DraftKings Inc. reported significant financial growth in its latest 10-K filing, with total revenue reaching $4.77 billion for the fiscal year ending December 31, 2024, a 30.1% increase from $3.67 billion in 2023. The company's net loss improved to $507.3 million, down from $802.1 million the previous year, reflecting a continued trend of narrowing losses. Adjusted EBITDA turned positive at $181.3 million, compared to a loss of $151.0 million in 2023, indicating a shift towards profitability driven by strong performance in its Sportsbook and iGaming segments.
The increase in revenue was primarily attributed to a 32.7% rise in Sportsbook and iGaming revenues, which totaled $4.41 billion, bolstered by a 39.3% increase in average monthly unique payers (MUPs) to 3.7 million. This growth was further supported by the expansion of DraftKings' Sportsbook offerings into new jurisdictions, including Ohio, Massachusetts, Kentucky, and Maine in 2023, and Vermont, North Carolina, and Washington, D.C. in 2024. The acquisition of Jackpocket Inc. in May 2024 also contributed to the increase in user engagement and revenue.
DraftKings' operational metrics showed a Sportsbook handle of $48.1 billion, up 28.4% from the previous year, with a net revenue margin of 6.0%, reflecting improved promotional reinvestment strategies. The company reported a decrease in average revenue per MUP (ARPMUP) to $106, down from $113 in 2023, primarily due to lower ARPMUP for Jackpocket customers compared to existing offerings. However, excluding Jackpocket's impact, ARPMUP increased by 4.5%, indicating effective monetization strategies.
Strategically, DraftKings has focused on expanding its product offerings and enhancing user acquisition and retention through significant marketing investments. The company has also made substantial investments in technology and product development to improve user experience and operational efficiency. As of December 31, 2024, DraftKings employed over 5,100 individuals across various locations, reflecting its commitment to scaling operations in the competitive online gaming market.
Looking ahead, DraftKings anticipates continued growth driven by the expansion of its product offerings and entry into new jurisdictions. The company aims to achieve profitability on an adjusted EBITDA basis as it capitalizes on increased user engagement and improved operational efficiencies. However, DraftKings acknowledges the inherent risks associated with regulatory changes and market competition, which could impact its growth trajectory and financial performance.
About DraftKings Inc.
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