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Dec 31, 2024
DraftKings Q4 2024 Earnings Report
DraftKings reported revenue growth but faced profitability challenges in Q4 2024.
Key Takeaways
DraftKings saw strong revenue growth driven by increased customer acquisition and engagement. However, profitability was impacted by lower average revenue per user and higher promotional investments. The company remains focused on enhancing customer economics and expanding its market reach.
Revenue grew by 13.17% year-over-year, reaching $1.39 billion.
Net loss widened to $134.85 million, compared to $44.62 million in Q4 2023.
Average revenue per monthly unique payer (ARPMUP) declined 16% due to Jackpocket acquisition and lower hold rates.
Adjusted EBITDA decreased 40.77% to $89.45 million.
DraftKings
DraftKings
Forward Guidance
DraftKings raised its revenue guidance midpoint for FY 2025 while reaffirming its Adjusted EBITDA outlook, citing strong customer engagement and market expansion.
Positive Outlook
- FY 2025 revenue guidance raised to a midpoint of $6.45 billion.
- Adjusted EBITDA guidance reaffirmed at $900 million to $1.0 billion.
- Strong customer acquisition and retention expected to continue driving growth.
- Expansion into new jurisdictions, including Missouri and Puerto Rico, anticipated.
- Focus on live betting and cross-selling expected to enhance monetization.
Challenges Ahead
- Lower average revenue per user due to Jackpocket integration may persist.
- Customer-friendly sports outcomes could impact sportsbook hold rates.
- Promotional reinvestment strategies may pressure margins.
- Market competition remains intense in online sports betting and iGaming.
- Regulatory challenges in expanding jurisdictions could pose risks.