Core Viewpoint - DraftKings is positioned for strong growth in 2025, supported by positive fourth-quarter results, a transition to profitability, and favorable market conditions [1][4][5]. Financial Performance - DraftKings reported a 37% year-over-year growth in monthly unique payers in the fourth quarter, indicating strong customer acquisition and engagement [3]. - The company achieved a full year of positive adjusted EBITDA and free cash flow, highlighting its financial health [2]. Analyst Ratings and Price Targets - Macquarie analyst Chad Beynon maintained an Outperform rating and raised the price target from $50 to $60 [1]. - Needham analyst Bernie McTernan reiterated a Buy rating and increased the price target from $60 to $65 [1]. Market Position and Strategy - DraftKings is viewed as the best large-cap play in the US online market due to its first-mover advantage, strong brand recognition among younger demographics, and superior technology [2]. - The company has a sustainable customer acquisition strategy that is expected to maintain its leading position in all states [8]. Future Outlook - Analysts expect DraftKings to achieve double-digit revenue growth and potentially double adjusted EBITDA by 2027 [5]. - The company is anticipated to benefit from lower promotional activity, improved hold rates, and additional state legalizations as catalysts for growth in 2025 [3][7]. Stock Performance - DraftKings stock has seen a 40% increase year-to-date in 2025, although it experienced a 5.3% decline to $50.64 recently [8].

Core Viewpoint - DraftKings Inc. has announced the launch of syndication for a proposed senior secured term loan B credit facility amounting to $500 million, intended for general corporate purposes, subject to market and other conditions [1]. Company Overview - DraftKings Inc. is a digital sports entertainment and gaming company, established in 2012, and is the only U.S.-based vertically integrated sports betting operator [2]. - The company offers a range of products including daily fantasy sports, regulated gaming, and digital media, and operates in 28 states, Washington, D.C., and Ontario, Canada [2]. - DraftKings is an official partner of major sports leagues including the NFL, NHL, PGA TOUR, WNBA, UFC, NASCAR, NBA, and MLB [2]. - The company also owns Jackpocket, a leading digital lottery app in the U.S., and operates iGaming under its DraftKings and Golden Nugget Online Gaming brands [2].

Group 1 - DraftKings Inc. is progressing towards becoming a leading U.S. online gambling giant, as indicated by strong user growth in the recent Q4 report [1] - The financial performance for the quarter was impacted negatively by adverse NFL results, which caused the financials to lag [1] - For the year 2025, DraftKings has provided guidance that suggests continued growth and expansion in the online gambling sector [1]

Group 1 - The earnings season has seen big momentum names, including DraftKings, continue to perform well, with DraftKings achieving a significant "beat and raise" [1] - DraftKings is recognized as a leading brand in the sports betting industry, benefiting from the current market trends [1] - The article highlights the author's extensive experience in technology and investment, indicating a well-informed perspective on industry developments [1]

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 ...

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]

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 ...