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Mar 31, 2022
DraftKings Q1 2022 Earnings Report
DraftKings reported revenue of $417 million, a 34% increase year-over-year, with B2C segment revenue growing 44%. The company raised its 2022 revenue and Adjusted EBITDA guidance due to strong customer behavior and cost optimization.
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.
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.
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