DraftKings Reports Strong Fourth Quarter Growth Despite Challenges

DraftKings stock started trading higher not long after the company released a strong fourth-quarter earnings report and a promising outlook for 2025.

According to a press release, DraftKings reported a strong financial performance in the fourth quarter of 2024, with a revenue of $1,393 million. This marks a notable increase of $162 million, or 13%, compared to the same period in 2023.

Several factors contributed to this growth, including:

• Increased customer engagement
• Successful new customer acquisitions
• The expansion of the Sportsbook product into new areas

The acquisition of Jackpocket Inc. also played a significant role, though unfavorable outcomes in the NFL season tempered some gains.

CEO and Co-founder Jason Robins expressed optimism about the future, highlighting efforts to enhance live betting and cross-sell new products. CFO Alan Ellingson celebrated 2024 as a milestone year, marking DraftKings' first positive Adjusted EBITDA. The company also began its first share repurchase program and adjusted its 2025 revenue guidance to a midpoint of $6.45 billion, up from $6.4 billion.

Strong Customer Growth and Engagement

DraftKings saw significant growth in its user base during the fourth quarter of 2024. The platform averaged 4.8 million monthly unique paying customers, a 36% increase from 2023. This growth was driven by strong performance in retaining customers and acquiring new ones across its Sportsbook and iGaming platforms, aided by the expansion into new markets and the Jackpocket acquisition. Excluding Jackpocket's impact, the increase in unique payers was 16%.

However, the average revenue per monthly unique payer (ARPMUP) decreased by 16% to $97, primarily due to the lower revenue from Jackpocket customers and customer-friendly sports outcomes. Nonetheless, improvements in Sportsbook hold and promotional strategies partially offset these factors, with a 4% decrease in ARPMUP attributed to existing operations before the acquisition.

Fiscal Year 2025 Outlook Is Promising

DraftKings raised its fiscal year 2025 revenue guidance to a range of $6.3 billion to $6.6 billion, signifying an approximate 35% year-over-year growth. The company reaffirmed its Adjusted EBITDA guidance of $900 million to $1 billion. These projections reflect DraftKings' confidence in its financial health and strategic positioning, though they do not account for new sports outcomes or the anticipated launch of mobile sports betting in Missouri.

Premium picks, tools & analysis

Track & follow smart money

Biggest player prop edges

Real-time expert pick alerts

SAVE 66% NOW!

Expanding Mobile Sports Betting and iGaming Presence

DraftKings is currently active with mobile sports betting in 25 states and Washington, D.C., covering roughly 49% of the U.S. population. Its iGaming offerings are available in five states, reaching about 11% of the population. In Canada, DraftKings operates in Ontario, representing 40% of the nation's population.

The company plans to extend its reach further. Following Missouri's legalization of sports betting, DraftKings aims to launch its Sportsbook there, subject to necessary approvals. Puerto Rico is also on the radar for a similar rollout, pending regulatory and contractual clearances.

DraftKings Casino (Michigan) Reports Record Jackpot

DraftKings Casino is a big hit in Michigan, West Virginia, Pennsylvania, Connecticut, and New Jersey. In fact, the company recently announced that the jackpot in Michigan is now almost $9 Million.

An update was posted on the DraftKings Casino X account.

If you're 21 or older and living in Michigan, you can try to hit the jackpot by playing various casino games on the DraftKings app, with entry fees starting as low as 20 cents. This jackpot has grown significantly since topping $7 Million in November. 

Right now, players in these states can get a DraftKings promo code that will unlock a deposit match of up to $1,000 in casino bonus funds, plus a chance to spin for a shot at $2,000 casino credits. In New Jersey, new players also have the chance to spin and try to win $2000 casino credits.

But remember, if you decide to take advantage of the offer and play, set limits. Please, always gamble responsibly.