DraftKings CEO and co-founder Jason Robins said “highly efficient” customer acquisition in North Carolina and Vermont influenced a 53 per cent year-on-year rise in Q1 revenues to $1.18bn.
The operator was among the cohort that launched in the US states as regulations went live in March and January this year, respectively.
Robins said the North American igaming and sports betting operator is enjoying “healthy revenue growth” and a “scaled fixed cost structure,” positioning the group towards “rapidly improving adjusted EBITDA.”
Indeed, DraftKings has now raised its adjusted EBITDA guidance to between $460m and $540m, up from previous forecasts of between $410m and $510m. The group’s revenue guidance has also been bumped up to between $4.8n an $5bn from a range of $4.65bn to $4.9bn.
Chief financial officer Alan Ellingson said: “We expect adjusted EBITDA flow-through percentage to exceed 50 per cent for fiscal year 2024 as we expand our gross margin and exert discipline on our cost structure, while simultaneously investing in promotions and marketing in accordance with our LTV to CAC targets.”
