NASDAQ$DKNG

Draftkings Inc · Q3 2022 earnings

Q3 2022 earnings · · Investor relations

Briefing

DraftKings reported a significant increase in revenue and provided guidance for future growth and profitability.

DraftKings reported a 136% increase in revenue to $502 million for the third quarter of 2022. The company also raised its 2022 revenue guidance and improved its 2022 Adjusted EBITDA guidance. DraftKings introduced 2023 revenue and Adjusted EBITDA guidance, projecting continued growth and improved profitability.

  • Revenue increased by 136% year-over-year to $502 million.
  • Monthly Unique Payers (MUPs) increased by 22% year-over-year to 1.6 million.
  • Average Revenue per MUP (ARPMUP) increased by 114% year-over-year to $100.
  • The company raised its fiscal year 2022 revenue guidance to $2.16 billion to $2.19 billion and improved its fiscal year 2022 Adjusted EBITDA guidance to a loss of between $800 million and $780 million.

Headline financials

Total Revenue

$502M

Previous: $213M+135.9%
EPS (adj)

-$1.00

Previous: -$1.35+25.9%
Average Monthly Unique Payers

1.6M

Previous: 1.3M+22.0%
Average Revenue per MUP

$100.00

Previous: $46.70+114.1%
Capital Expenditures

-$19.9M

Previous: $4.95M-502.1%
Free Cash Flow

-$470M

Previous: -$75.8M-520.3%
Net Income

-$450M

Previous: -$545M+17.3%
Operating Income

-$455M

Previous: -$547M+16.7%
Gross Profit

$129M

Previous: $42.1M+207.2%
Cash & Equivalents

$1.38B

Previous: $2.39B-42.3%
Total Assets

$4.19B

No prior period
Stock-Based Comp

$126M

Previous: $176M-28.3%

Revenue & EPS history

DraftKings · Revenue · Quarterly

$502M

Q3 2022+135.9%vs Q3 2021
Beat estimate in 9 of 15 quarters(60%)
ActualEstimate

Forward guidance

DraftKings provided fiscal year 2022 revenue guidance of $2.16 billion to $2.19 billion and Adjusted EBITDA guidance of a loss between $800 million and $780 million. DraftKings introduced fiscal year 2023 revenue guidance of a range of $2.8 billion to $3.0 billion and Adjusted EBITDA guidance of a loss of between $575 million and $475 million.

Tailwinds

  • Fiscal year 2022 revenue guidance was raised to a range of $2.16 billion to $2.19 billion.
  • Fiscal year 2022 Adjusted EBITDA guidance was improved to a loss of between $800 million and $780 million.
  • Fiscal year 2023 revenue guidance is projected to be between $2.8 billion and $3.0 billion.
  • Fiscal year 2023 Adjusted EBITDA guidance is projected to be a loss of between $575 million and $475 million.
  • Assumes launches in Maryland in Q4 2022, in Ohio and Massachusetts in Q1 2023, and in Puerto Rico in Q3 2023.

Headwinds

  • Fiscal year 2022 Adjusted EBITDA is still expected to be a loss of between $800 million and $780 million.
  • Fiscal year 2023 Adjusted EBITDA is still expected to be a loss of between $575 million and $475 million.
  • Guidance is subject to licensure and regulatory approvals in new jurisdictions.
  • Guidance includes jurisdictions in which the Company was live as of November 4, 2022, as well as jurisdictions in which DraftKings reasonably expects to launch during the guided periods.
  • Future results are subject to risks and uncertainties, including changes in applicable laws or regulations, general economic and market conditions, and the potential adverse effects of the current macroeconomic environment.

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 Q3 2022

Historical avgQ3 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

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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