BOSTON, May 02, 2024 (GLOBE NEWSWIRE) -- DraftKings Inc. (NASDAQ:DKNG) ("DraftKings" or the "Company") today announced its first quarter 2024 financial results. The Company also posted a first quarter 2024 business update and an earnings presentation on the Investor Relations section of its website at investors.draftkings.com. First Quarter 2024 Highlights For the three months ended March 31, 2024, DraftKings reported revenue of $1,175 million, an increase of $405 million, or 53%, compared to $770 million during the same period in 2023. The increase in the Company's first quarter 2024 revenue was driven primarily by continued healthy customer engagement, efficient acquisition of new customers, the expansion of the Company's Sportsbook product offering into new jurisdictions, higher structural sportsbook hold percentage, and improved promotional reinvestment for Sportsbook and iGaming. "DraftKings' performance in the first quarter of 2024 was outstanding, reflecting healthy revenue growth and a scaled fixed cost structure that positions us to drive rapidly improving Adjusted EBITDA," said Jason Robins, DraftKings' Chief Executive Officer and Co-founder. "We successfully launched our online sportsbook in Vermont and North Carolina with highly efficient customer acquisition. Looking ahead, we remain committed to maximizing shareholder value through continued innovation, operational excellence and disciplined capital allocation." "We are raising the midpoint of our fiscal year 2024 revenue guidance to $4.9 billion from $4.775 billion and the midpoint of our Adjusted EBITDA guidance to $500 million from $460 million as a result of our excellent first quarter results and improved outlook on customer acquisition and engagement for the rest of 2024," said Alan Ellingson, DraftKings' Chief Financial Officer. "We expect Adjusted EBITDA Flow-through Percentage to exceed 50% for fiscal year 2024 as we expand our gross margin and exert discipline on our cost structure, while simultaneously investing in promotions and marketing in accordance with our LTV to CAC targets." Continued Healthy Growth in Customer Retention, Acquisition, and Engagement Monthly Unique Payers ("MUPs") increased to 3.4 million average monthly unique paying customers in the first quarter of 2024, representing an increase of 23% compared to the first quarter of 2023. This increase reflects strong unique player acquisition and retention across DraftKings' Sportsbook and iGaming products as well as the expansion of its Sportsbook product into new jurisdictions. Average Revenue per MUP ("ARPMUP") was $114 in the first quarter of 2024, representing a 25% increase compared to the same period in 2023. This increase was primarily due to an increase in the Company's structural sportsbook hold percentage and improved promotional reinvestment for Sportsbook and iGaming. Detailed financial data and other information for the first quarter of 2024 is available in the financial statements set forth below under the caption "Financial Results." Raising Fiscal Year 2024 Revenue and Adjusted EBITDA Guidance DraftKings is raising its fiscal year 2024 revenue guidance to a range of $4.8 billion to $5.0 billion from the range of $4.65 billion to $4.90 billion, which the Company previously announced on February 15, 2024. The Company's updated 2024 revenue guidance range equates to year-over-year growth of 31% to 36%. DraftKings is also increasing its fiscal year 2024 Adjusted EBITDA guidance. The Company now expects fiscal year 2024 Adjusted EBITDA of between $460 million and $540 million compared to its prior fiscal year 2024 Adjusted EBITDA guidance of between $410 million and $510 million, which the Company previously announced on February 15, 2024. The Company's revenue and Adjusted EBITDA guidance for fiscal year 2024 includes only its existing jurisdictions. DraftKings' revenue and Adjusted EBITDA guidance for fiscal year 2024 excludes the estimated impact of the Company's proposed acquisition of Jackpocket, which DraftKings will incorporate into its guidance following the consummation of the proposed acquisition. Mobile Sports Betting and iGaming Footprint Following the launch of its Sportsbook product in North Carolina on March 11, 2024, DraftKings is live with mobile sports betting in 25 states that collectively represent approximately 49% of the U.S. population. DraftKings is also live with iGaming in 5 states, representing approximately 11% of the U.S. population. DraftKings is live with its Sportsbook and iGaming products in Ontario, Canada, which represents approximately 40% of Canada's population. DraftKings