DraftKings Inc (LTS:0ABA)
$ 42.72 3.3085 (8.39%) Market Cap: 21.08 Bil Enterprise Value: 21.54 Bil PE Ratio: 0 PB Ratio: 19.57 GF Score: 79/100
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Q3 2024 Draftkings Inc Earnings Call Transcript

Nov 08, 2024 / 01:30PM GMT
Release Date Price: $39.41 (+0.82%)

Key Points

Positve
  • DraftKings Inc (DKNG) reported a 39% year-over-year revenue growth to $1.095 billion in Q3 2024.
  • The company experienced a 300 basis point improvement in adjusted gross margin year-over-year.
  • DraftKings Inc (DKNG) successfully reduced customer acquisition costs by nearly 20% year-over-year.
  • The company launched new and exclusive NBA markets, enhancing customer engagement.
  • DraftKings Inc (DKNG) was recognized as the number one overall Sportsbook app in the US for user experience and features.
Negative
  • DraftKings Inc (DKNG) reported a $59 million adjusted EBITDA loss in Q3 2024.
  • The company faced headwinds in revenue and adjusted EBITDA due to customer-friendly NFL outcomes early in Q4.
  • Fiscal year 2024 revenue guidance was revised down to $4.85 billion to $4.95 billion from the previous $5.05 billion to $5.25 billion.
  • DraftKings Inc (DKNG) is cautious about customer acquisition promotions, impacting flow-through rates.
  • The company is still working on mitigating the impact of the Illinois tax increase on its promotional activities.
Operator

Good day, and thank you for standing by. Welcome to DraftKings' third-quarter 2024 earnings call. (Operator Instructions) Please be advised today's conference is being recorded.

I would now like to hand the conference over to your speaker today, Alan Ellingson, DraftKings' Chief Financial Officer. Please go ahead.

Alan Ellingson
Draftkings Inc - Chief Financial Officer, Principal Financial Officer, Chief Accounting Officer

Good morning, everyone, and thank you for joining us today. Certain statements we make during this call may constitute forward-looking statements that are subject to risks, uncertainties and other factors as discussed further in our SEC filings, that could cause our actual results to differ materially from our historical results or from our forecasts. We assume no responsibility to update forward-looking statements other than as required by law.

During this call, management will also discuss certain non-GAAP financial measures that we believe may be useful in evaluating DraftKings' operating performance. These measures

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