DKNG Q4 Earnings & Revenues Miss Estimates, Stock Up on Upbeat View

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]