DraftKings has updated its financial outlook for 2024, raising its revenue expectations and adjusting its earnings forecast. The company also announced a significant stock repurchase plan.
- DraftKings now expects 2024 revenue to be between $5.05 billion and $5.25 billion, reflecting strong growth.
- The company has lowered its 2024 adjusted EBITDA guidance to a range of $340 million to $420 million.
- This adjustment is down from the previous guidance of $460 million to $540 million, reflecting updated financial estimates.
- Despite the revised EBITDA forecast, DraftKings still anticipates reaching $900 million to $1 billion in adjusted EBITDA by 2025.
- The company’s 2025 guidance does not account for the impact of an expected gaming tax surcharge.
- DraftKings’ revenue growth is supported by strong customer acquisition and the expansion of its Sportsbook product into new markets.
- The acquisition of Jackpocket Inc. in May 2024 also contributed to the company’s revenue increase.
- Monthly Unique Payers (MUPs) rose to 3.1 million in the second quarter of 2024, a 50% increase from the same period in 2023.
- Average Revenue per MUP (ARPMUP) decreased by 15% due to new customer promotions and lower revenue from Jackpocket customers.
- The company’s Board of Directors has authorized the repurchase of up to $1 billion of its Class A common stock, reflecting confidence in its future prospects.
