Core Viewpoint - DraftKings' stock price has rebounded from a 9-month low, with expectations of reaching multi-year highs by the end of 2025 due to strong business performance, leverage building, and a healthy balance sheet [1] Financial Performance - DraftKings reported a 19.5% revenue growth in Q1, totaling $1.41 billion, driven by user engagement, new users, and acquisitions like Jackpocket [5] - Monthly unique players (MUP) increased by 28%, with a 20.1% rise in Sportsbook revenue, 14.5% in iGaming, and 45.7% in Other segments [5] - Adjusted earnings were $0.12, maintaining financial health despite a slight revenue miss compared to consensus [7] Market Opportunities - The acquisition of Jackpocket presents both challenges and opportunities, as it initially lowers revenue per user but offers potential for margin improvement over time [3] - The expected entry into Missouri and the growth potential of iGaming, which currently serves only 11% of the U.S. population, are significant growth drivers [4] Stock Forecast and Analyst Ratings - The 12-month stock price forecast for DraftKings is $55.04, indicating a 45.10% upside, with a Moderate Buy rating based on 28 analyst ratings [6] - Analysts have mixed responses, with some adjusting price targets, but the average target remains above current levels, suggesting potential for future gains [10][11] Trading Dynamics - The stock is showing bullish momentum, with critical resistance near $38.25, and could potentially retest all-time highs by late summer or early fall [12]

Financial Data and Key Metrics Changes - The combined group achieved a record first quarter total revenue of $517 million, growing 25% year over year [9] - Total combined adjusted EBITDA also reached a record of $111 million, increasing by 120% year over year with a combined margin of approximately 22% [9] - The marketing ratio was maintained at 26% of net revenue, indicating a strategic focus on reinvestment for growth [9] Business Line Data and Key Metrics Changes - Sports betting revenue grew by 7% year over year, while casino revenue increased by 23% year over year [9] - Adjusted EBITDA excluding the U.S. grew by 62% to $121 million with a margin of 24% [10] - In Africa, casino and sports revenue surged by 3138% year over year, driven by growth in customer base and strong brand presence [11] Market Data and Key Metrics Changes - Africa's revenue grew by 54% year over year, with significant contributions from South Africa, Ghana, Malawi, and the successful launch in Botswana [11] - Europe saw a 53% year-over-year increase, with the UK revenue up by 87% due to strong growth from Jackpot City and Betway [12] - APAC experienced a decline of 13% year over year, primarily due to currency weakness and the closure of non-performing markets [13] Company Strategy and Development Direction - The company is focused on enhancing technology and product offerings while maintaining a disciplined cost structure to drive sustainable margin expansion [14] - The U.S. iGaming business is progressing with plans for breakeven expected in 2027, and the introduction of new brands like Spin Palace Casino [15] - The company is preparing for potential market entries in Alberta and other regions, leveraging lessons learned from previous launches [27][50] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth potential across various markets, highlighting the importance of product localization and effective marketing strategies [33][35] - The company remains optimistic about the second quarter, indicating strong performance across all regions [19] - Management emphasized the need to navigate regulatory environments and the impact of black market competition on overall revenue [83] Other Important Information - The company ended the quarter with unrestricted cash of $351 million and no debt, highlighting a strong balance sheet [16] - A minimum quarterly dividend target of $0.04 per share was declared, resulting in $20 million returned to shareholders [17] - The company plans to maintain its guidance for the fiscal year, with revenue expectations exceeding $2 billion [18] Q&A Session Summary Question: What is working in sports betting and how does the company view competition in the U.S.? - Management highlighted product development and effective marketing as key drivers of engagement, noting that 80% of the business is casino-related [21][24] Question: How does the company plan to approach the Alberta market? - Management indicated that Alberta's legalization might occur in late 2026, and they are prepared to apply lessons learned from Ontario [27] Question: What is the growth outlook for Africa and the competitive landscape in Nigeria? - Management noted significant growth potential in Africa, with Nigeria requiring product localization to improve performance [35][36] Question: How does Jackpot City differentiate itself in the market? - Management explained that Jackpot City resonates well with customers due to its established brand presence and effective marketing strategies [39] Question: What is the company's strategy regarding new market entries and potential M&A? - Management confirmed a focus on organic growth while remaining open to acquisitions that align with their strategic goals [90][92]

Financial Data and Key Metrics Changes - Total revenue excluding the U.S. reached an all-time high of EUR 1,660 million, growing 18% year-over-year [6] - Adjusted EBITDA excluding the U.S. also set a record at EUR 391 million, a 53% year-over-year increase, with a margin of 24% [6] - For Q4, total revenue excluding the U.S. grew 58% year-over-year to EUR 487 million, with adjusted EBITDA growing 152% year-over-year to EUR 129 million, achieving a margin of 26% [7] Business Line Data and Key Metrics Changes - The company set new customer records, including a daily record of just under 2.2 million customers and an average of 5.3 million unique monthly active customers [8] - The U.S. revenue for Q4 was EUR 14 million, marking a 64% year-over-year growth [10] - Total investment for the quarter was EUR 11 million, totaling EUR 61 million for the full year [11] Market Data and Key Metrics Changes - The company is focusing on existing markets, with growth driven by countries in Africa, Europe, Canada, and New Zealand [23] - New market openings are being approached with a focus on sustainable profitability, with recent openings including Botswana [27] Company Strategy and Development Direction - The company aims to refine its global footprint and focus on key growth markets while enhancing products and technology [5] - A long-term margin target of greater than 24% has been set for the ex U.S. business [9] - The company is committed to maintaining a marketing spend of around 23% of revenue to support growth [16][25] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving robust growth in 2025, with total revenue expected to grow above 10% year-over-year to at least EUR 1.83 billion [12] - The company is focused on finding a path to profitability in the U.S. market, with expectations for reduced investment in the coming year [11][13] - Management highlighted the importance of cost efficiencies and operational leverage in navigating potential tax increases in the U.S. [54] Other Important Information - The company announced a special cash dividend of $0.15 per share, totaling over $125 million paid to shareholders [11] - The minimum quarterly dividend target has been increased to $0.04 per share [12] Q&A Session Summary Question: Marketing spend impact on 2025 guidance - Management confirmed that marketing spend is expected to remain around 23% of revenue, which is a larger number due to higher revenue [16][17] Question: Confidence in dividend increase and future special dividends - Management expressed satisfaction with the increased quarterly dividend and indicated a desire to exceed last year's total dividend [18][19] Question: Growth opportunities in key markets - Management stated that growth is primarily from existing markets, with a focus on sustained profitability and product enhancements [23][24] Question: 2025 revenue guidance and potential pitfalls - Management clarified that the guidance reflects double-digit growth for the ex U.S. business, despite a step down from 2024's performance [32][34] Question: Regulatory environment and potential acquisitions - Management is assessing opportunities for acquisitions in complementary regions and emphasized the importance of sustainable profitability in their strategy [47][49]