DraftKings has posted its financial report for FY2024, revealing a 30.1% year-on-year increase in total revenue to $4.8 billion while simultaneously reducing its net loss from $802.3 million in 2023 to $507.3 million, a reduction of $295 million.
One of the major milestones for the company was its first-ever positive EBITDA, which reached $181.3 million for 2024, compared to the adjusted EBITDA loss of $151 million in 2023.
With this positive trend in mind, the company’s operational losses clocked at $609 million, a figure that drastically improved by more than $180 million when compared to 2023.
DraftKings’ cost of revenue also increased by more than $650 million as a result of higher expenditures on general administrative expenses, product and technology, and sales and marketing. The company still managed to offset the rising costs due to its strong revenue.
When it comes to the Q4 results, DraftKings reported an increase of 13.2% in revenue to $1.4 billion. Net loss for Q4, however, also increased by 202.2% to $139.2 million, something that was mainly attributed to declining interest income and operational expenses.
DraftKings’ cost revenue in Q4 increased by $118 million, while marketing and sales expenses also increased by more than $77 million. From here, adjusted EBITDA for Q4 decreased to $89.5 million, which is down by 40%.
When compared to Q3, DraftKings revenue had increased by 39% to $1.1 billion, which was the company’s third consecutive quarter where it recorded revenue that exceeded $1 billion. Yet, despite surpassing the $1 billion revenue mark in Q3, the company’s net loss for the quarter increased by $12 million to $298.6 million.
DraftKings also reported growing expenses where the cost of revenue increased by almost $200 million, product and technology costs by 16% or $103.6 million, and general and administrative costs spiked 59.2% to $208.1 million.
Despite the ever-growing expenses, which definitely put a dent in the profitability, DraftKings recorded a 55% increase in monthly unique players, and this can mainly be attributed to the company acquiring the digital lottery app Jackpocket.
