NEW YORK - DraftKings Inc. (NASDAQ:DKNG) reported better-than-expected third-quarter earnings but cut its full-year guidance due to unfavorable sports outcomes, sending shares down 5% in after-hours trading.
The online sports betting and gaming company posted adjusted earnings per share of -$0.17 for the quarter ended September 30, beating analyst estimates of -$0.42. Revenue rose 39% YoY to $1.1 billion, slightly below the consensus estimate of $1.11 billion.
Despite the earnings beat, DraftKings lowered its fiscal year 2024 revenue guidance to $4.85-$4.95 billion from its previous range of $5.05-$5.25 billion, citing "customer-friendly sport outcomes early in the fourth quarter of 2024." The company also reduced its 2024 adjusted EBITDA forecast to $240-$280 million from $340-$420 million.
"DraftKings delivered strong performance in the third quarter with the return of NFL and college football," said Jason Robins, DraftKings' Chief Executive Officer and Co-founder. "With major sports converging on the calendar, we are well-positioned to build on this momentum as we further enhance our top-ranked sportsbook app with additional live betting features and exciting new NBA markets."
The company reported 3.6 million average monthly unique paying customers in Q3, up 55% YoY. Excluding the impact of its Jackpocket acquisition, monthly unique payers increased by approximately 27%.
For fiscal year 2025, DraftKings introduced revenue guidance of $6.2-$6.6 billion, representing 31% YoY growth at the midpoint. The company maintained its 2025 adjusted EBITDA forecast of $900 million to $1 billion.
DraftKings noted that Missouri voters recently passed a ballot initiative legalizing sports betting in the state. The company expects to launch its sportsbook product there pending regulatory approvals.
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