UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K ý ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2024 or ¨ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ________ to ________. Commission file number 001-41379 DRAFTKINGS INC. (Exact name of registrant as specified in its charter) (State or other jurisdiction of incorporation or ...

Financial Performance - DraftKings reported Q4 2024 revenue of $1,393 million, a 13% increase from $1,231 million in Q4 2023[2] - The net loss attributable to common stockholders for Q4 2024 was $134.9 million, compared to a loss of $44.6 million in Q4 2023[14] - Net loss attributable to common shareholders decreased to $507.3 million in 2024 from $802.1 million in 2023, representing a 36.7% improvement[19] - Adjusted EBITDA for the year ended December 31, 2024, was $181.3 million, compared to a loss of $151.0 million in 2023[27] - 2024 marked the first year of positive Adjusted EBITDA for DraftKings, with an Adjusted EBITDA of $89.5 million in Q4 2024[3][16] - Adjusted Earnings Per Share for the year improved to $0.24 in 2024 from a loss of $0.41 in 2023[28] Revenue Guidance - DraftKings raised the midpoint of its fiscal year 2025 revenue guidance to $6.45 billion, up from $6.4 billion, indicating approximately 35% year-over-year growth[3][10] - The company reaffirmed its fiscal year 2025 Adjusted EBITDA guidance range of $900 million to $1.0 billion[3][10] Customer Metrics - Monthly Unique Payers (MUPs) rose to 4.8 million, a 36% increase compared to Q4 2023, reflecting strong customer acquisition and retention[5] - Average Revenue per MUP (ARPMUP) decreased by 16% to $97 in Q4 2024, primarily due to lower ARPMUP for Jackpocket customers[5] Cash Flow and Expenses - Cash flows provided by operating activities increased significantly to $417.8 million in 2024, compared to a cash outflow of $1.8 million in 2023[19] - Total cash and cash equivalents at the end of the period decreased to $1.33 billion in 2024 from $1.62 billion in 2023, a decline of 18%[19] - Stock-based compensation expenses for the year were $381.4 million, slightly down from $398.5 million in 2023[27] - Cash paid for acquisitions in 2024 amounted to $441.5 million, with no comparable figure in 2023[19] - The company reported a net cash outflow from investing activities of $566.6 million in 2024, compared to $90.4 million in 2023[19] Tax and Financial Adjustments - The company recorded a discrete income tax benefit of $87.3 million for the year ended December 31, 2024, due to non-recurring partial releases of the U.S. valuation allowance[28] - DraftKings reported a $12.9 million loss related to changes in fair value of certain financial instruments for 2024[30] - The company incurred $27.8 million in expenses related to the discontinuance of the Reignmakers product offering[30] - DraftKings received $20.9 million related to gaming tax refunds from audits and appeals for prior periods[30] Market Presence and Operations - DraftKings is live with mobile sports betting in 25 states, covering approximately 49% of the U.S. population[10] - The company is also live with iGaming in 5 states, representing about 11% of the U.S. population[10] - The company operates mobile and/or retail sports betting in 28 states and Ontario, Canada[31] - DraftKings' daily fantasy sports product is available in 44 states and certain Canadian provinces[31] - DraftKings is the only U.S.-based vertically integrated sports betting operator[31] - The company owns Jackpocket, the leading digital lottery courier app in the U.S.[31] Strategic Focus and Risks - The company is focused on user growth and engagement, with strategic plans for future operations including launches in new jurisdictions[32] - DraftKings is committed to responsible gaming and promoting educational tools for players[31] - The company faces risks including potential litigation and changes in applicable laws or regulations affecting gaming[33]

Group 1 - DraftKings reported a quarterly loss of $0.28 per share, which was worse than the Zacks Consensus Estimate of a loss of $0.19, and compared to a loss of $0.10 per share a year ago, indicating an earnings surprise of -47.37% [1] - The company posted revenues of $1.39 billion for the quarter ended December 2024, missing the Zacks Consensus Estimate by 1.21%, and this represents an increase from year-ago revenues of $1.23 billion [2] - Over the last four quarters, DraftKings has surpassed consensus EPS estimates only once, and it has topped consensus revenue estimates just once as well [2] Group 2 - DraftKings shares have increased by approximately 22.2% since the beginning of the year, significantly outperforming the S&P 500's gain of 2.9% [3] - The company's earnings outlook, including current consensus earnings expectations for upcoming quarters, will be crucial for investors to assess future stock performance [4] - The current consensus EPS estimate for the upcoming quarter is $0.04 on revenues of $1.52 billion, and for the current fiscal year, it is $0.43 on revenues of $6.4 billion [7] Group 3 - The Zacks Industry Rank indicates that the Gaming industry is currently in the top 16% of over 250 Zacks industries, suggesting a favorable outlook for stocks within this sector [8] - Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5] - The estimate revisions trend for DraftKings is currently mixed, resulting in a Zacks Rank 3 (Hold) for the stock, indicating expected performance in line with the market [6]

Raises 2025 Revenue Guidance Midpoint to $6.45 Billion; Reaffirms 2025 Adjusted EBITDA Guidance of $900 Million to $1.0 Billion BOSTON, Feb. 13, 2025 (GLOBE NEWSWIRE) -- DraftKings Inc. (Nasdaq: DKNG) (“DraftKings” or the “Company”) today announced its fourth quarter and fiscal year 2024 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 2024 HighlightsFor the three mon ...

