DraftKings Reports Impressive Q1 2024 Financials, Raises Guidance

DraftKings Inc. has announced its financial results for the first quarter of 2024, posting robust revenue growth and providing an optimistic outlook for the rest of the year. The company also shared updates on its business performance and strategic prospects as it hopes to further capitalize on the spread of regulated sports betting and iGaming across the USA.

Customer Engagement and Retention Efforts Paid Off

In the first quarter of 2024, DraftKings reported revenue of $1.175 billion, marking a significant increase of 53% compared to the same period in 2023, when revenue was $770 million. Factors such as healthy customer engagement, efficient customer acquisition, and expanding the Sportsbook product into new jurisdictions were instrumental in driving sustained growth.

Jason Robins, DraftKings’ CEO and co-founder, expressed satisfaction with the company’s performance in the first quarter and emphasized the commitment to maximizing shareholder value through innovation, operational excellence, and disciplined capital allocation. DraftKings recently appeared on Energage’s Top Workplaces USA 2024 list, highlighting its people-centered culture and positive environment.

“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.“

Jason Robins, DraftKings CEO and co-founder

Average monthly unique paying customers increased to 3.4 million in the first quarter of 2024, representing a 23% year-on-year growth. This increase reflects robust acquisition and retention across DraftKings’ Sportsbook and iGaming products. Additionally, average revenue per MUP reached $114 in the first quarter of 2024, a 25% year-on-year growth bolstered by higher structural sportsbook hold percentage and improved promotional reinvestment.

Company Management Remains Highly Optimistic

Alan Ellingson, DraftKings’ CFO, announced the company’s updated fiscal year 2024 revenue and Adjusted EBITDA guidance. The midpoint of the revenue guidance was raised to $4.9 billion from $4.775 billion, while the midpoint of the Adjusted EBITDA guidance rose to $500 million from $460 million. These revisions reflect the excellent first-quarter results and the improved customer acquisition and engagement expectations.

Looking ahead, DraftKings is live with mobile sports betting in 25 states and with iGaming in 5 states. The company also offers its products in Ontario, Canada, and expects to launch in Puerto Rico pending regulatory approvals. Legislative developments in 2024 have seen several jurisdictions introduce legislation to legalize mobile sports betting and iGaming, representing future growth opportunities.

DraftKings’ first-quarter financial results demonstrate robust momentum and growth prospects, driven by strategic initiatives and expansion efforts across its product offerings and geographic markets. The company remains focused on delivering value to shareholders while continuing to innovate and capitalize on emerging opportunities across the sports betting and iGaming industry.