NASDAQ$DKNG

Draftkings Inc · Q2 2023 earnings

Q2 2023 earnings · · Investor relations

Briefing

DraftKings reported positive Adjusted EBITDA and increased revenue, driven by customer retention and engagement, efficient customer acquisition, product innovation, and improved promotional intensity.

DraftKings' Q2 2023 revenue grew 88% year-over-year to $875 million. The company generated positive Adjusted EBITDA, exceeding guidance, and raised its 2023 revenue and Adjusted EBITDA guidance.

  • Revenue increased by 88% year-over-year to $875 million.
  • Average Revenue per MUP (ARPMUP) increased by 33% year-over-year to $137.
  • Monthly Unique Payers (MUPs) increased by 44% year-over-year to 2.1 million.
  • The company expects to generate $150 million to $175 million of Adjusted EBITDA in Q4 2023.

Headline financials

Total Revenue

$875M

Previous: $466M+87.7%
EPS (adj)

$0.14

Previous: -$0.50+128.0%
Average Monthly Unique Payers

2.1M

Previous: 1.5M+40.0%
Average Revenue per MUP

$137.00

Previous: $103.00+33.0%
Capital Expenditures

-$9.65M

Previous: -$14.5M+33.3%
Free Cash Flow

-$86.9M

Previous: -$232M+62.5%
Net Income

-$77.3M

Previous: -$217M+64.4%
Operating Income

-$69M

Previous: -$309M+77.6%
Gross Profit

$365M

Previous: $153M+137.7%
Cash & Equivalents

$1.11B

Previous: $1.51B-26.5%
Total Assets

$3.61B

Previous: $4.15B-13.2%
Stock-Based Comp

$89.2M

Previous: $136M-34.2%

Revenue & EPS history

DraftKings · Revenue · Quarterly

$875M

Q2 2023+87.7%vs Q2 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 $3.46 billion to $3.54 billion and improving its fiscal year 2023 Adjusted EBITDA guidance to between ($190) million and ($220) million.

Tailwinds

  • Fiscal year 2023 revenue guidance is raised to $3.46 billion to $3.54 billion.
  • Fiscal year 2023 Adjusted EBITDA guidance is improved to ($190) million to ($220) million.
  • The company expects to generate $150 million to $175 million of Adjusted EBITDA in the fourth quarter of 2023.
  • Revenue and Adjusted EBITDA guidance includes existing jurisdictions plus Kentucky and Puerto Rico.
  • DraftKings expects to launch its Sportsbook product in Kentucky on September 28, 2023.

Headwinds

  • Guidance is pending licensure and regulatory approvals in certain jurisdictions.
  • Guidance requires securing market access in North Carolina and Vermont.
  • Forward-looking statements are subject to risks and uncertainties.
  • Actual results may differ materially from forward-looking statements.
  • The company makes no commitment to update forward-looking statements.

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 Q2 2023

Historical avgQ2 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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