DraftKings Q1 revenue up 53% YoY as actives leap 23% in strong start to 2024
Boston-based operator giant also increases full-year 2024 guidance on back of results as EBITDA swings to positive compared to six-figure loss last year
DraftKings has reported a 52.7% year-on-year (YoY) leap in Q1 2024 revenue as the US giant posted a 23% surge in monthly unique players and two sports betting state launches in the reporting period.
The Boston-based giant noted revenue of $1.2bn for the first three months of the year, up from $770m in Q1 2023.
The business said the gains on its top line were driven by a combination of “healthy” customer engagement, “efficient” customer acquisition, improvements to its sports betting product and a higher structural sportsbook hold.
Aside from soaring revenue, DraftKings also noted a swing in its adjusted EBITDA, from a $221,661 loss in Q1 2023 to a $22,390 positive this year.
Net losses also shrank, falling from $397,148 in Q1 2023 to $142,568 in Q1 2024, despite an increase in cost of revenue from $521,740 to $710,069.
On the customer front, management reported monthly unique players increased to 3.4 million in Q1 2024, up 23% YoY.
Bosses said the increase reflected “strong unique player acquisition and retention across DraftKings’ sportsbook and igaming products as well as the expansion of its sportsbook product into new jurisdictions”.
DraftKings went live in Vermont and North Carolina during the reporting period.
The operator is now live with its online sports betting product in 25 states, representing around 49% of the US population.
DraftKings added that its online sports betting and igaming market share increased to 31% during the first quarter, up from 27% a year prior.
Average revenue per monthly unique player also rose, up 25% YoY, to $114 from $92 in Q1 2023.
The firm pointed to an increase in its sportsbook hold and improved promotional reinvestment.
As a result of the strong start to the year, DraftKings has raised its guidance for full-year 2024, which only includes existing jurisdictions the business is live in.
The company now expects revenue to land between $4.8bn and $5bn, up from a previous predicted range of $4.65bn to $4.9bn. If accurate, the new range would equate to YoY growth of between 31% and 36%.
For adjusted EBITDA, the firm has given a full-year range of between $460m and $540m compared to the earlier figure of between $410m and $510m.
DraftKings added the caveat that the new guidance did not include the estimated impact of Jackpocket, having acquired the lottery courier earlier this year for $750m.
Bosses said the impact of the business would be baked into its guidance following the completion of the acquisition, which is due to close in H2 2024.
Jason Robins, DraftKings CEO and co-founder, said the group’s performance in Q1 was “outstanding” as he also praised sports betting launches in Vermont and North Carolina.
The CEO said: “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.
“Looking ahead, we remain committed to maximising shareholder value through continued innovation, operational excellence and disciplined capital allocation,” he added.