DraftKings Announces Upward Adjustments in Full-Year Revenue and Earnings
DraftKings has adjusted its full-year revenue and earnings predictions upward, following successful growth in the second quarter and the first half of the year.
The company attributed its success in Q2 to factors such as consistent customer retention and engagement, together with attracting new players. DraftKings further emphasized the broadening of its parlay options and enhancement of its promotional strategies.
EBITDA Up and Net Loss Down
This approach resulted in an increase in revenue and adjusted Earnings Before Interest, Tax, Depreciation, and Amortization (EBITDA) compared to the previous year. Furthermore, DraftKings managed to decrease its net loss.
As a result, the company felt it was safe to increase FY guidance for the third quarter in a row, having previously raised FY forecasts in both Q1 of 2023 and the last quarter of 2022.
Launches in New Markets
The company also factored in expected launches in new markets. DraftKings plans to launch in Kentucky in September and Puerto Rico by the end of the year, both of which should boost the company’s finances further.
DraftKings produced outstanding results for the second quarter of 2023. We grew revenue at an impressive year-over-year rate, captured additional GGR share in a cost-effective manner and maintained our focus on operational efficiency. The positive adjusted EBITDA that we generated in the second quarter exceeded our guidance.
We are well on our way to achieving positive adjusted EBITDA in the fourth quarter, fiscal year 2024 and beyond. We are excited by the additional product features and functionality that we are introducing leading into football season. I also look forward to another successful online sportsbook launch in Kentucky this fall pending licensure and regulatory approvals.