DraftKings has reported revenue of $473m for the fourth quarter of last year, an increase of 47 per cent compared to $322m during the same period in 2020.
This revenue exceeded the guidance previously provided by the company during its third quarter earnings conference call on November by eight per cent.
Subsequently, the company is increasing the midpoint of its 2022 revenue guidance to $1.93bn given new state launches and strong underlying performance trends and introducing guidance for adjusted EBITDA of negative $825m to $925m.
“DraftKings’ strong fourth quarter performance exceeded our expectations on the top and bottom line,” said Jason Robins, DraftKings’ co-founder, Chief Executive Officer and Chairman of the Board.
“Our excellent quarter capped off a year in which five of our states were Contribution Profit positive, further demonstrating the effectiveness of our state playbook and supporting our positive view of the industry’s TAM.
“We enter 2022 positioned to grow our market share, further optimise our user experience and continue to strengthen our multi-product suite of offerings.”
After giving pro forma effect to the business combination with SBTech and Diamond Eagle Acquisition Corp. as if it had occurred on January 1 2019, revenue for 2021 grew 101 per cent compared to the prior year.
Jason Park, DraftKings’ Chief Financial Officer, added: “We grew revenue 47 per cent year-over-year to $473m in the fourth quarter despite lower-than-expected hold in October primarily due to NFL game outcomes.
“Our key performance indicators reflected excellent player retention, acquisition and cross-selling in the quarter, as monthly unique payers increased by 32 per cent and average revenue per monthly unique payer grew by 19 per cent.”