DraftKings revenue has increased by 53% year-on-year for the first quarter of 2024.

The financial results revealed an overall revenue of $1.17Billion, much to the delight of CEO Jason Robbins. He cited a variety of factors behind the healthy results.

New customer acquisition, the expansion of sports betting into new jurisdictions, improved promotional reinvestment for Sportsbook and iGaming were some of the notable elements.

Furthermore, healthy customer engagement and higher structural sportsbook hold percentage were also noted as valid factors for the strong start to Q1.

DraftKings Revenue

“DraftKings’ performance in the first quarter of 2024 was outstanding. Reflecting healthy revenue growth and a scaled fixed cost structure that positions us to drive rapidly improving adjusted EBITDA.

“Looking ahead, we remain committed to maximising shareholder value through continued innovation, operational excellence and disciplined capital allocation,” Robbins explained.

The Boston-based firm reported that revenue was $405m higher through Q1 in 2024 than it was last year. It’s the first time they have crossed the billion dollar mark in Q1.

In terms of attracting new customers, DraftKings reported an increase of 23 per cent of monthly unique players (MUPs). This translates to 3.4 million consumers.

After the strong start to the year, DraftKings has confirmed they have revised the fiscal year 2024 revenue projection. It will now be between $4.8bn and $5.0bn, up from the previously stated range of $4.65bn to $4.90bn.

“We are raising the midpoint of our fiscal year 2024 revenue guidance to $4.9 billion from $4.775 billion and the midpoint of our Adjusted EBITDA guidance to $500 million from $460 million as a result of our excellent first quarter results and improved outlook on customer acquisition and engagement for the rest of 2024,” said DraftKings CFO Alan Ellingson.

“We expect Adjusted EBITDA Flow-through Percentage to exceed 50% for fiscal year 2024 as we expand our gross margin and exert discipline on our cost structure, while simultaneously investing in promotions and marketing in accordance with our LTV to CAC targets,” he concluded.