DraftKings has reported substantial growth in its third-quarter earnings, leading to an increase in its full-year revenue and adjusted EBITDA guidance. The company has now raised its full-year guidance for the third consecutive quarter, showcasing its strong performance in Q3.
During the third quarter, DraftKings saw the launch of its sportsbook product in Kentucky, alongside an increase in monthly unique players (MUPs) by 40.0% to 2.3 million. The operator’s average revenue per MUP also rose by 14.0% to $114 due to improved promotional reinvestment for sportsbook and igaming. As a result, DraftKings experienced revenue and earnings growth, leading CEO Jason Robins to raise the company’s full-year guidance.
While the company saw a significant increase in revenue by 57.4% in Q3, it remained in the red. Despite this, the company’s pre-tax loss improved from the previous year. Revenue for the nine months leading up to September was 75.7% higher year-on-year at $2.43bn, with DraftKings expecting the full-year revenue to reach between $3.67bn to $3.72bn.
DraftKings also announced that it expects to become adjusted EBITDA-positive in 2024, with initial guidance of between $350.0m and $450.0m. The company’s chief financial officer, Jason Park, stated that DraftKings’ outstanding performance in Q3 has allowed them to raise their fiscal year 2023 revenue guidance and improve their fiscal year 2023 adjusted EBITDA guidance.
In summary, DraftKings’ robust performance in Q3 has led to increased full-year guidance, with expectations of adjusted EBITDA positivity in 2024. The company continues to showcase strong growth and is confident in its future prospects.