Sports betting and iGaming company DraftKings Inc (NASDAQ: DKNG) reported second-quarter financial results after the market close Thursday. Here are the key highlights.
What Happened: DraftKings reported second-quarter revenue of $874.93 million, which was up 88% year-over-year. The revenue beat a Street consensus estimate of $759.55 million, according to data from Zenger News Pro.
The company reported adjusted earnings per share of 14 cents, which beat a Street consensus estimate of a loss of 25 cents per share.
DraftKings said the revenue gains came from customer retention and strong engagement, acquisition of new customers, product innovation, higher hold percentage and improved promotional activity.
The company ended the quarter with 2.1 million monthly unique paying customers, which was up 44% year-over-year. The average revenue per monthly unique paying user was $127, which was up 33% year-over-year.
The company also reported a positive adjusted EBITDA of $73 million in the second quarter.
“DraftKings produced outstanding results for the second quarter of 2023. We grew revenue at an impressive year-over-year rate, captured additional GGR share in a cost-effective manner, and maintained our focus on operational efficiency,” said DraftKings CEO Jason Robins.
“The positive adjusted EBITDA that we generated in the second quarter exceeded our guidance, and we are well on our way to achieving positive adjusted EBITDA again in the fourth quarter of 2023 and for fiscal year 2024 and beyond.”
The company has sports betting operations in 21 states that represent 44% of the U.S. population. The company also has iGaming operations live in five states that represent around 11% of the U.S. population.
What’s Next: DraftKings is raising its full fiscal year revenue guidance to a range of $3.46 billion to $3.54 billion, up from a prior range of $3.135 billion to $3.235 billion. The new guidance range would equal revenue growth of 54% to 58% year-over-year.
The company is also raising its full-year adjusted EBITDA range to a loss of $220 million to a loss of $190 million, versus a prior range of a loss of $340 million to a loss of $290 million.
For the fourth quarter, DraftKings expects to have positive adjusted EBTIDA of $150 million to $175 million and revenue of around $1.2 billion.
The new guidance includes all states and territories that are live and adds in Kentucky and Puerto Rico, which are expected to launch in the second half of the year.
“We are excited by the additional product features and functionality that we are introducing leading into football season and also look forward to another successful online sportsbook launch in Kentucky this fall pending licensure and regulatory approvals,” said Robins.
DKNG Price Action: DraftKings shares are up 9% to $32.61 in after-hours trading versus a 52-week trading range of $10.70 to $32.45.
Produced in association with Benzinga
Edited by Priscilla Jepchumba and Judy J. Rotich