DraftKings Sportsbook has revealed its financial results for the third quarter of 2024, reporting a rise in total revenue but also a net loss of approximately $293.7 million for the period. This loss marks an increase from the $283.1 million net loss recorded in Q3 2023 and follows a profitable second quarter of 2024, during which the company posted a net income of $63.8 million. Despite the strong performance in Q2, DraftKings faced an operating loss of $32.4 million for that quarter. In contrast, the company reported a larger operating loss of nearly $298.6 million in Q3 2024, reflecting a 4.2 percent year-over-year increase in losses.
Revenue growth and strategic drivers
DraftKings saw a 39 percent year-over-year increase in revenue, reaching nearly $1.1 billion in Q3 2024. The company attributed this growth to several key factors, including its expansion into new markets, the acquisition of Jackpocket, higher hold percentages, and more effective promotional reinvestment in both its sportsbook and iGaming operations.
“DraftKings had a strong third-quarter performance, driven by the return of NFL and college football,” said Jason Robins, Co-Founder and CEO of DraftKings.
“With major sports aligning on the calendar, we’re in a great position to build on this momentum by further improving our top-rated sportsbook app with new live betting features and exciting NBA markets. Our primary focus is on driving long-term revenue growth and profitability as we look toward 2025 and beyond.”
Adjusted EBITDA loss and outlook
The operator also successfully reduced its adjusted Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) loss from the prior year, lowering the figure from $153.4 million in Q3 2023 to $58.5 million in Q3 2024.
“We achieved healthy results across our core value drivers in the third quarter with efficient customer acquisition and promotional reinvestment, as well as improvement in our structural sportsbook hold percentage,” said DraftKings CFO Alan Ellingson.
“The midpoint of our inaugural fiscal year 2025 revenue guidance equates to 31 percent year-over-year growth, and we are well-positioned to deliver $900 million to $1 billion of adjusted EBITDA in 2025.”
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