BOSTON, Aug. 02, 2024 (GLOBE NEWSWIRE) -- (revised) — DraftKings Inc. (NASDAQ:DKNG) ("DraftKings" or the "Company") today announced results for the second quarter of 2024 and that its Board of Directors authorized the repurchase of an aggregate of up to $1.0 billion of its Class A common stock. The Company also posted a second quarter 2024 business update and an earnings presentation on the Investor Relations section of its website at investors.draftkings.com. This press release corrects the impact of the gain on remeasurement of warrant liabilities under Accounting Standards Codification 260 on U.S. GAAP diluted earnings per share for the quarter ended June 30, 2024. Diluted earnings per share was $0.10 (versus $0.12 reported in the original press release) for the quarter ended June 30, 2024. Adjusted Earnings Per Share of $0.22 for the quarter ended June 30, 2024 remains unchanged. Please refer to the end of this document for a reconciliation of Adjusted Earnings Per Share to its most directly comparable U.S. GAAP financial measure, diluted earnings per share. Second Quarter 2024 HighlightsFor the three months ended June 30, 2024, DraftKings reported revenue of $1,104 million, an increase of $230 million, or 26%, compared to $875 million during the same period in 2023. The increase in the Company's second 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 the impact of the acquisition of Jackpocket Inc. ("Jackpocket"), which closed on May 22, 2024. "We very efficiently acquired many more new customers than we expected and saw continued healthy existing customer engagement in the second quarter," said Jason Robins, DraftKings' Chief Executive Officer and Co-founder.   "We will continue to capitalize on the healthy customer acquisition environment for the rest of 2024 which positions us to achieve $900 million to $1.0 billion of Adjusted EBITDA in 2025. Additionally, we plan to implement a gaming tax surcharge in high tax states that have multiple mobile sports betting operators on January 1, 2025 which could drive Adjusted EBITDA upside on an annual basis." "We are very excited about DraftKings' Free Cash Flow trajectory," said Alan Ellingson, DraftKings' Chief Financial Officer. "In light of that, we are pleased to announce a $1.0 billion inaugural share repurchase authorization, which reflects our confidence in the Company's attractive long-term outlook and healthy balance sheet." Continued Healthy Growth in Customer Retention, Acquisition, and Engagement Monthly Unique Payers ("MUPs") increased to 3.1 million average monthly unique paying customers in the second quarter of 2024, representing an increase of 50% compared to the second quarter of 2023. This increase reflects strong unique player acquisition and retention across DraftKings' Sportsbook and iGaming products, the expansion of its Sportsbook product into new jurisdictions and the impact of the acquisition of Jackpocket. Excluding the impact of the acquisition of Jackpocket, MUPs would have increased by approximately 34% compared to the second quarter of 2023. Average Revenue per MUP ("ARPMUP") was $117 in the second quarter of 2024, representing a 15% decrease compared to the same period in 2023. The decrease was primarily due to lower ARPMUP for Jackpocket customers when compared to customers of DraftKings' existing product offerings prior to the acquisition, customer friendly sport outcomes, and an increase in new customer promotional investment for the Company's Sportsbook and iGaming product offerings as a result of strong customer acquisition. Detailed financial data and other information for the second quarter of 2024 is available in the financial statements set forth below under the caption "Financial Results." Fiscal Year 2024 and 2025 Guidance DraftKings is raising its fiscal year 2024 revenue guidance to a range of $5.05 billion to $5.25 billion from the range of $4.80 billion to $5.00 billion, which the Company previously announced on May 2, 2024. The Company's updated 2024 revenue guidance range equates to year-over-year growth of 38% to 43%. DraftKings is revising its fiscal year 2024 Adjusted EBITDA guidance. The Company now expects fiscal year 2024 Adjusted EBITDA of between $340 million and $420 million compared to its prior fiscal year 2024 Adjusted EBITDA guidance of between $460 million and $540 million, which the Company previously announced on May 2, 2024. DraftKings continues to expect fiscal year 2025 Adjusted EBITDA to be in the range of $900 million to $1.0 billion, consistent with the guidance range provided at the Company's Investor Day on November 14, 2023. The Company's fiscal year 2025 Adjusted EBITDA guidance excludes the impact of the planned gaming tax surcharge. The Company's guidance for fiscal years 2024 and 2025 includes all of its existing jurisdictions as well as mobile sports betting in Washington, D.C. DraftKings' revenue and Adjusted EBITDA