DraftKings (DKNG) hikes 2024 revenue outlook, plans to acquire Jackpot for $750M

DraftKings Inc (NASDAQ: DKNG) released its financial results for the fiscal fourth quarter and raised its guidance for the 2024 year.

Shares fell more than 3% in after-hours trading.

The company reported earnings per share (EPS) of $0.29, topping the consensus estimates of $0.08. Revenue came in at $1.23 billion, slightly below the $1.24 billion projected by analysts.

For its future outlook, DraftKings has updated its revenue forecast for fiscal year 2024, now expecting between $4.65 billion and $4.9 billion, compared to the consensus estimate of $4.69 billion.

This adjustment raises the previous guidance from a range of $4.50 billion to $4.80 billion, announced on November 2, 2023, indicating a projected year-over-year growth of 27% to 34%.

Additionally, DraftKings has increased its adjusted EBITDA expectations for fiscal year 2024 to between $410 million and $510 million, up from the earlier forecast of $350 million to $450 million.

Simultaneously, DraftKings announced it has reached an agreement to acquire Jackpocket in a $750 million cash-and-stock deal.

“DraftKings ended 2023 with excellent performance across customer acquisition, retention and engagement as well as structural sportsbook hold percentage despite the worst stretch of sport outcomes we have seen as a public company in the fourth quarter,” said Jason Robins, DraftKings’ CEO and Co-founder.

By Vahid Karaahmetovic

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