DraftKings posts $501.9m in Q3 2022

DraftKings has successfully defied expectations, posting earnings that soared by 6.54% over the observed period ended on September 30, 2022. The company managed to deliver on an unexpected revenue target of $501.94m in Q3, and beat the Zacks Consensus Estimate by 15.07%. The growth is significant in terms of revenue when compared to year-over-year results which stood at $212.82bn in Q3, 2021.

This is a 136% increase compared to last year. Looking into the specific numbers, the B2C segment continued to dominate the company’s results, with $493m in total. Compared to the results in Q3, 2021, the company managed to notch up a 161% increase in overall B2C performance. The results encouraged company Co-founder, Chairman of the Board, and CEO Jason Robins who said:

"DraftKings had a very strong third quarter. Our team continued to drive top-line growth through highly effective customer engagement and compelling product and technology enhancements while remaining focused on our path to profitability."

Regardless, there are some markers that still worry investors. One of those is that DraftKings’ shares have been sliding since the beginning of the year. The company reported a 43% loss of its overall value for the first nine months of the year. According to the executive, the NFL season has given the company a good start, leading to the "surprise" jump in revenue.

Robins noted that the company has been able to balance well between efficiencies and growth investment. He was joined by Jason Park, the Chief Financial Officer, who confirmed that DraftKings’ results have defied even the company’s internal projections, which have been mostly focused on cautious optimism more so than anything else.

The company is yet to retain some of this momentum and carry it over into the fourth quarter, and not least because of the upcoming launches in Maryland and Ontario, which are likely to give the company an even further boost at the beginning of 2023. The company also had other highlights to post during the latest reporting period.

For example, the number of Monthly Unique Players has increased to 1.6 million on average, or a 22% growth since the third quarter from a year before. The average revenue per a unique player for the period was $100, still a small spending, but not in the context of the industry nor the company’s own results from a year ago. The $100 was in fact a 114% increase in the spending.

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