DraftKings has announced its Q3 2023 financial results revealing revenue of $790 million, up by 57% year-on-year.
In an investors call, DraftKings CEO Jason Robbins cited continued healthy customer engagement, new customers acquisition and the expansion of sports betting into new jurisdictions as the main drivers behind the positive results.
“Our fantastic third quarter results demonstrate the positive impact of our product and technology investments as well as excellent preparation and execution by our entire organization.
Our new and differentiated features and functionality have created an exceptional user experience that sustains engagement for our mobile sports betting and iGaming customers. We also delivered another successful online sportsbook launch in Kentucky and look forward to additional launches in Maine and in North Carolina, pending licensure and regulatory approvals. We expect to generate approximately $200 million of positive Adjusted EBITDA in the fourth quarter of 2023 based on the midpoint of our updated fiscal year 2023 guidance and look forward to sharing our multi-year outlook at our Investor Day on November 14th.”
Q3 2023 Report Highlights
Q3 Revenue; $789.9 million, up 57%
Loss from operations; -$286.5 million, 37% decrease on losses reported in Q3 2022
Adjusted EBITDA; -$153.4 million, 41.9% decrease on Q3 2022
Year-to-date revenue; $2.4 billion, up 76%
Year-to-date net loss; -$757.5 million, 33.2% decrease on Q3 2022
Monthly Unique Payers (“MUPs”) increased to 2.3 million, up by 40%
Average revenue per customer was $114, up by 14%
EBITDA Losses Better Than Predicted
According to the report, EBITDA losses for the 2023 fiscal year will now come in at $95 million to $105 million. This is significantly better than the $400 million predicted at the start of the year and the revised losses of $190 million to $220 million reported in August.
Jason Park, DraftKings’ Chief Financial Officer noted:
“DraftKings continues to acquire customers in an efficient manner, sustain customer engagement, improve its sportsbook structural hold and promotional reinvestment for Sportsbook and iGaming, and demonstrate fixed cost discipline. As a result of our outstanding performance in the third quarter, we are raising the midpoint of our fiscal year 2023 revenue guidance to $3.695 billion from $3.5 billion and improving the midpoint of our fiscal year 2023 Adjusted EBITDA guidance to ($105) million from ($205) million.
We are poised for a rapid increase in Adjusted EBITDA as we anticipate strong revenue growth coupled with a scaled fixed cost structure will continue. These trends provide for a long runway of margin improvement. Our fiscal year 2024 guidance at the midpoints of $4.65 billion in revenue and positive $400 million of Adjusted EBITDA implies incremental year-over-year revenue growth of almost $1 billion and an increase in Adjusted EBITDA of more than $500 million.”
Following its Kentucky sports betting launch, DraftKings sportsbook is now live in 22 states while its iGaming product is live in 5 states.
Jenny Tang An experienced iGaming commentator and analyst based in New York City – Jenny reports on regulation and gambling industry news and events.
John Sommers is a distinguished figure in the world of gambling expertise, known for his deep knowledge and insightful analysis of the gaming industry. As a seasoned author, he has contributed extensively to the reputable gambling news site, TwinCasinos, focusing on providing valuable insights to English-speaking gamblers worldwide.
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Author: John Sommers
John Sommers is a distinguished figure in the world of gambling expertise, known for his deep knowledge and insightful analysis of the gaming industry. As a seasoned author, he has contributed extensively to the reputable gambling news site, TwinCasinos, focusing on providing valuable insights to English-speaking gamblers worldwide. With a career spanning over a decade, John has honed his expertise in various aspects of gambling, from strategic gameplay to industry trends and regulatory developments. His articles are revered for their blend of comprehensive research, astute observations, and a knack for demystifying complex concepts for both novice and seasoned players. Beyond his writing prowess, John has established himself as a trusted authority, often sought after for his expert commentary on the ever-evolving landscape of the casino and betting industry. His passion for responsible gambling and commitment to ensuring players make informed choices are evident in his work, making him a beacon of integrity in an industry that demands such values. Whether you’re a casual gambler or a dedicated enthusiast, John Sommers’ contributions to TwinCasinos promise to be an invaluable resource for navigating the dynamic world of gambling.
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