DraftKings Q1 Earnings Highlights: Revenue Miss, EPS Miss, Guidance Cut After Bettors Beat The House

Core Insights - DraftKings reported first-quarter revenue of $1.41 billion, a 20% increase year-over-year, but fell short of the consensus estimate of$ 1.44 billion [1] - The company reported earnings per share of 12 cents, missing the consensus estimate of 22 cents per share [1] Revenue Growth Drivers - Revenue growth was attributed to strong customer engagement, new customer acquisition, a higher structural sportsbook hold percentage, and the impact of the Jackpocket acquisition [2] - Monthly Unique Payers (MUPs) increased by 28% to 4.3 million, driven by strong retention and acquisition, as well as the Jackpocket acquisition [2] - Excluding the Jackpocket acquisition, MUPs would have increased by 11% year-over-year [2] Average Revenue Metrics - Average revenue per MUP was $108, down 5% year-over-year, primarily due to the inclusion of Jackpocket customers [3] - Without the Jackpocket acquisition, average revenue per MUP would have increased by 7% year-over-year [3] Market Presence - DraftKings operates mobile sports betting in 25 states and Washington D.C., with iGaming available in five states [4] - The company is also active in Ontario, Canada, covering 40% of the country's population [4] Future Guidance - DraftKings plans to launch its sportsbook in Missouri pending approvals, with the state legalizing sports betting in November 2024 [5] - The company revised its full-year revenue guidance down to a range of$ 6.2 billion to $6.4 billion from a previous range of$ 6.3 billion to $6.6 billion [5] - Full-year adjusted EBITDA guidance was also lowered to a range of$ 800 million to $900 million from$ 900 million to $1.0 billion [6] Stock Performance - DraftKings stock rose by 3.9% to$ 36.74 in after-hours trading, within a 52-week trading range of $28.69 to$ 53.61 [7]