DraftKings Inc. has recently released its 10-Q report, providing an insight into the company's financial performance and operations. DraftKings operates as a digital sports entertainment and gaming company, offering online sports betting and casino, daily fantasy sports, media, and other consumer products, as well as retail sportsbooks. The company also specializes in the design and development of sports betting and casino gaming software for online and retail sportsbooks, and iGaming operators. Additionally, DraftKings has ventured into the digital collectibles ecosystem with its DraftKings marketplace, which offers curated NFT drops and supports secondary-market transactions. The company was founded in 2012 and is headquartered in Boston, Massachusetts.
In its 10-Q report, DraftKings discussed Item 2, Management’s Discussion and Analysis of Financial Condition and Results of Operations. The report highlights that the company's revenue for the three months ended September 30, 2024, was $1,095,490, representing an increase of $305.5 million compared to the same period in 2023. Similarly, for the nine months ended September 30, 2024, the revenue stood at $3,374,927, indicating a significant increase of $940.4 million compared to the same period in 2023. The net loss for the three months ended September 30, 2024, was reported at $(293,688), and for the nine months ended September 30, 2024, it was $(372,434). However, the company reported positive Adjusted EBITDA of $91,853 for the nine months ended September 30, 2024, as compared to a negative Adjusted EBITDA of $(302,053) for the same period in 2023.
DraftKings also provided key performance indicators, including Monthly Unique Payers (MUPs) and Average Revenue per MUP (ARPMUP). The company reported an increase in MUPs for the three and nine months ended September 30, 2024, compared to the same periods in 2023. The increase primarily reflects strong unique payer retention and acquisition across its Sportsbook and iGaming product offerings, as well as the expansion of its Sportsbook product offering into new jurisdictions. However, ARPMUP decreased in the three and nine months ended September 30, 2024, compared to the same periods in 2023, primarily due to lower ARPMUP for Jackpocket customers, which was partially offset by structural improvement in DraftKings' Sportsbook hold and improved promotional reinvestment for Sportsbook and iGaming.
The report also includes non-GAAP financial measures, such as Adjusted EBITDA, which DraftKings uses to supplement its results presented in accordance with U.S. GAAP. Adjusted EBITDA is a key indicator used to evaluate the company's operating performance, and it excludes certain expenses that are non-recurring items, non-cash expenditures, or non-operating items not related to DraftKings' underlying business performance. For the three months ended September 30, 2024, DraftKings reported an Adjusted EBITDA of $(58,504), and for the nine months ended September 30, 2024, it reported a positive Adjusted EBITDA of $91,853, indicating an improvement from the previous year.
DraftKings' 10-Q report provides valuable insights into the company's financial performance and key operational metrics, shedding light on its growth and strategic initiatives in the digital sports entertainment and gaming industry. Following these announcements, the company's shares moved 1.0%, and are now trading at a price of $39.37. If you want to know more, read the company's complete 10-Q report here.
