DraftKings posts strong revenue in Q1 2024, improves outlook

It has been another bumper quarter for DraftKings, America’s leading sports betting and gaming platform, which has closed the book on the first quarter of 2024 on a high note. The three-month period ended on March 31, 2024, saw a total of $1.17bn in reported revenue, which was up $405m from the $770m reported in Q1 2023.

There were a number of factors that contributed to these results, including strong customer engagement as well as successful acquisition of new customers. DraftKings was also happy to see its products and brands expand across the United States in the first quarter, but it also managed to bring in a much better overall sportsbook hold percentage – this is the money the company wins after it pays out winnings to customers.

Both the sportsbook and iGaming sectors were approved for the company, as attested by its latest results and the remarks of DraftKings Chief Executive Officer and Co-founderJason Robins. In an official press release, Robins hailed the new launches and the strong performance the company has posted:

"We successfully launched our online sportsbook in Vermont and North Carolina with highly efficient customer acquisition. Looking ahead, we remain committed to maximizing shareholder value through continued innovation, operational excellence, and disciplined capital allocation."

Robins also used the opportunity to highlight that the revenue guidance for the company will now be changing from the originally estimated $4.80bn to $4.90bn following the strong first quarter. This was also confirmed by DraftKings Chief Financial Officer Allan Ellingson who went into further detail and doubled down on the company’s strong performance during the quarter.

DraftKings saw a number of important events take place during the first quarter, including an increase in engagement. One of its most important metrics to gauge progress, Monthly Unique Players, increased to 3.4m average monthly unique paying customers. This was a 23% jump in the number of players from Q1 2023, and not least owing to the new launches the company has realized.

The average revenue per MUP has also improved, which is another important development for the company over the quarter, with the return estimated at $114, or a 25% gain on the results in Q1 2023. Overall, DraftKings has been able to significantly expand its reach.

The company now live in 25 states when it comes to mobile sports betting, and it has access to about 49% of the US population, the company noted in its update. Similarly, the company also live in five states when it comes to iGaming, covering 5 states so far.

Image credit: Flickr (World Poker Tour)