Jonathan Thomas 
2021_MLB_AL_Wild_Card_Game
DraftKings, the online sports betting and gaming company, has reported significant growth in the third quarter, leading to an increase in its full-year revenue and earnings guidance. Notable highlights include the launch of its sportsbook product in Kentucky, a 40% increase in monthly unique players (MUPs), and higher average revenue per MUP. Despite a 57.4% rise in revenue for Q3, DraftKings remains in the red, primarily due to increased costs. However, the company’s pre-tax loss has improved compared to the previous year. Year-to-date revenue also showed substantial growth. Based on these results, DraftKings has raised its full-year revenue and adjusted EBITDA guidance. The company anticipates further growth in the fiscal year 2024 and expects to become adjusted EBITDA-positive.
FAQs:
- What contributed to DraftKings’ revenue growth in Q3?
- DraftKings’ revenue growth in Q3 was influenced by factors such as the launch of its sportsbook in Kentucky, increased monthly unique players (MUPs), and higher average revenue per MUP.
- Why did DraftKings report a net loss despite revenue growth?
- DraftKings faced increased costs, including the cost of revenue, which affected its profitability. However, the company managed to reduce its pre-tax loss compared to the previous year.
- What are DraftKings’ revised full-year revenue and adjusted EBITDA guidance?
- DraftKings has raised its full-year revenue guidance to a range of $3.67 billion to $3.72 billion, up from the previous guidance of $2.46 billion to $3.54 billion. The adjusted EBITDA guidance is now set at a loss of between $95.0 million and $115.0 million.
- What are DraftKings’ expectations for fiscal year 2024?
- DraftKings anticipates that its fiscal year 2024 revenue could be between $4.50 billion and $4.80 billion, with the company expecting to become adjusted EBITDA-positive. The initial adjusted EBITDA guidance for 2024 is set at between $350.0 million and $450.0 million.
- How does DraftKings plan to achieve profitability in the future?
- DraftKings aims to achieve profitability by acquiring customers efficiently, sustaining customer engagement, improving its sportsbook structural hold, and maintaining promotional reinvestment for sportsbook and igaming. Additionally, it plans to demonstrate fixed cost discipline and benefit from str
