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DraftKings Inc. (NASDAQ:DKNG) is saying its stock plummet Friday after the company reported mixed financial results for the second quarter of 2024. Here’s what you need to know.
Q2 Financial Highlights: DraftKings reported significant revenue growth driven by increased customer engagement, new customer acquisitions and the integration of Jackpocket Inc. Monthly Unique Payers (MUPs) increased by 50% year-on-year to 3.1 million. However, Average Revenue per MUP (ARPMUP) decreased by 15% to $117.
The company also announced a 26% year-on-year revenue growth to $1.104 billion and an inaugural share repurchase authorization of up to $1.0 billion.
Analyst Reactions:
Company's Strategic Moves: DraftKings raised its fiscal year 2024 revenue guidance to a range of $5.05 billion to $5.25 billion, representing a 38% to 43% year-on-year growth. However, the company revised its 2024 Adjusted EBITDA guidance downward to a range of $340 million to $420 million, from the previously announced range of $460 million to $540 million.
CEO Jason Robins expressed optimism about customer acquisition and engagement trends. “We very efficiently acquired many more new customers than we expected and saw continued healthy existing customer engagement in the second quarter,” Robins said. CFO Alan Ellingson highlighted the company's free cash flow trajectory and the confidence reflected in the $1.0 billion share repurchase authorization.
Future Outlook: DraftKings continues to expand its footprint, launching its Sportsbook product in Washington, D.C., and plans to introduce mobile sports betting in Puerto Rico, pending regulatory approvals. The company also intends to implement a gaming tax surcharge in high-tax states starting January 1, 2025.
DKNG Price Action: DraftKings shares were down by 10.8% at $31.66 according to Benzinga Pro.
See Also:
Photo Courtesy: DraftKings logo at company headquarters.
Posted In: DKNG