DraftKings posts strong Q2 2022 results

DraftKings has published its report for the three months that ended on June 30, 2022, or the second quarter results in financial shorthand. The revenue generated by the sports betting and iGaming giant amounted to $466m, which was up 57% year-over-year.

An important metric that improved significantly for the company during the period was the business-to-customer segment, which notched up an impressive 68% growth, up to $455m. This came despite a fairly subdued betting activity in the second quarter when most of the sports events are on hold or only wrapping up.

The adjusted EBITDA also outperformed the midpoints set out by the company. DraftKings managed to move confidently through the second quarter and incorporated the operations of Golden Nugget Online Gaming, which the company purchased, into its broader strategy.

Commenting on these details and outlining the overall financial results and their significance, DraftKings Co-founder and CEO and Chairman of the Board Jason Robins said that both adjusted EBITDA and revenue expectations managed to beat original forecasts put forward by the company before.

Robins confirmed that customer engagement remained strong and the macroeconomic pressures remained manageable and without consequence for the company at the time. Robins also spoke about the road that lied ahead and said that the company enters the NFL season in a strong position:

"Due to our ongoing investments in core online gaming technologies, we are in a strong position from a competitive perspective as we approach the beginning of the NFL season."

DraftKings CFO Jason Park reiterated that the Q2 guidance ranges for revenue and adjusted EBITDA had done well. He paid particular attention to the fact that the business-to-consumer segment picked up during the quarter, with strong overall customer activity.

The midpoint for the fiscal year revenue guidance has been increased by $15m, Park confirmed. The midpoint for the FY222 ABIETDA guidance has also been adjusted to $60m the executive added. The quarterly report was very detailed in its overall review of the results.

Monthly unique players, an important metric for the company, stood at 1.5 million average unique business-to-customer customers. This was a 30% growth year-over-year, once again indicating that DraftKings has found a way to engage in the B2C sector. The present results build on already strong Q1 results.

Image credit: Unsplash.com