DraftKings has released its monetary outcomes for the fourth quarter and full 12 months 2024, showcasing important income progress alongside elevated working losses. The firm reported a complete annual income of $4.8 billion, reflecting a 30.1% year-over-year enhance. However, its internet loss for the fourth quarter surged by over 200%, influenced by rising bills and customer-friendly sportsbook outcomes through the NFL season.
For the ultimate quarter of 2024, DraftKings recorded income of $1.39 billion, a 13.2% enhance from the identical interval in 2023. Growth was fueled by regular buyer engagement, the corporate’s continued market growth, and the mixing of Jackpocket, which DraftKings acquired in May 2024. Monthly distinctive paying clients (MUPs) rose to 4.8 million, marking a 36% enhance year-over-year. However, common income per MUP (ARPMUP) declined 16% to $97, largely because of the decrease spending habits of Jackpocket customers in comparison with DraftKings’ current buyer base.
While income climbed, the corporate’s fourth-quarter internet loss reached $139.2 million, a rise of 202.2% from the identical quarter in 2023. Higher advertising and operational prices, mixed with an unfavorable sportsbook maintain fee, contributed to the losses. The price of income rose by roughly $118 million, whereas advertising bills elevated by over $77 million in comparison with the earlier 12 months.
2025 Revenue Outlook and Market Expansion
DraftKings has raised its 2025 income projection, now anticipating earnings between $6.3 billion and $6.6 billion. This revision represents an anticipated 35% year-over-year progress. The firm has additionally reaffirmed its adjusted EBITDA steering for 2025, sustaining its forecast between $900 million and $1 billion.
CEO Jason Robins emphasised DraftKings’ strategic priorities for 2025, together with increasing its presence in dwell betting and cross-selling merchandise throughout its gaming verticals. “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. Our focus remains on driving sustainable growth in revenue and profitability.”
The firm continues to broaden its footprint in the U.S. gaming market. DraftKings at the moment operates cellular sports activities betting in 25 states and Washington, D.C., overlaying almost 49% of the U.S. inhabitants. Its iGaming platform is energetic in 5 states, reaching roughly 11% of Americans. Internationally, DraftKings is on the market in Ontario, representing 40% of Canada’s inhabitants.
Missouri just lately authorized sports activities betting via a poll initiative in November 2024, and DraftKings is making ready to launch operations in the state pending regulatory approvals. The firm can be planning to enter the Puerto Rico market as soon as licensing and compliance processes are accomplished.
Industry Trends and Competitive Landscape
Despite its income progress, DraftKings confronted industry-wide challenges in the fourth quarter. The sportsbook sector skilled considered one of its most bettor-friendly NFL seasons in many years, resulting in decrease sportsbook maintain charges. Robins famous that the NFL outcomes in 2024 have been “the most customer-friendly NFL sport outcomes in over 40 years.”
DraftKings can be encountering new competitors past conventional sportsbooks. Fintech corporations comparable to Kalshi, Robinhood, and Crypto.com are getting into the sports activities betting house, providing various betting markets. Meanwhile, main rival FanDuel revised its annual income forecast downward by $370 million because of the identical unfavorable NFL betting tendencies that impacted DraftKings.
Positive Adjusted EBITDA and Future Profitability
A major milestone for DraftKings in 2024 was attaining its first-ever optimistic adjusted EBITDA, totaling $181.3 million, a pointy enchancment from a $151 million adjusted EBITDA loss in 2023. However, the corporate’s whole internet loss for 2024 nonetheless stood at $507.3 million, although this determine marked a 36.8% enchancment from the earlier 12 months’s $802.3 million loss.
The firm’s inventory worth has responded positively to its earnings report, rising about 25% in 2025 thus far. DraftKings’ skill to take care of progress whereas managing rising prices can be essential because it strikes ahead. With continued growth into new markets and its first worthwhile 12 months in phrases of adjusted EBITDA, DraftKings stays a key participant in the evolving on-line gaming {industry}.
