DraftKings (DKNG) Q3 2024 earnings summary

Executive summary

• Q3 2024 revenue grew 39% year-over-year to $1.10 billion, driven by strong customer engagement, new customer acquisition, expansion into new jurisdictions, and the Jackpocket acquisition.

• Monthly Unique Payers (MUPs) rose 55% to 3.6 million, with 27% growth excluding Jackpocket; ARPMUP was $103, down 10% due to Jackpocket, but up 8% excluding it.

• Adjusted EBITDA loss improved to $58.5 million in Q3 2024 from $153.4 million in Q3 2023, reflecting operational leverage and cost controls.

• Upgraded NBA product offering and recognized as #1 U.S. Mobile Sportsbook App for user experience and features.

• Missouri legalized online sports betting, with launch pending regulatory approvals.

Financial highlights

• Q3 2024 revenue: $1.10 billion, up from $790 million in Q3 2023.

• Q3 2024 net loss: $293.7 million, compared to $283.1 million in Q3 2023.

• Adjusted EBITDA for Q3 2024: $(58.5) million, improved from $(153.4) million in Q3 2023.

• Adjusted Earnings (Loss) Per Share for Q3 2024: $(0.17), while GAAP EPS was $(0.60).

• Cash and cash equivalents at September 30, 2024: $877.8 million.

Outlook and guidance

• Fiscal year 2024 revenue guidance revised to $4.85–$4.95 billion, down from $5.05–$5.25 billion, due to customer-friendly sports outcomes.

• Fiscal year 2024 Adjusted EBITDA guidance lowered to $240–$280 million from $340–$420 million.

• Fiscal year 2025 revenue guidance: $6.2–$6.6 billion, representing 27–35% year-over-year growth.

• Fiscal year 2025 Adjusted EBITDA expected at $900 million–$1 billion; free cash flow projected at $850 million.

• Guidance excludes potential impact from Missouri and Puerto Rico launches.