DraftKings reported revenue of $1.39 billion in the fourth quarter of 2024, an increase of $162 million, or 13 percent, compared to $1.23 billion during the same period in 2023.
The company stated in a release that fourth-quarter revenue was driven primarily by continued healthy customer engagement, efficient acquisition of new customers, the expansion of the company’s sportsbook product offering into new jurisdictions, higher structural sportsbook hold percentage and the effect of the acquisition of Jackpocket, which closed on May 22. These occurrences partially offset customer-friendly outcomes throughout the NFL season.
“We continued to efficiently acquire and engage customers, expand structural sportsbook hold percentage and optimize promotional reinvestment in fiscal year 2024, while we simultaneously experienced customer-friendly sport outcomes,” DraftKings CEO and Co-founder Jason Robins said in a statement. “Looking ahead to 2025 and beyond, I am excited to further enhance our customer economics through new initiatives such as extending our lead in live betting and advancing cross-sell efforts to and from new verticals. Our focus remains on driving sustainable growth in revenue and profitability.”
Highlights include:
- Monthly unique payers increased to a 4.8 million on average in the fourth quarter, up 36 percent year-over-year. Excluding the effect of the acquisition of Jackpocket, MUPs increased by about 16 percent compared to fourth quarter 2023.
- Average revenue per MUP was $97 in the fourth quarter, down 16 percent compared to the same period in 2023. DraftKings attributed the decrease to lower ARPMUP for Jackpocket customers, when compared to customers of DraftKings’ existing product offerings prior to the acquisition, as well as lower sportsbook hold rate because of customer-friendly sport outcomes. ARPMUP decreased about 4 percentcompared to the fourth quarter of 2023.
DraftKings is raising the midpoint of its fiscal year 2025 revenue guidance and expects revenue in the range of $6.3 billion to $6.6 billion, compared to its guidance of $6.2 billion to $6.6 billion announced on November 7. The fiscal year 2025 revenue guidance equates to about 35 percent year-over-year growth based on the company’s fiscal year 2024 revenue and the midpoint of the company’s fiscal year 2025 revenue guidance range.
“2024 was a milestone year for DraftKings as we achieved our first year of positive Adjusted EBITDA. Additionally, we began executing on our inaugural share repurchase authorization,” said DraftKings Chief Financial Officer Alan Ellingson. “With strong underlying health across our core value drivers, we are raising the midpoint of our fiscal year 2025 revenue guidance to $6.45 billion from $6.4 billion and reaffirming our fiscal year 2025 Adjusted EBITDA guidance range of $900 million to $1 billion.”
The company’s guidance for fiscal year 2025 includes all of existing jurisdictions and does not include the effect of mobile sports betting launching in Missouri.
Other notes:
- DraftKings is live with mobile sports betting in 25 states and Washington, D.C., about 49 percent of the U.S. population.
- DraftKings is live with igaming in five states, about 11 percent of the U.S. population.
- DraftKings is live with its sportsbook and igaming products in Ontario, Canada, about 40 percentof Canada’s population.
On November 5, Missouri voters passed a ballot initiative that legalized sports betting. DraftKings expects to launch its sportsbook product in Missouri and Puerto Rico pending market access, licensure, regulatory approvals and contractual approvals where applicable.
DraftKings’ stock closed Thursday at $46.45 on the Nasdaq, up $1.01, or 2.2 percent.
