DraftKings Q1 Earnings Highlights: Revenue Miss, EPS Miss, Guidance Cut After Bettors Beat The House

Sports betting company DraftKings Inc DKNG reported first-quarter financial results after market close Thursday.

Here are the key highlights.

What Happened: DraftKings reported first-quarter revenue of $1.41 billion, up 20% year-over-year. The revenue total missed a Street consensus estimate of $1.44 billion according to data from Benzinga Pro.

The company reported earnings per share of 12 cents, missing a Street consensus estimate of 22 cents per share.

Revenue growth came from strong customer engagement, new customer acquisition, a higher structural sportsbook hold percentage and the impact of the Jackpocket acquisition.

DraftKings' Monthly Unique Payers (MUPs) were up 28% to 4.3 million in the first quarter. The company said the increase came from strong retention and acquisition and the impact of the Jackpocket acquisition.

Without the Jackpocket acquisition, which closed in the quarter, MUPs would have been up 11% year-over-year.

Average revenue per MUP was $108 in the first quarter, down 5% year-over-year. The lower average revenue was due to the Jackpocket customers, with the company saying that average revenue per MUP would have been up 7% year-over-year excluding the acquisition.

"Recent product enhancements are driving outperformance in our core value drivers, and our customer metrics continue to be strong through an evolving macroeconomic environment," DraftKings CEO Jason Robins said.

DraftKings ended the quarter with mobile sports betting in 25 states and Washington D.C. and iGaming live in five states. The company is also live for sports betting and iGaming in Ontario, Canada, which represents 40% of the country's population.

Read Also: DraftKings Q1 Earnings Preview: Will March Madness, Super Bowl Help Set New Company Records?

What's Next: DraftKings expects to launch its sportsbook in Missouri pending approvals after the state legalized sports betting in November 2024. Guidance for fiscal 2025 does not include the impact of launching in Missouri.

The company lowered its full-year revenue guidance from a previous range of $6.3 billion to $6.6 billion to a new range of $6.2 billion to $6.4 billion.

The company also cut its full-year adjusted EBITDA guidance from a range of $900 million to $1.0 billion to a new range of $800 million to $900 million.

DraftKings said the guidance changes were due mostly to positive outcomes for customers during the quarter.

"If not for customer-friendly sport outcomes in March, we would be raising our fiscal year 2025 revenue and adjusted EBITDA guidance," Robins said.

DKNG Price Action: DraftKings stock is up 3.9% to $36.74 in after-hours trading Thursday versus a 52-week trading range of $28.69 to $53.61.

Read Next:

• NFL Rookie Of The Year Betting Odds: Shedeur Sanders Payout, Travis Hunter To Win Both Awards?

Photo: Shutterstock