DraftKings demonstrated strong revenue growth and customer acquisition efficiency, coupled with product enhancements and optimistic guidance for 2025. However, the company faced challenges with customer-friendly NFL outcomes affecting short-term financials and the impact of the Illinois tax increase. Despite these challenges, the focus on long-term growth and product innovation remains positive.

Company Guidance

In DraftKings' third-quarter 2024 earnings call, the company provided guidance with several key metrics highlighting their financial trajectory. They reported a 39% year-over-year revenue growth to $1.095 billion, despite a $59 million adjusted EBITDA loss. The company's core value drivers were robust, with a 20% year-over-year decline in customer acquisition costs (CAC) and a 300 basis point improvement in promotional reinvestment rate relative to gross gaming revenue. DraftKings reiterated their fiscal year 2025 adjusted EBITDA guidance range of $900 million to $1 billion, projecting a 31% year-over-year revenue growth at the guidance midpoint. For 2025, they introduced a revenue guidance range of $6.2 billion to $6.6 billion, indicating a year-over-year growth of 27% to 35%, with expectations for a structural Sportsbook hold percentage at 11%. They also anticipate a fiscal year 2025 adjusted gross margin of 45% to 47% and forecast free cash flow of approximately $850 million. The company emphasized the strong momentum in customer acquisition and product improvements, particularly in their Sportsbook offerings, and noted the recent legalization of online sports betting in Missouri as a strategic opportunity.

Revenue Growth

DraftKings reported a 39% year-over-year increase in revenue for Q3, reaching $1.095 billion.

Customer Acquisition Efficiency

DraftKings acquired more online Sportsbook and iGaming customers year-over-year while reducing Customer Acquisition Cost (CAC) by nearly 20%.

Improved Gross Margin

Adjusted gross margin improved by 300 basis points year-over-year, reaching 40% for Q3 2024.

Fiscal Year 2025 Guidance

DraftKings reiterated its fiscal year 2025 adjusted EBITDA guidance range of $900 million to $1 billion, with expected revenue growth of 31% year-over-year.

Product Improvements

DraftKings launched new NBA markets and expanded its same-game parlay offerings, contributing to increased engagement and recognition as the #1 Sportsbook app in the U.S.

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DraftKings (DKNG) Earnings, Revenues Date & History

The upcoming earnings date is based on a company’s previous reporting, and may be updated when the actual date is announced

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DKNG Earnings History

Report Date	Fiscal Quarter	Forecast / EPS	Last Year's EPS	EPS YoY Change	Slides	Play Transcript
Feb 13, 2025	2024 (Q4)	>-0.01 / -	-0.1	―	―	―
Nov 07, 2024	2024 (Q3)	-0.41 / -0.60	-0.61	1.64% (+0.01)
Aug 02, 2024	2024 (Q2)	>-0.01 / 0.12	-0.17	170.59% (+0.29)
May 02, 2024	2024 (Q1)	-0.29 / -0.30	-0.87	65.52% (+0.57)
Feb 15, 2024	2023 (Q4)	0.08 / -0.10	-0.53	81.13% (+0.43)
Nov 02, 2023	2023 (Q3)	-0.69 / -0.61	-1	39.00% (+0.39)
Aug 03, 2023	2023 (Q2)	-0.24 / -0.17	-0.489	65.24% (+0.32)
May 04, 2023	2023 (Q1)	-0.88 / -0.87	-1.074	18.99% (+0.20)
Feb 16, 2023	2022 (Q4)	-0.62 / -0.53	-0.8	33.75% (+0.27)
Nov 04, 2022	2022 (Q3)	-1.00 / -1.00	-1.35	25.93% (+0.35)

The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.

Beat

Missed

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DKNG Earnings-Related Price Changes

Report Date	Price 1 Day Before	Price 1 Day After	Percentage Change
Nov 07, 2024	$38.98	$40.13	+2.95%
Aug 02, 2024	$35.49	$32.02	-9.78%
May 02, 2024	$43.03	$41.82	-2.81%
Feb 15, 2024	$44.46	$44.57	+0.25%

Earnings announcements can affect a stock’s price. This table shows the stock's price the day before and the day after recent earnings reports, including the percentage change.

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