DraftKings CEO and co-founder Jason Robins said customer-friendly sports betting outcomes in March were the only thing stopping the company raising its 2025 financial guidance, as Q1 revenue rose 20 per cent year-on-year.
DraftKings has in fact lowered its 2025 revenue guidance to between $6.2bn and $6.4bn, down from guidance of between $6.3bn and $6.6bn.
The North American land-based and online gaming operator’s revenue hit US$1.4bn in the period, up from $1.18bn in Q1 2024.
It attributed the growth to the impact of the acquisition of digital lottery app Jackpocket last year, as well as healthy customer engagement, efficient acquisition of new customers and higher structural sportsbook hold percentage.
Monthly unique players (MUPs) rose to 4.3 million, up 28 per cent, but the company said that without Jackpocket, MUPs rose by only 11 per cent.
Average revenue per user fell five per cent to $108m, primarily due to lower average revenue per MUP for Jackpocket customers compared to DraftKings-only customers.
“Recent product enhancements are driving outperformance in our core value drivers, and our customer metrics continue to be strong through an evolving macroeconomic environment,” Robins said.
“If not for customer-friendly sport outcomes in March, we would be raising our fiscal year 2025 revenue and adjusted EBITDA guidance.”
The revised 2025 revenue estimations would point to growth of 32 per cent.
DraftKings has also lowered its adjusted EBITDA guidance from between $900m and $1bn to between $800m and $900m.
