NASDAQ$DKNG

Draftkings Inc · Q4 2023 earnings

Q4 2023 earnings · · Investor relations

Briefing

DraftKings reported a revenue increase of 44% compared to the same period in 2022, driven by customer engagement and product innovation.

DraftKings reported a Q4 2023 revenue of $1,231 million, a 44% increase compared to Q4 2022. The company is raising its fiscal year 2024 revenue guidance to a midpoint of $4.775 billion and Adjusted EBITDA guidance to a midpoint of $460 million.

  • Revenue for Q4 2023 reached $1,231 million, a 44% increase year-over-year.
  • Monthly Unique Payers (MUPs) increased by 37% to 3.5 million in Q4 2023.
  • Average Revenue per MUP (ARPMUP) was $116 in Q4 2023, a 6% increase year-over-year.
  • The company is raising its fiscal year 2024 revenue and Adjusted EBITDA guidance.

Headline financials

Total Revenue

$1.23B

Previous: $855M+43.9%
EPS (adj)

$0.29

Previous: -$0.53+154.7%
Average Monthly Unique Payers

3.5M

Previous: 2.6M+34.6%
Average Revenue per MUP

$116.00

Previous: $109.00+6.4%
Capital Expenditures

-$22.5M

Previous: $12.5M-280.2%
Net Income

-$44.6M

Previous: -$243M+81.6%
Operating Income

-$43.8M

Previous: -$232M+81.1%
Gross Profit

$514M

Previous: $370M+39.1%
R&D Expense

$88.2M

No prior period
Stock-Based Comp

$114M

Previous: $130M-12.8%

Revenue & EPS history

DraftKings · Revenue · Quarterly

$1.23B

Q4 2023+43.9%vs Q4 2022
Beat estimate in 9 of 15 quarters(60%)
ActualEstimate

Forward guidance

DraftKings is raising its fiscal year 2024 revenue guidance to a range of $4.65 billion to $4.90 billion and expects Adjusted EBITDA to be between $410 million and $510 million.

Tailwinds

  • Fiscal year 2024 revenue guidance raised to $4.65 billion to $4.90 billion.
  • Fiscal year 2024 Adjusted EBITDA guidance increased to $410 million to $510 million.
  • Guidance includes mobile sports betting in Puerto Rico and North Carolina.
  • North Carolina sportsbook product launch expected on March 11, 2024.
  • Strong underlying fundamentals through the first six weeks of 2024.

Headwinds

  • Guidance excludes the estimated impact of the proposed acquisition of Jackpocket.
  • Customer-friendly sport outcomes impacted revenue and Adjusted EBITDA in Q4 2023 by approximately ($175) million and approximately ($126) million, respectively.
  • Mobile sports betting and iGaming legalization efforts are still pending in several states.
  • The company cannot provide any assurance that it can predict all of the components of the Adjusted EBITDA calculation.
  • Forward-looking statements involve a number of known and unknown risks, uncertainties, assumptions and other important factors.

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 Q4 2023

Historical avgQ4 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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