Crucially, DraftKings’ performance for the three months ended 31 December pushed its full year revenue past the $1bn mark to $1.3bn, a 101% increase from 2020 and despite lower-than-expected hold in October due to NFL game outcomes.
Five states were contribution profit positive in 2021, and DraftKings now expects to be so across all states where it’s live, including New York and Louisiana, for the fiscal year 2022.
And based on its current trajectory, DraftKings expects to generate positive Adjusted EBITDA in Q4 2023, though said it would have done so in Q4 2022 had it not launched in any new states after 31 December 2021.
However, DraftKings’ net loss climbed to $1.52bn for 2021, up from the $1.2bn for the full year 2020, while its share price is down 18.7%.
“DraftKings’ strong fourth quarter performance exceeded our expectations on the top and bottom line,” said Jason Robins, DraftKings’ Co-founder, CEO and Chairman of the Board.
“Our excellent quarter capped off a year in which five of our states were contribution profit positive, further demonstrating the effectiveness of our new state playbook and supporting our positive view of the industry’s total addressable market (TAM).
“We enter 2022 positioned to grow our market share, further optimise our user experience and continue to strengthen our multi-product suite of offerings.”
Jason Park, DraftKings’ Chief Financial Officer (CFO), added: “Our key performance indicators reflected excellent player retention, acquisition and cross-selling in the quarter, as monthly unique payers increased by 32% and average revenue per monthly unique payer grew by 19%.
“We are increasing the midpoint of our 2022 revenue guidance to $1.93bn given new state launches and strong underlying performance trends.”
Based on its fourth quarter results, DraftKings amended its expectations, now predicting its Adjusted EBITDA loss in 2022 to be between $825m and $925m.
