DraftKings Posts Stellar Q3 Results

Daily fantasy sports and sports betting giant DraftKings has posted its financial results for the third quarter of 2022. The company reported a stellar performance and improved its annual AEBITDA guidance accordingly.

DraftKings Posted Its Q3 Results

According to its Q3 results, DraftKings had revenue of $502 million, representing a 136% year-on-year increase. The company attributed the spectacular numbers to its highly-effective customer acquisition and retention efforts. According to the operator, it recorded a 22% increase in monthly unique payers to 1.6 million. While daily fantasy sports users declined, the other verticals recorded significant year-on-year increases.

In Q3, DraftKings earned an average of $100 per monthly paying customer, which is more than double what customers paid during the same period last year. The operator said that the increase in paying customers reflects the success of its promotional efforts.

Thanks to its favorable results, DraftKings raised its FY revenue guidance from $2.09-2.18 billion to $2.16-2.19 billion. As a result, it also improved its FY 2022 AEBITDA guidance. Previously, the company projected an adjusted EBITDA loss of between $835 million and $765 million, which has now been lowered to a loss of between $800 million and $780 million.

DraftKings used the opportunity to publish its 2023 revenue guidance. The operator revealed a forecast for FY revenue of $2.8 billion to $3.0 billion. It also expects an adjusted EBITDA loss of $575-475 million for the period. These projections assume that DraftKings successfully launches sports betting in Maryland in the fourth quarter of 2022 and in Ohio and Massachusetts in the first quarter of 2023.

CEO Robins Praised the Results

DraftKings’ co-founder, chief executive officer and board chair, Jason Robins, applauded his team’s efforts that ensured what he called “a very strong third quarter.”

Our team continued to drive top-line growth through highly effective customer engagement and compelling product and technology enhancements while remaining focused on our path to profitability.

Jason Robins, CEO, DraftKings

He noted that the company managed to strike the right balance between delivering differentiated top-line growth and delivering operating efficiencies. The company’s successes in Q3, Robins said, filled the company with optimism for the FY 2022 results.

DraftKings is currently one of the undisputed leaders in mobile sports betting. The company offers online sports betting in 18 states that represent 37% of the US population. The operator also offers iGaming in five states and managed to launch sports betting and iGaming in Ontario’s fresh betting market.

In other news, in October, DraftKings recently expanded its content offering in New Jersey with progressive jackpots. A few days earlier, the company teamed up with Deadfellaz to roll out new NFT cards featuring professional football players. At the beginning of the month, the sports betting operator also signed a historic deal with ESPN.