Sports betting and iGaming company DraftKings Inc DKNG reported second-quarter financial results after the market close Thursday.
Here are the key highlights.
What Happened: DraftKings reported second-quarter revenue of $1.10 billion, up 26% year-over-year. The revenue total missed a Street consensus estimate of $1.11 billion, according to data from Benzinga Pro.
The revenue increase was driven by healthy customer engagement, new customer acquisition, new jurisdictions and the acquisition of Jackpocket, which closed in May, according to DraftKings.
"We very efficiently acquired many more new customers than we expected and saw continued healthy existing customer engagement in the second quarter," DraftKings CEO Jason Robins said.
DraftKings announced its inaugural $1-billion share buyback.
DraftKings reported earnings per share of 22 cents in the quarter, beating a Street consensus estimate of a loss of 1 cent per share.
The company ended the second quarter with 3.1 million average monthly unique paying customers (MUPs), up 50% year-over-year. Without the Jackpocket acquisition, MUPs would have been up 34% year-over-year, the company said.
The average revenue per MUP was $117 in the second quarter, down 15% year-over-year. A lower average revenue per MUP for Jackpocket was named by DraftKings as the reason for the decline.
As of July 25, DraftKings is live with mobile sports betting in 25 states and Washington, D.C., representing 49% of the U.S. population.
The company is live with iGaming in five states.
Ten jurisdictions representing 12% of the U.S. population have introduced legislation or introduced a bill for a referendum to legalize mobile sports betting, the company said.
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What's Next: The company raised its full-year 2024 revenue guidance to a range of $5.5 billion to $5.25 billion, up from a prior range of $4.8 billion to $5 billion. The new guidance represents year-over-year growth of 38% to 43%.
Adjusted EBITDA guidance was lowered to a range of $340 million to $420 million, down from a prior range of $460 million to $540 million.
The company guides for fiscal 2025 adjusted EBITDA to be in a range of $900 million to $1 billion.
DKNG Price Action: DraftKings shares were trading 0.34% higher at $35.61 at the time of publication in Thursday’s after-hours session versus a 52-week trading range of $25.41 to $49.57. The stock lost 3.95% in the regular session, closing at $35.49.
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© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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