DraftKings, one of the leading sports betting and iGaming brands in the United States, has revealed its financial results for the period ending March 31, 2022.
Revenue saw a 34% year-on-year boost, coming in at $417m. Of this, $404m came from the brand’s B2C offering.
Yearly guidance for adjusted EBITDA is better than expected according to the operator, while still coming in at a loss.
“DraftKings delivered significant growth across our key revenue and performance metrics,” said Jason Robins, DraftKings’ Co-Founder, Chief Executive Officer and Chairman of the Board.
“We are not seeing any impact from inflationary pressures on customer demand, and we continue to improve the user experience by adding breadth and depth to our DFS, mobile sports betting and iGaming products. We are also improving our efficiency in acquiring and retaining customers and have a strong pipeline of new jurisdictions to enter.”
The company’s monthly unique players rose to 2 million in Q1, a 29% increase that can mostly be attributed to online sports betting launches in New York and Louisiana, with the Empire State specifically acting as a boon for the operator.
Average revenue per monthly unique player also saw a noticeable boost, with the company citing year-on-year growth of 11% or $67 per player.
Jason Park, DraftKings’ Chief Financial Officer, added: “We are pleased with our strong revenue and Adjusted EBITDA performance in the first quarter, which was driven by healthy underlying customer behavior and our ability to capture efficiencies. Therefore, we are increasing the midpoint of our fiscal year 2022 revenue guidance by $50m and improving the midpoint of our fiscal year 2022 Adjusted EBITDA guidance by $75m.”
Sports betting was not the only thing on the table for DraftKings in Q1, as the company set its sights on the nascent iGaming market in the US. The operator currently has its iGaming offering live in five states, around 11% of the national population.
As the company looks beyond Q1, it highlighted the potential of California, which, if approved this coming November, would become the nation’s biggest market at launch.
Moreover, the sports betting brand has raised its fiscal year 2022 revenue guidance from $1.85bn to approximately $2.025bn.
