DraftKings (NASDAQ: DKNG) reported its first-quarter results on Thursday, informing investors of an unforeseen first-quarter earnings per share (EPS) profit while once more raising its 2024 revenue forecast. 

Using non-generally accepted accounting principles (non-GAAP), the sportsbook operator generated three cents per share in the initial quarter of 2024 with revenue totaling $1.18 billion. Analysts anticipated a 11 cent per share loss with revenue reaching $1.174 billion. In line with its usual practice during earnings updates, DraftKings raised its 2024 forecast for the second time this year. 

The gaming firm raised the midpoint of its revenue forecast for this year to $4.9 billion from $4.775 billion, with the revised outlook surpassing the consensus estimate of $4.82 billion. DraftKings, located in Boston, has raised its earnings before interest, taxes, depreciation, and amortization (EBITDA) midpoint projection to $500 million from $460 million, citing a solid beginning to 2024 and expectations for better customer acquisition and engagement throughout the year. 

New CFO Alan Ellingson stated that the operator's EBITDA flow-through margin might surpass 50% this year due to enhancements in gross margins and the effectiveness of cost-control measures. The firm wrapped up the quarter with $1.19 billion in cash and cash equivalents, a decrease from $1.27 billion at the close of 2023. Total liabilities decreased to $2.96 billion from $3.10 billion. 

DraftKings Bringing on Additional Players, Gamblers Wagering More 

In both iGaming and sports betting, DraftKings is attracting more customers. In the first quarter, the number of monthly unique players (MUPs) jumped by 3.4 million, resulting in a 23% increase compared to the previous year. Information suggests that these bettors are placing larger bets as well.

"Average Revenue per MUP (‘ARPMUP’) was $114 in the first quarter of 2024, representing a 25% increase compared to the same period in 2023,” according to a statement issued by the firm. “This increase was primarily due to an increase in the Company’s structural sportsbook hold percentage and improved promotional reinvestment for Sportsbook and iGaming.”

These gains may lead to further increases in DraftKings stock, which has risen 22% since the beginning of the year and 95.3% over the last year, clearly positioning it as one of the top-performing gaming equities during these times. 

Recent statistics show that DraftKings is gaining market share in online sports betting in major states like Michigan and Pennsylvania. The firm also holds one of the most esteemed brands in the sector, and its mobile app ranks high among bettors' preferences thanks to the operator's technological investments. 

DraftKings Regional Overview 

With four months of 2024 completed, unless there are unexpected developments, it seems improbable that any significant states will introduce iGaming or online sports wagering. DraftKings observed that since the beginning of the year, 11 states have proposed sports betting bills, and an additional five have looked into internet casino legislation. Regarding new regional introductions, DraftKings anticipates launching in Puerto Rico sometime this year.

"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,” according to the operator.

The firm provides iGaming services across five states and sports betting in Ontario, Canada.