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Dec 31, 2023
DraftKings Q4 2023 Earnings Report
DraftKings reported a revenue increase of 44% compared to the same period in 2022, driven by customer engagement and product innovation.
Key Takeaways
DraftKings reported a Q4 2023 revenue of $1,231 million, a 44% increase compared to Q4 2022. The company is raising its fiscal year 2024 revenue guidance to a midpoint of $4.775 billion and Adjusted EBITDA guidance to a midpoint of $460 million.
Revenue for Q4 2023 reached $1,231 million, a 44% increase year-over-year.
Monthly Unique Payers (MUPs) increased by 37% to 3.5 million in Q4 2023.
Average Revenue per MUP (ARPMUP) was $116 in Q4 2023, a 6% increase year-over-year.
The company is raising its fiscal year 2024 revenue and Adjusted EBITDA guidance.
Forward Guidance
DraftKings is raising its fiscal year 2024 revenue guidance to a range of $4.65 billion to $4.90 billion and expects Adjusted EBITDA to be between $410 million and $510 million.
Positive Outlook
- Fiscal year 2024 revenue guidance raised to $4.65 billion to $4.90 billion.
- Fiscal year 2024 Adjusted EBITDA guidance increased to $410 million to $510 million.
- Guidance includes mobile sports betting in Puerto Rico and North Carolina.
- North Carolina sportsbook product launch expected on March 11, 2024.
- Strong underlying fundamentals through the first six weeks of 2024.
Challenges Ahead
- Guidance excludes the estimated impact of the proposed acquisition of Jackpocket.
- Customer-friendly sport outcomes impacted revenue and Adjusted EBITDA in Q4 2023 by approximately ($175) million and approximately ($126) million, respectively.
- Mobile sports betting and iGaming legalization efforts are still pending in several states.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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