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DraftKings | 10-Q: Q3 2024 Earnings Report

SEC ·  Nov 8, 2024 20:05

Summary by Futu AI

DraftKings reported strong Q3 2024 financial results with revenue increasing 39% year-over-year to $1.1 billion, driven by healthy customer engagement and expansion into new jurisdictions. Monthly Unique Payers grew 55% to 3.7 million, though Average Revenue per MUP decreased 10% to $103 due to the Jackpocket acquisition impact. The company posted a net loss of $294 million compared to $283 million in Q3 2023.Cost of revenue rose 37% to $742 million but improved as a percentage of revenue to 67.8% from 68.8% last year, reflecting better Sportsbook hold rates and promotional efficiency. Sales and marketing expenses increased 9% to $340 million, while general and administrative costs jumped 59% to $208 million, partly due to one-time charges including $28 million for discontinuing the Reignmakers product.The company maintained a strong liquidity position with $878 million in cash and equivalents. In July 2024, the Board authorized a $1 billion share repurchase program. DraftKings also secured a new $500 million revolving credit facility in November 2024, replacing its previous $125 million facility, demonstrating continued access to capital markets.
DraftKings reported strong Q3 2024 financial results with revenue increasing 39% year-over-year to $1.1 billion, driven by healthy customer engagement and expansion into new jurisdictions. Monthly Unique Payers grew 55% to 3.7 million, though Average Revenue per MUP decreased 10% to $103 due to the Jackpocket acquisition impact. The company posted a net loss of $294 million compared to $283 million in Q3 2023.Cost of revenue rose 37% to $742 million but improved as a percentage of revenue to 67.8% from 68.8% last year, reflecting better Sportsbook hold rates and promotional efficiency. Sales and marketing expenses increased 9% to $340 million, while general and administrative costs jumped 59% to $208 million, partly due to one-time charges including $28 million for discontinuing the Reignmakers product.The company maintained a strong liquidity position with $878 million in cash and equivalents. In July 2024, the Board authorized a $1 billion share repurchase program. DraftKings also secured a new $500 million revolving credit facility in November 2024, replacing its previous $125 million facility, demonstrating continued access to capital markets.

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