Supercharged by impressive customer engagement, Fantasy and top U.S. sports book DraftKings is living the dream as it finally goes EBITDA-positive in FY24.
Releasing its Q4 and Full Year fiscals for 2024, the Massachusetts-origin iGaming operator, founded in 2012, reported that its number of so-called Monthly Unique Players (MUPs) had grown 16 percent, year-on-year, and was now averaging 4.8 million punters a month.
And–most critically–the company is now EBITDA-positive.
“2024 was a milestone year for [us] as we achieved our first year of positive Adjusted EBITDA,” attested Alan Ellingson, DraftKings Chief Financial Officer.
“With strong underlying health across our core value drivers, we are raising the midpoint of our fiscal year 2025 revenue guidance to US$6.45 billion from US$6.4 billion and reaffirming our fiscal year 2025 Adjusted EBITDA guidance range of US$900 million to US$1 billion.”
DraftKings reported revenue of US$1.39 billion (£1.1 bn) for the quarter, ending December 31; a 13 percent increase compared to the same period in 2023.
Excited
This growth was primarily driven by “strong customer engagement, efficient customer acquisition strategies, the expansion of the Sportsbook product into new jurisdictions, and higher sportsbook hold percentages”, said DraftKings.
The acquisition of Jackpocket in May had also contributed to the revenue increase, said the sportsbook, although customer-friendly outcomes in the NFL season partially offset these gains.
DraftKings now estimates its Adjusted EBITDA in fiscal year 2025 to be between US$900 million and US$1 billion (£715.32m/£794.79m).
The company noted that it is currently live with mobile sports betting in 25 states and Washington, D.C., covering almost half of the U.S. population.
In terms of full 360 iGaming it is operational in five U.S. states, representing some 11 percent of the nation’s population, and in Canada’s Ontario province.
DraftKings, furthermore, is poised to launch its sportsbook product in Missouri and the U.S. island territory of Puerto Rico.
“Looking ahead to 2025 and beyond, I am excited to further enhance our customer economics through new initiatives such as extending our lead in live betting and advancing cross sell efforts to and from new verticals,” underlined DraftKings CEO and Co-founder Jason Robins.
“Our focus remains on driving sustainable growth in revenue and profitability.”
