DraftKings Q1 2024 Revenue of $1.175 Billion Is “Outstanding,” CEO Says

DraftKings Inc. (DraftKings 44,21 -1,69%) was anticipating a great 2024, but its more than 50% growth in the first quarter of 2024 has been characterized as “outstanding” by Chief Executive Officer Jason Robins during an earnings call on Friday.

In Q1 2024, DraftKings reported $1.175 billion in revenue, which represents a massive 53% increase (or $405 million) compared to Q1 2023.

“[Our] 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,” Robins told an audience of shareholders and media on Friday during the call.

New markets are also proving to be a success for DraftKings, which is typically either No. 1 or No. 2 in total handle among sports betting operators in most markets, fighting with rival FanDuel.

“We successfully launched our online sportsbook in Vermont and North Carolina with highly efficient customer acquisition. Looking ahead, we remain committed to maximizing shareholder value through continued innovation, operational excellence, and disciplined capital allocation.”

Due to the success in Q1, DraftKings is now projecting its 2024 revenue midpoint for fiscal year 2024 to $4.9 billion, an increase of about 3% from prior projections. Adjusted EBITDA guidance has been moved up to $500 million from a previous projected mark of $460 million, which reflects an anticipated 8% increase.

3.4 Million Monthly Users Is 23 Percent Increase From 2023

One of the best ways to gauge the health of a gaming company is the number of customers who engage regularly with the brand, spending and using the app. According to DraftKings, the company boasts 3.4 million monthly unique players, compared to roughly 2.6 million at the same point in 2023. That’s a 23% increase.

Revenue from DK unique monthly users was $114 per user for Q1 2024, an increase of 25% from 2023. DraftKings reported that the difference is “primarily due to an increase in the Company’s structural sportsbook hold percentage and improved promotional reinvestment for Sportsbook and iGaming.”

DraftKings Sportsbook is available in 25 states and much of Canada. They also offer DK Daily Fantasy Sports (DFS) in several more. DraftKings Casino mobile app operates in five states. The company is also completing the purchase of Jackpocket, an online lottery app that is currently available in 14 states.

The overall health of DraftKings, and the way it has outperformed projections so far in 2024, cause the company to be optimistic.

“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,” Robins said.

READ MORE:

About the Author
Dan Holmes

Dan Holmes

Writer and Contributor
Dan Holmes is a veteran writer and contributor for Gaming Today. He has written three books, including The Ballplayers: Baseball’s Greatest Players Remembered, Ranked, and Revealed, which will be released in 2024. Holmes has previously worked for the National Baseball Hall of Fame and Major League Baseball.

Get connected with us on Social Media