You’d have to look far and wide to find an area of Wall Street not rattled by tariffs or Trump trade. But some sectors are at least insulated, for now, from the coming storm. One stock to watch these week is sports betting giant DraftKings Inc (NASDAQ:DKNG).DraftKings reports fourth-quarter earnings after the close Thursday, Feb. 13. For a company stalled by profitability until only recently, DKNG has a stellar history of post-earnings moves. After the last eight reports, DraftKings has moved higher after ...

Core Viewpoint - DraftKings Inc. is set to report its fourth-quarter 2024 results on February 13, with expectations of a wider adjusted loss per share and a significant year-over-year revenue increase driven by user growth and market expansion [1][2][3]. Group 1: Earnings Estimates - The Zacks Consensus Estimate for the fourth-quarter adjusted loss per share has widened to 19 cents from 17 cents over the past 30 days, compared to an adjusted loss per share of 10 cents in the same quarter last year [2]. - Revenue expectations are pegged at $1.41 billion, indicating a 14.9% year-over-year increase [2]. Group 2: Factors Influencing Q4 Results - The anticipated revenue growth is likely supported by a surge in new online sportsbook and iGaming users, along with strong customer-acquisition momentum [3]. - The integration of Jackpocket has broadened DraftKings' reach, providing cost-effective customer acquisition and new cross-selling opportunities [3]. - The company has been refining its product lineup with innovative features, which may have attracted more users to its Sportsbook platform [4]. Group 3: Cost and Tax Pressures - Despite user growth, marketing expenses are expected to remain elevated due to ongoing investments in the Jackpocket brand, potentially impacting adjusted EBITDA [4]. - Rising sportsbook tax rates in key states such as Illinois, New York, and Pennsylvania may have added cost pressures, affecting the bottom line [5]. Group 4: Earnings Prediction Model - The Zacks model predicts an earnings beat for DraftKings, supported by a positive Earnings ESP of +21.76% and a Zacks Rank of 3 (Hold) [6][7].

The Super Bowl is one of the most lucrative advertising events, with companies spending millions on commercial slots that last under just a minute.  The average cost for a 30-second Super Bowl ad in 2024 was roughly $7 million, with brands using this opportunity to generate brand awareness, boost overall consumer engagement, and show off new products.And for 2025, that price tag has gone up to roughly $8 million. Several companies, including DraftKings (DKNG) , could see a slight sales catalysts given its e ...

Core Points - DraftKings Inc. will release its fourth quarter and full year 2024 results on February 13, 2025, after market close [1] - A conference call and audio webcast will be held on February 14, 2025, at 8:30 a.m. ET to discuss the results and business performance [2] Company Overview - DraftKings Inc. is a digital sports entertainment and gaming company, established in 2012, and is headquartered in Boston [3] - The company operates as a vertically integrated sports betting operator in the U.S., with mobile and retail sports betting in 28 states, Washington, D.C., and Ontario, Canada [3] - DraftKings offers iGaming in five states and Ontario, and owns Jackpocket, the leading digital lottery app in the U.S. [3] - The daily fantasy sports product is available in 44 states and certain Canadian provinces [3] - DraftKings has partnerships with major sports leagues including the NFL, NHL, PGA TOUR, WNBA, UFC, NBA, and MLB [3] - The company is committed to responsible gaming and provides educational resources for players [3]

Group 1 - The Mega Millions jackpot of $112 million is the largest win ever recorded from a ticket ordered through a lottery courier app, specifically Jackpocket [1][2] - Jackpocket has established itself as the leading lottery courier service, with customers winning a total of 61 prizes of $1 million or more to date [2] - A significant shift towards digital lottery ticket purchasing is evident, with 40% of Americans participating in the lottery in the past six months using mobile apps or websites [3] Group 2 - Jackpocket is available in 19 jurisdictions, allowing users to order tickets for major lotteries like Powerball and Mega Millions, as well as local state lottery games [4] - The app also offers digital scratch-off tickets in select states, enhancing the convenience for lottery players [4][5] - Jackpocket is a subsidiary of DraftKings Inc., indicating a strategic alignment with a major player in the gaming industry [5]

Company Performance - DraftKings (DKNG) stock closed at $39.83, reflecting a +0.86% change from the previous day, outperforming the S&P 500's gain of 0.16% [1] - Over the past month, DraftKings stock has decreased by 0.98%, which is better than the Consumer Discretionary sector's decline of 5.64% and the S&P 500's drop of 2.2% [1] Upcoming Earnings - The upcoming earnings release for DraftKings is highly anticipated, with projected EPS at -$0.08, indicating a 20% increase year-over-year [2] - Revenue is expected to reach $1.5 billion, representing a 22.02% increase compared to the same quarter last year [2] Analyst Forecasts - Recent revisions to analyst forecasts for DraftKings are important, as they reflect changes in short-term business dynamics [3] - Positive estimate revisions indicate analyst optimism regarding the company's business and profitability [3] Zacks Rank and Performance - The Zacks Rank system, which ranges from 1 (Strong Buy) to 5 (Strong Sell), shows DraftKings currently holds a rank of 4 (Sell) [5] - The consensus EPS projection has decreased by 0.56% in the last 30 days [5] Valuation Metrics - DraftKings has a Forward P/E ratio of 94.69, significantly higher than the industry average of 17.23 [6] - The company also has a PEG ratio of 2.99, compared to the gaming industry's average PEG ratio of 2.04 [6] Industry Context - The Gaming industry, part of the Consumer Discretionary sector, ranks 61 in the Zacks Industry Rank, placing it in the top 25% of over 250 industries [7] - Research indicates that the top 50% rated industries outperform the bottom half by a factor of 2 to 1 [7]