First Quarter 2024 Highlights
For the three months ended March 31, 2024, DraftKings reported revenue of $1,175 million, an increase of $405 million, or 53%, compared to $770 million during the same period in 2023. The increase in the Company’s first quarter 2024 revenue was driven primarily by continued healthy customer engagement, efficient acquisition of new customers, the expansion of the Company’s Sportsbook product offering into new jurisdictions, higher structural sportsbook hold percentage, and improved promotional reinvestment for Sportsbook and iGaming
“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 $4.9 billion from $4.775 billion and the midpoint of our Adjusted EBITDA guidance to $500 million from $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.”
Continued Healthy Growth in Customer Retention, Acquisition, and Engagement
Monthly Unique Payers (“MUPs”) increased to 3.4 million average monthly unique paying customers in the first quarter of 2024, representing an increase of 23% compared to the first quarter of 2023. This increase reflects strong unique player acquisition and retention across DraftKings’ Sportsbook and iGaming products as well as the expansion of its Sportsbook product into new jurisdictions.
Average Revenue per MUP (“ARPMUP”) was $114 in the first quarter of 2024, representing a 25% increase compared to the same period in 2023. This increase was primarily due to an increase in the Company’s structural sportsbook hold percentage and improved promotional reinvestment for Sportsbook and iGaming.
Detailed financial data and other information for the first quarter of 2024 is available in the financial statements set forth below under the caption “Financial Results.”
Raising Fiscal Year 2024 Revenue and Adjusted EBITDA Guidance
DraftKings is raising its fiscal year 2024 revenue guidance to a range of $4.8 billion to $5.0 billion from the range of $4.65 billion to $4.90 billion, which the Company previously announced on February 15, 2024. The Company’s updated 2024 revenue guidance range equates to year-over-year growth of 31% to 36%.
DraftKings is also increasing its fiscal year 2024 Adjusted EBITDA guidance. The Company now expects fiscal year 2024 Adjusted EBITDA of between $460 million and $540 million compared to its prior fiscal year 2024 Adjusted EBITDA guidance of between $410 million and $510 million, which the Company previously announced on February 15, 2024.
The Company’s revenue and Adjusted EBITDA guidance for fiscal year 2024 includes only its existing jurisdictions.
DraftKings’ revenue and Adjusted EBITDA guidance for fiscal year 2024 excludes the estimated impact of the Company’s proposed acquisition of Jackpocket, which DraftKings will incorporate into its guidance following the consummation of the proposed acquisition.
Mobile Sports Betting and iGaming Footprint
Following the launch of its Sportsbook product in North Carolina on March 11, 2024, DraftKings is live with mobile sports betting in 25 states that collectively represent approximately 49% of the U.S. population.
DraftKings is also live with iGaming in 5 states, representing approximately 11% of the U.S. population.
DraftKings is live with its Sportsbook and iGaming products in Ontario, Canada, which represents approximately 40% of Canada’s population.
DraftKings expects to launch its Sportsbook product in Puerto Rico pending market access, licensure, regulatory approvals, and contractual approvals where applicable.
To date in 2024, 9 jurisdictions that collectively represent approximately 11% of the U.S. population have either introduced legislation to legalize mobile sports betting or introduced a bill that may result in a mobile sports betting referendum during an upcoming election. In addition, 5 jurisdictions that collectively represent approximately 12% of the U.S. population have either introduced legislation to legalize iGaming or introduced a bill that may result in an iGaming referendum during an upcoming election.
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