DraftKings posts 44% revenue growth and narrowing losses, but falls short of estimates

DraftKings on Thursday posted quarterly results that missed Wall Street estimates on the top and bottom line, but it increased its revenue by 44%.

Here’s what DraftKings reported compared with what Wall Street was expecting, According to analyst estimates compiled by LSEG, formerly known as Refinitiv:

• Loss per share: 10 cents vs. expected profit of 8 cents
• Revenue: $1.23 billion vs. $1.24 billion expected

The sports betting company saw a 44% increase in revenue year-over-year. DraftKings recently launched its Sportsbook product in Maine and Vermont, bringing it to a total of 24 states allowing its mobile sports betting.

For the last three months of 2023, DraftKings reported a net loss of $44.6 million compared with $242.7 million in the same period a year earlier. Losses per share improved to a loss of 10 cents versus a loss of 53 cents in 2022.

DraftKings garnered 3.5 million average “monthly unique payers,” a 37% increase from the same period in 2022. The company’s average revenue per MUP saw a 6% boost in the fourth quarter compared to the previous year.

DraftKings also announced after the bell Thursday that it plans to acquire lottery app Jackpocket for approximately $750 million.

For 2024, the company is increasing its fiscal year guidance to between $410 million and $510 million compared to its prior guidance of between $350 million and $450 million. That excludes the company’s estimated impact due to its planned acquisition of Jackpocket.