guidance for fiscal years 2024 and 2025 includes the impact of the Company's acquisition of Jackpocket Inc. $1.0 Billion Stock Repurchase Authorization On July 30, 2024, DraftKings' Board of Directors authorized the repurchase of an aggregate of up to $1.0 billion of the Company's Class A common stock. DraftKings may make repurchases of its Class A common stock through open market purchases, privately negotiated transactions or other transactions in accordance with applicable securities laws, subject to market conditions and other factors. The Company's repurchase program does not require it to acquire any specific number or amount of Class A common stock and may be terminated at any time. Mobile Sports Betting and iGaming Footprint Following the launch of its Sportsbook product in Washington, D.C. on July 25, 2024, DraftKings is live with mobile sports betting in 25 states and Washington, D.C. which 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, 10 jurisdictions that collectively represent approximately 12% 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, 6 jurisdictions that collectively represent approximately 13% 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 DetailsAs previously announced, DraftKings will host a conference call and audio webcast tomorrow, Friday, August 2, 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 second quarter 2024 business update. The audio webcast will be available on the Company's investor relations website until 11:59 p.m. ET on September 30, 2024. Financial ResultsDraftKings' second 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) ​ June 30, 2024   December 31,2023 ​ (Unaudited)   Assets     ​ Current assets:     ​ Cash and cash equivalents $ 815,880     $ 1,270,503   Restricted cash   12,844       11,700   Cash reserved for users   244,760       341,290   Receivables reserved for users   237,331       301,770   Accounts receivable   65,011       47,539   Prepaid expenses and other current assets   147,007       98,565   Total current assets   1,522,833       2,071,367   Property and equipment, net   57,425       60,695   Intangible assets, net   949,381       690,620   Goodwill   1,456,009       886,373   Operating lease right-of-use assets   89,516       93,985   Equity method investments   11,141       10,280   Deposits and other non-current assets   131,877       131,546   Total assets $ 4,218,182     $ 3,944,866   ​     ​ Liabilities and Stockholders' equity     ​ Current liabilities:     ​ Accounts payable and accrued expenses $ 573,512     $ 639,599   Liabilities to users   720,668       851,898   Operating lease liabilities, current portion   11,482       11,499   Other current liabilities   68,078       46,624   Total current liabilities   1,373,740       1,549,620   Convertible notes, net of issuance costs   1,255,086       1,253,760   Non-current operating lease liabilities   78,162       80,827   Warrant liabilities   25,477       63,568   Long-term income tax liabilities   71,639       72,810   Other long-term liabilities   115,649       83,975   Total liabilities $ 2,919,753     $ 3,104,560   Commitments and contingent liabilities     ​ ​     ​ Stockholders' equity:     ​ Class A common stock, $0.0001 par value; 900,000 shares authorized as of June 30, 2024 and December 31, 2023; 498,740 and 484,598 shares issued and 485,426 and 472,697 outstanding as of June 30, 2024 and December 31, 2023, respectively $ 47     $ 46   Class B common stock, $0.0001 par value; 900,000 shares authorized as of June 30, 2024 and December 31, 2023; 393,014 shares issued and outstanding as of June 30, 2024 and December 31, 2023   39       39   Treasury stock, at cost; 13,314 and 11,901 shares as of June 30, 2024 and December 31, 2023, respectively   (470,094 )     (412,182 ) Additional paid-in capital   7,744,638       7,149,858   Accumulated deficit   (6,012,689 )     (5,933,943 ) Accumulated other comprehensive income   36,488       36,488   Total stockholders' equity $ 1,298,429     $ 840,306   Total liabilities and stockholders' equity $ 4,218,182     $ 3,944,866   DRAFTKINGS INC.CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS(Unaudited)(Amounts in thousands, except per share data)   Three months ended June 30,   Six months ended June 30,     2024       2023       2024       2023   Revenue $ 1,104,441     $ 874,927     $ 2,279,437     $ 1,644,579   Cost of revenue   663,414       510,323       1,373,483       1,032,063   Sales and marketing   215,676       207,487       556,375       596,620   Product and technology   92,655       89,906       181,470       177,994   General and administrative   165,084       136,256       339,335       296,732   Loss from operations   (32,388 )     (69,045 )     (171,226 )     (458,830 ) Other income (expense):             ​ Interest income   14,212       13,411       29,279       25,206   Interest expense   (678 )     (666 )     (1,327 )