Sports activities betting and iGaming firm DraftKings Inc DKNG reported third-quarter monetary outcomes after market shut Thursday.
Listed here are the important thing highlights.
What Occurred: DraftKings reported third-quarter income of $1.095 billion, up 39% year-over-year. The income whole missed a Avenue consensus estimate of $1.112 billion based on information from Benzinga Professional.
The corporate stated income development got here from sturdy buyer engagement, the acquisition of latest prospects, the launch in new territories, and the impression of the acquisition of Jackpocket, which closed in Might.
The corporate reported a lack of 17 cents per share, which beat a Avenue consensus estimate of a lack of 42 cents per share.
Month-to-month distinctive payers (MUP) had been 3.6 million within the third quarter, up 55% year-over-year. Excluding the impression of the Jackpocket acquisition, month-to-month distinctive payers would have been up 27% year-over-year.
The typical income per MUP was $103 within the third quarter, down 10% 12 months over 12 months. The decrease income per payer was as a result of Jackpocket acquisition. Excluding the Jackpocket acquisition, the common income per MUP was 8% larger 12 months over 12 months.
“DraftKings delivered sturdy efficiency within the third quarter with the return of NFL and faculty soccer,” DraftKings CEO Jason Robins stated.
DraftKings was stay for cellular sports activities betting in 25 states and Washington D.C., representing 49% of the U.S. inhabitants within the third quarter. The corporate can be stay with iGaming in 5 states and stay for each sportsbook and iGaming in Ontario, Canada.
Learn Additionally: DraftKings Q3 Earnings Preview: NFL In Focus, Will Missouri Legalization Issue Into Steerage?
What’s Subsequent: The corporate lowered its fiscal 12 months 2024 income steerage from a spread of $5.05 billion to $5.25 billion to a brand new vary of $4.85 billion to $4.95 billion because of customer-friendly sport outcomes within the fourth quarter, which comes with the NFL season having a number of weeks of favorable outcomes for bettors.
Analysts anticipate the corporate to report income of $5.14 billion for the complete fiscal 12 months, based on information from Benzinga Professional.
The corporate additionally revised its 2024 adjusted EBITDA steerage from a spread of $340 million to $420 million to a brand new vary of $240 million to $280 million.
DraftKings launched fiscal 12 months 2025 income steerage for the primary time, with a spread of $6.2 billion to $6.6 billion anticipated. The corporate additionally stated it expects 2025 adjusted EBITDA to be in a spread of $900 million to $1.0 billion, reaffirming steerage from August.
“With main sports activities converging on the calendar, we’re well-positioned to construct on this momentum as we additional improve our top-ranked sportsbook app with further stay betting options and thrilling new NBA markets,” Robins stated. “Our focus stays on driving sustainable income development and profitability in 2025 and past.”
The corporate’s 2024 and 2025 steerage contains all present cellular sports activities betting and iGaming markets and Jackpocket, however doesn’t embody any pending state launches.
Missouri legalized sports activities betting on Election Day 2024 and DraftKings expects to launch its sportsbook within the state pending approval. The corporate additionally expects to launch its sportsbook in Puerto Rico, which is pending approval.
DKNG Value Motion: DraftKings inventory is down 5% to $37.00 in after-hours buying and selling Thursday, versus a 52-week buying and selling vary of $28.69 to $49.57.
Learn Subsequent:
Photograph: Shutterstock
Market Information and Information dropped at you by Benzinga APIs
© 2024 Benzinga.com. Benzinga doesn’t present funding recommendation. All rights reserved.
