For the three months ended December 31, 2022, bookmaker DraftKings reported revenue of $855 million, which is an 81% increase on the previous year.
This is primarily due to improved structural sports betting retention, successful launch of its sports betting and iGaming products in new jurisdictions, and continued customer retention and monetization in existing states. Revenue and adjusted EBITDA also beat expectations.
Additionally, annual revenue nearly doubled to $2.2 billion and losses from operations were slightly reduced to $1.51 billion from $1.56 billion in 2021.
But with loss from operations also reaching $232.4 million in Q4, the question with DraftKings – as always – is: are losses falling fast enough to satisfy investors?
Jason Robins, CEO and co-founder of DraftKings, said, “I’m delighted with how we’ve concluded 2022, with continued revenue growth and a strong focus on expense management.”
“In the fourth quarter, we grew revenue 81% year-over-year and delivered positive adjusted EBITDA in October and for the quarter by adjusting our launch costs in Maryland and Ohio. Going into 2023, we will continue to drive revenue growth and focus on expense management to accelerate our adjusted EBITDA growth,” added Robins.
DraftKings is raising its valuation for fiscal 2023 from the $2.8 billion to $3 billion range, which it revealed on Nov. 3.05 billion.
According to the company’s revised sales estimate for 2023, annual growth will range from 27% to 36%. In contrast to the prior fiscal 2023 adjusted EBITDA target of between $475 million and $575 million, the company now forecasts it to be between $350 million and $450 million.
