DraftKings generates nearly $4.8bn of FY2024 revenue; sees 202.2% increase in net income loss during Q4 2024
While the $609m loss from operations for DraftKings during FY2024 is significant, the figure also represents a decrease of over $180m from the loss suffered during FY2023.
Key Points
- The operator decreased its net income loss by approximately $295m during FY2024, reported to be $507.3m throughout the period
- During Q4 2024, DraftKings generated a revenue of nearly $1.4bn, representing an increase of 13.2% from the prior year period, but also reported a net loss of $139.2m
Having reported its financial results for both the fourth quarter of 2024 and fiscal year (FY), DraftKings managed to generate almost $4.8bn throughout FY2024, representing an increase of 30.1% year-over-year, while also decreasing its net income loss by approximately $295m from the figure reported during the prior year period.
DraftKings’ net loss during FY2024 was reported to be almost $507.3m, but managed to increase its revenue year-over-year despite also increasing expenses for sales & marketing, product & technology and general & administrative. Cost of revenue increased by over $650m for DraftKings during FY2024, but the 30.1% rise in revenue still managed to decrease the operator’s net loss by 36.8% from the prior year period.
In additional positive results for DraftKings, the operator managed to report a positive adjusted EBITDA of $181.3m, compared to an adjusted EBITDA loss of $151m from the prior year period. DraftKings saw a loss from operations of $609m throughout FY2024, but the figure still represents a decrease of over $180m from the loss suffered during FY2023.
“We continued to efficiently acquire and engage customers, expand structural sportsbook hold percentage and optimize promotional reinvestment in fiscal year 2024, while we simultaneously experienced customer-friendly sport outcomes,” DraftKings Co-Founder and CEO Jason Robins said.
“Looking ahead to 2025 and beyond, I am excited to further enhance our customer economics through new initiatives such as extending our lead in live betting and advancing cross sell efforts to and from new verticals. Our focus remains on driving sustainable growth in revenue and profitability.”
Good to know: Live! Casino & Hotel Louisiana agreed to a new partnership with DraftKings on February 7 that will see a retail sportsbook location open at the $270m-plus Cordish Companies property on February 13 as part of a grand opening event
Possibly due to the positive results seen throughout FY2024, DraftKings also announced that it will be raising the midpoint of its FY2025 revenue guidance to between $6.3bn and $6.6bn. The operator stated that the figures would represent an approximate 35% year-over-year increase in revenue from FY2024.
DraftKings reaffirmed its FY2025 adjusted EBITDA guidance of between $900m and $1bn, which was originally reported on November 7, 2024. For the remainder of 2025, the operator stated that it plans to launch in Missouri now that legalized sports betting is coming to fruition in the state, while also expecting to launch its sportsbook product in Puerto Rico pending market access.
Results from the fourth quarter of 2024 slightly differ from that of FY2024, as revenue increased by 13.2% from the prior year period for a reported total of $1.4bn, while the company’s net loss grew by 202.2% during the period to be nearly $134.9m. The significant increase seems to be primarily driven by decreases in interest income, income benefit provision and other net losses.
The 13.2% increase in revenue was generated despite an approximate $118m rise in cost of revenue, including DraftKings’ sales & marketing cost increasing by over $77m. While the operator was able to report a large increase in adjusted EBITDA during FY2024, the adjusted EBITDA for Q4 2024 decreased by 40.8% for a total of $89.5m.
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