NASDAQ$DKNG

Draftkings Inc · Q1 2024 earnings

Q1 2024 earnings · · Investor relations

Briefing

DraftKings reported strong first-quarter results, marked by significant revenue growth and increased customer engagement.

DraftKings' first quarter of 2024 showed substantial growth, with revenue increasing by 53% to $1,175 million. The company raised its fiscal year 2024 revenue guidance midpoint to $4.9 billion and its Adjusted EBITDA guidance midpoint to $500 million, reflecting strong customer acquisition and engagement.

  • Revenue increased by 53% to $1,175 million compared to the same period in 2023.
  • Average monthly unique payers increased by 23% year-over-year.
  • Average revenue per monthly unique payer increased by 25% year-over-year.
  • Fiscal year 2024 revenue guidance raised to a midpoint of $4.9 billion and Adjusted EBITDA guidance raised to a midpoint of $500 million.

Headline financials

Total Revenue

$1.17B

Previous: $770M+52.7%
EPS

-$0.30

Previous: -$0.87+65.5%
Average Monthly Unique Payers

3.4M

Previous: 2.8M+20.0%
Average Revenue per MUP

$113.68

Previous: $92.00+23.6%
Capital Expenditures

-$3.03M

Previous: -$7.09M+57.4%
Free Cash Flow

-$146M

Previous: -$404M+64.0%
Net Income

-$143M

Previous: -$397M+64.1%
Operating Income

-$139M

Previous: -$390M+64.4%
Gross Profit

$465M

Previous: $248M+87.5%
Cash & Equivalents

$1.19B

Previous: $1.09B+9.7%
Total Assets

$3.8B

Previous: $3.74B+1.6%
R&D Expense

$88.8M

No prior period
Stock-Based Comp

$93.5M

Previous: $117M-20.3%

Revenue & EPS history

DraftKings · Revenue · Quarterly

$1.17B

Q1 2024+52.7%vs Q1 2023
Beat estimate in 9 of 15 quarters(60%)
ActualEstimate

Forward guidance

DraftKings raised its fiscal year 2024 revenue guidance to a range of $4.8 billion to $5.0 billion and Adjusted EBITDA guidance to between $460 million and $540 million.

Tailwinds

  • Strong first quarter results.
  • Improved outlook on customer acquisition.
  • Improved outlook on customer engagement.
  • Expected Adjusted EBITDA Flow-through Percentage to exceed 50%.
  • Expansion of gross margin and discipline on cost structure.

Headwinds

  • Guidance excludes the estimated impact of the proposed acquisition of Jackpocket.
  • Forward-looking guidance is subject to risks and uncertainties.
  • 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.

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 2024

Historical avgQ1 2024

+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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