A noteworthy achievement is scheduled for the second quarter of 2024, according to DraftKings. The business declared a net income of $63.8 million for the first time. In comparison, a net loss of $77.3 million was incurred over the same time in the previous year. DraftKings nevertheless had an operational loss of $32.4 million for the second quarter of 2024 despite this accomplishment, suggesting space for improvement.
The DraftKings Board of Directors has approved a significant stock repurchase program in addition to these financial accomplishments. Up to $1 billion worth of the business’s Class A common shares will be repurchased. The company’s confidence in its continued success and expansion is evident in this action.
Revenue Surge and Strategic Expansion
DraftKings reported impressive revenue figures for Q2 2024, reaching $1.1 billion. This represents a 26% increase from the previous year. The revenue boost is attributed to several factors, including the acquisition of new customers, expansion into new markets, and the impact of the Jackpocket Inc. acquisition, finalized in May 2024.
“We very efficiently acquired many more new customers than we expected and saw continued healthy existing customer engagement in the second quarter,” said DraftKings Co-Founder and CEO Jason Robins. Looking ahead, Robins emphasized the company’s strategy to leverage a favorable customer acquisition environment throughout 2024. This positions DraftKings to target adjusted EBITDA between $900 million and $1 billion for 2025.
DraftKings has also adjusted its revenue guidance for the fiscal year 2024. The company now anticipates revenue in the range of $5.05 billion to $5.25 billion, up from the earlier forecast of $4.8 billion to $5 billion. This new guidance reflects a year-over-year growth of 38% to 43%.
The company’s adjusted EBITDA for Q2 2024 climbed to nearly $128 million, up from $73 million in Q2 2023. Despite raising its revenue expectations, DraftKings has revised its adjusted EBITDA forecast for the full fiscal year. The updated projection is between $340 million and $420 million, compared to the prior range of $460 million to $540 million.
The post DraftKings Reports Record Quarter and Announces Major Stock Buyback appeared first on iGaming.org.