%) owns over 8.51 million shares.
While her purchases are yet another vote of confidence for Skillz, they don't comprise a particularly large portion of her funds' portfolios, amounting to no more than 1.92% in either of the two funds.
