DraftKings Inc. (NASDAQ: DKNG) began Friday trading sharply lower, after it announced results for the second quarter of 2024 and that its Board of Directors authorized the repurchase of an aggregate of up to $1.0 billion of its Class A common stock. The Company also posted a second quarter 2024 business update and an earnings presentation on the Investor Relations section of its website at investors.draftkings.com.
For the three months ended June 30, 2024, DraftKings reported revenue of $1,104 million, an increase of $230 million, or 26%, compared to $875 million during the same period in 2023. The increase in the Company’s second quarter 2024 revenue was driven primarily by continued healthy customer engagement, efficient acquisition of new customers, the expansion of the Company’s Sportsbook product offering into new jurisdictions, higher structural sportsbook hold percentage, and the impact of the acquisition of Jackpocket Inc., which closed on May 22.
“We very efficiently acquired many more new customers than we expected and saw continued healthy existing customer engagement in the second quarter,” said CEO Jason Robins. “We will continue to capitalize on the healthy customer acquisition environment for the rest of 2024 which positions us to achieve $900 million to $1.0 billion of Adjusted EBITDA in 2025. Additionally, we plan to implement a gaming tax surcharge in high tax states that have multiple mobile sports betting operators on January 1, 2025 which could drive Adjusted EBITDA upside on an annual basis.”
DKNG dived $2.36, or 6.6%, to $33.14.
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