DraftKing’s first-quarter earnings jump 34%

Finance News

DraftKings reported revenue was up 34% in Q1 to $417M, led by a 44% increase in the B2C segment.

The company pointed to strong demand across segments and said it is not seeing any inflationary pressures reflected in customer behavior.

Monthly unique payers increased 29% year-over-year to 2 million monthly unique paying customers. The Boston-based company’s operating expenses increased to $933 million for the first quarter, up from $637 million in the year-ago period. The company is raising its FY2022 revenue guidance from a range of $1.85B to $2B to a range of $1.925B to $2.025B.

“DraftKings delivered significant growth across our key revenue and performance metrics,” said Jason Robins, DraftKings’ co-founder, Chief Executive Officer and Chairman of the Board. “We are not seeing any impact from inflationary pressures on customer demand, and we continue to improve the user experience by adding breadth and depth to our DFS, mobile sports betting and iGaming products. We are also improving our efficiency in acquiring and retaining customers and have a strong pipeline of new jurisdictions to enter.”

Jason Park, DraftKings’ Chief Financial Officer, added, “We are pleased with our strong revenue and Adjusted EBITDA performance in the first quarter, which was driven by healthy underlying customer behavior and our ability to capture efficiencies. Therefore, we are increasing the midpoint of our fiscal year 2022 revenue guidance by $50 million and improving the midpoint of our fiscal year 2022 Adjusted EBITDA guidance by $75 million.”