DraftKings Inc (NAS:DKNG)
$ 33.79 -0.39 (-1.14%) Market Cap: 16.89 Bil Enterprise Value: 17.44 Bil PE Ratio: 0 PB Ratio: 16.36 GF Score: 83/100
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Q4 2024 Draftkings Inc Earnings Call Transcript

Feb 14, 2025 / 01:30PM GMT
Release Date Price: $53.49 (+15.16%)

Key Points

Positve
  • DraftKings Inc (DKNG) reported a 30% year-over-year revenue increase to $4.8 billion for 2024.
  • The company achieved positive free cash flow for the first time in its history.
  • DraftKings Inc (DKNG) acquired 3.5 million new customers at record low acquisition costs, increasing its total customer base by 42% year-over-year to 10.1 million.
  • Adjusted EBITDA improved by $332 million year-over-year to $181 million.
  • DraftKings Inc (DKNG) is optimistic about future growth due to increasing structural sportsbook hold percentages and potential online gaming legalization in the US.
Negative
  • There was a slowdown in handle growth across the industry in the fourth quarter of 2024.
  • DraftKings Inc (DKNG) faces challenges in promotional intensity, which may impact net revenue margins.
  • The company is cautious about raising guidance too early in the year despite strong early 2025 performance.
  • DraftKings Inc (DKNG) is navigating regulatory challenges and uncertainties in new market expansions and tax implications.
  • The company is still working on improving its live betting product and integrating acquisitions to enhance its offerings.
Operator

Good day, and thank you for standing by. Welcome to DraftKings fourth quarter 2024 Earnings Call. (Operator Instructions) Please be advised that today's conference is being recorded. I would now like to hand the conference over to Alan Ellingson, DraftKings' Chief Financial Officer. Please go ahead.

Alan Ellingson
Draftkings Inc - Chief Financial Officer, Principal Financial Officer, Chief Accounting Officer

Good morning, everyone, and thank you for joining us today. Certain statements we make during this call may constitute forward-looking statements that are subject to risks, uncertainties and other factors, as discussed further in our SEC filings that could cause our actual results to differ materially from our historical results or from our forecast.

We assume no responsibility to update forward-looking statements, other than as required by law. During this call, management will also discuss certain non-GAAP financial measures that we believe may be useful in evaluating DraftKings' operating performance. These measures should not be considered in

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