DraftKings posts 44% revenue growth and narrowing losses, but falls short of estimates

Earnings

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In this photo illustration the DraftKings logo seen displayed on a smartphone.
Rafael Henrique | Sopa Images | Lightrocket | Getty Images

DraftKings on Thursday posted quarterly results that missed Wall Street estimates on the top and bottom line, but it increased its revenue by 44%.

Here’s what DraftKings reported compared with what Wall Street was expecting, according to analyst estimates compiled by LSEG, formerly known as Refinitiv:

  • Loss per share: 10 cents vs. expected profit of 8 cents
  • Revenue: $1.23 billion vs. $1.24 billion expected

The sports betting company saw a 44% increase in revenue year-over-year. DraftKings recently launched its Sportsbook product in Maine and Vermont, bringing it to a total of 24 states allowing its mobile sports betting.

For the last three months of 2023, DraftKings reported a net loss of $44.6 million compared with $242.7 million in the same period a year earlier. Losses per share improved to a loss of 10 cents versus a loss of 53 cents in 2022.

DraftKings garnered 3.5 million average “monthly unique payers,” a 37% increase from the same period in 2022. The company’s average revenue per MUP saw a 6% boost in the fourth quarter compared to the previous year.

DraftKings also announced after the bell Thursday that it plans to acquire lottery app Jackpocket for approximately $750 million.

For 2024, the company is increasing its fiscal year guidance to between $410 million and $510 million compared to its prior guidance of between $350 million and $450 million. That excludes the company’s estimated impact due to its planned acquisition of Jackpocket.

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