Strong Q4 Performance Fuels DraftKings’ Growth Plans

DraftKings wrapped up the fourth quarter of 2024 with a reported revenue of $1.39 billion, reflecting a 13% year-over-year increase from the $1.23 billion recorded in the same period of 2023. Despite falling short of the estimated $1.43 billion, the company’s financials showcase steady growth, bolstered by a combination of customer expansion, increased sportsbook engagement, and the strategic acquisition of Jackpocket.

According to DraftKings, the surge in revenue was driven by strong customer activity, effective player acquisition, a rising structural sportsbook hold percentage, and the company’s continued push into new jurisdictions. However, customer-friendly outcomes during the NFL season tempered some of these gains.

“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,” said Jason Robins, CEO and Co-founder of DraftKings. He also emphasized the company’s strategic direction moving forward, stating, “Looking ahead to 2025 and beyond, I am excited to further enhance our customer economics through new initiatives such as extending our lead in live betting and advancing cross-sell efforts to and from new verticals.”

Growth in Customer Engagement but Decline in ARPMUP

One of DraftKings’ standout achievements for Q4 2024 was the sharp increase in Monthly Unique Payers (MUPs), which averaged 4.8 million during the quarter—36% higher than the previous year. Excluding the impact of the Jackpocket acquisition, MUPs still grew by 16% compared to Q4 2023.

However, Average Revenue per MUP (ARPMUP) saw a decline, dropping 16% year-over-year to $97. This decrease stemmed from lower ARPMUP among Jackpocket customers in comparison to DraftKings’ existing base, as well as a lower sportsbook hold percentage due to customer-friendly betting outcomes.

DraftKings posted a net loss of $134.9 million for Q4 2024, significantly wider than the $44.6 million loss recorded in the same quarter of 2023. Earnings per share (EPS) came in at -$0.28, missing analyst expectations of -$0.12. However, the company achieved an important milestone by reporting positive Adjusted EBITDA for the first time in its history, reaching $89.5 million in Q4.

“2024 was a milestone year for DraftKings as we achieved our first year of positive Adjusted EBITDA. Additionally, we began executing on our inaugural share repurchase authorization,” noted Alan Ellingson, DraftKings’ Chief Financial Officer.

2025 Revenue Outlook Strengthened

DraftKings has raised the midpoint of its fiscal year 2025 revenue forecast, now projecting between $6.3 billion and $6.6 billion—up from the $6.2 billion to $6.6 billion range previously outlined in November. This revision suggests approximately 35% year-over-year growth, based on the midpoint estimate of $6.45 billion.

Ellingson reaffirmed the company’s confidence in its financial trajectory, stating, “With strong underlying health across our core value drivers, we are raising the midpoint of our fiscal year 2025 revenue guidance to $6.45 billion from $6.4 billion and reaffirming our fiscal year 2025 Adjusted EBITDA guidance range of $900 million to $1 billion.”

Expanding Market Presence and Future Prospects

DraftKings’ market footprint continues to expand, with mobile sports betting now operational in 25 states plus Washington, D.C., covering nearly 49% of the U.S. population. Additionally, the company’s iGaming offerings are live in five states, ing for 11% of the U.S. market, and its sportsbook and iGaming operations are active in Ontario, Canada, reaching approximately 40% of the Canadian population.

Further expansion is on the horizon, as Missouri voters approved a ballot measure to legalize sports betting on November 5. DraftKings plans to enter the Missouri market, along with Puerto Rico, pending regulatory approvals and licensing agreements.

DraftKings’ continued investments in live betting, cross-sell opportunities, and geographic expansion signal a strong strategic push for sustained growth. The company’s ability to navigate industry challenges, such as fluctuating sportsbook hold percentages and customer-friendly outcomes, will be key in achieving its ambitious 2025 financial targets.

Source:

‘DraftKings 2024 fourth-quarter revenue up 13% year-over-year”, cdcgaming.com, February 14, 2025.