DraftKings Thursday reported revenue of $1.095 billion, an increase of $306 million or 39% year over year for the third quarter of 2024.
A release stated the increase 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, improved promotional reinvestment for Sportsbook and igaming, and the impact of the acquisition of Jackpocket, which closed on May 22, 2024.”
Monthly unique payers increased to 3.6 million in 3Q24, representing an increase of 55% compared to the third quarter of 2023. Excluding the acquisition of Jackpocket, monthly unique payers increased by approximately 27% compared to the third quarter of 2023.
Average revenue per monthly unique payers was $103 in 3Q24, a 10% decrease year over year. DraftKings attributed the decrease to average revenue per monthly unique payers for Jackpocket customers. Excluding Jackpocket, average revenue per monthly unique payers increased approximately 8% compared to the 3Q23.
DraftKings will introduce a fiscal-year 2025 revenue guidance range of $6.2 billion-$6.6 billion, which equates to approximately 31% year-over-year growth based on the midpoints of the company’s updated fiscal-year 2024 revenue guidance range and the company’s fiscal-year 2025 revenue guidance range.
The company continues to expect fiscal-year 2025 adjusted EBITDA to be in the range of $900 million-$1.0 billion announced on August 1.
DraftKings revised its fiscal-year 2024 revenue guidance, due to the impact of customer-friendly sport outcomes early in the fourth quarter of 2024 to a range of $4.85 billion-$4.95 billion from a range of $5.05 billion-$5.25 billion also announced on August 1. The company’s updated 2024 revenue guidance range equates to year-over-year growth of 32% to 35%.
DraftKings is also revising its fiscal-year 2024 adjusted EBITDA guidance, due to the impact of customer-friendly sport outcomes early in the fourth quarter of 2024, partially offset by promotional optimization and expense efficiency. DraftKings now expects fiscal-year 2024 adjusted EBITDA of between $240 million and $280 million compared to its prior fiscal-year 2024 adjusted EBITDA guidance of between $340 million and $420 million, announced on August 1.
DraftKings’s guidance for fiscal-years 2024 and 2025 includes all its existing mobile sports betting and igaming jurisdictions, as well as Jackpocket.
The company’s revenue and adjusted EBITDA guidance for fiscal years 2024 and 2025 does not include the impact of mobile sports betting launching in Missouri. DraftKings expects to launch its sportsbook product in Missouri pending market access, licensure, regulatory approvals, and contractual approvals where applicable.
“DraftKings delivered strong performance in the third quarter with the return of NFL and college football,” said DraftKings CEO and co-founder Jason Robins in a statement. “With major sports converging on the calendar, we are well-positioned to build on this momentum as we further enhance our sportsbook app with additional live betting features and new NBA markets. Our focus remains on driving sustainable revenue growth and profitability in 2025 and beyond.”
DraftKings closed at $38.98 on the Nasdaq, up $073 or 1.9%.
