US sports betting giant DraftKings saw its revenue grow 53% to $1.17 billion in the first quarter of the year, marking an increase of $405 million from the $770 million reported during the same period last year.
The company said the growth is driven primarily by “continued healthy customer engagement, efficient acquisition of new customers, the expansion of the sportsbook product offering into new jurisdictions, higher structural sportsbook hold percentage, and improved promotional reinvestment for sportsbook and iGaming.”
Monthly Unique Payers (MUP) increased to 3.4 million customers in the first quarter of 2024, representing an increase of 23% compared to the same period in 2023. Average Revenue per MUP (ARPMUP) grew 25% to $114 in Q1 2024.
“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,” said Jason Robins, DraftKings’ Chief Executive Officer and Co-founder.
“We successfully launched our online sportsbook in Vermont and North Carolina with highly efficient customer acquisition. Looking ahead, we remain committed to maximizing shareholder value through continued innovation, operational excellence and disciplined capital allocation.”
Following the positive first quarter results, the sports betting operator raised its fiscal year 2024 revenue guidance to a range of $4.8 – $5 billion from the previous range of $4.65 – $4.90 billion, which it had announced in February. The updated 2024 revenue guidance range equates to year-over-year growth of 31% to 36%.
It also increased its Adjusted EBITDA forecast to $460-$540 million compared to earlier guidance of $410-$510 million.
During Q1, revenue costs surged by 36.1%, reaching $710.1 million. Notably, despite this increase, sales and marketing expenditure experienced a decline of 12.4%, totaling $340.7 million. Meanwhile, spending on product and technology remained steady at $88.8 million, while general and administrative costs rose by 8.6% to $174.3 million.
Consequently, the quarter concluded with an operating loss of $138.8 million, reflecting a significant improvement from the $389.8 million loss recorded in the same period last year. Further, additional non-operating costs amounting to $4.4 million led to a pre-tax loss of $143.2 million. This figure demonstrates notable progress compared to the $395.7 million loss reported in 2023.
Following the launch of its sportsbook product in North Carolina on March 11, 2024, DraftKings is live with mobile sports betting in 25 states while its iGaming products are available in in 5 states. Outside of the US, the company operates its sportsbook and iGaming products in Ontario, Canada, and is preparing to launch its Sportsbook product in Puerto Rico.
Looking forward, the company expects to generate an additional $340 million per year as a result of its acquisition of lottery app Jackpocket in February, which it agreed to for a valuation of $750 million.