DraftKings’ Q3 Results and Improved Guidance Highlight the Success of Its Strategy

DraftKings has published its Q3 2023 results, updating its guidance thanks to its strong performance.

The American betting company posted revenue of $790 million for the period – a figure that represents a staggering 57% year-on-year increase from the $502 million recorded in 2022.

In the wake of this strong figure, DraftKings raised its FY 2023 revenue guidance to a range of $3.67 billion to $3.72 billion. DraftKings also improved its FY 2023 adjusted EBITDA to a range of between $95 million and $115 million.  

In the meantime, the company also introduced a FY 2024 revenue guidance of $4.5-4.8 billion and adjusted EBITDA guidance of between $350 million and $450 million.

The EBITDA guidance for 2023 and 2024 includes all of the company’s existing jurisdictions and its operations in Maine, Puerto Rico, Vermont and North Carolina where it is yet to launch.

DraftKings Attributed the Revenue to a Variety of Factors  

DraftKings attributed its high revenue to the launches in new jurisdictions, commitment to innovative products, better promotional efforts, continued healthy customer engagement and efficient acquisition of new customers.

Monthly Unique Players (MUPs) increased to 2.3 million, up 40% year-on-year. Average revenue per MUP, meanwhile, was $114, representing a 14% year-on-year increase.

Following the launch of DraftKings’ sportsbook in Kentucky, the company’s sports betting offerings are now live in a total of 22 states, representing 45% of the US population. The company also operates iGaming in 5 states. DraftKings’ sports betting and iGaming products are also available in the Canadian province of Ontario, which represents 40% of the country’s population.

In Q3, DraftKings also reached an agreement in principle to launch sports betting in Mainе with the Passamaquoddy Tribe.

DraftKings’ co-founder and CEO Jason Robins commented on the results, saying that they demonstrate the positive impact of the company’s investments and hard work. He praised DraftKings’ new and differentiated features and functionalities that create exceptional user experience for the customers.

We also delivered another successful online sportsbook launch in Kentucky and look forward to additional launches in Maine and in North Carolina, pending licensure and regulatory approvals. 

Jason Robins, co-founder & CEO, DraftKings

Jason Park, the company’s CFO, also commented on the matter, saying that DraftKings is poised for further growth.

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.

Jason Park, CFO, DraftKings

In early October, DraftKings reported a spike in the wagering on women’s sports.