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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.
Revenue by Segment
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.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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