DraftKings increases guidance as revenue rises in Q1 2023
DraftKings has recently updated its revenue forecasts as it experienced sizable revenue growth in the first three months of the year.
The operator experienced a revenue increase of over 80% in the period, going from the 417 million dollars earned in 2022’s Q1 to 770 million dollars. However, the company is continuing to lose money, as it recorded an operational loss of just under 390 million dollars in the period. This amounted to a 24% decrease from 2022’s losses of over 515 million dollars.
DraftKings’ adjusted EBITDA losses saw a similar decrease, going from just under 290 million dollars to 221 million dollars lost. Its adjusted losses per share went down as well, by a slightly wider margin of 31%, from 74 cents per share to 51 cents per share.
In light of these statistics, the company has raised its forecasted revenue for the 2023 financial year from the previous range of 2.85 billion – 3.05 billion dollars to 3.135 billion to 3.235 billion dollars. This new guidance range will amount to a revenue growth of up to 44% year-over-year for the firm.
The operator also increased its EBITDA guidance for the year, which is now between 290 million dollars and 340 million dollars lost. In contrast, the firm’s previous expectations indicated higher losses of up to 450 million dollars in the period.
Lastly, apart from the financial figures, the company highlighted a few of its achievements in the quarter, with the most notable one being its expansion in the North American market. The report highlighted that the operator’s sports wagering operations are live in over 20 US states, which accounts for 44% of the country’s total population. DraftKings’ iGaming operations, on the other hand, have been able to reach 11% of the US population and over 40% of Canadians.