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DraftKings
🇺🇸 NASDAQ:DKNG
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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.

Total Revenue
$417M
Previous year: $312M
+33.6%
EPS
-$1.14
Previous year: -$0.87
+31.0%
Monthly Unique Payers
2M
ARPMUP
$67
Gross Profit
$104M
Previous year: $129M
-19.5%
Cash and Equivalents
$1.77B
Previous year: $2.82B
-37.1%
Free Cash Flow
-$365M
Previous year: -$62.1M
+488.1%
Total Assets
$3.75B

DraftKings

DraftKings

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.

Company Overview

Full financial data and analysis

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