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Jun 30, 2024
DraftKings Q2 2024 Earnings Report
Reported a 26% revenue increase driven by customer engagement, efficient acquisition, product expansion, higher sportsbook hold, and the Jackpocket acquisition.
Key Takeaways
DraftKings reported strong second-quarter results with a 26% increase in revenue to $1,104 million. The company raised its full-year revenue guidance but revised its Adjusted EBITDA guidance downward. A $1.0 billion share repurchase program was also announced.
Revenue increased by 26% to $1,104 million compared to Q2 2023.
Monthly Unique Payers (MUPs) increased by 50% to 3.1 million.
Average Revenue per MUP (ARPMUP) decreased by 15% to $117.
Raised 2024 revenue guidance and revised adjusted EBITDA guidance.
DraftKings
DraftKings
DraftKings Revenue by Segment
Revenue by Segment
Sportsbook Revenue
CapyFin.comiGaming Revenue
CapyFin.comOther Revenue
CapyFin.com Forward Guidance
DraftKings raised its fiscal year 2024 revenue guidance to a range of $5.05 billion to $5.25 billion and expects fiscal year 2025 Adjusted EBITDA to be in the range of $900 million to $1.0 billion. The Company now expects fiscal year 2024 Adjusted EBITDA of between $340 million and $420 million.
Positive Outlook
- Raising fiscal year 2024 revenue guidance to a range of $5.05 billion to $5.25 billion.
- Expecting fiscal year 2025 Adjusted EBITDA to be in the range of $900 million to $1.0 billion.
- Continued to capitalize on the healthy customer acquisition environment for the rest of 2024.
- Plan to implement a gaming tax surcharge in high tax states on January 1, 2025 which could drive Adjusted EBITDA upside on an annual basis.
- DraftKings’ Free Cash Flow trajectory.
Challenges Ahead
- Revising its fiscal year 2024 Adjusted EBITDA guidance to between $340 million and $420 million compared to its prior guidance of between $460 million and $540 million.
- Decrease in Average Revenue per MUP (ARPMUP) was primarily due to lower ARPMUP for Jackpocket customers when compared to customers of DraftKings’ existing product offerings prior to the acquisition.
- Customer friendly sport outcomes.
- Increase in new customer promotional investment for the Company’s Sportsbook and iGaming product offerings as a result of strong customer acquisition.
- Excludes the impact of the planned gaming tax surcharge for fiscal year 2025 Adjusted EBITDA.
Revenue & Expenses
Visualization of income flow from segment revenue to net income