DraftKings 2024 earnings highlight strong financial growth in the fourth quarter, with revenue increasing by 13% year-over-year. The company saw higher customer engagement and expanded its sportsbook into new jurisdictions, contributing to its revenue boost. Looking ahead, DraftKings has raised its 2025 revenue guidance to a midpoint of $6.45 billion while reaffirming its EBITDA guidance of up to $1.0 billion.
Q4 2024 revenue reached $1.39 billion, increasing by $162 million compared to Q4 2023. This growth was driven by higher customer activity, efficient new customer acquisition, and the expansion of its Sportsbook product into new markets. The Jackpocket acquisition in May 2024 also contributed to this increase, although customer-friendly NFL outcomes offset some gains.
The total revenue on 2024 adds up to $4.76 billion, up from $3.66 billion in 2023 – YoY growth of 30%
Monthly Unique Payers (MUPs) rose to 4.8 million, marking a 36% increase year-over-year. Growth was fueled by strong retention rates, a higher number of unique players in both Sportsbook and iGaming, and expansion into new jurisdictions. Excluding the impact of Jackpocket, MUPs still saw a 16% increase from Q4 2023.
Average Revenue Per MUP (ARPMUP) declined by 16% year-over-year to $97 due to a lower sportsbook hold rate and Jackpocket customers generating lower revenue per user than traditional DraftKings users. However, improved promotional strategies and a higher structural hold percentage helped mitigate some of this impact.
DraftKings 2024 earnings reflected the company’s first-ever year of positive Adjusted EBITDA, signaling profitability improvements. CFO Alan Ellingson stated, “With strong underlying health across our core value drivers, we are raising the midpoint of our fiscal year 2025 revenue guidance to $6.45 billion from $6.4 billion and reaffirming our Adjusted EBITDA guidance of $900 million to $1.0 billion.”
DraftKings’ sportsbook footprint continued to expand, with mobile sports betting now available in 25 states and Washington, D.C., covering 49% of the U.S. population. The company’s iGaming products are live in five states, reaching 11% of the U.S. population.
2025 guidance was revised, with expected revenue in the range of $6.3 billion to $6.6 billion, reflecting approximately 35% year-over-year growth at the midpoint. The forecast does not yet include the potential impact of Missouri, where sports betting was recently legalized.
Future expansion plans include launching mobile sports betting in Missouri and Puerto Rico, pending regulatory approvals. Additionally, DraftKings remains active in Ontario, Canada, which represents approximately 40% of the country’s population.
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