DraftKings (DKNG) Tops Q2 EPS by 23c

DraftKings (NASDAQ: DKNG) reported Q2 EPS of $0.22, $0.23 better than the analyst estimate of ($0.01). Revenue for the quarter came in at $1.1 billion versus the consensus estimate of $1.11 billion.

GUIDANCE:

DraftKings sees 2024 revenue of $5.05-5.25 billion, versus the consensus of $5 billion.

Fiscal Year 2024 and 2025 Guidance

• DraftKings is raising its fiscal year 2024 revenue guidance to a range of $5.05 billion to $5.25 billion from the range of $4.80 billion to $5.00 billion, which the Company previously announced on May 2, 2024. The Company’s updated 2024 revenue guidance range equates to year-over-year growth of 38% to 43%.
  
• DraftKings is revising its fiscal year 2024 Adjusted EBITDA guidance. The Company now expects fiscal year 2024 Adjusted EBITDA of between $340 million and $420 million compared to its prior fiscal year 2024 Adjusted EBITDA guidance of between $460 million and $540 million, which the Company previously announced on May 2, 2024.
  
• DraftKings continues to expect fiscal year 2025 Adjusted EBITDA to be in the range of $900 million to $1.0 billion, consistent with the guidance range provided at the Company’s Investor Day on November 14, 2023. The Company’s fiscal year 2025 Adjusted EBITDA guidance excludes the impact of the planned gaming tax surcharge.
  
• The Company’s guidance for fiscal years 2024 and 2025 includes all of its existing jurisdictions as well as mobile sports betting in Washington, D.C.
  
• DraftKings’ revenue and Adjusted EBITDA guidance for fiscal years 2024 and 2025 includes the impact of the Company’s acquisition of Jackpocket Inc.
  

$1.0 Billion Stock Repurchase Authorization

• On July 30, 2024, DraftKings’ Board of Directors authorized the repurchase of an aggregate of up to $1.0 billion of the Company’s Class A common stock. DraftKings may make repurchases of its Class A common stock through open market purchases, privately negotiated transactions or other transactions in accordance with applicable securities laws, subject to market conditions and other factors. The Company’s repurchase program does not require it to acquire any specific number or amount of Class A common stock and may be terminated at any time.

For earnings history and earnings-related data on DraftKings (DKNG) click here.

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