DraftKings Continues to Soar in Q3 with Revenue Growth and Improved Projections

In an impressive streak, DraftKings has raised its full-year guidance for the third consecutive quarter, showcasing notable revenue and adjusted EBITDA growth in Q3. Notably, the company's net loss has also seen a reduction. The launch of the sportsbook product in Kentucky has been a significant highlight, expanding its operations to 22 US states for mobile sports betting.

With a remarkable 40.0% increase in monthly unique players (MUPs) to 2.3 million during Q3, DraftKings attributes this success to strong player retention and acquisition strategies. The average revenue per MUP has seen a substantial 14.0% surge, reaching $114, owed to structural sportsbook hold rate enhancements and improved promotional reinvestment in sports betting and igaming.

Despite a 57.4% revenue rise in Q3, DraftKings remains in the red. While revenue soared, the company managed to control costs, witnessing a significant reduction in general and administrative expenses. The net loss for the quarter stands at $283.1m, a substantial improvement compared to the previous year. Additionally, the adjusted EBITDA loss has been trimmed to $253.4m, reflecting a positive trajectory.

Based on its robust Q3 and year-to-date performance, DraftKings has revised its full-year forecasts, anticipating revenue to potentially reach $3.72bn. Furthermore, the company aims to achieve adjusted EBITDA positivity by 2024, bolstered by a solid customer acquisition strategy, improved engagement, and a well-maintained cost structure.