The success of bettors during the NFL season was felt in a popular online sportsbook’s fourth-quarter results.
In released earnings on Thursday, DraftKings announced revenue of $1.23 billion for the final quarter, which is up 44% from the same quarter in 2022.
However, profits fell slightly below the industry-projected $1.24 billion, reflecting the hit many sportsbooks took late last year.
“DraftKings ended 2023 with excellent performance across customer acquisition, retention and engagement as well as structural sportsbook hold percentage despite the worst stretch of sport outcomes we have seen as a public company in the fourth quarter."
- Jason Robins, DraftKings CEO
DraftKings said “customer-friendly" sports outcomes during an especially rough two weeks in November cost the company approximately $175 million in revenue and $126 million in Adjusted EBITDA.
Customer growth
Despite some of those unforeseen shortcomings, DraftKings reported growth as a company during Q4, which ended Dec. 31, 2023.
The online sports betting and iGaming site saw a 37% year-over-year increase in Monthly Unique Payers, reaching 3.5 million customers. DraftKings grew through “efficient” customer acquisitions, strong customer engagement, expansion to new markets, and product innovation that led to a higher hold percentage on an increase of parlays.
Full-year revenue reached $3.67 billion, up 63.8% from 2022. Loss from operations fell 50% when compared to the previous year.
Looking ahead
DraftKings is live in 24 U.S. states and Ontario, Canada. It went live in Maine during the final quarter of 2023 and is now offering iGaming in five states, representing approximately 11% of the U.S. population.
Healthy projections are expected for 2024 as the company expects to reach its first full year with a positive EBITDA. The guidance midpoint guidance range for this year rose from $4.65 billion to $4.775 billion, while adjusted EBITDA also increased from $400 million to $460 million.
“Looking ahead to 2024 and beyond, our focus remains on disciplined execution against our core value drivers, an unwavering commitment to customer centricity, and fulfilling our product roadmap to consistently differentiate ourselves competitively,” Robins said.
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