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DKNG Nasdaq· DraftKings Inc
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DKNG Nasdaq· DraftKings Inc
Earnings report Q4 2023

DraftKings Sees Significant Revenue Growth Amidst Expanding User Base

Segments of Revenue

DraftKings' revenue predominantly comes from three online gaming product offerings - Sportsbook, iGaming, and DFS. These three product offerings accounted for 96% of the company's total revenue in the latest fiscal year.

Strengths

DraftKings' revenue has seen a substantial increase, growing from $1.3 billion in 2021 to $2.24 billion in 2022, and reaching $3.67 billion in 2023. This growth can be attributed to an increase in average monthly unique payers (MUPs), which rose from 1.5 million in 2021 to 2.7 million in 2023. The average revenue per MUP (ARPMUP) also saw a significant increase, rising from $67 in 2021 to $113 in 2023.

Challenges

Despite the impressive revenue growth, DraftKings reported a net loss attributable to common stockholders of $802.14 million in 2023, which is a decrease from the net loss of $1.52 billion in 2021 and $1.38 billion in 2022. The company's cost of revenue, sales and marketing, product and technology, and general and administrative expenses have all increased over the years, contributing to the net loss.

Noteworthy

DraftKings' revenue and key performance indicators can vary substantially due to professional sports season scheduling, including the frequency of play. For instance, the company's user engagement and revenue are generally highest on Sundays during the NFL season. The number of Sundays in a fiscal reporting period may differ from quarter to quarter and year to year, resulting in revenue volatility between comparative periods.

Summary

DraftKings has seen significant revenue growth over the past three years, driven by an expanding user base and increased average revenue per user. However, the company continues to report net losses, largely due to increased operational expenses. The company's revenue can also be significantly impacted by the scheduling of professional sports seasons.

Source documents

Form 10-K  filed on Feb 16, 2024
23 pages scanned

Reference data

Company financials Q4 revenue 473M
Analyst estimates Q4 EPS missed by -1.10%
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