DraftKings Inc. Reports Third Quarter 2024 Financial Results
DraftKings Inc. (NASDAQ: DKNG), a leading digital sports entertainment and gaming company, reported its financial results for the third quarter of 2024, ending September 30.
Key Financial Metrics
| Metric | Q3 2024 | Q3 2023 | YoY Change | Consensus Estimates |
|---|---|---|---|---|
| Revenue | $1.095B | $790M | +39% | $1.11B |
DraftKings reported robust revenue growth of 39% year-over-year to $1.095 billion, slightly below consensus estimates of $1.11 billion. This growth was driven by increased customer engagement, expansion of the Sportsbook product into new jurisdictions, higher structural sportsbook hold percentage, and the impact of the Jackpocket acquisition.
Revenue Performance by Segment
The detailed breakdown of revenue across segments was not provided. However, the overall revenue growth is attributed to strong performance in Sportsbook and iGaming segments.
Key Developments and Operational Highlights
- Monthly unique payers increased by 55% year-over-year to 3.6 million.
- Average Revenue per Monthly Unique Payer decreased by 10% due to the Jackpocket acquisition.
- DraftKings expanded its Sportsbook product offering into new jurisdictions.
- Increased efficiency in promotional reinvestment for Sportsbook and iGaming.
Comments from Company's Officers
Jason Robins, CEO, highlighted the company's strong performance with the resurgence of major sports like NFL and college football, positioning the company to enhance its top-ranked sportsbook app. CFO Alan Ellingson emphasized continued growth with fiscal year 2025 revenue guidance aiming for a 31% increase year-over-year and potential adjusted EBITDA reaching $900 million to $1 billion.
Forward Guidance
DraftKings issued fiscal year 2025 revenue guidance in the range of $6.2 billion to $6.6 billion, anticipating a 31% growth from fiscal year 2024. The company revised its fiscal year 2024 revenue guidance downward due to customer-friendly sports outcomes early in Q4 2024, expecting between $4.85 billion and $4.95 billion.
Stock Price Movement
Following the earnings release, DraftKings' stock experienced an increase of 2.48%.
In summary, DraftKings has shown strong revenue growth in the third quarter of 2024, driven by strategic expansion and operational efficiencies, while also navigating customer engagement dynamics post-Jackpocket acquisition. The company maintains a positive outlook with significant growth expected in fiscal year 2025.
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