DraftKings(DKNG) - 2024 Q4 - Annual Results

Financial Performance - DraftKings reported Q4 2024 revenue of $1,393 million, a 13$1,231 million in Q4 2023[2] - The net loss attributable to common stockholders for Q4 2024 was $134.9 million, compared to a loss of$44.6 million in Q4 2023[14] - Net loss attributable to common shareholders decreased to $507.3 million in 2024 from$802.1 million in 2023, representing a 36.7% improvement[19] - Adjusted EBITDA for the year ended December 31, 2024, was $181.3 million, compared to a loss of$151.0 million in 2023[27] - 2024 marked the first year of positive Adjusted EBITDA for DraftKings, with an Adjusted EBITDA of $89.5 million in Q4 2024[3][16] - Adjusted Earnings Per Share for the year improved to$0.24 in 2024 from a loss of $0.41 in 2023[28] Revenue Guidance - DraftKings raised the midpoint of its fiscal year 2025 revenue guidance to$6.45 billion, up from $6.4 billion, indicating approximately 35$900 million to $1.0 billion[3][10] Customer Metrics - Monthly Unique Payers (MUPs) rose to 4.8 million, a 36$97 in Q4 2024, primarily due to lower ARPMUP for Jackpocket customers[5] Cash Flow and Expenses - Cash flows provided by operating activities increased significantly to $417.8 million in 2024, compared to a cash outflow of$1.8 million in 2023[19] - Total cash and cash equivalents at the end of the period decreased to $1.33 billion in 2024 from$1.62 billion in 2023, a decline of 18%[19] - Stock-based compensation expenses for the year were $381.4 million, slightly down from$398.5 million in 2023[27] - Cash paid for acquisitions in 2024 amounted to $441.5 million, with no comparable figure in 2023[19] - The company reported a net cash outflow from investing activities of$566.6 million in 2024, compared to $90.4 million in 2023[19] Tax and Financial Adjustments - The company recorded a discrete income tax benefit of$87.3 million for the year ended December 31, 2024, due to non-recurring partial releases of the U.S. valuation allowance[28] - DraftKings reported a $12.9 million loss related to changes in fair value of certain financial instruments for 2024[30] - The company incurred$27.8 million in expenses related to the discontinuance of the Reignmakers product offering[30] - DraftKings received $20.9 million related to gaming tax refunds from audits and appeals for prior periods[30] Market Presence and Operations - DraftKings is live with mobile sports betting in 25 states, covering approximately 49% of the U.S. population[10] - The company is also live with iGaming in 5 states, representing about 11% of the U.S. population[10] - The company operates mobile and/or retail sports betting in 28 states and Ontario, Canada[31] - DraftKings' daily fantasy sports product is available in 44 states and certain Canadian provinces[31] - DraftKings is the only U.S.-based vertically integrated sports betting operator[31] - The company owns Jackpocket, the leading digital lottery courier app in the U.S.[31] Strategic Focus and Risks - The company is focused on user growth and engagement, with strategic plans for future operations including launches in new jurisdictions[32] - DraftKings is committed to responsible gaming and promoting educational tools for players[31] - The company faces risks including potential litigation and changes in applicable laws or regulations affecting gaming[33]