DraftKings has launched its monetary outcomes for the fourth quarter and full yr 2024, showcasing vital income progress alongside elevated working losses. The corporate reported a complete annual income of $4.8 billion, reflecting a 30.1% year-over-year improve. Nevertheless, its internet loss for the fourth quarter surged by over 200%, influenced by rising bills and customer-friendly sportsbook outcomes in the course of the NFL season.
For the ultimate quarter of 2024, DraftKings recorded income of $1.39 billion, a 13.2% improve from the identical interval in 2023. Development was fueled by regular buyer engagement, the corporate’s continued market enlargement, and the mixing of Jackpocket, which DraftKings acquired in Might 2024. Month-to-month distinctive paying clients (MUPs) rose to 4.8 million, marking a 36% improve year-over-year. Nevertheless, common income per MUP (ARPMUP) declined 16% to $97, largely as a result of decrease spending habits of Jackpocket customers in comparison with DraftKings’ current buyer base.
Whereas income climbed, the corporate’s fourth-quarter internet loss reached $139.2 million, a rise of 202.2% from the identical quarter in 2023. Greater advertising and marketing and operational prices, mixed with an unfavorable sportsbook maintain charge, contributed to the losses. The price of income rose by roughly $118 million, whereas advertising and marketing bills elevated by over $77 million in comparison with the earlier yr.
2025 Income Outlook and Market Enlargement
DraftKings has raised its 2025 income projection, now anticipating earnings between $6.3 billion and $6.6 billion. This revision represents an anticipated 35% year-over-year progress. The corporate has additionally reaffirmed its adjusted EBITDA steerage for 2025, sustaining its forecast between $900 million and $1 billion.
CEO Jason Robins emphasised DraftKings’ strategic priorities for 2025, together with increasing its presence in dwell betting and cross-selling merchandise throughout its gaming verticals. “Looking forward to 2025 and past, I’m excited to additional improve our buyer economics by way of new initiatives similar to extending our lead in dwell betting and advancing cross-sell efforts to and from new verticals. Our focus stays on driving sustainable progress in income and profitability.”
The corporate continues to increase its footprint within the U.S. gaming market. DraftKings presently operates cell sports activities betting in 25 states and Washington, D.C., protecting practically 49% of the U.S. inhabitants. Its iGaming platform is lively in 5 states, reaching roughly 11% of People. Internationally, DraftKings is accessible in Ontario, representing 40% of Canada’s inhabitants.
Missouri not too long ago authorized sports activities betting by way of a poll initiative in November 2024, and DraftKings is making ready to launch operations within the state pending regulatory approvals. The corporate can also be planning to enter the Puerto Rico market as soon as licensing and compliance processes are accomplished.
Business Tendencies and Aggressive Panorama
Regardless of its income progress, DraftKings confronted industry-wide challenges within the fourth quarter. The sportsbook sector skilled one in all its most bettor-friendly NFL seasons in many years, resulting in decrease sportsbook maintain charges. Robins famous that the NFL ends in 2024 had been “essentially the most customer-friendly NFL sport outcomes in over 40 years.”
DraftKings can also be encountering new competitors past conventional sportsbooks. Fintech corporations similar to Kalshi, Robinhood, and Crypto.com are getting into the sports activities betting area, providing different betting markets. In the meantime, main rival FanDuel revised its annual income forecast downward by $370 million as a result of similar unfavorable NFL betting developments that impacted DraftKings.
Optimistic Adjusted EBITDA and Future Profitability
A major milestone for DraftKings in 2024 was attaining its first-ever optimistic adjusted EBITDA, totaling $181.3 million, a pointy enchancment from a $151 million adjusted EBITDA loss in 2023. Nevertheless, the corporate’s whole internet loss for 2024 nonetheless stood at $507.3 million, although this determine marked a 36.8% enchancment from the earlier yr’s $802.3 million loss.
The corporate’s inventory worth has responded positively to its earnings report, rising about 25% in 2025 up to now. DraftKings’ means to keep up progress whereas managing rising prices will probably be essential because it strikes ahead. With continued enlargement into new markets and its first worthwhile yr when it comes to adjusted EBITDA, DraftKings stays a key participant within the evolving on-line gaming {industry}.
