Record Revenue Reported by DraftKings in Q1 2023
LISTEN TO THIS ARTICLE:DraftKings Inc. announced its Q1 2023 financial results on May 5, 2023, posting a revenue of $770 million, an 84% increase compared to Q1 2022. The growth is attributed to new customer acquisitions, innovative product offerings, strong customer retention, and reduced promotional intensity in established states.
Monthly Unique Payers (MUPs) rose to 2.8 million, a 39% YoY growth. The increase resulted from successful unique payer retention and acquisition across DraftKings' Sportsbook and iGaming products and the expansion into new markets.
Average Revenue per MUP (ARPMUP) was $92, a 35% YoY increase due to improved structural sportsbook hold rates and reduced promotional intensity.
DraftKings raised its fiscal year 2023 revenue guidance from $2.85 billion - $3.05 billion to $3.135 billion - $3.235 billion, reflecting a YoY growth of 40%-44%. The company also improved its fiscal year 2023 Adjusted EBITDA guidance to between ($290) million and ($340) million, compared to the previous guidance of between ($350) million and ($450) million.
The company now operates mobile sports betting in 21 states, covering about 44% of the US population. The company launched its online Sportsbook product in Massachusetts on March 10, 2023. Additionally, DraftKings is live with iGaming in five states, representing around 11% of the US population, and in Ontario, Canada, which covers approximately 40% of Canada's population.
DraftKings plans to launch its Sportsbook product in Kentucky and Puerto Rico, representing around 2% of the US population, following licensure and regulatory approvals.
DraftKings’ first quarter performance – 84% year-over-year revenue growth and share gains underpinned by a relentless focus on operational efficiency – demonstrates that this is a company positioned for sustained success. We delivered highly successful online sportsbook launches in Ohio and our home state of Massachusetts and continued to create meaningful product differentiation driven by in-house innovations.
We acquired customers faster and more efficiently and, importantly, saw healthy retention across cohorts. Looking at the remainder of 2023, I am confident DraftKings is well-positioned to achieve profitability on an Adjusted EBITDA basis in the near term and deliver long-term value for our shareholders.
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