Draftkings Inc ( (DKNG) ) has released its Q3 earnings. Here is a breakdown of the information Draftkings Inc presented to its investors.
DraftKings Inc. is a digital sports entertainment and gaming company, offering a range of products including daily fantasy sports, regulated gaming, and digital media, and is the only U.S.-based vertically integrated sports betting operator. In its latest earnings report, DraftKings announced substantial growth in customer acquisition and revenue for the third quarter of 2024, achieving a 39% year-over-year revenue increase to $1,095 million. Additionally, the company reported improvements in customer acquisition costs and adjusted gross margins, despite a net loss of $293.7 million.
Key performance highlights include a 25% increase in online sportsbook handle and a 39% increase in gross gaming revenue year-over-year. The company also noted a significant improvement in promotional reinvestment rates and customer-friendly outcomes in sports events, impacting short-term revenue and EBITDA. DraftKings has revised its 2024 revenue guidance to a range of $4.85 billion to $4.95 billion, with adjusted EBITDA expected between $240 million and $280 million.
Looking ahead, DraftKings maintains a positive outlook for 2025, projecting revenue between $6.2 billion and $6.6 billion and an adjusted EBITDA range of $900 million to $1.0 billion. The company expects to launch its Sportsbook product in Missouri, contingent on regulatory approvals, and plans to disclose more detailed revenue figures beginning in 2025.
Overall, DraftKings continues to focus on product innovation and market expansion, aiming for sustained growth and enhanced customer engagement in the competitive sports betting and gaming industry.
