DraftKings announced revenue of $4.77 billion in fiscal 2024, surpassing the $3.67 billion recorded in 2023. In the fourth quarter, revenue reached $1.39 billion, an increase of 13% compared to the same period last year.
For the first time, the company achieved a positive adjusted EBITDA of US$181.3 million, against a negative result of US$151 million in 2023.
EBITDA is an acronym in English that stands for “Earnings Before Interest, Taxes, Depreciation, and Amortization”, or, in Portuguese, “Profit Before Interest, Taxes, Depreciation and Amortization”.
This financial indicator is widely used to evaluate a company’s operational efficiency, excluding factors such as capital structure, tax rates and non-cash expenses (depreciation and amortization).
In short, EBITDA is a useful metric for evaluating operational performance, but it must be analyzed in conjunction with other financial indicators for a complete view of the company’s situation.
User Growth and Revenue Changes
In communication to investors, DraftKings attributed the growth to efficient customer acquisition. Additionally, expansion into new jurisdictions, greater structural retention and the acquisition of Jackpocket Inc. This performance occurred despite an unfavorable NFL season for sports betting.
The company recorded a 36% growth in the number of monthly unique users in the fourth quarter, reaching 4.8 million. However, average revenue per user fell 16% to $97. This decline was attributed to Jackpocket customers, who have lower average revenue, and the NFL‘s negative results.
Jason Robins, CEO and co-founder of DraftKings, said: “We continue to efficiently acquire and engage customers, expand structural retention percentage, and optimize promotional reinvestment in 2024, all while experiencing favorable customer sports results.”
He added: “For 2025, I am excited to improve our customer economics with new initiatives such as extending our lead in live betting and advancing cross-selling efforts. Our focus remains on sustainable revenue and profitability growth.”
Draftkings geographic expansion and projections for 2025
DraftKings currently offers mobile sports betting in 25 states and Washington DC, serving 49% of the US population. Additionally, it operates online casinos in five states, representing 11% of US citizens.
In 2024, the company expanded its operations to Ontario, Canada, strengthening its presence in North America. By 2025, it is planning to launch sports betting products in Missouri and Puerto Rico, subject to regulatory approvals.
Alan Ellingson, Chief Financial Officer of DraftKings, stated: “2024 was a banner year, with our first positive adjusted EBITDA and the execution of our first share repurchase authorization.
Based on our key drivers, we raised the midpoint of our 2025 revenue guidance to $6.45 billion from $6.4 billion and maintained our adjusted EBITDA forecast between $900 million and $1 billion.”
Considerations about event contracts and cryptocurrencies
During the earnings call, Robins addressed questions about event contracts and cryptocurrency payments.
“It’s something we’re looking at, but we need to make sure regulators are comfortable as they tend to be cautious with cryptocurrencies.”
He highlighted that the company is following the movements of the Commodity Futures Trading Commission (CFTC). In this context, Kalshi has stood out by seeking event contracts and offering unique match results. The appointment of Kalshi board member Brian Quintenz as chairman of the CFTC could drive the expansion of this market.
