DraftKings has released its fourth quarter revenue figures revealing that revenue for the year 2022 increased by 73% to $2.24 billion while adjusted EBITDA loss for the quarter came to $49.9 million.
Despite the loss, results were better than expected with many analysts on Wall Street predicting that the sportsbook operator would lose more than double that amount in the final quarter of the year.
The quarter saw DraftKings lose $0.53 per share compared to a projected loss of $0.59 while also improving on its full year projections for 2023 Adjusted EBITDA. The latest update means that the company now expects a loss somewhere in the region of $350-$450 million in 2023. This is a significant improvement on its initial projected loss of $475-$575 million for 2023. According to its press release, the company now expects to hit a positive EBITDA in 2024.
Speaking of the latest results, DraftKings CEO and Co-founder Jason Robbins said:
“I am very pleased with how we concluded 2022, with continued top-line growth and a strong focus on expense management. In the fourth quarter, we grew revenue by 81% versus last year and delivered positive Adjusted EBITDA in October and for the quarter when adjusting for our launch costs in Maryland and Ohio.
Moving into 2023, we will continue to drive revenue growth and focus on expense management to accelerate our Adjusted EBITDA growth. We have already taken several actions that resulted in an increase to our revenue guidance and significant improvement in our Adjusted EBITDA guidance.”
Key figures from DraftKings report
- Q4 revenue: $855 million
- Q4 Adjusted EPS: -$0.53
- Q4 Adjusted EBITDA: -$49.9 million
According to the company’s statement, the revenue figure resulted in a profitable month in October, taking into account the launches in Maryland and Ohio, and reflects an 81% growth compared to the corresponding period in 2021.
The fourth quarter of 2022, DraftKings also saw growth in Monthly Unique Payers (MUPs) with an average of 2.6 million unique paying customers per month. This represents a growth of 31% compared to the same period in 2021. The boost is attributed to the successful retention and acquisition of unique payers in DraftKings’ Sportsbook and iGaming offerings, as well as the expansion of these products into new markets.
The company is set to host an investors call today to discuss the results and projections for the coming year.
Ciaran has been working within the Gambling Industry as a deep analyst since 2019. His deep knowledge and understanding of all the gambling regulations, and processes makes him a true asset, and an always valuable point of view for Gambling Industry News, allowing us to cover every topics from a brand new perspective.