Companies /Consumer Cyclical

DraftKings Inc - Class A

NASDAQ: DKNG Gambling
$23.71
▲ $0.05 (+0.21%) today
Markets closed · 3:24am ET

Q1 2024 Earnings

Reported May 2, 2024, 4:17pm ET · SEC source
$0.03
Beat +110.71%
EPS · est. $-0.28
$1.2B
Beat +4.51%
Revenue · est. $1.1B
−16.9%
Trailing market
DKNG vs S&P since report
1 quarter
Consecutive EPS misses

Market Reaction

% change · around the report
−3%0+3%May 2May 3report 4:17pm ETearnings+1.5%−4.4%
−3%0+3%May 2May 3earnings+1.5%−4.4%
DKNG −4.4%S&P 500 +1.5%
−3%0+3%May 2May 3report 4:17pm ETearnings+2.2%−4.4%
−3%0+3%May 2May 3earnings+2.2%−4.4%
DKNG −4.4%NASDAQ +2.2%
−6%−3%0+3%May 1May 10report 4:17pm ETearnings+2.7%−1.9%
−6%−3%0+3%May 1May 10earnings+2.7%−1.9%
DKNG −1.9%S&P 500 +2.7%
−6%−3%0+3%May 1May 10report 4:17pm ETearnings+2.9%−1.9%
−6%−3%0+3%May 1May 10earnings+2.9%−1.9%
DKNG −1.9%NASDAQ +2.9%
−2.81%
Day of report
+5.38%
Next session
+3.47%
One week
−12.34%
30 days

S&P 500 over the same 30 days: +4.57%.

Did DKNG Beat Earnings? Q1 2024 Results

DraftKings turned in a notably strong first quarter for 2024, posting adjusted EPS of $0.03 against a consensus estimate of negative $0.28, a beat of 110.71%, while revenue climbed 52.7% year-over-year to $1.17 billion, topping the $1.12 billion estimate by 4.51%. The standout driver was a combination of higher structural sportsbook hold percentage and improved promotional efficiency, with sales and marketing expense falling to $340.70 million from $389.13 million even as the top line expanded sharply. Monthly Unique Payers rose 23% to 3.4 million, while Average Revenue per MUP advanced 25% to $114, reflecting deeper customer engagement rather than simple volume gains. The company also swung to positive Adjusted EBITDA of $22.39 million from a loss of $221.61 million a year prior, a trajectory that informed management's decision to raise full-year 2024 revenue guidance to $4.80 billion to $5.00 billion and lift Adjusted EBITDA guidance to $460 million to $540 million, with expected flow-through exceeding 50%.

Key Takeaways
  • Monthly Unique Payers (MUPs) increased 23% YoY to 3.4 million average monthly unique paying customers
  • Average Revenue per MUP (ARPMUP) grew 25% YoY to $114
  • Higher structural sportsbook hold percentage
  • Improved promotional reinvestment for Sportsbook and iGaming
  • Efficient acquisition of new customers
  • Expansion of Sportsbook product into new jurisdictions

“DraftKings' performance in the first quarter of 2024 was outstanding, reflecting healthy revenue growth and a scaled fixed cost structure that positions us to drive rapidly improving Adjusted EBITDA.”

DraftKings CEO, on the earnings call

Forward Guidance & Outlook

DraftKings raised its fiscal year 2024 revenue guidance to $4.8 billion to $5.0 billion (from $4.65 billion to $4.90 billion), representing year-over-year growth of 31% to 36%. Adjusted EBITDA guidance was also raised to $460 million to $540 million (from $410 million to $510 million). The company expects Adjusted EBITDA Flow-through Percentage to exceed 50% for fiscal year 2024. Guidance includes only existing jurisdictions and excludes the impact of the proposed Jackpocket acquisition. The company expects to launch its Sportsbook product in Puerto Rico pending regulatory approvals. Legislation to legalize mobile sports betting has been introduced in 9 jurisdictions representing approximately 11% of the U.S. population, and iGaming legislation has been introduced in 5 jurisdictions representing approximately 12% of the U.S. population.

DKNG YoY Financials

Q1 2024 vs Q1 2023 · SEC filings Q1 2023 Q1 2024
$0$400.0M$800.0M$1.2B$769.6M$1.2BRevenue$247.9M$464.9MGross Profit$-84,461,613$-138,838,000Operating Income$-86,878,732$-142,568,000Net Income
$0$400.0M$800.0M$1.2BRevenueGross ProfitOperating IncomeNet Income

DKNG Revenue by Segment

Sportsbook
iGaming
Other Revenue

Figures from SEC filings and company reports. Not investment advice.