DraftKings Inc. announced its fourth quarter and fiscal year 2022 financial results, ending ended Dec. 31, 2022. The company reported an 81% revenue increase for Q4 2022.
Jason Robins, DraftKings’ Chief Executive Officer and Co-founder said: “I am very pleased with how we concluded 2022, with continued top-line growth and strong focus on expense management.”
The company’s net loss was $242.7 million, partly due to its new US gambling market launches in Maryland and Ohio.
DraftKings US gambling in Q4 2022 highlights
The sportsbook giant reported fourth-quarter revenue of $855 million. That’s an increase of 81% compared to $473 million during the same period in 2021.
As Robins explained: “In the fourth quarter, we grew revenue by 81% versus last year and delivered positive Adjusted EBITDA in October and for the quarter when adjusting for our launch costs in Maryland and Ohio.”
As DraftKings reported, it is all thanks to:
- Customer retention and monetization in existing states
- Successful launches of its sportsbook and online gambling products in additional jurisdictions
- Structural sportsbook holds improvement
Revenue and Adjusted EBITDA for the last three months of 2022 both outperformed the company’s Q3 2022 results.
Robins went on to add: “Moving into 2023, we will continue to drive revenue growth and focus on expense management to accelerate our Adjusted EBITDA growth. We have already taken several actions that resulted in an increase to our revenue guidance and significant improvement in our Adjusted EBITDA guidance.”
DraftKings improves 2023 Adjusted EBITDA guidance midpoint to $400M
DraftKings raised the 2023 revenue guidance midpoint to $2.95 billion. As Jason Park, DraftKings’ Chief Financial Officer, commented:
“We are increasing the midpoint of our fiscal year 2023 revenue guidance to $2.95 billion from $2.9 billion and improving the midpoint of our fiscal year 2023 Adjusted EBITDA guidance from ($525) million to ($400) million.
Our fiscal year 2023 Adjusted EBITDA guidance reflects a meaningful slowdown in the growth rate of our fixed costs as we continue to capture efficiency opportunities and optimize our organizational productivity.”
In addition, DraftKings’ net loss improved. The US gambling company reported a $242.7m decline for 2022’s last quarter compared to $326.3m in Q4 2021.
For the entire of 2022, the company’s net loss stood at $1.37 billion. It is a significant improvement in comparison to 2021’s net loss of $1.52 billion.
The company’s net cash flow rose to $625.5m, compared to last year’s $419.5m.