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DraftKings (NASDAQ:DKNG) rose after sliding past consensus estimates with its Q1 earnings report and raising its revenue guidance.
Revenue jumped 53% year-over-year in Q1 to $1.18B, driven primarily by continued healthy customer engagement, efficient acquisition of new customers, the expansion of the company’s sportsbook product offering into new jurisdictions, a higher structural sportsbook hold percentage, and improved promotional reinvestment for the sportsbook and iGaming businesses.
DraftKings’ (DKNG) monthly unique paying customers increased year-over-year to 3.4M vs. 3.56M consensus. Average revenue per MUP was up 25% year-over-year during the quarter to $114 vs. $105.04 consensus. The increase was noted to be primarily due to an increase in the company’s structural sportsbook hold percentage and improved promotional reinvestment for Sportsbook and iGaming.
DraftKings churned up adjusted EBITDA of $22.4M vs. $5.2M consensus and -$221.6M a year ago. EPS came in at $0.03 vs. -$0.08 consensus.
Looking ahead, DraftKings (DKNG) hiked its 2024 revenue guidance range to reflect a midpoint of $4.9B vs. $4.8B consensus and the prior outlook for $4.8B. The Boston-based company also noted that 9 jurisdictions this year that collectively represent approximately 11% of the U.S. population have either introduced legislation to legalize mobile sports betting or introduced a bill that may result in a mobile sports betting referendum during an upcoming election.
Shares of DraftKings (DKNG) moved 2.25% higher in postmarket trading.
