DraftKings has published its financial results for Q2 2024, announcing a US$100 million-plus reduction in annual Adjusted EBITDA guidance and a US$1 billion (£783.8m) share repurchase.
Revising its Full Year 2024 Adjusted EBITDA guidance to a range of US$340 million to US$420 million (£266.5m-£329.2m)–down from the previous range of US$460 million to US$540 million (£360.56m-£431.1m)–, the company also raised its 2024 Revenue Guidance midpoint to US$5.15 billion (£4.03bn).
DraftKings had revenue of US$1.104 billion (£862.21m) during Q2, ending June 30, a 26 percent increase over the second quarter of 2023.
Growth was driven by robust customer engagement, new customer acquisition, expansion of the sportsbook product into new jurisdictions, a higher structural sportsbook hold percentage, and the acquisition of Jackpocket .
Monthly Unique Payers (MUPs) rose to an average of 3.1 million in Q2 2024, a 50 percent increase from the second quarter of 2023.
Average Revenue per MUP (ARPMUP) was US$117 (£91.7) in Q2, 15 percent down on the same period in 2023.
The Massachusetts-headquartered company, generally accepted as the second sportsbook behind FanDuel in the U.S., adjusted its Full Year Revenue Guidance to between US$5.05 billion to US$5.25 billion (£3.95bn-£4.11bn) — from the previous range of US$4.8 billion to US$5 billion (£3.76bn-£3.91bn).
Down EBITDA
Despite revising its 2024 Adjusted EBITDA down, DraftKings maintained its Full Year Adjusted EBITDA guidance for next year, 2025, in the range of US$900 million to US$1 billion (£705.85m-£783.8m) — with the proviso of excluding the potential impact of the planned gaming tax surcharge.
“We very efficiently acquired many more new customers than we expected and saw continued healthy existing customer engagement in the second quarter,” claimed DraftKings Co-founder and CEO Jason Robins.
“We will continue to capitalise on the healthy customer acquisition environment for the rest of 2024.
“Additionally, we plan to implement a gaming tax surcharge in high tax states that have multiple mobile sports betting operators on January 1, 2025 which could drive Adjusted EBITDA upside on an annual basis.”
Added DraftKings CFO Alan Ellingson: “We are very excited about DraftKings’ Free Cash Flow trajectory.
“In light of that, we are pleased to announce a US$1 billion inaugural share repurchase authorisation, which reflects our confidence in the company’s attractive long-term outlook and healthy balance sheet.”
