DraftKings (DKNG) Q4 Revenue Tops Consensus, Lifts FY22 Revenue Guidance
DraftKings (NASDAQ: DKNG) reported Q4 revenue of $473 million versus the consensus estimate of $445.3 million.
GUIDANCE:
DraftKings sees FY2022 revenue of $1.85-2.00 billion, versus the consensus of $1.9 billion.
- DraftKings is raising its fiscal year 2022 revenue guidance from a range of $1.7 billion to $1.9 billion to a range of $1.85 billion to $2.0 billion which equates to year-over-year growth of 43% to 54% and a 7% increase compared to the midpoint of our previous revenue guidance.
- DraftKings is also introducing fiscal year 2022 Adjusted EBITDA guidance. The Company expects its Adjusted EBITDA loss in 2022 to be between $825 million and $925 million.
- DraftKings’ 2022 revenue and Adjusted EBITDA guidance reflects the launch of mobile sports betting in New York and Louisiana in January of 2022 and our demonstrated ability to engage users and acquire customers efficiently. The guidance does not include the impact of any new state launches after February 18th, 2022.
- DraftKings expects to be Contribution Profit positive for fiscal year 2022 across all states where we are currently live including New York and Louisiana.
- In addition, assuming we had not launched any additional states after December 31, 2021, we expect that we would have generated positive Adjusted EBITDA in the fourth quarter of 2022.
- Based on all of the states where DraftKings is currently live and if legalization trends remain consistent with prior years (which has been approximately 7% to 9% mobile sports betting legalization per year and 3% to 4% iGaming legalization per year), the Company would expect to generate positive Adjusted EBITDA in the fourth quarter of 2023.
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