Financial Data and Key Metrics Changes - For the fiscal year 2024, revenue increased by 30% year-over-year to $4.8 billion, and adjusted EBITDA improved by $332 million year-over-year to $181 million, marking the first positive free cash flow in the company's history [7][8] - In Q4 2024, revenue was $1.393 billion, representing a 13% year-over-year growth, with adjusted EBITDA of $89 million [17][18] - Customer acquisition costs were at record lows, with 3.5 million new customers acquired, increasing the total customer base by 42% year-over-year to 10.1 million [8][17] Business Line Data and Key Metrics Changes - The structural Sportsbook hold percentage improved by 80 basis points year-over-year to 11.2% for Q4 2024, with promotional reinvestment outperforming expectations [18] - Adjusted gross margins reached 45%, reflecting the improved structural Sportsbook hold percentage and optimization of promotional offers [18][25] Market Data and Key Metrics Changes - The company noted strong customer engagement and retention, particularly during the Super Bowl, where the DraftKings Sportsbook app reached 1 in the App Store in the sports category [21] - The same-game Parlay handle increased approximately 40% year-over-year, contributing to the highest Sportsbook gross gaming revenue day in the company's history [22] Company Strategy and Development Direction - The company aims to extend its lead in live betting, focusing on integrating recent acquisitions to enhance product offerings [12][14] - DraftKings is positioned to capture significant market share in the growing real money online gaming industry, with plans to explore international expansion in the long term [11][14] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth trajectory for 2025, with revenue guidance raised to $6.3 billion to $6.6 billion, representing year-over-year growth of 32% to 38% [23][24] - The company anticipates that investments in live betting will be neutral to adjusted EBITDA in 2025 and positive in 2026 and beyond [23][68] Other Important Information - The company plans to optimize its capital structure and explore opportunities in the debt markets while maintaining a prudent approach to leverage [14][70] - Management emphasized the importance of establishing relationships with event organizers to enhance customer acquisition and engagement [78] Q&A Session Summary Question: Trends on volume and handle growth - Management noted that handle growth slowed in Q4 2024 but has accelerated since the elections, with confidence in 2025 due to positive trends [28][30] Question: Promotional intensity and its evolution - Management expects a meaningful decline in promotional intensity in 2025, reflecting the industry's maturation [39] Question: In-play betting trajectory - Management highlighted the importance of product quality and partnerships with broadcasters to enhance in-play betting experiences [45][48] Question: Guidance adjustments - Management refrained from raising guidance prematurely, emphasizing the need for consistent performance tracking [50][51] Question: Customer acquisition in older states - Management indicated that older states have reached high population penetration, with ongoing growth potential [73][76] Question: ROI of sponsorship strategies - Management acknowledged the success of specific events but emphasized the need for a consistent framework for evaluating sponsorship ROI [78] Question: Live betting adoption - Management sees significant upside in live betting adoption, with trends indicating increasing customer engagement [84][86] Question: Jackpocket cross-sell effectiveness - Management expressed optimism about Jackpocket's potential, particularly in states with legal sports betting [131] Question: Structural hold trends - Management noted better-than-expected performance in structural hold, with continued improvement anticipated [108] Question: Gaming taxes and cost structure - Management indicated no anticipated changes in gaming taxes for 2025, maintaining a conservative approach to guidance [126]

Core Insights - DraftKings Inc. reported fourth-quarter 2024 results with earnings and revenues missing the Zacks Consensus Estimate, yet shares rose 4.8% in after-hours trading due to an increase in 2025 guidance midpoint [1][2] Financial Performance - The company reported an adjusted loss of $0.28 per share, wider than the consensus estimate of a loss of $0.19, compared to an adjusted loss of $0.10 per share in the prior-year quarter [3] - Revenues reached $1,392.8 million, missing the consensus mark of $1,410 million, but grew 13% year-over-year, driven by strong customer engagement and efficient new customer acquisition [4] Customer Metrics - Monthly Unique Payers (MUPs) increased by 36% year-over-year to 4.8 million, attributed to strong player acquisition and retention across Sportsbook and iGaming platforms [5] - Average Revenue per MUP (ARPMUP) declined by 16% year-over-year to $97, influenced by lower ARPMUP among Jackpocket customers and a lower actual sportsbook hold rate [6] Cash Position - As of December 31, 2024, DraftKings had cash and cash equivalents of $788.3 million, down from $1.27 billion as of December 31, 2023, with net cash provided by operating activities at $417.8 million [7] 2025 Guidance - The company raised the midpoint of its 2025 revenue guidance to between $6.3 billion and $6.6 billion, representing approximately 35% year-over-year growth based on the updated forecast [8] - DraftKings reaffirmed its 2025 adjusted EBITDA guidance of $900 million to $1 billion, excluding potential impacts from new market launches [9]

FY 2024 EARNINGS PRESENTATION February 13, 2024 | 1 Legal Disclaimer Forward-Looking Statements This presentation contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995, including statements about DraftKings Inc. ("DraftKings", the "Company", "we", "us" and "our") and its industry that involve substantial risks and uncertainties. All statements, other than statements of historical fact ...

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 ...

DraftKings Reports Fourth Quarter and Fiscal Year 2024 Results Raises 2025 Revenue Guidance Midpoint to $6.45 Billion; Reaffirms 2025 Adjusted EBITDA Guidance of $900 Million to $1.0 Billion Boston, MA – February 13, 2025 — 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 ...

DraftKings (DKNG) came out with a quarterly loss of $0.28 per share versus the Zacks Consensus Estimate of a loss of $0.19. This compares to loss of $0.10 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -47.37%. A quarter ago, it was expected that this company would post a loss of $0.42 per share when it actually produced a loss of $0.60, delivering a surprise of -42.86%.Over the last four quarters, the company has surpassed c ...

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 ...