DraftKings Records 39% Revenue Increase in Q3

DraftKings Reports Q3 Net Loss of $293.7 Million

DraftKings posted a net loss of $293.7 million in Q3 2024, compared to a net loss of $283.1 million in the same quarter of 2023.

The company recorded an adjusted EBITDA of -$58.5 million in Q3 2024, an improvement over the -$153.4 million adjusted EBITDA from Q3 2023.

Costs in Q3 2024 were as follows:

• Cost of revenue: $742.4 million
• Sales and marketing: $339.9 million
• Product and technology: $103.6 million
• General and administrative expenses: $208.1 million

The average monthly unique payers (MUP) rose to 3.6 million, a 55% increase from Q3 2023. Meanwhile, the average revenue per MUP (ARPMUP) was $103, representing a 10% decrease compared to the same period in 2023.

DraftKings has also introduced its revenue forecast for the fiscal year 2025, projecting a range of $6.2 billion to $6.6 billion, representing approximately 31% year-over-year growth based on the midpoint of the updated forecast range for fiscal 2024 and the 2025 revenue forecast.

DraftKings continues to anticipate an adjusted EBITDA for fiscal 2025 between $900 million and $1 billion, as previously announced on August 1, 2024.

“We achieved healthy results across our core value drivers in the third quarter with efficient customer acquisition and promotional reinvestment as well as improvement in our structural sportsbook hold percentage,” said Alan Ellingson, DraftKings’ Chief Financial Officer. “The midpoint of our inaugural fiscal year 2025 revenue guidance equates to 31% year-over-year growth, and we are well-positioned to deliver $900 million to $1 billion of Adjusted EBITDA in 2025.”

Key Highlights for DraftKings in Q3

DraftKings’ revenue growth in the third quarter of 2024 was driven by several factors, including:

• Strong customer engagement
• Effective acquisition of new customers
• Expansion into new jurisdictions
• Higher structural sports betting hold percentage
• Improved promotional reinvestment in sports betting and iGaming
• The impact of the Jackpocket acquisition

During the third quarter, DraftKings launched new and exclusive NBA markets aimed at increasing customer engagement around key game dynamics. The company also expanded its Same Game Parlay offering to more than 50 new NBA markets.

“DraftKings delivered strong performance in the third quarter with the return of NFL and college football,” said Jason Robins, DraftKings’ Chief Executive Officer and Co-founder. “With major sports converging on the calendar, we are well-positioned to build on this momentum as we further enhance our top-ranked sportsbook app with additional live betting features and exciting new NBA markets. Our focus remains on driving sustainable revenue growth and profitability in 2025 and beyond.”

DraftKings’ mobile Sportsbook app received a top industry ranking, highlighting the company’s leading position in user experience, betting interface, and features.

Additionally, DraftKings continued to develop its micro-betting and live-betting functions through both internal investments and targeted acquisitions, viewing these segments as significant growth opportunities.

DraftKings remains optimistic about future prospects. On November 5, 2024, Missouri voters approved a measure legalizing sports betting in the state. DraftKings expects to launch its products in Missouri pending market access, licensing, regulatory, and contractual approvals.