DraftKings

DraftKings (DKNG) Q4 2022 Earnings

Reported Feb 16, 2023 at 4:19 PM ET · SEC Source

Q4 22 EPS

$N/A

Est. $-0.59

Q4 22 Revenue

N/A

Est. $800.2M

vs S&P Since Q4 22

-54.8%

TRAILING MARKET

DKNG +34.3% vs S&P +89.1%

Market Reaction

Did DKNG Beat Earnings? Q4 2022 Results

DraftKings delivered a disappointing second quarter, missing on both the top and bottom lines as a combination of customer-friendly sports outcomes and heavy promotional investment weighed on results. Revenue fell 4.6% year-over-year to $1.44 billion… Read more DraftKings delivered a disappointing second quarter, missing on both the top and bottom lines as a combination of customer-friendly sports outcomes and heavy promotional investment weighed on results. Revenue fell 4.6% year-over-year to $1.44 billion, coming in 4.48% below the $1.51 billion consensus, while adjusted EPS of $0.09 fell sharply short of the $0.19 analysts had expected, a 53.05% miss. The core culprit was margin compression in the sportsbook, where Sports Net Revenue Margin narrowed to 6.8% from 8.7% a year ago, even as Sports Consumer Volume climbed 15% to $13.14 billion. Sales and marketing costs surged to $322.54 million from $233.19 million, reflecting aggressive investment behind the December 2025 launch of Predictions and broader customer acquisition. Adjusted EBITDA tumbled to $114.60 million from $300.64 million in Q2 2025, and the company swung to a GAAP net loss of $67.61 million from net income of $157.94 million a year ago. Management maintained full-year 2026 revenue guidance of $6.50 billion to $6.90 billion and Adjusted EBITDA guidance of $700 million to $900 million, expressing confidence that the core business remains on track to generate approximately $1.00 billion of Adjusted EBITDA.

Key Takeaways

  • Sports Consumer Volume increased 15% YoY to $13.1 billion
  • Monthly Unique Payers increased approximately 9% to 3.6 million
  • iGaming revenue grew 7.5% YoY
  • Customer-friendly sport outcomes negatively impacted revenue
  • Increased promotional reinvestment for Sportsbook and Predictions customer acquisition compressed margins
  • ARPMUP decreased approximately 13% to $132
  • Sports Net Revenue Margin compressed to 6.8% from 8.7%
24/7 Wall St

DKNG YoY Financials

Q4 2022 vs Q4 2021, source: SEC Filings

24/7 Wall St

DKNG Revenue by Segment

With YoY comparisons, source: SEC Filings

Q1 25 Q2 26

“We delivered a strong second quarter and enter the back half of the year with real momentum, as our core business grew across handle, users, and engagement.”

— Jason Robins, Q4 2022 Earnings Press Release