DraftKings has published its financials for the third quarter of 2023, hinting at a more optimistic manner in which it could conclude the fourth and final quarter of the year. Q3 revenue is up to $790 million. This is an increase of 57%, or $288 million. Revenue for Q3 ‘22 was $502 million.
Community participation has been attributed to the success of the endeavor or the revenue growth. Furthermore, DraftKings expanded its sportsbook into new jurisdictions and oversaw the acquisition of new participants.
Making that evident is the fact that the MUPs, an acronym for Monthly Unique Players, jumped to 2.3 million for a 40% increase against the number of the same quarter for the last year. A higher MUP reflects the capability of DraftKings, not just to have new players and retain the existing ones.
Average revenue per MUP is an increase of 14%, touching the milestone of $114. Most of it comes in the backdrop of improved promotional reinvestment for iGaming and Sportsbook. DraftKings was simultaneously able to increase the structural sportsbook hold rate.
Based on the comprehensive financial information provided in the official announcement, it is evident that the Loss from Operations has decreased from $455,028 in the third quarter of 2022 to $286,586. The anticipated adjusted EBITDA is $153,414; the adjusted loss per share is $0.35. The respective figures have decreased from $264,211 to $0.62.
The press release by DraftKings highlights the introduction of revenue guidance of $4.80 billion. This is for the fiscal year 2024, showcasing a YoY growth of 25%. The 2024 adjusted EBITDA guidance is now in the range of $350 million to $450 million.
Jason Robins, the Chief Executive Officer and Co-Founder of DraftKings, has called the third quarter fantastic, adding that it demonstrates a positive impact of their technology and product. Jason has further expressed confidence in generating nearly $200 million positive EBITDA in the fourth quarter of 2023.
According to the betting news, Jason Park, the Chief Financial Officer of DraftKings, has said that the brand will continue to acquire customers through engagement and improvements in its sportsbook structure. Jason, too, is confident that the brand is poised for a rapid increase in adjusted EBITDA, backed by strong growth in revenue.
Moving forward, DraftKings is looking to bag a better performance, having launched its sportsbook in Kentucky on September 28, 2023. Its mobile sports betting service is live in 22 states, covering almost 45% of the total US population. A sportsbook product is expected to go live in Maine. This comes after DraftKings reached an agreement with the Passamaquoddy Tribe.
The digital sports entertainment and gaming company was launched in 2012 and has now adopted the mission of bringing excitement to the lives of its community of gamers and other customers.