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DraftKings Boosts 2024 Projections Following Positive 2023

The company also revised its revenue outlook for 2024, now expecting it to fall between $4.65 billion and $4.90 billion, up from the previously forecasted range of $4.50 billion to $4.80 billion.

DraftKings Boosts 2024 Projections Following Positive 2023
DraftKings Boosts 2024 Projections Following Positive 2023

DraftKings anticipates achieving its first-ever annual positive adjusted EBITDA in 2024, projecting earnings as high as $510 million, an increase from the earlier estimate of $450 million. The company also revised its revenue outlook for 2024, now expecting it to fall between $4.65 billion and $4.90 billion, up from the previously forecasted range of $4.50 billion to $4.80 billion. These updated figures were released alongside DraftKings' preliminary 2023 results and its fourth-quarter performance.

For the calendar year ending December 31, 2023, DraftKings reported a 63% surge in revenue to $3.7 billion. Its operational loss narrowed to $789.2 million from $1.5 billion the previous year, while its adjusted EBITDA loss reduced significantly to $151.0 million from $721.8 million.

The company experienced a 57% increase in the cost of revenue, amounting to $2.3 billion. Meanwhile, spending on sales and marketing remained constant, and general and administrative expenses saw a 20% reduction.

Jason Park, the CFO of DraftKings, highlighted the company's achievements in 2023, noting remarkable revenue growth and significant improvements in operational efficiency. He stated:

"In 2023 we delivered on our commitments to generate outstanding revenue growth and drive significant operating efficiencies,” said Jason Park, DraftKings’ chief financial officer.

“Based on continued strong underlying fundamentals through the first six weeks of 2024 on top of excellent customer acquisition in the fourth quarter, we are raising the midpoint of our fiscal year 2024 revenue guidance range to $4.775 billion from $4.65 billion and the midpoint of our fiscal year 2024 adjusted EBITDA guidance range to $460 million from $400 million. We expect 2024 to mark our first full year of positive adjusted EBITDA, demonstrating clear progress toward the goals we presented at our November 2023 investor day.”

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