NASDAQ$DKNG

Draftkings Inc · Q1 2023 earnings

Q1 2023 earnings · · Investor relations

Briefing

Reported an increase in revenue driven by efficient customer acquisition, product innovation, higher hold percentage, decreased promotional intensity and healthy customer retention.

DraftKings reported a strong first quarter with revenue reaching $770 million, an 84% increase year-over-year. The company is raising its 2023 revenue guidance midpoint to $3.185 billion and improving its Adjusted EBITDA guidance midpoint to ($315) million.

  • Revenue increased 84% year-over-year to $770 million.
  • Monthly Unique Payers (MUPs) increased 39% year-over-year to 2.8 million.
  • Average Revenue per MUP (ARPMUP) increased 35% year-over-year to $92.
  • Increased fiscal year 2023 revenue guidance to a range of $3.135 billion to $3.235 billion and improved fiscal year 2023 Adjusted EBITDA guidance to between ($290) million and ($340) million.

Headline financials

Total Revenue

$770M

Previous: $417M+84.5%
EPS (adj)

-$0.87

Previous: -$1.14+23.7%
Average Monthly Unique Payers

2.8M

Previous: 2.0M+40.0%
Average Revenue per MUP

$92.00

Previous: $67.00+37.3%
Capital Expenditures

-$7.09M

Previous: -$8.61M+17.6%
Free Cash Flow

-$404M

Previous: -$476M+15.1%
Net Income

-$397M

Previous: -$468M+15.1%
Operating Income

-$390M

Previous: -$516M+24.4%
Gross Profit

$248M

Previous: $104M+138.8%
Cash & Equivalents

$1.09B

Previous: $1.77B-38.7%
Total Assets

$3.74B

Previous: $3.75B-0.2%
Stock-Based Comp

$117M

Previous: $187M-37.2%

Revenue & EPS history

DraftKings · Revenue · Quarterly

$770M

Q1 2023+84.5%vs Q1 2022
Beat estimate in 9 of 15 quarters(60%)
ActualEstimate

Forward guidance

DraftKings is raising its fiscal year 2023 revenue guidance to a range of $3.135 billion to $3.235 billion and improving its fiscal year 2023 Adjusted EBITDA guidance to between ($290) million and ($340) million.

Tailwinds

  • Increased fiscal year 2023 revenue guidance to a range of $3.135 billion to $3.235 billion.
  • Improved fiscal year 2023 Adjusted EBITDA guidance to between ($290) million and ($340) million.
  • Expects to be Approximately Breakeven on an Adjusted EBITDA Basis in the Second Quarter of 2023
  • Strong unique payer retention.
  • Expansion of Sportsbook and iGaming products into new jurisdictions.

Headwinds

  • The forward-looking statements contained herein are based on management’s current expectations and beliefs and speak only as of the date hereof.
  • Changes in applicable laws or regulations, particularly with respect to gaming
  • General economic and market conditions impacting demand for DraftKings’ products and services
  • Economic and market conditions in the media, entertainment, gaming, and software industries in the markets in which DraftKings operates
  • Potential adverse effects of the global coronavirus pandemic (or the emergence of additional variants or strains thereof)

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 2023

Historical avgQ1 2023

+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

Earnings price reactions
QuarterReport dateReaction (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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