DraftKings has announced its Q3 2023 financial results revealing revenue of $790 million, up by 57% year-on-year.
In an investors call, DraftKings CEO Jason Robbins cited continued healthy customer engagement, new customers acquisition and the expansion of sports betting into new jurisdictions as the main drivers behind the positive results.
“Our fantastic third quarter results demonstrate the positive impact of our product and technology investments as well as excellent preparation and execution by our entire organization.
Our new and differentiated features and functionality have created an exceptional user experience that sustains engagement for our mobile sports betting and iGaming 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. We expect to generate approximately $200 million of positive Adjusted EBITDA in the fourth quarter of 2023 based on the midpoint of our updated fiscal year 2023 guidance and look forward to sharing our multi-year outlook at our Investor Day on November 14th.”
Q3 2023 Report Highlights
- Q3 Revenue; $789.9 million, up 57%
- Loss from operations; -$286.5 million, 37% decrease on losses reported in Q3 2022
- Adjusted EBITDA; -$153.4 million, 41.9% decrease on Q3 2022
- Year-to-date revenue; $2.4 billion, up 76%
- Year-to-date net loss; -$757.5 million, 33.2% decrease on Q3 2022
- Monthly Unique Payers (“MUPs”) increased to 2.3 million, up by 40%
- Average revenue per customer was $114, up by 14%
EBITDA Losses Better Than Predicted
According to the report, EBITDA losses for the 2023 fiscal year will now come in at $95 million to $105 million. This is significantly better than the $400 million predicted at the start of the year and the revised losses of $190 million to $220 million reported in August.
Jason Park, DraftKings’ Chief Financial Officer noted:
“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. As a result of our outstanding performance in the third quarter, we are raising the midpoint of our fiscal year 2023 revenue guidance to $3.695 billion from $3.5 billion and improving the midpoint of our fiscal year 2023 Adjusted EBITDA guidance to ($105) million from ($205) million.
We are poised for a rapid increase in Adjusted EBITDA as we anticipate strong revenue growth coupled with a scaled fixed cost structure will continue. These trends provide for a long runway of margin improvement. Our fiscal year 2024 guidance at the midpoints of $4.65 billion in revenue and positive $400 million of Adjusted EBITDA implies incremental year-over-year revenue growth of almost $1 billion and an increase in Adjusted EBITDA of more than $500 million.”
Following its Kentucky sports betting launch, DraftKings sportsbook is now live in 22 states while its iGaming product is live in 5 states.
An experienced iGaming commentator and analyst based in New York City - Jenny reports on regulation and gambling industry news and events.