For the three months ended June 30, 2023, DraftKings reported revenue of $875m, an increase of 88 per cent compared to $466m during the same period in 2022 driven primarily by continued healthy customer retention and engagement, efficient acquisition of new customers, product innovation leading to increased parlay mix and thus higher hold percentage, and improved promotional intensity.
“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 Jason Robins, DraftKings’ Chief Executive Officer and Co-founder. “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. 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.”
“We are acquiring new customers efficiently while simultaneously retaining and monetizing our existing players through rapid product innovation, less promotions, and higher hold from better bet mix,” said Jason Park, DraftKings’ Chief Financial Officer. “Our unit economics are outstanding with older states generating more than enough cash to fund investment in new states. This performance, combined with fixed costs that grew at only a mid-single digit year-over-year percentage rate in the second quarter, resulted in an inflection to positive Adjusted EBITDA that we expect will occur again in the fourth quarter and for full year 2024. As a result, we are increasing the midpoint of our fiscal year 2023 revenue guidance to $3.5bn from $3.185bn and improving the midpoint of our fiscal year 2023 Adjusted EBITDA guidance to $205m from $315m.”
Monthly Unique Payers (MUPs) increased to 2.1 million average monthly unique paying customers in the second quarter of 2023, representing an increase of 44 per cent compared to the second quarter of 2022. This increase reflects strong unique payer retention and acquisition across DraftKings’ Sportsbook and iGaming products as well as the expansion of its Sportsbook and iGaming products into new jurisdictions.
Average Revenue per MUP (ARPMUP) was $137 in the second quarter of 2023, representing a 33 per cent increase compared to the same period in 2022. This increase was primarily due to improvement in the company’s structural sportsbook hold rate and reduced promotional intensity.
DraftKings is raising its fiscal year 2023 revenue guidance to a range of $3.46bn to $3.54bn from the range of $3.135bn to $3.235bn, which the company previously announced on May 4, 2023.
DraftKings is live with mobile sports betting in 21 states that collectively represent approximately 44 per cent of the US population.