Zinger Key Points
- DraftKings reported third quarter revenue of $790 million, which was up 57% year-over-year.
- The company raised full year guidance and introduced initial 2024 revenue and EBITDA guidance.
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Sports betting company DraftKings Inc DKNG reported third quarter financial results after market close Thursday.
Key Highlights: DraftKings reported third quarter revenue of $790 million, which was up 57% year-over-year. The revenue beat a Street consensus estimate of $685.21 million according to data from Benzinga Pro.
The company reported a loss of 61 cents per share, beating a Street estimate of a loss of 70 cents per share.
Customer engagement, customer acquisition and the expansion of the sportsbook in new territories were cited as reasons for the strong results.
"Our fantastic third quarter results demonstrate the positive impact of our product and technology investments as well as excellent preparation and execution by our entire organization," DraftKings CEO Jason Robins said.
The company ended the third quarter with 2.3 million average monthly unique paying customers, up 40% year-over-year. Average revenue per MUP was $114 in the third quarter, up 14% year-over-year.
DraftKings launched its sportsbook in Kentucky in the third quarter, which marked the 22nd state for the company. DraftKings now covers around 45% of the U.S. adult population with its sportsbook. The company also has iGaming operations in five states that represent around 11% of the U.S. adult population.
Related Link: DraftKings Q3 Earnings Preview: Analyst Estimates, Key Items To Watch
What's Next: The company raised its full year 2023 revenue guidance with a new range of $3.67 billion to $3.72 billion, up from a previous range of $3.46 billion to $3.54 billion. The new guidance implies revenue up 64% to 66% year-over-year.
Guidance for adjusted EBITDA for the year is now a loss of $110 million to a loss of $95 million, improved from a previous range of a loss of $220 million to a loss of $190 million.
DraftKings announced fiscal year 2024 revenue guidance to be in a range of $4.50 billion and $4.80 billion, up over 25% year-over-year at the midpoint of the range.
Guidance for 2024 adjusted EBITDA is a profit of $350 million to $450 million.
Guidance includes the launches in Maine, Puerto Rico, Vermont and North Carolina.
"(We) look forward to sharing our multi-year outlook at our Investor Day on November 14th," Robins said.
DKNG Price Action: DraftKings shares are up 8% to $31.15 in after-hours trading Thursday, versus a 52-week trading range of $10.70 to $34.49.
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