Q4 23 EPS
$0.29
BEAT +262.50%
Est. $0.08
Q4 23 Revenue
$1.23B
MISS 0.75%
Est. $1.24B
vs S&P Since Q4 23
-90.8%
TRAILING MARKET
DKNG -46.5% vs S&P +44.3%
Full Year 2023 Results
FY 23 EPS
$-0.41
FY 23 Revenue
$3.67B
Market Reaction
Did DKNG Beat Earnings? Q4 2023 Results
DraftKings delivered a sharp earnings beat in Q4 2023, posting adjusted EPS of $0.29 against a consensus estimate of $0.08, a 262.50% positive surprise, even as revenue of $1.23 billion came in fractionally shy of the $1.24 billion estimate. The quar… Read more DraftKings delivered a sharp earnings beat in Q4 2023, posting adjusted EPS of $0.29 against a consensus estimate of $0.08, a 262.50% positive surprise, even as revenue of $1.23 billion came in fractionally shy of the $1.24 billion estimate. The quarter's underlying strength was striking given that customer-friendly sport outcomes in the final two weeks of November alone cost the company roughly $175.00 million in revenue, a headwind management described as the worst stretch of sport outcomes since going public. Strip that out, and the 43.9% year-over-year revenue gain looks even more compelling. Adjusted EBITDA swung to positive $151.02 million from negative $49.93 million a year ago, while monthly unique payers grew 37% to 3.5 million. Looking ahead, DraftKings raised its FY2024 revenue guidance to a range of $4.65 billion to $4.90 billion and lifted its Adjusted EBITDA outlook to $410.00 million to $510.00 million, with management citing strong early-2024 trends and a pending $750.00 million acquisition of digital lottery app Jackpocket as key growth catalysts.
Key Takeaways
- • Monthly Unique Payers increased 37% YoY to 3.5 million average in Q4 2023
- • Average Revenue per MUP increased 6% YoY to $116 (22% adjusted for unfavorable sport outcomes)
- • Continued healthy customer engagement and efficient customer acquisition
- • Expansion of Sportsbook product into new jurisdictions
- • Higher structural sportsbook hold percentage driven by increased parlay mix
- • Customer-friendly sport outcomes in late November negatively impacted Q4 revenue by ~$175M and Adjusted EBITDA by ~$126M
DKNG YoY Financials
Q4 2023 vs Q4 2022, source: SEC Filings
DKNG Revenue by Segment
With YoY comparisons, source: SEC Filings
“DraftKings ended 2023 with excellent performance across customer acquisition, retention and engagement as well as structural sportsbook hold percentage despite the worst stretch of sport outcomes we have seen as a public company in the fourth quarter.”
— Jason Robins, Q4 2023 Earnings Press Release
DKNG Earnings Trends
DKNG vs Market 30 Day Price Reactions
30-day stock return vs benchmark after each earnings
DKNG EPS Trend
Earnings per share: estimate vs actual
DKNG Revenue Trend
Quarterly revenue: estimate vs actual
DKNG Quarterly Results
7 quarters of earnings data
| Quarter | EPS Est. | EPS Act. | Surprise | Revenue | Rev. Surprise |
|---|---|---|---|---|---|
| Q4 25 BEAT FY | $0.18 | $0.36 | +100.00% | $1.99B | +0.80% |
| FY Full Year | $0.79 | $0.66 | -16.28% | $6.05B | +0.26% |
| Q3 25 MISS | $-0.26 | $-0.26 | -1.84% | $1.14B | -4.81% |
| Q2 25 MISS | $0.41 | $0.38 | -6.31% | $1.51B | +6.03% |
| Q1 25 MISS | $0.12 | $0.12 | -2.44% | $1.41B | -1.23% |
| Q1 24 BEAT | $-0.28 | $0.03 | +110.71% | $1.17B | +4.51% |
| Q4 23 BEAT FY | $0.08 | $0.29 | +262.50% | $1.23B | -0.75% |
| FY Full Year | — | $-0.41 | — | $3.67B | — |
| Q4 22 | $-0.59 | — | — | — | — |