NASDAQ$DKNG
Draftkings Inc · Q1 2022 earnings
Q1 2022 earnings · · Investor relations
Briefing
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.
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.
Headline financials
Revenue & EPS history
DraftKings · Revenue · Quarterly
$417M
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.
Tailwinds
- 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.
Headwinds
- 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.
Historical earnings impact
How earnings announcements have historically affected this stock's price.
Avg. return before/after earnings
Based on 20 quarterly earnings reports · overlaid with Q1 2022
+0.8%
Avg return
Earnings day
+1.4%
Avg return
5 days after
+3.4%
Avg return
30 days after
63%
17 / 27 earnings
Positive
+23.9%
Q3 2023
Best reaction
-24.7%
Q3 2022
Worst reaction
| Quarter | Report date | Reaction (Day 0) | +5 days | +30 days |
|---|---|---|---|---|
| Q1 2026 | -1.0% | -2.4% | -3.2% | |
| Q4 2025 | -13.5% | -7.8% | +2.8% | |
| Q3 2025 | +8.6% | +12.6% | +21.5% | |
| Q1 2025 | +2.5% | +8.2% | +1.3% | |
| Q4 2024 | +15.2% | +9.3% | -18.5% | |
| Q3 2024 | +4.9% | +9.0% | +15.7% | |
| Q2 2024 | -13.3% | -15.1% | -6.6% | |
| Q1 2024 | +0.0% | +3.5% | -16.0% | |
| Q4 2023 | +1.6% | -5.8% | -4.8% | |
| Q3 2023 | +23.9% | +32.0% | +43.2% | |
| Q2 2023 | +5.0% | +4.9% | -2.0% | |
| Q1 2023 | +12.1% | +11.2% | +13.7% | |
| Q4 2022 | +15.5% | +12.3% | +0.5% | |
| Q3 2022 | -24.7% | -25.6% | -1.1% | |
| Q2 2022 | +12.7% | +18.3% | -5.3% | |
| Q1 2022 | -23.9% | -28.9% | -11.9% | |
| Q4 2021 | -15.7% | -11.0% | -11.1% | |
| Q3 2021 | +0.2% | -8.1% | -36.5% | |
| Q2 2021 | +3.7% | +3.4% | +20.9% | |
| Q1 2021 | -12.6% | -18.8% | -3.0% | |
| Q4 2020 | +18.9% | +13.7% | +10.0% | |
| Q3 2020 | +3.6% | +15.6% | +21.4% | |
| Q2 2020 | -3.8% | +0.6% | +15.0% | |
| Q1 2020 | +16.8% | +17.3% | +45.7% | |
| Q4 2019 | -14.1% | -11.1% | +0.1% | |
| Q3 2019 | +0.0% | -0.5% | +0.0% | |
| Q2 2019 | +0.2% | +0.2% | +0.9% | |
| Q1 2019 | — | — | — | |
| Q4 2018 | — | — | — |
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