NASDAQ$DKNG

Draftkings Inc · Q4 2024 earnings

Q4 2024 earnings · · After market close · Investor relations

Briefing

DraftKings reported revenue growth but faced profitability challenges in Q4 2024.

DraftKings saw strong revenue growth driven by increased customer acquisition and engagement. However, profitability was impacted by lower average revenue per user and higher promotional investments. The company remains focused on enhancing customer economics and expanding its market reach.

  • Revenue grew by 13.17% year-over-year, reaching $1.39 billion.
  • Net loss widened to $134.85 million, compared to $44.62 million in Q4 2023.
  • Average revenue per monthly unique payer (ARPMUP) declined 16% due to Jackpocket acquisition and lower hold rates.
  • Adjusted EBITDA decreased 40.77% to $89.45 million.

Headline financials

Total Revenue

$1.39B

Previous: $1.23B+13.2%
EPS (adj)

$0.14

Previous: $0.29-51.7%
Average Monthly Unique Payers

4.8M

Previous: 3.5M+37.1%
Average Revenue per MUP

$97.00

Previous: $116.00-16.4%
Net Income

-$135M

Previous: -$44.6M-202.2%
Operating Income

-$139M

Previous: -$43.8M-217.7%

Revenue & EPS history

DraftKings · Revenue · Quarterly

$1.39B

Q4 2024+13.2%vs Q4 2023
Beat estimate in 9 of 15 quarters(60%)
ActualEstimate

Forward guidance

DraftKings raised its revenue guidance midpoint for FY 2025 while reaffirming its Adjusted EBITDA outlook, citing strong customer engagement and market expansion.

Tailwinds

  • FY 2025 revenue guidance raised to a midpoint of $6.45 billion.
  • Adjusted EBITDA guidance reaffirmed at $900 million to $1.0 billion.
  • Strong customer acquisition and retention expected to continue driving growth.
  • Expansion into new jurisdictions, including Missouri and Puerto Rico, anticipated.
  • Focus on live betting and cross-selling expected to enhance monetization.

Headwinds

  • Lower average revenue per user due to Jackpocket integration may persist.
  • Customer-friendly sports outcomes could impact sportsbook hold rates.
  • Promotional reinvestment strategies may pressure margins.
  • Market competition remains intense in online sports betting and iGaming.
  • Regulatory challenges in expanding jurisdictions could pose risks.

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 2024

Historical avgQ4 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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