DraftKings Inc. has announced its Q2 2023 financial results revealing reported revenue of $875 million for the period, an increase of 88% year-on-year.
According to the report, revenues were primarily driven by customer retention and engagement, efficient customer acquisition and a higher hold percentage thanks to product innovation.
Speaking of the results, Jason Robins, DraftKings’ Chief Executive Officer and Co-founder said:
“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, and we are well on our way to achieving positive Adjusted EBITDA again in the fourth quarter of 2023 and for fiscal year 2024 and beyond.
We are excited by the additional product features and functionality that we are introducing leading into football season and also look forward to another successful online sportsbook launch in Kentucky this fall pending licensure and regulatory approvals.”
Report highlights
- Monthly Unique Payers (“MUPs”) increased to 2.1 million average monthly unique paying customers in the second quarter of 2023, up by 44% year-on-year.
- Average Revenue per MUP (“ARPMUP”) was $137 in the second quarter of 2023 marking a 33% increase compared to the same period in 2022.
- Q2 operating loss was $69 million, significantly lower than the $308.9 million loss posted for Q2 2022.
- Net loss for Q2 totaled $77.3 million, down from $217.1 million in Q2 2022.
- First half revenue for the six months to 30th June totaled $1.64 billion, up 97.3% year-on-year.
Jason Park, DraftKings’ Chief Financial Officer added:
“We are acquiring new customers efficiently while simultaneously retaining and monetizing our existing players through rapid product innovation, less promotions, and higher hold from better bet mix. Our unit economics are outstanding with older states generating more than enough cash to fund investment in new states.
This performance, combined with fixed costs that grew at only a mid-single digit year-over-year percentage rate in the second quarter, resulted in an inflection to positive Adjusted EBITDA that we expect will occur again in the fourth quarter and for full year 2024. As a result, we are increasing the midpoint of our fiscal year 2023 revenue guidance to $3.5 billion from $3.185 billion and improving the midpoint of our fiscal year 2023 Adjusted EBITDA guidance to ($205) million from ($315) million.”
DraftKings is now live with mobile sports betting in 21 states representing 44% of the U.S. population.
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