DraftKings(US:DKNG)2025-05-09 11:05Financial Performance - Revenue for the three months ended March 31, 2025, increased by $233.8 million, or 19.9%, to $1,408.8 million compared to $1,175.0 million for the same period in 2024[200] - Net loss for the three months ended March 31, 2025, improved to $(33.9) million from $(142.6) million in the same period in 2024[199] - Adjusted EBITDA for the three months ended March 31, 2025, was $102.6 million, a significant increase from $22.4 million in the same period in 2024[199] - Adjusted Earnings Per Share for the three months ended March 31, 2025, improved to $0.12 from $0.03 in the same period in 2024[200] - Adjusted Earnings Per Share for the three months ended March 31, 2025, was $0.12, compared to $0.03 for the same period in 2024[222] - Net loss decreased by $108.7 million to $33.9 million for the three months ended March 31, 2025, compared to a net loss of $142.6 million for the same period in 2024[233] Revenue Breakdown - Sportsbook Handle increased by $1,879.0 million, or 15.7%, to $13,880.4 million for the three months ended March 31, 2025, from $12,001.4 million in the same period in 2024[212] - Sportsbook Net Revenue Margin increased by 0.3 percentage points to 6.4% for the three months ended March 31, 2025, compared to 6.1% in the same period in 2024[213] - iGaming revenue increased by $53.5 million, or 14.5%, to $423.5 million for the three months ended March 31, 2025, from $370.0 million in the same period in 2024[214] - Other revenue increased by $32.4 million, or 46%, to $103.4 million for the three months ended March 31, 2025, primarily due to the inclusion of revenue from Jackpocket[215] Costs and Expenses - Cost of revenue increased by $133.7 million, or 18.8%, to $843.8 million for the three months ended March 31, 2025, from $710.1 million in the same period of 2024[225] - Cost of revenue as a percentage of revenue decreased by 0.5 percentage points to 59.9% for the three months ended March 31, 2025, compared to 60.4% for the same period in 2024[226] - Sales and marketing expense increased by $3.0 million, or 0.9%, to $343.7 million for the three months ended March 31, 2025, from $340.7 million in the same period of 2024[227] - General and administrative expense decreased by $9.9 million, or 5.7%, to $164.4 million for the three months ended March 31, 2025, from $174.3 million in the same period of 2024[229] Cash Flow and Liquidity - Cash and cash equivalents as of March 31, 2025, were $1,119.7 million, sufficient to meet current working capital and capital expenditure requirements for at least twelve months[234] - Net cash used in operating activities was $119.0 million for the three months ended March 31, 2025, compared to $70.4 million in the same period of 2024[240] - Net cash used in investing activities was $39.0 million for the three months ended March 31, 2025, a slight decrease from $39.2 million in the prior year[241] - Net cash provided by financing activities increased to $372.8 million for the three months ended March 31, 2025, compared to $30.6 million used in the same period of 2024[242] - The company had cash and cash equivalents of $1,544.981 million at the end of the period, up from $1,483.257 million at the end of the previous year[240] Debt and Financing - The company entered into a senior secured revolving credit facility of up to $500.0 million, with $490.0 million available for borrowing as of March 31, 2025[236] - A new class of incremental term loans was established under the credit agreement, totaling $600.0 million, with principal payments of 1.00% per annum required[237] - As of March 31, 2025, the company had $839.9 million in non-cancelable purchase obligations, with $317.8 million payable in the remainder of 2025[238] - The stock repurchase program authorized up to $1.0 billion, with 3.7 million shares repurchased for $142.3 million during the three months ended March 31, 2025[239] Market and Risk - The company expects to achieve profitability on a consolidated Adjusted EBITDA basis as total contribution profit exceeds fixed costs, influenced by the percentage of the U.S. adult population with access to its product offerings[198] - There were no significant changes in market risk exposure during the three months ended March 31, 2025[246] - No changes were made to critical accounting estimates during the three months ended March 31, 2025[245]