DraftKings reports 81% revenue increase for Q4 2022
Net loss stood at $242.7m, explained partially by its new launches in Maryland and Ohio.
DraftKings has announced its Q4 2022 results, which show a remarkable 81% year-on-year revenue increase to $855m from $473m. According to the sportsbook, these strong results were driven by continued customer retention and monetization of operations in active states.
Its adjusted EBITDA decreased, however, by 61% (from its $127.9m showing in Q4 of 2021) to $50m. Net loss improved, as the sportsbook reported a $242.7m decline for 2022’s final quarter compared to $326.3m in the fourth quarter of 2021.
For FY2022, the company’s net loss stood at $1.4bn, an improvement on the FY2021 net loss of $1.5bn. Net cash flow increased by 49% to $625.5m for the full financial year, compared to 2021’s result of $419.5m.
DraftKings CEO and Co-Founder Jason Robins commented: “I am very pleased with how we concluded 2022, with continued top-line growth and a strong focus on expense management.
“In the fourth quarter, we grew revenue by 81% versus last year and delivered positive adjusted EBITDA in October and for the quarter when adjusting for our launch costs in Maryland and Ohio.
“Moving into 2023, we will continue to drive revenue growth and focus on expense management to accelerate our adjusted EBITDA growth. We have already taken several actions that resulted in an increase in our revenue guidance and significant improvement in our adjusted EBITDA guidance.”
DraftKings launched in Maryland in November 2022 and expenses incurred from this accounted for a large part of its operating losses in Q4.
The sportsbook giant emphasized that its impressive revenue boost was bolstered by the launches of successful sportsbook and iGaming products in new jurisdictions, as well as structural sportsbook hold improvement.
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