DraftKings reports 53% increase in Q1 revenue
The sportsbook generated revenue of $1.18bn in the first quarter.
US.- DraftKings has reported its financials for the first quarter of 2024. Revenue was $1.18bn, up 53 per cent year-on-year. Its operating loss of $138.8m compared to $389.8m in Q1 last year.
Adjusted EBITDA was $22.4m, down from $151m in Q4 but up from negative $221.6m in Q1 2023. Average monthly unique payers (MUPs) reached 3.4 million, up 23 per cent on the same period last year. Average revenue per MUP was $114, up 25 per cent.
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Revenue costs were up 36.1 per cent to $710.1m although sales and marketing spend dipped 12.4 per cent to $340.7m. Product and technology spend was level at $88.8m, while general and administrative costs climbed 8.6 per cent to $174.3m.
DraftKings received $351,000 in tax benefit and noted a $330,000 gain from an equity investment method. As such, it ended Q1 with a net loss of $142.6m, compared to $397.1m last year. The sportsbook raised its 2024 revenue guidance to $4.9bn.
CEO and co-founder Jason Robins said: “DraftKings’ performance in the first quarter of 2024 was outstanding, reflecting healthy revenue growth and a scaled fixed cost structure that positions us to drive rapidly improving Adjusted EBITDA.”
