Sports betting and online gaming company DraftKings Inc (NASDAQ:DKNG) announced second-quarter financial results after market close Wednesday.
Here are the highlights.
What Happened: DraftKings reported second-quarter revenue of $1.51 billion, up 37% year-over-year. The revenue total beat a Street consensus estimate of $1.39 billion according to data from Benzinga Pro.
The company said the higher revenue, which is a company record, was helped by customer engagement, acquisition of new customers, higher sportsbook hold percentage and sportsbook-friendly outcomes.
Earnings per share of 38 cents beat a Street consensus estimate of 12 cents per share.
DraftKings said that along with revenue, net income and adjusted EBITDA were also company records in the quarter.
The company had 3.3 million Monthly Unique Payers in the quarter, up 6% year-over-year. The company's average revenue per Monthly Unique Payer was $151, up 29% year-over-year. The increase was attributed to sportsbook hold percentage and improved promotional reinvestment for sportsbook.
"We set records for revenue, net income and Adjusted EBITDA in the second quarter, driven by an acceleration in revenue growth to 37% year-over-year," DraftKings CEO Jason Robins said.
The company ended the quarter live with mobile sports betting in 25 states and Washington D.C., representing 49% of the U.S. population. DraftKings expects to launch its sportsbook in Missouri.
The company is live for iGaming in five states, representing 11% of the U.S. population.
DraftKings is also live with sportsbook and iGaming in Ontario, Canada, representing around 40% of Canada's population.
The company bought back 6.5 million shares through its buyback program in the first two quarters of the fiscal year.
"We remain focused on investing in key growth initiatives across the organization to maximize shareholder returns over the long-term," DraftKings CFO Alan Ellingson said.
What's Next: DraftKings is maintaining full-year revenue guidance at a range of $6.20 billion to $6.40 billion. Analysts expect the company to have full-year revenue of $6.275 billion, according to data from Benzinga Pro.
The company is also maintaining its full-year adjusted EBITDA guidance range of $800 million to $900 million.
"We are pleased to be maintaining our fiscal year 2025 guidance, with revenue expected to be closer to the high end of our range, highlighting the strength of our platform as we prepare for an exciting new state launch," Robins said.
DraftKings said the guidance includes the expected impact from a sports betting launch in Missouri later this year, along with higher tax rates in New Jersey, Louisiana and Illinois.
The sports betting company could be hinting at launching its own prediction market or making an acquisition in the space that is currently dominated by Polymarket and Kalshi.
"The company's guidance for fiscal year 2025 does not include the potential launch of a Prediction Markets offering," the company said.
DKNG Price Action: DraftKings stock is up 4.7% to $47.47 in after-hours trading Wednesday versus a 52-week trading range of $29.29 to $53.61.
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