DraftKings Revises Loss Predictions for 2023 in Q3 Update

DraftKings has announced its Q3 2023 financial results revealing revenue of $790 million, up by 57% year-on-year.

In an investors call, DraftKings CEO Jason Robbins cited continued healthy customer engagement, new customers acquisition and the expansion of sports betting into new jurisdictions as the main drivers behind the positive results.

“Our fantastic third quarter results demonstrate the positive impact of our product and technology investments as well as excellent preparation and execution by our entire organization.

Our new and differentiated features and functionality have created an exceptional user experience that sustains engagement for our mobile sports betting and iGaming customers. 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. We expect to generate approximately $200 million of positive Adjusted EBITDA in the fourth quarter of 2023 based on the midpoint of our updated fiscal year 2023 guidance and look forward to sharing our multi-year outlook at our Investor Day on November 14th.”

Q3 2023 Report Highlights

Q3 Revenue; $789.9 million, up 57%
Adjusted EBITDA; -$153.4 million, 41.9% decrease on Q3 2022
Year-to-date revenue; $2.4 billion, up 76%
Year-to-date net loss; -$757.5 million, 33.2% decrease on Q3 2022
Average revenue per customer was $114, up by 14%

EBITDA Losses Better Than Predicted

According to the report, EBITDA losses for the 2023 fiscal year will now come in at $95 million to $105 million. This is significantly better than the $400 million predicted at the start of the year and the revised losses of $190 million to $220 million reported in August.

DraftKings Revises Loss Predictions for 2023 in Q3 Update DraftKings Revises Loss Predictions for 2023 in Q3 Update

We are poised for a rapid increase in Adjusted EBITDA as we anticipate strong revenue growth coupled with a scaled fixed cost structure will continue. These trends provide for a long runway of margin improvement. Our fiscal year 2024 guidance at the midpoints of $4.65 billion in revenue and positive $400 million of Adjusted EBITDA implies incremental year-over-year revenue growth of almost $1 billion and an increase in Adjusted EBITDA of more than $500 million.”

Following its Kentucky sports betting launch, DraftKings sportsbook is now live in 22 states while its iGaming product is live in 5 states.

Jenny Tang

An experienced iGaming commentator and analyst based in New York City - Jenny reports on regulation and gambling industry news and events.