DraftKings reports revenue growth of 136% in Q3

 DraftKings has reduced its quarterly loss.
DraftKings has reduced its quarterly loss.

Revenue came in at $502m.

US.- DraftKings has published its third-quarter financial results. It reported revenue of $502m, an increase of 136 per cent compared to $213m during the same period in 2021. Revenue for the company’s B2C segment grew to $493m, an increase of 161 per cent compared to the three months ended September 30, 2021.

B2C gaming grew through customer acquisition and retention and launches of its sportsbook and igaming products in additional jurisdictions. High hold rates from NFL wagering and reduced promotions also played a role.

DraftKings reported a net loss of $450m compared to $545m in Q3 2021. Annual losses per quarter are now decreasing, with $217m in Q2 comparing to $305m for the same quarter in 2021. For the first nine months of 2022, DraftKings lost $1.13bn compared to $1.19bn in 2021.

Jason Robins, DraftKings’ co-founder, chief executive officer and chairman of the board, said: “DraftKings had a very strong third quarter. Our team continued to drive top-line growth through highly effective customer engagement and compelling product and technology enhancements while remaining focused on our path to profitability.”

He added: “For the NFL season, we made investments in our mobile Sportsbook product, creating a differentiated and fun customer experience, and also realized unique marketing optimization benefits as an operator with truly national scale.

“Throughout 2022, we’ve struck the right balance between delivering differentiated top-line growth and driving operating efficiencies. We continue to be confident that we will achieve positive Adjusted EBITDA in the fourth quarter of 2023 based on the visibility we have into expected state launches.”

Jason Park, DraftKings’ chief financial officer, said: “Our results in the third quarter significantly exceeded the expectations that we provided on our second quarter earnings conference call. We are increasing the midpoint of our fiscal year 2022 revenue guidance by $45m and improving the midpoint of our fiscal year 2022 Adjusted EBITDA guidance by $10m, which is a meaningful improvement given our prior fiscal year 2022 Adjusted EBITDA guidance did not include our launch in Kansas on September 1, 2022, or fourth quarter investments ahead of our expected launches in Maryland and Ohio, pending licensure and regulatory approvals.

“We are also introducing 2023 guidance for revenue and Adjusted EBITDA which reflects our continued balance between driving attractive revenue growth and meaningfully improving our Adjusted EBITDA.”

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