DraftKings reported Q1 revenues up 84%
DraftKings, an online sports betting and iCasino operator, reported Q1 revenues up 84% to $770 million and adjusted EBITDA losses reduced to $221 million, beating market expectations. The company raised its FY23 guidance, with revenue predicted to reach $3.1 billion to $3.2 billion, while adjusted EBITDA losses are expected to be between $290 million and $340 million, compared to previous estimates of up to $450 million. CEO Jason Robins said that DraftKings is on the verge of achieving EBITDA profitability, with a breakeven expected in Q2.
Robins acknowledged the company’s rivalry with FanDuel but said that they do not take anything for granted and are always prepared for new competitors entering the market. He also noted that M&A is not a primary focus at this time. CFO Jason Park stated that DraftKings had optimized its new state playbook and benefited from national advertising, which has contributed to the industry’s momentum and consolidation into the top two players. In Massachusetts, DraftKings leveraged its home state characteristics and narrowly missed gaining the top spot on market debut.