expects to launch its Sportsbook product in Puerto Rico pending market access, licensure, regulatory approvals, and contractual approvals where applicable. To date in 2024, 9 jurisdictions that collectively represent approximately 11% of the U.S. population have either introduced legislation to legalize mobile sports betting or introduced a bill that may result in a mobile sports betting referendum during an upcoming election. In addition, 5 jurisdictions that collectively represent approximately 12% of the U.S. population have either introduced legislation to legalize iGaming or introduced a bill that may result in an iGaming referendum during an upcoming election. Webcast and Conference Call Details As previously announced, DraftKings will host a conference call and audio webcast tomorrow, Friday, May 3, 2024, at 8:30 a.m. ET, during which management will discuss the Company's results for the quarter and provide commentary on business performance. A question-and-answer session will follow the prepared remarks. To listen to the audio webcast and live question and answer session, please visit DraftKings' investor relations website at investors.draftkings.com. A live audio webcast of the earnings conference call will be available on the Company's website at investors.draftkings.com, along with a copy of this press release, the Company's Quarterly Report on Form 10-Q, a slide presentation and a first quarter 2024 business update. The audio webcast will be available on the Company's investor relations website until 11:59 p.m. ET on June 30, 2024. Financial Results DraftKings' first quarter 2024 financial results, as well as the financial results for the respective comparative periods, are presented below:   DRAFTKINGS INC. CONDENSED CONSOLIDATED BALANCE SHEETS (Amounts in thousands, except par value)   ​   March 31, 2024   ​ ​   (Unaudited)   December 31, 2023 Assets       ​ Current assets:       ​ Cash and cash equivalents   $ 1,192,662     $ 1,270,503   Restricted cash     12,454       11,700   Cash reserved for users     278,141       341,290   Receivables reserved for users     265,961       301,770   Accounts receivable     53,321       47,539   Prepaid expenses and other current assets     135,434       98,565   Total current assets     1,937,973       2,071,367   Property and equipment, net     59,797       60,695   Intangible assets, net     682,350       690,620   Goodwill     886,373       886,373   Operating lease right-of-use assets     90,554       93,985   Equity method investments     11,380       10,280   Deposits and other non-current assets     132,226       131,546   Total assets   $ 3,800,653     $ 3,944,866   ​   ​   ​ Liabilities and Stockholders' equity   ​   ​ Current liabilities:   ​   ​ Accounts payable and accrued expenses   $ 605,880     $ 639,599   Liabilities to users     770,535       851,898   Operating lease liabilities, current portion     11,274       11,499   Other current liabilities     53,921       46,624   Total current liabilities     1,441,610       1,549,620   Convertible notes, net of issuance costs     1,254,408       1,253,760   Non-current operating lease liabilities     78,930       80,827   Warrant liabilities     35,485       63,568   Long-term income tax liability     71,283       72,810   Other long-term liabilities     87,958       83,975   Total liabilities   $ 2,969,674     $ 3,104,560   Commitments and contingent liabilities (Note 11)         ​   ​   ​ Stockholders' equity:   ​   ​ Class A common stock, $0.0001 par value; 900,000 shares authorized as of March 31, 2024 and December 31, 2023; 488,750 and 484,598 shares issued and 476,067 and 472,697 outstanding as of March 31, 2024 and December 31, 2023, respectively   $ 46     $ 46   Class B common stock, $0.0001 par value; 900,000 shares authorized as of March 31, 2024 and December 31, 2023; 393,014 shares issued and outstanding as of March 31, 2024 and December 31, 2023     39       39   Treasury stock, at cost; 12,683 and 11,901 shares as of March 31, 2024 and December 31, 2023, respectively     (445,681 )     (412,182 ) Additional paid-in capital     7,316,598       7,149,858   Accumulated deficit     (6,076,511 )     (5,933,943 ) Accumulated other comprehensive income     36,488       36,488   Total stockholders' equity   $ 830,979     $ 840,306   Total liabilities and stockholders' equity   $ 3,800,653     $ 3,944,866   DRAFTKINGS INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) (Amounts in thousands, except loss per share data)   ​   Three months ended March 31, ​     2024       2023   Revenue   $ 1,174,996     $ 769,652   Cost of revenue     710,069