By BBBB
DraftKings has released its Q1 2024 financial results revealing revenue of $1.17 billion, up by 53% year-on-year.
In an investors call, DraftKings CEO Jason Robbins cited continued healthy customer engagement, new customers acquisition, the expansion of sports betting into new jurisdictions, higher structural sportsbook hold percentage, and improved promotional reinvestment for Sportsbook and iGaming, as the main drivers behind the positive results.
“DraftKings’ performance in the first quarter of 2024 was outstanding, reflecting healthy revenue growth and a scaled fixed cost structure that positions us to drive rapidly improving Adjusted EBITDA. We successfully launched our online sportsbook in Vermont and North Carolina with highly efficient customer acquisition.
Looking ahead, we remain committed to maximizing shareholder value through continued innovation, operational excellence and disciplined capital allocation.”
Q1 2024 Report Highlights
- Q1 Revenue; $1.174 billion, up 52.6%
- Loss from operations; -$138.8 million, 64.3% decrease on losses reported in Q1 2023
- Adjusted EBITDA; $22.3 million
- Monthly Unique Payers (“MUPs”) increased to 3.4 million, up by 23%
- Average revenue per customer was $114, up by 25%
2024 Revenue Guidance Midpoint Raised to $4.9 Billion
DraftKings has revised its fiscal year 2024 revenue projection to between $4.8 billion and $5.0 billion, up from the previously stated range of $4.65 billion to $4.90 billion announced on February 15th, 2024. This updated guidance reflects a year-over-year growth rate of 31% to 36%.
Alan Ellingson, DraftKings’ Chief Financial Officer added:
“We are raising the midpoint of our fiscal year 2024 revenue guidance to $4.9 billion from $4.775 billion and the midpoint of our Adjusted EBITDA guidance to $500 million from $460 million as a result of our excellent first quarter results and improved outlook on customer acquisition and engagement for the rest of 2024.
We expect Adjusted EBITDA Flow-through Percentage to exceed 50% for fiscal year 2024 as we expand our gross margin and exert discipline on our cost structure, while simultaneously investing in promotions and marketing in accordance with our LTV to CAC targets.”
English