DraftKings has announced results for the second quarter of 2024 while adding that its Board of Directors authorized the repurchase of an aggregate of up to $1bn of its Class A common stock.
The operator also reported its first-ever profitable quarter, generating a net income of $63.8m for Q2 2024 as compared to a net income loss of $77.3m during the second quarter of 2023. DraftKings still saw a loss from operations of $32.4m for Q2 2024, however, so there is still progress left to be made.
The operator reported a revenue of $1.1bn for Q2 2024, an increase of 26% when compared to the same period in 2023. DraftKings stated the increase in revenue was driven primarily by the acquisition of new customers, the expansion of the company’s sportsbook product offering into new jurisdictions and the impact of its Jackpocket Inc. acquisition which closed in May 2024.
“We very efficiently acquired many more new customers than we expected and saw continued healthy existing customer engagement in the second quarter,” DraftKings Co-Founder and CEO Jason Robins said.
“We will continue to capitalize on the healthy customer acquisition environment for the rest of 2024 which positions us to achieve $900m to $1bn of adjusted EBITDA in 2025. Additionally, we plan to implement a gaming tax surcharge in high tax states that have multiple mobile sports betting operators on January 1, 2025 which could drive adjusted EBITDA upside on an annual basis.”
DraftKings raised its fiscal year 2024 revenue guidance to a range of $5.05bn to $5.25bn from the range of $4.8bn to $5bn, which the company previously announced on May 2, 2024.
The company’s updated 2024 revenue guidance range equates to year-over-year growth of 38% to 43%.
Adjusted EBITDA increased to just under $128m during the second quarter of 2024 from the $73m figure reported for Q2 2023.
DraftKings expects to launch its sportsbook product in Puerto Rico shortly pending market access, licensure, regulatory approvals and contractual approvals where applicable.
The company also now expects a fiscal year 2024 adjusted EBITDA of between $340m and $420m compared to its prior fiscal year 2024 adjusted EBITDA guidance of between $460m and $540m.
