DraftKings‘ non-GAAP earnings per share clocked in at 14 cents, shattering analysts’ expectations of a loss of 14 cents! And that’s not all – the gaming giant also stunned the market with positive adjusted earnings before, interest, taxes, depreciation, and amortization (EBITDA), as revenue skyrocketed by an astonishing 88% to reach $875 million, handily surpassing estimates of $772.9 million.
The news sent shares soaring in Thursday’s after-hours trading, and for good reason – the Boston-based company delivered a jaw-dropping performance in the second quarter of 2023.
Could this be just the beginning of a winning streak? It certainly seems so!
DraftKings’ spectacular Q2 showing has set the stage for more triumphs throughout 2023 and beyond. Jason Robins, the CEO, and co-founder expressed confidence in the company’s continued success, revealing that positive Adjusted EBITDA is expected to repeat in the fourth quarter of 2023 and beyond, making shareholders and fans alike jump with joy!
The future looks bright for DraftKings
DraftKings has a knack for exceeding expectations, and they did it again by raising their annual forecasts! The outlook for 2023 has investors brimming with excitement as the company projects substantially higher yearly revenue and the tantalizing possibility of being EBITDA positive in Q4.
Hold onto your hats as DraftKings boosts its 2023 revenue guidance to a thrilling range of $3.46 billion to $3.54 billion, representing an impressive year-over-year topline growth of 54% to 58%! And that’s not all – the revised forecast also brought smiles to investors’ faces with a much-improved EBITDA loss projection of $190 million to $220 million, compared to the original forecast of $290 million to $340 million. Looks like they’re betting on a strong finish this year!
The excitement doesn’t end there – DraftKings has grand plans for the fourth quarter of 2023, where they expect to generate $150 million to $175 million of Adjusted EBITDA and a jaw-dropping $1.2 billion of revenue! Buckle up for a thrilling ride as the gaming company leaves no stone unturned to keep the momentum going.
DraftKings wins big per client revenue
It’s not just about acquiring new clients; the real magic lies in generating more revenue per bettor! DraftKings has mastered this art, evident in their Average Revenue Per Monthly Unique Player (ARPMUP) of $137 in Q2 2023. This impressive figure represents a remarkable 33% increase compared to the same period in 2022. The company credits this surge to improved structural sportsbook hold rates and reduced promotional intensity, making their offerings all the more irresistible!
As a sports wagering powerhouse, DraftKings already covers 44% of the US population with mobile sports betting in 21 states, and iGaming is live in five states, representing 11% of the population. But they’re not stopping there – keep your eyes peeled for new opportunities as DraftKings prepares to spread its wings to Kentucky and Puerto Rico, expected to offer mobile sports betting by the end of 2023. More states mean more fans and more thrills for the gaming giant!
With the wind in their sails, DraftKings is rewriting the rulebook for success in the world of online sports betting. The journey so far has been nothing short of exhilarating, and the future is brimming with endless possibilities! So, join the celebration as DraftKings delivers another victory for the books, and get ready for an adrenaline-pumping adventure with one of the most dynamic players in the ever-evolving world of sports gaming!
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