DraftKings Inc. has unveiled its first-quarter 2024 financial results, showcasing significant revenue growth. The company’s earnings presentation and business update for Q1 2024 are available on its Investor Relations website at investors.draftkings.com.
During the three months ended March 31, 2024, DraftKings recorded revenue of US$1.175 bn (£940 million/€1.09 bn), marking a notable increase of US$405 million, or 53%, compared to the same period in 2023. This growth was primarily fueled by robust customer engagement, efficient customer acquisition strategies, expansion of the Sportsbook product into new markets, improved sportsbook hold percentage, and enhanced promotional reinvestment for Sportsbook and iGaming.
The company witnessed an increase in Monthly Unique Payers (MUPs) to an average of 3.4 million in Q1 2024, representing a 23% surge compared to Q1 2023. This growth underscores DraftKings’ successful efforts in acquiring and retaining customers across its Sportsbook and iGaming offerings, alongside the expansion of its Sportsbook product into new markets.
Average Revenue per MUP (ARPMUP) reached US$114 in Q1 2024, reflecting a 25% increase compared to the same period in 2023. This increase was primarily driven by a rise in the company’s structural sportsbook hold percentage and improved promotional reinvestment for Sportsbook and iGaming.
DraftKings has revised its fiscal year 2024 revenue guidance to a range of US$4.8 bn to US$5.0 bn, reflecting a year-over-year growth of 31% to 36%. Additionally, the company has adjusted its fiscal year 2024 Adjusted EBITDA guidance to a range of US$460 million to US$540 million, up from the previous range of US$410 million to US$510 million.
Following the launch of its Sportsbook product in North Carolina on March 11, 2024, DraftKings now offers mobile sports betting in 25 states, covering approximately 49% of the U.S. population. The company also provides iGaming services in 5 states, reaching approximately 11% of the U.S. population.
Moreover, DraftKings has introduced its Sportsbook and iGaming products in Ontario, Canada, catering to around 40% of Canada’s population. The company anticipates launching its Sportsbook product in Puerto Rico upon securing market access, licensure, regulatory approvals, and contractual agreements.
DraftKings expects further expansion opportunities in 2024, with several jurisdictions considering legislation to legalize mobile sports betting or iGaming, representing significant growth potential for the company in the coming months.
“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,” said Jason Robins, DraftKings’ Chief Executive Officer and Co-founder. “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.”
“We are raising the midpoint of our fiscal year 2024 revenue guidance to US$4.9 billion from US$4.775 billion and the midpoint of our Adjusted EBITDA guidance to US$500 million from US$460 million as a result of our excellent first quarter results and improved outlook on customer acquisition and engagement for the rest of 2024,” said Alan Ellingson, DraftKings’ Chief Financial Officer. “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.”
