DraftKings boss hails ‘outstanding’ Q1 performance

DraftKings has heralded its performance metrics in Q1 after reporting a 52.7% year-on-year spike in its revenue, up to $1.18 billion (£936.2m/€1.09b).

Company CEO and co-founder Jason Robins lauded the “outstanding” numbers which have led to a raise in the gambling operator’s full-year guidance for revenue and adjusted EBITDA. For the first three months of the year, revenue was $405m greater than the $769.7m returned by DraftKings for the same period, last year.

Robins pinpointed several accelerators for the growth including sportsbook expansion into new markets, further customer engagement, and gains in the firm’s structural sportsbook hold percentage and better promotional reinvestment.

Other recent highlights for DraftKings include the beginning of new sportsbook ventures in both North Carolina and Vermont, with the move into the Tar Heel State in conjunction with NASCAR. The latest expansion means DraftKings is now in operation across 27 states in the US as well as Ontario in Canada.

The company has also entered into a multi-year agreement with Barstool Sports.

“DraftKings’ performance in the first quarter of 2024 was outstanding, reflecting healthy revenue growth and a scaled fixed cost structure that positions us to drive rapidly improving adjusted EBITDA,” stated Robins. 

“Looking ahead, we remain committed to maximising shareholder value through continued innovation, operational excellence and disciplined capital allocation.”

Further numbers behind the growth for DraftKings

A key driver for the company to propel its growth in Q1 was the increase in the number of customers having a flutter on DraftKing’s sportsbook or gaming platforms.

Its average monthly unique players (MUPs) soared 23%, up to 3.4 million on the same period in 2023.

On each MUP, average revenue increased too. Q1 saw an average of $114, representing another increase of 25% compared to last year.

With further expansion and new markets also comes greater operating expenses.

Revenue costs increased by 36.1%, up to $710.1m but conversely, sales and marketing spend fell 12.4% to $340.7m.

The end outcome was an operating loss of $138.8m for Q1, showing a much improved figured compared to the loss of $389.8m last year. A further $4.4m in non-operating costs meant a pre-tax loss of $143.2m which, again, is a steady marker against the £395.7m loss twelve month previous.

Adjusted EBITDA was turned around significantly from a $221.6m loss to a $22.4m gain. 

Image credit: ML Football/X