DraftKings remains on track with Q3 2023 results

DraftKings has reported its third-quarter results for the period ended on September 30, 2023. The company posted $790m in revenue, a significant uptick from Q3 2022’s $288m or up 57%. DraftKings argued that it has been able to engage with customers and acquire new audiences, resulting in better overall revenue products.

The company similarly continued to expand across the sportsbook and iGaming verticals in the United States, securing new business opportunities, but also ensuring that new acquisitions resulted in conversions and high player retention. Hold percentage also improved in the quarter giving the company confidence to increase its fiscal 2023 revenue guidance to $3.67bn- $3.72bn territory.

The company confirmed that its Monthly Unique Players numbers grew by 40%, with a total of 2.3m players, while the revenue per user also improved by 14% during the quarter. Stock markets have responded rather positively to the news as well, as the general consensus amongst investor bankers is to buy or hold the DraftKings stock, listed as DKNG on NASDAQ. In fact, DNKG has improved by 162% in 2023 alone.

The company has not hesitated to introduce its fiscal year 2024 revenue guidance either, with DraftKings predicting a range of between $4.50bn and $4.80bn, or a 25% gain year-over-year. DraftKings CEO and Co-founder Jason Robins was also pleased with the news and said that the results were "fantastic."

"Our new and differentiated features and functionality have created an exceptional user experience that sustains engagement for our mobile sports betting and iGaming customers," Robinson explained. He also highlighted some of the successes achieved in the past months, including the launch of an online sportsbook in Kentucky, and setting up the stage for Maine and North Carolina rollouts pending regulatory approvals.

DraftKings is also reportedly edging out FanDuel as the leader on the US sports gambling market according to a report by Eilers & Krejcik Gaming. DraftKings CFO Jason Park has also joined the conversation and offered some insight about the company’s current financial performance and what to expect next.

"We also delivered another successful online sportsbook launch in Kentucky and look forward to additional launches in Maine and in North Carolina, pending licensure and regulatory approvals," Park said echoing Robins’ words. In light of these events, Park is confident that DraftKings can pursue much stronger results in 2024.

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