DraftKings Q1 Earnings Highlights: Sportsbook Posts Revenue Beat, EPS Beat, Raises Revenue, EBITDA Guidance

Sportsbook and internet gaming company DraftKings Inc DKNG reported first-quarter financial results after the market close Thursday.

Here are the key highlights.

What Happened: DraftKings reported first-quarter revenue of $1.18 billion, up 53% year-over-year. The revenue total beat a Street consensus estimate of $1.12 billion, according to data from Benzinga Pro.

The company reported first-quarter adjusted earnings per share of 3 cents, which beat a Street consensus estimate of a loss of 28 cents per share.

DraftKings' revenue increase was driven by customer engagement, customer acquisition and new territory launches, according to the company.

Monthly unique payers (MUP) totaled 3.4 million in the first quarter, up 23% year-over-year. The average revenue per MUP was $114 in the first quarter, up 25% year-over-year.

"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," DraftKings CEO Jason Robins said.

DraftKings launched in North Carolina on March 11 and is now live with mobile sports betting in 25 states. The company also has iGaming live in five states.

What's Next: The company is raising its 2024 revenue guidance range to $4.8 million to $5 billion, up from a previous range of $4.65 billion to $4.9 billion.

The new revenue guidance represents year-over-year growth of 31% to 36%.

DraftKings raised its full-year adjusted EBITDA guidance to a range of $460 million to $540 million, up from a prior range of $410 million to $510 million.

The revenue and adjusted EBITDA guidance includes only existing jurisdictions and does not include the impact of the proposed acquisition of Jackpocket.

"Looking ahead, we remain committed to maximizing shareholder value through continued innovation, operational excellence and disciplined capital allocation," Robins said.

The company plans to launch its sportsbook in Puerto Rico pending approvals.

DraftKings also highlighted that nine jurisdictions have introduced legislation or introduced bills that could legalize mobile sports betting in an upcoming election.

"We expect adjusted EBITDA flow-through percentage to exceed 50% for fiscal year 2024 as we expand our gross margin and exert discipline on our cost structure, while simultaneously investing in promotions and marketing in accordance with our LTV to CAC targets," DraftKings Chief Financial Officer Alan Ellingson said.

DKNG Price Action: DraftKings shares are up 0.33% to $43.17 in after-hours trading Thursday versus a 52-week trading range of $21.07 to $49.57.

Photo courtesy of DraftKings.