DraftKings

DKNG Q1 2024 Earnings

Reported May 2, 2024 at 4:17 PM ET · SEC Source

Q1 24 EPS

$0.03

BEAT +110.71%

Est. $-0.28

Q1 24 Revenue

$1.17B

BEAT +4.51%

Est. $1.12B

vs S&P Since Q1 24

-88.4%

TRAILING MARKET

DKNG -47.5% vs S&P +40.9%

Market Reaction

Did DKNG Beat Earnings? Q1 2024 Results

DraftKings turned in a notably strong first quarter for 2024, posting adjusted EPS of $0.03 against a consensus estimate of negative $0.28, a beat of 110.71%, while revenue climbed 52.7% year-over-year to $1.17 billion, topping the $1.12 billion esti… Read more DraftKings turned in a notably strong first quarter for 2024, posting adjusted EPS of $0.03 against a consensus estimate of negative $0.28, a beat of 110.71%, while revenue climbed 52.7% year-over-year to $1.17 billion, topping the $1.12 billion estimate by 4.51%. The standout driver was a combination of higher structural sportsbook hold percentage and improved promotional efficiency, with sales and marketing expense falling to $340.70 million from $389.13 million even as the top line expanded sharply. Monthly Unique Payers rose 23% to 3.4 million, while Average Revenue per MUP advanced 25% to $114, reflecting deeper customer engagement rather than simple volume gains. The company also swung to positive Adjusted EBITDA of $22.39 million from a loss of $221.61 million a year prior, a trajectory that informed management's decision to raise full-year 2024 revenue guidance to $4.80 billion to $5.00 billion and lift Adjusted EBITDA guidance to $460 million to $540 million, with expected flow-through exceeding 50%.

Key Takeaways

  • Monthly Unique Payers (MUPs) increased 23% YoY to 3.4 million average monthly unique paying customers
  • Average Revenue per MUP (ARPMUP) grew 25% YoY to $114
  • Higher structural sportsbook hold percentage
  • Improved promotional reinvestment for Sportsbook and iGaming
  • Efficient acquisition of new customers
  • Expansion of Sportsbook product into new jurisdictions
24/7 Wall St

DKNG YoY Financials

Q1 2024 vs Q1 2023, source: SEC Filings

24/7 Wall St

DKNG Revenue by Segment

With YoY comparisons, source: SEC Filings

Q1 25 Q3 25

“DraftKings' performance in the first quarter of 2024 was outstanding, reflecting healthy revenue growth and a scaled fixed cost structure that positions us to drive rapidly improving Adjusted EBITDA.”

— Jason Robins, Q1 2024 Earnings Press Release