DraftKings recently announced its financial results for the second quarter of 2024. The company saw revenue of $1.1 billion, marking a 26% increase compared to the same period a year ago.
This growth was primarily driven by increased customer engagement and the expansion of sports betting products into new jurisdictions. Furthermore, the acquisition of Jackpocket, completed in May 2024, contributed significantly to the positive result.
The company’s net profit was US$63.8 million. In terms of adjusted EBITDA, there was a substantial increase, which rose from US$73 million in the second quarter of 2023 to US$128 million in the same period of 2024.
Despite this growth, DraftKings reported an operating loss of $32.4 million. Therefore, this loss reflects the company’s continuous investments in expansion and market development. However, it is a significant improvement over the US$69 million loss recorded in the second quarter of last year.
Single Monthly Payers (MUPs) reached 3.1 million, marking a 50% increase compared to the previous year. However, the Average Revenue per MUP (ARPMUP) fell 15%, to US$117. This drop is mainly attributed to promotional investments aimed at attracting new customers and results that favored bettors.
Draftkings Revenue Predictions
Regarding future prospects, DraftKings updated its revenue forecast for fiscal 2024. The company expects to generate between $5.05 billion and $5.25 billion, representing projected annual growth of 38% to 43%.
However, the company revised its adjusted EBITDA forecast to a range of $340 million to $420 million, down from its previous forecast of $460 million to $540 million.
Additionally, DraftKings announced a $1.0 billion share repurchase program. This initiative aims to repurchase its Class A common shares, demonstrating the company’s confidence in its future performance and its ability to generate value for shareholders.
