DraftKings generated $4.8 billion in total revenue for fiscal year 2024, the sports betting giant announced Thursday in its latest earnings report. This marked a year-over-year increase of 30.1%, while the company also reduced its net loss by roughly $295 million ($507.3 million from $802.3 million) during that span.
“We continued to efficiently acquire and engage customers, expand structural sportsbook hold percentage and optimize promotional reinvestment in fiscal year 2024, while we simultaneously experienced customer-friendly sport outcomes,” Jason Robins, DraftKings chief executive officer and co-founder, said in a statement.
Another highlight for DraftKings was its first positive adjusted EBITDA (earnings before interest, taxes depreciation, and amortization), which hit $181.3 million for the year. This compared favorably to $151 million adjusted loss in 2023.
In Q4 alone, revenue was up 13.2% to $1.4 billion. Net loss for the quarter, however, increased 202% to $139.2 million.
While the company’s cost of revenue for the quarter increased by approximately $118 million, largely because of higher spending on marketing and new technology features — sales and marketing expenses, for example, saw a $77 million increase — DraftKings seems primed to build on its success over the next several months.
DraftKings has built a massive presence in the U.S., where online sports betting is now legal and operational in 38 states plus Washington, D.C. Missouri is scheduled to launch this summer. A handful of other states, including Texas, are pushing for legalization soon after.
The company already has plans to operate in Missouri, and it’s also preparing to launch services in Puerto Rico, pending regulatory approval. It also secured a new retail partnership with Live! Casino & Hotel Louisiana.
In a letter to shareholders, Robins touted DraftKings’ ability to attract and retain customers. The company acquired 3.5 million new customers, increasing its base 42% year-over-year to 10.1 million. Notably, the Mike Tyson-Jake Paul fight on Nov. 15 marked the company’s highest customer acquisition day on record, outside of Super Bowl Sundays.
That helped drive a 21% year-over-year increase in sportsbook and iGaming handle, while the parlay handle also trended higher despite a particularly difficult stretch for operators.
In fact, Robins called it the “most customer-friendly NFL sport outcomes in over 40 years.”
Building on its live betting capabilities will be a primary focus, as evidenced by its acquisitions of Simplebet, Sports IQ Analytics, and Mustard Golf. Robins also expects those products to help boost the company’s parlay handle mix and structural sportsbook hold percentage.
“I believe the three most valuable assets in a growing digital market are a platform, a brand, and a large and loyal customer base,” Robins told shareholders. “DraftKings is well-positioned along all three of these dimensions. Combining these valuable assets with strong execution, which we have proven out over the last 13 years, is why I am betting we’ll increase our advantage going forward.”
Doug Bonjour
