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BOSTON - DraftKings Inc. (NASDAQ:DKNG) shares jumped 4.4% after the online gaming company reported record second-quarter revenue that exceeded analyst expectations, driven by higher customer engagement and improved sportsbook margins.
The company posted adjusted earnings per share of $0.38 for the second quarter, significantly beating the analyst estimate of $0.13. Revenue surged 37% YoY to $1.51 billion, surpassing the consensus estimate of $1.4 billion. The strong performance was fueled by a 45.3% increase in sportsbook revenue to $997.9 million and a 22.6% rise in iGaming revenue to $429.7 million.
"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," said Jason Robins, DraftKings’ Chief Executive Officer and Co-founder. "We are pleased to be maintaining our fiscal year 2025 guidance, with revenue expected to be closer to the high end of our range."
DraftKings maintained its full-year 2025 revenue guidance of $6.2-6.4 billion, indicating it expects results to come in near the high end of that range. The company also reaffirmed its Adjusted EBITDA guidance of $800-900 million, projecting results near the midpoint.
Monthly Unique Payers increased 6% YoY to 3.3 million, while Average Revenue per Monthly Unique Payer rose 29% to $151, reflecting improved sportsbook hold percentage and more efficient promotional spending.
"We remain focused on investing in key growth initiatives across the organization to maximize shareholder returns over the long-term," said Alan Ellingson, DraftKings’ Chief Financial Officer.
The company expects to launch mobile sports betting in Missouri later this year, which is included in its current guidance.
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