DraftKings’ revenues up 13 per cent marking first year of positive Adjusted EBITDA
For the three months ended December 31, 2024, DraftKings reported revenue of $1,393m, an increase of $162m, or 13 per cent, 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 the impact of the acquisition of Jackpocket, which closed on May 22, 2024, partially offset by customer-friendly outcomes throughout the NFL season.
“We continued to efficiently acquire and engage customers, expand structural sportsbook hold percentage and optimize promotional reinvestment in fiscal year 2024, while we simultaneously experienced customer-friendly sport outcomes,” said Jason Robins, DraftKings’ Chief Executive Officer and Co-founder. “Looking ahead to 2025 and beyond, I am excited to further enhance our customer economics through new initiatives such as extending our lead in live betting and advancing cross sell efforts to and from new verticals. Our focus remains on driving sustainable growth in revenue and profitability.”
“2024 was a milestone year for DraftKings as we achieved our first year of positive Adjusted EBITDA. Additionally, we began executing on our inaugural share repurchase authorization,” said Alan Ellingson, DraftKings’ Chief Financial Officer. “With strong underlying health across our core value drivers, we are raising the midpoint of our fiscal year 2025 revenue guidance to $6.45bn from $6.4bn and reaffirming our fiscal year 2025 Adjusted EBITDA guidance range of $900m to $1bn.”
Monthly Unique Payers (MUPs) increased to 4.8 million average monthly unique paying customers in the fourth quarter of 2024, representing an increase of 36 per cent compared to the fourth quarter of 2023. This increase reflects strong unique player acquisition and retention across DraftKings’ Sportsbook and iGaming products, the expansion of its Sportsbook product into new jurisdictions and the impact of the acquisition of Jackpocket. Excluding the impact of the acquisition of Jackpocket, MUPs increased by approximately 16 per cent compared to the fourth quarter of 2023.
DraftKings is live with mobile sports betting in 25 states and Washington, D.C. which collectively represent approximately 49 per cent of the US population. DraftKings is also live with iGaming in five states, representing approximately 11 per cent of the US population.
On November 5, 2024, Missouri voters passed a ballot initiative that legalized sports betting in the state. DraftKings expects to launch its Sportsbook product in Missouri pending market access, licensure, regulatory approvals, and contractual approvals where applicable.
DraftKings expects to launch its Sportsbook product in Puerto Rico pending market access, licensure, regulatory approvals, and contractual approvals where applicable.
