DraftKings has released its Q1 2023 results, showing revenue growth of 84, at US$770m from the Q1 2022 figure of $417m.
The digital sports entertainment and gaming company attributed the growth in revenue to “efficient acquisition of new customers, product innovation driving higher hold percentage, decreased promotional intensity in more mature states and continued healthy customer retention.”
As a result, the company has raised its 2023 revenue guidance midpoint to $3.185bn and improved its adjusted EBITDA guidance midpoint to $315m.
"DraftKings’ first quarter performance – 84 per cent year-over-year revenue growth and share gains underpinned by a relentless focus on operational efficiency – demonstrates that this is a company positioned for sustained success,” said Jason Robins, DraftKings’ CEO and co-founder.
“I am confident DraftKings is well-positioned to achieve profitability on an adjusted EBITDA basis in the near-term and deliver long-term value for our shareholders.”
Jason Park, DraftKings’ CFO, added: “Revenue grew at a healthy rate due to core drivers around customer acquisition, retention and monetisation, including decreased promotional intensity and higher structural hold. In addition, our efficiency efforts produced clear results as demonstrated by significant year-over-year increases in gross margin and adjusted EBITDA.”
