Revenue at North American gaming and betting operator DraftKings in Q3 rose 39 per cent year-on-year to US$1.1bn, with the nine-month comparison also showing strong growth.
Revenue in the latest three-month period climbed from $790m, with nine-month revenue up 38.6 per cent to $3.4bn.
DraftKings said healthy customer engagement was a key driver of growth.
Monthly unique players (MUPs) increased to 3.6 million in Q3, up 55 per cent year-on-year. The acquisition of Jackpocket had a significant effect on customer engagement as, excluding the impact of the deal, MUPs increased by around 27 per cent.
DraftKings CEO Jason Robins said the company had delivered a “strong performance” in Q3 as the NFL and college American football returned.
But the company nevertheless downgraded its FY24 revenue guidance to a maximum of $4.95bn, down from a maximum of $5.25bn, due to “customer-friendly sport outcomes” early on in Q4. That would still equate to growth of up to 35 per cent.
Its adjusted EBITDA guidance was also downgraded to a maximum of $280m, from previous top estimations of $420m.
Robins, though, insisted there is lots of potential ahead for DraftKings in 2025.
“With major sports converging on the calendar, we are well-positioned to build on this momentum as we further enhance our top-ranked sportsbook app with additional live betting features and exciting new NBA markets,” he said.
“Our focus remains on driving sustainable revenue growth and profitability in 2025 and beyond.”
Indeed, DraftKings has introduced 2025 revenue guidance, with expected revenue of up to $6.6bn delivering 31 per cent year-on-year growth.
“We achieved healthy results across our core value drivers in the third quarter with efficient customer acquisition and promotional reinvestment as well as improvement in our structural sportsbook hold percentage,” said Alan Ellingson, DraftKings’ chief financial officer.
“The midpoint of our inaugural fiscal year 2025 revenue guidance equates to 31 per cent year-over-year growth, and we are well-positioned to deliver $900m to $1bn of adjusted EBITDA in 2025.”
