On November 2, 2023, DraftKings Inc (DKNG, Financial) announced its third quarter 2023 financial results, reporting a revenue of $790 million. This marks a significant increase of $288 million, or 57%, compared to $502 million during the same period in 2022. The growth was primarily driven by robust customer engagement, efficient acquisition of new customers, and the expansion of the company's Sportsbook product offering into new jurisdictions.
Financial Highlights
DraftKings' Chief Executive Officer and Co-founder, Jason Robins, attributed the impressive Q3 results to the company's strategic investments in product and technology. The company's new and differentiated features have created an exceptional user experience that sustains engagement for its mobile sports betting and iGaming customers.
Jason Park, DraftKings' Chief Financial Officer, highlighted the company's efficient customer acquisition, improved sportsbook structural hold, and promotional reinvestment for Sportsbook and iGaming. He also noted the company's disciplined approach to fixed costs. As a result of the outstanding Q3 performance, the company raised its fiscal year 2023 revenue guidance midpoint to $3.695 billion from $3.5 billion and improved its 2023 Adjusted EBITDA guidance midpoint to ($105) million from ($205) million.
Customer Retention, Acquisition, and Engagement
The company reported an increase in Monthly Unique Payers (MUPs) to 2.3 million average monthly unique paying customers in Q3 2023, representing a 40% increase compared to Q3 2022. The Average Revenue per MUP (ARPMUP) was $114 in Q3 2023, marking a 14% increase compared to the same period in 2022.
2023 and 2024 Guidance
DraftKings raised its fiscal year 2023 revenue guidance to a range of $3.67 billion to $3.72 billion, equating to year-over-year growth of 64% to 66%. The company also improved its fiscal year 2023 Adjusted EBITDA guidance to between ($95) million and ($115) million. For fiscal year 2024, the company introduced a revenue guidance range of $4.50 billion to $4.80 billion and an Adjusted EBITDA guidance of between $350 million and $450 million.
Balance Sheet and Cash Flow Statement
As of September 30, 2023, DraftKings reported total assets of $3.861 billion, with cash and cash equivalents amounting to $1.111 billion. The company's total liabilities stood at $3.060 billion, with total stockholders' equity at $801.422 million. For the nine months ended September 30, 2023, the company used $73.818 million in operating activities and $66.918 million in investing activities.
The company's financial results and guidance reflect its continued growth and strong performance in the online sports betting and iGaming industry. DraftKings' strategic investments and efficient customer acquisition strategies have positioned the company for continued success in the upcoming fiscal years.
Explore the complete 8-K earnings release (here) from DraftKings Inc for further details.
