DraftKings Q4 Earnings: Revenue Miss, EPS Beat, Monthly Uniques Up 36% YoY, Raised Guidance And More

DraftKings Inc DKNG reported fourth-quarter revenue of $1.39 billion, missing analyst estimates of $1.43 billion, according to Benzinga Pro.

The sports betting company reported fourth-quarter adjusted earnings of 14 cents per share, beating analyst estimates for a loss of 15 cents per share.

Total revenue was up 13% on a year-over-year basis, driven primarily by continued customer engagement, efficient acquisition of new customers, the expansion of the company’s sportsbook offering into new jurisdictions, higher structural sportsbook hold percentage and the acquisition of Jackpocket.

Monthly unique payers jumped 36% year-over-year to 4.8 million. Average revenue per monthly unique payer totaled $97 in the quarter, down 16% year-over-year. DraftKings ended the period with $788 million in cash and cash equivalents.

“We continued to efficiently acquire and engage customers, expand structural sportsbook hold percentage and optimize promotional reinvestment in fiscal year 2024, while we simultaneously experienced customer-friendly sport outcomes,” said Jason Robins, co-founder and CEO of DraftKings.

“Looking ahead to 2025 and beyond, I am excited to further enhance our customer economics through new initiatives such as extending our lead in live betting and advancing cross sell efforts to and from new verticals. Our focus remains on driving sustainable growth in revenue and profitability.”

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Outlook: DraftKings raised its full-year 2025 revenue guidance to a range of $6.3 billion to $6.6 billion, up from a prior range of $6.2 billion to $6.6 billion, representing approximately 35% year-over-year growth. Analysts are anticipating full-year revenue of $6.4 billion, according to Benzinga Pro. The company continues to expect full-year adjusted EBITDA of $900 million to $1 billion.

DraftKings noted that it’s live with mobile sports betting in 25 states and with iGaming in five states. The company expects to launch its sportsbook in Missouri after voters passed a legalized sports betting initiative in November. DraftKings also expects to launch its sportsbook in Puerto Rico, pending market access and regulatory approvals.

DraftKings executives will further discuss the company’s quarterly results on a conference call set for 5 p.m. ET.

Price Action: DraftKings shares were up nearly 25% year-to-date heading into the print. The stock was up 5.5% after hours, trading at $49 at the time of publication, according to Benzinga Pro.

Photo: courtesy of DraftKings.