DraftKings’ executives joined to share the company’s success in the first quarter of 2024. During an earnings call last week, DraftKings said the company’s revenue jumped over 50% year-over-year.
Sports betting in Indiana certainly significantly impacted the company’s first-quarter revenue growth.
More than 35% of Indiana sports betting was through DraftKings Sportsbook in the first three months of 2024.
DraftKings Points to 5 Reasons for 1Q Success
DraftKings finished the first quarter of 2024 with just under $1.18 billion in revenue. That was a $405 million improvement compared to 2023, when $770 million was generated in the first quarter. That equates to a 53% YoY growth.
DraftKings’ executives outlined five reasons for the sizable jump in revenue.
- Continued healthy customer engagement
- Efficient acquisition of new customers
- Expansion of DraftKings Sportsbook into new markets
- Higher structural hold percentage
- Improved promotional reinvestment for sportsbook and iGaming
DraftKings co-founder and CEO Jason Robins said the company launched operations in two states during the first quarter of 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. We successfully launched our online sportsbook in Vermont and North Carolina with highly efficient customer acquisition.”
Indiana Generates 4% of DraftKings’ Total Revenue in Q1
DraftKings operates both retail and mobile sportsbooks in the Hoosier State.
In the first quarter, DraftKings’ total sports betting handle in Indiana was $521.4 million. Its adjusted gross revenue was $46.8 million, just under 4% of the first quarter revenue for DraftKings.
Those figures are sizable, considering Indiana is not even close to the largest sports betting market in the country.
DraftKings Indiana handled 37.5% of all sports wagers in Indiana in the first quarter of 2024 and generated 35.8% of the statewide adjusted gross revenue.
DraftKings Raises its Projections for 2024
Because of the jump in revenue in the first three months of 2024, DraftKings has adjusted its projections for the rest of the year, DraftKings CFO Alan Ellingson said.
“We are raising the midpoint of our fiscal year 2024 revenue guidance to $4.9 billion from $4.775 billion and the midpoint of our adjusted EBITDA guidance to $500 million from $460 million as a result of our excellent first quarter results and improved outlook on customer acquisition and engagement for the rest of 2024.”
Robins outlined DraftKings’ priorities for the remainder of the year.
“Looking ahead, we remain committed to maximizing shareholder value through continued innovation, operational excellence and disciplined capital allocation.”
