After the gambling business revised its fiscal 2024 quotes downwards, DraftKings shares dropped as much as 7 % in late trading, largely as a result of NFL game results that were favorable to the general public. Those findings created a$ 250 million revenue wind, according to the company’s CEO.
For the quarter that ended Sept. 30, DraftKings reported revenue of$ 1.1 billion, matching consensus estimates of$ 1.1 billion, per Yahoo Finance data. Below average estimates of$ 0.42, earnings per share of$ 0.60 were below that level. After-hours buying saw a sharp decline in stock of 7 %.
The business also made its initial fiscal 2025 income guidance. DraftKings said it projects next year’s revenue to be in the range of$ 6.2 to$ 6.6 billion, topping consensus estimates of about$ 5.86 billion.

Probably most importantly, however, the organization made a series of upward adjustments to its macroeconomic 2024 revenue and EBITDA estimates. Those shifts, CEO Jason Robins said in a letter to shareholders, were generally according to NFL game that broke against the casino. These are usually game won by the preferred because the general public has a tendency to put more money behind stronger opponents. This third and the third quarter contain the bulk of the NFL period, which draws the most bets—and the most volatility—among the big U. S. teams.
” NFL outcomes were quite customer-friendly early in the third third”, Robins wrote. ” Customer-friendly sport outcomes resulted in headwinds of$ 250 million and$ 175 million to our fiscal year 2024 revenue and adjusted EBITDA guidance, respectively”.
The company’s monthly average users for the quarter were 3.6 million, up 57 % from 2023 ( 2.3 million ) and more than double the number from 2022 ( 1.6 million ). The average revenue per monthly user fell to$ 103, down 10 % from 2023 ($ 114 ) and up 3 % from 2022 ($ 100 ).
The company’s advertising spend also jumped slightly for the second straight third. Sales and marketing costs in the third quarter were$ 340 million, up about 9 % from the same quarter last year ($ 313.3 million ). Investors pay close attention to those prices because they significantly influence how much money it costs to get new customers.
In his letter, Robins claimed that DraftKings ‘ expectations for promotions for the rest of the fiscal year decreased by “nearly 20 %” in the quarter and that it is improving its results.
” We have made significant progress in identifying customers with lower life values, especially in high income states,” he said, and are raising our expectations for promotions accordingly for the majority of fiscal time 2024. As we strike a balance between growth and profitability, we are also continuing to promote cost performance throughout the company. Our fiscal year 2024 Adjusted EBITDA increased by$ 55 million as a result of promotions optimization and cost effectiveness efforts.
Just a few weeks after DraftKings won at the polls, the statistics are released. Missouri voters just voted to support a ballot initiative that would allow sports betting in the position through a constitutional amendment. Missouri was the fourth-most popular status without lawful sports betting, and DraftKings and FanDuel spent a combined$ 41 million on the plan to help the measure’s moving.

One of the two largest online casinos in the country, DraftKings stock is up about 12 % this year, but down about 20 % from its high in late March.