For the three months ended September 30, 2023, US sports betting giant DraftKings has clocked revenue of $790 million, an increase of $288 million, or 57%, compared to $502 million during the same period in 2022, leading it to raise its full-year guidance. Q3’s net loss narrowed to $283.1 million, equivalent to 61 cents per share, from $450.5 million, or $1 per share, during the corresponding period in the prior year.
The company attributed the growth to continued healthy customer engagement, efficient acquisition of new players, expansion of the Sportsbook product offering into new jurisdictions, product innovation, and improved promotional reinvestment for Sportsbook and iGaming.
“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,” said Jason Robins, DraftKings’ Chief Executive Officer and Co-founder.
“Our new and differentiated features and functionality have created an exceptional user experience that sustains engagement for our mobile sports betting and iGaming customers. We also delivered another successful online sportsbook launch in Kentucky and look forward to additional launches in Maine and North Carolina, pending licensure and regulatory approvals.”
The company now expects to generate approximately $200 million of positive Adjusted EBITDA in the fourth quarter of 2023 based on the midpoint of the updated fiscal year 2023 guidance. The company will also share its multi-year outlook at its Investor Day on November 14th.
The number of monthly unique payers (MUP) increased to 2.3 million in the third quarter of 2023, representing an increase of 40% compared to Q3 of 2022. Average revenue per MUP was $114, up 14% compared to the same period in 2022.
“DraftKings continues to acquire customers in an efficient manner, sustain customer engagement, improve its sportsbook structural hold and promotional reinvestment for Sportsbook and iGaming, and demonstrate fixed cost discipline,” said Jason Park, DraftKings’ Chief Financial Officer.
“We are poised for a rapid increase in Adjusted EBITDA as we anticipate strong revenue growth coupled with a scaled fixed cost structure will continue. These trends provide for a long runway of margin improvement. Our fiscal year 2024 guidance at the midpoints of $4.65 billion in revenue and positive $400 million of Adjusted EBITDA implies incremental year-over-year revenue growth of almost $1 billion and an increase in Adjusted EBITDA of more than $500 million.”
Driven by the encouraging results, the company raised its fiscal year 2023 revenue guidance to a range of $3.67 billion to $3.72 billion from the range of $3.46 billion to $3.54 billion, which it previously announced on August 3, 2023. Its updated 2023 revenue guidance range equates to year-over-year growth of 64% to 66%. This is the third consecutive quarter in which DraftKings has raised guidance for its full year.
Looking to the future, DraftKings set its fiscal year 2024 revenue guidance in the range of $4.50 billion to $4.80 billion, which equates to more than 25% year-over-year growth based on the midpoints of the company’s 2023 revenue guidance. Adjusted EBITDA guidance for 2024 has been revised between $350 million and $450 million.
Last month, DraftKings displaced its longtime rival FanDuel in US market share, according to analysts. The Boston-based company has been on a consistent upward trajectory, particularly following its acquisition of Golden Nugget Online Gaming last year. Data from Eilers & Krejcik Gaming reveals that DraftKings secured a 31% share of the online US gross gambling revenue in the third quarter, outpacing FanDuel at 30%.
