DraftKings Q1 Revenue Surges 53% to $1.18 Billion
Leading US sportsbook DraftKings has released its financial results for the first quarter, showing a revenue growth of 53% year-on-year to $1.18 billion.
DraftKings' Q1 revenue increase was attributed to several factors, including enhanced customer engagement and retention. (Source: Geralt, Pixabay)
LISTEN TO THIS ARTICLE:The Q1 revenue marked a significant increase from the $770 million reported during the same period last year.
According to the company, the surge in revenue was fueled by various factors, including robust customer engagement and retention, effective acquisition of new customers, expansion of the sportsbook into new markets, favorable sportsbook hold percentage, and enhanced promotional strategies for its sportsbook and iGaming platforms.
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. We successfully launched our online sportsbook in Vermont and North Carolina with highly efficient customer acquisition. Looking ahead, we remain committed to maximizing shareholder value through continued innovation, operational excellence, and disciplined capital allocation.
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Revenue Costs Rise 36.1% to $71 Million
Adjusted EBITDA reached $22.4 million, up from a loss of $221.6 million in Q1 2023 but a decrease compared to $151 million in Q4. The company reported 3.4 million average monthly unique players (MUPs) in the quarter, a 23% increase from last year. Average revenue per MUP experienced a rise of 25% to $114.
Regarding operational spending, revenue costs surged 36.1% to $710.1 million. Sales and marketing expenses decreased by 12.4% to $340.7 million. Product and technology expenses remained stable at $88.8 million. General and administrative spending rose by 8.6% to $174.3 million.
We are raising the midpoint of our fiscal year 2024 revenue guidance to $4.9 billion from $4.775 billion and the midpoint of our Adjusted EBITDA guidance to $500 million from $460 million as a result of our excellent first quarter results and improved outlook on customer acquisition and engagement for the rest of 2024.
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