DraftKings released its Q1 financial results, showing it earned $769.6 million in total revenue — an 84% increase from $417.2 million in 2022.
Meanwhile, its Adjusted EBITDA was at a loss of $221.6 million, an improvement from Q1 2022’s $289.5 million. However, this is a trend often seen with DraftKings, as that the company generates significant amounts of revenue but ends up taking a loss due to its spending across the booming US sports betting market.
The chart below shows DraftKings’ adjusted EBITDA through 2022 and 2023.
For the 1st quarter of 2023, the company posted a net loss of $397.1 million, up from $467.6 million last year – although CEO Jason Robins stressed that the loss was part of the plan to company’s long-term goal of achieving profitability.
Its loss per share also remained, totaling $0.51 – down from $0.74 in Q1 2022.
Robins commented on the results: “DraftKings’ performance in the first quarter – 84% year-over-year revenue growth and share gains underpinned by a relentless focus on operational efficiency – demonstrates that this is a company positioned for sustained success “.
“We’ve delivered highly successful online sports betting launches across Ohio and our home state of Massachusetts and continue to create significant product differentiation driven by internal innovations.”
“We acquired customers faster and more efficiently and, most importantly, saw healthy retention across all areas. Looking ahead to the remainder of 2023, I am confident that DraftKings is well positioned to achieve profitability on an adjusted EBITDA basis in the short term and deliver long term value to our shareholders,” added Robins.
Following the release of the report, DraftKings‘ share price remained flat at $21.38 – representing a solid incline over the last six months.