DraftKings Reports Q4 Revenues of $855 Million

DraftKings has announced its fourth quarter and fiscal year 2022 financial results. The Company also posted a letter to shareholders and an earnings presentation on the Investor Relations section of its website at investors.draftkings.com.

Fourth Quarter 2022 Highlights

For the three months ended December 31, 2022, DraftKings reported revenue of $855 million, an increase of 81% compared to $473 million during the same period in 2021 driven primarily by continued customer retention and monetization in existing states, the successful launches of its Sportsbook and iGaming products in additional jurisdictions, and structural sportsbook hold improvement. Revenue and Adjusted EBITDA for the three months ended December 31, 2022 both outperformed the commentary previously provided by DraftKings on November 4, 2022.

“I am very pleased with how we concluded 2022, with continued top-line growth and strong focus on expense management,” said Jason Robins, DraftKings’ Chief Executive Officer and Co-founder. “In the fourth quarter, we grew revenue by 81% versus last year and delivered positive Adjusted EBITDA in October and for the quarter when adjusting for our launch costs in Maryland and Ohio. Moving into 2023, we will continue to drive revenue growth and focus on expense management to accelerate our Adjusted EBITDA growth. We have already taken several actions that resulted in an increase to our revenue guidance and significant improvement in our Adjusted EBITDA guidance.”

“We executed very well in the fourth quarter and drove better than expected sportsbook hold due primarily to our investments in product innovation,” added Jason Park, DraftKings’ Chief Financial Officer. “We are also seeing strong customer retention and improved monetization as promotional intensity declines in our more mature states. We are increasing the midpoint of our fiscal year 2023 revenue guidance to $2.95 billion from $2.9 billion and improving the midpoint of our fiscal year 2023 Adjusted EBITDA guidance from ($525) million to ($400) million. Our fiscal year 2023 Adjusted EBITDA guidance reflects a meaningful slowdown in the growth rate of our fixed costs as we continue to capture efficiency opportunities and optimize our organizational productivity.”