DraftKings Improves 2023 Prospects, Reveals Robust 2024 Forecast

Posted on: November 2, 2023, 04:49h. 

Last updated on: November 2, 2023, 04:49h.

DraftKings (NASDAQ: DKNG) shares surge by 7% in after-hours trading following a 6.43% gain during standard trading hours, as the gaming company raises its 2023 guidance once again. Read more here.

DraftKings headquarters. The company upped its 2023 financial outlook while introducing strong 2024 guidance. (Image: CNBC)

DraftKings expects to report a loss of $105 million in adjusted EBITDA on revenue of $3.695 billion for 2023, improving from prior forecasts of a loss of $205 million on sales of $3.5 billion. Find out more here.

DraftKings’ financial outlook for 2023 has significantly improved, with increased sales projections and reduced expected losses. The company attributes these improvements to enhanced operating efficiencies. Learn more here.

DraftKings’ chief financial officer, Jason Park, stated that the company has been acquiring customers efficiently, improving customer engagement, and demonstrating cost discipline. Read the full statement here.

The launch of online sports wagering in Kentucky in September has had a positive impact on DraftKings’ performance in the third quarter. Similar effects are expected in Maine and North Carolina in the current quarter and beyond. Find out more here.

DraftKings Delights with 2024 Guidance

DraftKings’ stock has seen substantial growth this year, and the company faces pressure to deliver positive results. The newly unveiled 2024 EBITDA and revenue guidance indicates profitability throughout most, if not all, of 2024. Learn more here.

Boston-based DraftKings forecasts positive 2024 EBITDA of $350 million to $450 million on sales of $4.5 billion to $4.8 billion, potentially breaking top-line records. Read more here.

Park expects strong revenue growth and a scaled fixed cost structure to drive significant margin improvement for DraftKings in fiscal year 2024. The company aims for an incremental year-over-year revenue growth of almost $1 billion and an increase in Adjusted EBITDA of more than $500 million. Discover more here.

DraftKings anticipates achieving positive EBITDA of $200 million in the current quarter. Find out more here.

DraftKings Efficiencies Apparent

Efficiencies and profitability are becoming increasingly important for online sportsbook operators. DraftKings seems to be excelling in this regard, with a significant increase in monthly unique paying customers and an impressive rise in average revenue per MUP. Learn more here.

Park emphasized that the improved average revenue per MUP was primarily due to enhanced sportsbook hold rates and promotional reinvestment for Sportsbook and iGaming. Find out more here.


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