What caused SKLZ's earnings to miss forecasts in Q4 2023?

Skillz's earnings missed forecasts in Q4 2023 due to a combination of factors:

1. **Revenue Decline**: Skillz experienced a significant revenue decline, with a 39.5% year-over-year drop to $36.43 million in Q3 FY2023. This decline was primarily due to a substantial decrease in paying monthly active users, which fell by approximately 65% from 610,000 in 2021 to 200,000 as of Q2'23. The concentration of revenue in a few games, such as Solitaire Cube and 21 Blitz, also contributed to the decline as user engagement shifted away from these titles.
2. **Execution Challenges**: Despite initiatives to improve the business, Skillz faced challenges in executing these plans effectively, which impacted revenue growth and cash flow. The company's core business has declined due to falling revenue, poor user retention, and platform concentration issues. These execution challenges highlight the need for Skillz to enhance its operational efficiency to achieve consistent top-line growth and positive cash flow.
3. **Market Dynamics**: The mobile gaming market is highly competitive, and Skillz faces competition from other gaming platforms and apps. The ability to retain users and attract new ones is crucial for revenue growth, and Skillz has struggled with this aspect. The market dynamics and competitive landscape likely played a role in Skillz's missed earnings expectations.

In summary, Skillz's missed earnings in Q4 2023 were caused by a combination of revenue decline, execution challenges, and market dynamics.