DraftKings Q1 2022 Earnings Report
Key Takeaways
DraftKings reported a strong first quarter with revenue reaching $417 million, a 34% increase compared to the previous year. The B2C segment saw substantial growth, and the company exceeded its Adjusted EBITDA guidance. As a result, DraftKings raised its full-year revenue and Adjusted EBITDA guidance.
Revenue increased by 34% year-over-year to $417 million.
B2C segment revenue grew by 44% year-over-year.
Adjusted EBITDA exceeded the midpoint of guidance by more than 12%.
2022 revenue and Adjusted EBITDA guidance were raised based on strong customer behavior and cost optimization.
DraftKings
DraftKings
DraftKings Revenue by Segment
Forward Guidance
DraftKings is raising its fiscal year 2022 revenue guidance from a range of $1.85 billion to $2.0 billion to a range of $1.925 billion to $2.025 billion, which equates to year-over-year growth of 49% to 56%. DraftKings is also improving its fiscal year 2022 Adjusted EBITDA guidance from between a loss of $825 million and $925 million to between a loss of $760 million and $840 million.
Positive Outlook
- The company is raising its fiscal year 2022 revenue guidance from a range of $1.85 billion to $2.0 billion to a range of $1.925 billion to $2.025 billion.
- The updated revenue guidance equates to year-over-year growth of 49% to 56%.
- DraftKings is improving its fiscal year 2022 Adjusted EBITDA guidance from between a loss of $825 million and $925 million to between a loss of $760 million and $840 million.
- The updated guidance includes all states in which it was live as of May 6, 2022, including New York and Louisiana.
- DraftKings expects that the acquisition of GNOG, combined with the Company’s expected launch in Ontario, will contribute an additional $130 million to $150 million in revenue.
Challenges Ahead
- The updated guidance does not include contributions from the acquisition of Golden Nugget Online Gaming, Inc. (“GNOG”) – which was consummated on May 5, 2022.
- The guidance does not include the Company’s expected launch in Ontario in the second quarter of 2022.
- DraftKings expects that the acquisition of GNOG, combined with the Company’s expected launch in Ontario will contribute negative $50 million to negative $70 million in Adjusted EBITDA in fiscal year 2022.
- The company's net loss for the three months ended March 31, 2022 was $(467,693) thousands.
- The company's Adjusted EBITDA was $(289,509) thousands.