DraftKings shared that its stock recently jumped as much as 15%. This is after the gaming company reported fourth quarter numbers that included more granular revenue details than recently shared.
DraftKings reported fourth quarter revenue of $1.39 billion for the quarter that ended December 31. According to Yahoo Finance data, this is exactly in line with consensus estimates. Losses per share of $0.28 trailed average estimates of earnings of $0.04.
DraftKings also broke out its gaming revenue for the first time ever. This includes historical quarterly numbers going back to 2022. iGaming revenue was $426 million for the most recent quarter. Showing the potential financial impact of online casino offerings should more states legalize them, that contrasts with $825 million in sportsbook revenue. In spite of being live in only five states that reach 11% of the United States population, iGaming is about half the size of sportsbook business of DraftKings. This is as opposed to 25 legal-sports betting states that reach 49% of the population.
In a letter to shareholders, CEO Jason Robins said that they are hoping to see an acceleration in legislative momentum now that the 2024 elections are behind them. It’s encouraging that lawmakers have already proposed more than a dozen mobile sports betting and iGaming bills in 2025.
In the middle of a historically bad run for sportsbooks in their all-important product: NFL, the fourth quarter came. Favorites, the preferred bet from average bettors, outperformed expectations this year. This typically means lower hold for operators. Robins said in a letter to shareholders that it was the most customer-friendly NFL sport outcomes in over 40 years.
Much of that was likely already factored into the share price. DraftKings previously discussed a similar dynamic when reporting third-quarter earnings. According to Robins, at the time that the results made a 250 million revenue headwind for the 2024 full-year revenue of the company. In January, FanDuel, the other half of the U.S. sports betting duopoly, issued a mid-quarter advisory, lowering its full-year revenue estimates by $370 million due to NFL results.
