NASDAQ$DKNG

Draftkings Inc · Q2 2024 earnings

Q2 2024 earnings · · Investor relations

Briefing

Reported a 26% revenue increase driven by customer engagement, efficient acquisition, product expansion, higher sportsbook hold, and the Jackpocket acquisition.

DraftKings reported strong second-quarter results with a 26% increase in revenue to $1,104 million. The company raised its full-year revenue guidance but revised its Adjusted EBITDA guidance downward. A $1.0 billion share repurchase program was also announced.

  • Revenue increased by 26% to $1,104 million compared to Q2 2023.
  • Monthly Unique Payers (MUPs) increased by 50% to 3.1 million.
  • Average Revenue per MUP (ARPMUP) decreased by 15% to $117.
  • Raised 2024 revenue guidance and revised adjusted EBITDA guidance.

Headline financials

Total Revenue

$1.1B

Previous: $875M+26.2%
EPS

$0.10

Previous: $0.14-28.6%
Average Monthly Unique Payers

3.1M

Previous: 2.1M+48.2%
Average Revenue per MUP

$117.00

Previous: $137.00-14.6%
Capital Expenditures

-$5.45M

Previous: -$9.65M+43.6%
Free Cash Flow

$58.4M

Previous: -$86.9M+167.2%
Net Income

$63.8M

Previous: -$77.3M+182.6%
Operating Income

-$32.4M

Previous: -$69M+53.1%
Gross Profit

$441M

Previous: $365M+21.0%
Cash & Equivalents

$816M

Previous: $1.11B-26.7%
Total Assets

$4.22B

Previous: $3.61B+17.0%
R&D Expense

$92.7M

No prior period
Stock-Based Comp

$90.2M

Previous: $89.2M+1.2%

Revenue & EPS history

DraftKings · Revenue · Quarterly

$1.1B

Q2 2024+26.2%vs Q2 2023
Beat estimate in 9 of 15 quarters(60%)
ActualEstimate

Forward guidance

DraftKings raised its fiscal year 2024 revenue guidance to a range of $5.05 billion to $5.25 billion and expects fiscal year 2025 Adjusted EBITDA to be in the range of $900 million to $1.0 billion. The Company now expects fiscal year 2024 Adjusted EBITDA of between $340 million and $420 million.

Tailwinds

  • Raising fiscal year 2024 revenue guidance to a range of $5.05 billion to $5.25 billion.
  • Expecting fiscal year 2025 Adjusted EBITDA to be in the range of $900 million to $1.0 billion.
  • Continued to capitalize on the healthy customer acquisition environment for the rest of 2024.
  • Plan to implement a gaming tax surcharge in high tax states on January 1, 2025 which could drive Adjusted EBITDA upside on an annual basis.
  • DraftKings’ Free Cash Flow trajectory.

Headwinds

  • Revising its fiscal year 2024 Adjusted EBITDA guidance to between $340 million and $420 million compared to its prior guidance of between $460 million and $540 million.
  • Decrease in Average Revenue per MUP (ARPMUP) was primarily due to lower ARPMUP for Jackpocket customers when compared to customers of DraftKings’ existing product offerings prior to the acquisition.
  • Customer friendly sport outcomes.
  • Increase in new customer promotional investment for the Company’s Sportsbook and iGaming product offerings as a result of strong customer acquisition.
  • Excludes the impact of the planned gaming tax surcharge for fiscal year 2025 Adjusted EBITDA.

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 2024

Historical avgQ2 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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