DKNG Earnings Prediction
The chart below shows how DKNG performed 10 days before and after its earnings report, based on data from the past quarters. Typically, DKNG sees a -1.58% change in stock price 10 days leading up to the earnings, and a +7.55% change 10 days following the report. On the earnings day itself, the stock moves by -2.37%. This data can give you a slight idea of what to expect for the next quarter's release.
DKNG Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
1.10B
38.68%
-0.81%
Gross Margin
32.23%
3.30%
-19.28%
Operating Margin
-27.18%
-24.90%
2074.40%
Net Margin
-26.81%
-25.20%
-563.84%
EPS
-0.60
-1.64%
-700.00%
No Data Available
DKNG Earnings Analysis
DraftKings Inc. Class A Common Stock Corporation (DKNG.O) Earnings Conference Call
Positive
Revenue Surge: 1. Strong Revenue Growth: DraftKings reported a 39% year-over-year increase in revenue, reaching $1.95 billion in Q3 2024.
Customer Acquisition Cost Reduction: 2. Improved Customer Acquisition Costs: The company saw a nearly 20% decline in customer acquisition costs (CAC) year-over-year while acquiring 14% more online sportsbook and iGaming customers.
Improved Gross Margin: 3. Enhanced Adjusted Gross Margin: Adjusted gross margin improved by 300 basis points year-over-year, reaching 40% in Q3 2024, driven by better promotional reinvestment rates and structural sportsbook hold percentages.
Fiscal Year 2025 Guidance: 4. Positive Fiscal Year 2025 Guidance: DraftKings reiterated its fiscal year 2025 adjusted EBITDA guidance of $900 million to $1 billion, alongside a new revenue guidance range of $6.2 billion to $6.6 billion, indicating a 31% year-over-year growth at the midpoint.
Top Sportsbook App Recognition: 5. Recognition as Top Sportsbook App: The company was recognized as the number one overall sportsbook app in the U.S., ranking first in user experience, betting interface, and features categories.
Negative
Revenue Guidance Revision: 1. Revenue Guidance Downgrade: DraftKings revised its fiscal year 2024 revenue guidance down to $4.85 billion to $4.95 billion from the previous $5.05 billion to $5.25 billion, reflecting a significant decrease in expected revenue.
Adjusted EBITDA Loss: 2. Adjusted EBITDA Loss: The company reported a $59 million adjusted EBITDA loss for Q3 2024, indicating ongoing challenges in achieving profitability despite revenue growth.
NFL Outcomes Impact Analysis: 3. Impact of NFL Outcomes: Early NFL outcomes in Q4 are expected to negatively impact revenue and adjusted EBITDA by $250 million and $175 million, respectively, highlighting volatility in sports betting results.
Customer Acquisition Concerns: 4. Customer Acquisition Caution: DraftKings expressed caution regarding customer acquisition, indicating that unexpected strong customer acquisition could lead to higher promotional spending, which may affect profitability.
2025 Flow-Through Rate Decline: 5. Lowered 2025 Flow-Through Rate: The company anticipates a flow-through rate of around 39% for 2025, down from the long-term target of 50%, due to uncertainties in customer acquisition and promotional spending.
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DKNG Earning Call Sentiment
DraftKings Inc. (DKNG) Q3 2024 Earnings Call Transcript
1.0x
00:00
00:00
DKNG.O
-0.56%Positive
The earnings call summary reveals a mixed performance with revised revenue and EBITDA guidance due to unfavorable NFL outcomes impacting financials. Despite growth in revenue and customer acquisition, the lowered guidance and cautious approach to customer acquisition indicate potential challenges. The Q&A session highlights management's cautious stance and lack of detailed responses, particularly on hold percentages and promotional strategies, adding to uncertainties. The share repurchase plan offers some positive sentiment, but overall, the negative revisions and cautious outlook suggest a negative stock price reaction.