DraftKings has released its financial results for the first quarter of a year. The results show that the company’s business seems to be doing great.
DraftKings’ Business Is Going Strong
According to the official figures, the American sports betting and daily fantasy company earned a total of $417 million for the period. This demonstrates a whopping 34% year-on-year increase. The operator’s adjusted EBITDA exceeded the midpoint of the guidance for the first quarter of 2022 by more than 12%.
The majority of DraftKings’s revenues came from its business-to-customer operations. The vertical yielded $404 million, which is 44% than of what the company earned for the same period in 2021.
DraftKings’ business took up thanks to the increased monthly unique players count. The company said that more than two million unique visitors frequent DraftKings every month. This is a significant 29% increase compared to Q1 of 2021. The average sum players invested was estimated to be $67 a person.
The Company Is Good at Grabbing Opportunities
Jason Robins, DraftKings’ co-founder, CEO and chairman, spoke on the results. He said that the company will continue its committment to excellence and keep on improving the user experience. The company will work on its mobile sports betting, daily fantasy and iGaming verticals and will improve its customer acquisition.
Robins also added that DraftKings has failed to observe any inflationary pressures on customer demand.
Jason Park, the chief financial officer of DraftKings, also spoke on the matter. He praised the company’s team for the strong revenue and adjusted EBITDA performance. According to Park, the remarkable results are thanks to DraftKings’ customer behavior paired with DraftKings’ opportunism.
Park added that the strong start of the year will affect DraftKings’ revenue guidance for 2022:
We are increasing the midpoint of our fiscal year 2022 revenue guidance by $50 million and improving the midpoint of our fiscal year 2022 Adjusted EBITDA guidance by $75 million.Jason Park, CFO of DraftKings
More Opportunities Await
DraftKings’ report added that its mobile sports betting products are live in 17 states and reach 36% of the people in the US. Its iGaming offerings are currently available to bettors in 5 states, or 11% of the country’s population.
DraftKings is currently eyeing the prospects of launching its products in Maryland, Puerto Rico and Ohio – three markets that recently legalized mobile sports betting. DraftKings may also gain access to Kansas and California if any of them manages to successfully pass a law that recognizes online betting.
Meanwhile, DraftKings just completed the acquisition of Golden Nugget Online Gaming.